Company registration number SC285089 (Scotland)
Ninja Kiwi Europe Limited
Annual report and financial statements
For the year ended 31 December 2023
Ninja Kiwi Europe Limited
Company information
Directors
Maria Redin
Jan Steglich
Arnd Benninghoff
Scott Walker
(Appointed 1 August 2023)
Barry Petrie
(Appointed 1 August 2023)
Company number
SC285089
Registered office
Unit 13
The Vision Building
20 Greenmarket
Dundee
DD1 4QB
Auditor
Hall Morrice LLP
6&7 Queens Terrace
Aberdeen
AB10 1XL
Ninja Kiwi Europe Limited
Contents
Page
Directors' report
1
Directors' responsibilities statement
2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Statement of financial position
7
Statement of changes in equity
8
Notes to the financial statements
9 - 22
Ninja Kiwi Europe Limited
Directors' report
for the year ended 31 December 2023
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of development of online video games.
Results and dividends
The results for the year are set out on page 6.
Dividends totalling £850,000 (2022: £500,000) were paid to the parent company during the year ended 31 December 2023.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Chris Harris
(Resigned 1 August 2023)
Steven Harris
(Resigned 1 August 2023)
Maria Redin
Jan Steglich
Arnd Benninghoff
Scott Walker
(Appointed 1 August 2023)
Barry Petrie
(Appointed 1 August 2023)
Auditor
The auditor Hall Morrice LLP were deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Strategic report
The company has taken the exemption under Section 414B of the Companies Act 2006 from the requirement to prepare a Strategic report for the financial year.
On behalf of the board
Scott Walker
Director
12 September 2024
Ninja Kiwi Europe Limited
Directors' responsibilities statement
for the year ended 31 December 2023
- 2 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Ninja Kiwi Europe Limited
Independent auditor's report
to the Members of Ninja Kiwi Europe Limited
- 3 -
Opinion
We have audited the financial statements of Ninja Kiwi Europe Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including International Financial Reporting Standards.
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
Ninja Kiwi Europe Limited
Independent auditor's report (continued)
to the Members of Ninja Kiwi Europe Limited
- 4 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to take advantage of the small companies exemption from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and assessing the risk of material misstatement due to non-compliance with laws and regulations we have:
Ensured that the engagement team had the appropriate competence, capabilities and skills to identify or recognise non-compliance with laws and regulations;
Identified the laws and regulations applicable to the entity through discussions with directors and management and through our own knowledge of the sector;
Focused on the specific laws and regulations we consider may have a direct effect on the financial statements, including IFRS (and) the Companies Act 2006 and tax compliance regulations;
Focused on the specific laws and regulations we consider may have an indirect effect on the financial statements that are central to the entity’s ability to trade including those relating to GDPR, employment laws and health and safety regulations;
Reviewed the financial statement disclosures and tested to supporting documentation to assess compliance with applicable laws and regulations;
Made enquiries of management and inspected legal correspondence;
Reviewed minutes of meetings of those charged with governance; and
Ensured the engagement team remained alert to instances of non-compliance throughout the audit.
Ninja Kiwi Europe Limited
Independent auditor's report (continued)
to the Members of Ninja Kiwi Europe Limited
- 5 -
In identifying and assessing the risk of material misstatement due to irregularities, including fraud and how it may occur, and the potential for management bias and the override of controls we have:
Obtained an understanding of the entity’s operations, including the nature of its revenue sources and of its objectives and strategies, to understand the classes of transactions, account balances, expected financial disclosures and business risks that may result in risk of material misstatement;
Obtained an understanding of the internal controls in place to mitigate risks of irregularities, including fraud;
Vouched balances and reconciling items in key control account reconciliations to supporting documentation;
Carried out detailed testing, on a sample basis, to verify the completeness, occurrence, existence and accuracy of transactions and balances;
Carried out detailed testing to verify the completeness, validity, existence and accuracy of income including cut-off testing and ensuring income recognition is in line with stated accounting policies;
Made enquiries of management as to where they consider there was a susceptibility to fraud, and their knowledge of any actual, suspected or alleged fraud;
Tested journal entries to identify any unusual transactions;
Performed analytical procedures to identify any significant or unusual transactions;
Investigated the business rationale behind any significant or unusual transactions; and
Evaluated the appropriateness of accounting policies and the reasonableness of accounting estimates.
We did not identify any matters relating to non-compliance with laws and regulations, or relating to fraud.
Because of the inherent limitations of an audit, there is an unavoidable risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk of not detecting a material misstatement due to fraud is inherently more difficult than detecting those that result from error as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. In addition, the further removed any non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Derek Petrie MA (Hons) CA
For and on behalf of Hall Morrice LLP
12 September 2024
Chartered Accountants
Statutory Auditor
Hall Morrice LLP
6&7 Queens Terrace
Aberdeen
AB10 1XL
Ninja Kiwi Europe Limited
Statement of comprehensive income
for the year ended 31 December 2023
- 6 -
2023
2022
Notes
£
£
Revenue
3
3,374,731
3,244,778
Administrative expenses
(3,010,763)
(2,855,909)
Other operating income
2,504
Operating profit
4
366,472
388,869
Investment income
8
466
1,687
Finance costs
9
(5,144)
(4,951)
Profit before taxation
361,794
385,605
Tax on profit
10
258,063
274,328
Profit and total comprehensive income for the financial year
19
619,857
659,933
The income statement has been prepared on the basis that all operations are continuing operations.
Ninja Kiwi Europe Limited
Statement of financial position
As at 31 December 2023
31 December 2023
- 7 -
2023
2022
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
12
119,326
168,909
Current assets
Trade and other receivables
13
753,492
720,427
Cash and cash equivalents
163,617
306,309
917,109
1,026,736
Current liabilities
14
(457,319)
(345,088)
Net current assets
459,790
681,648
Total assets less current liabilities
579,116
850,557
Non-current liabilities
14
(13,719)
(55,017)
Net assets
565,397
795,540
Equity
Called up share capital
18
100
100
Retained earnings
19
565,297
795,440
Total equity
565,397
795,540
The financial statements were approved by the board of directors and authorised for issue on 12 September 2024 and are signed on its behalf by:
Scott Walker
Director
Company registration number SC285089
Ninja Kiwi Europe Limited
Statement of changes in equity
for the year ended 31 December 2023
- 8 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 January 2022
100
635,507
635,607
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
659,933
659,933
Transactions with owners in their capacity as owners:
Dividends
11
-
(500,000)
(500,000)
Balance at 31 December 2022
100
795,440
795,540
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
619,857
619,857
Transactions with owners in their capacity as owners:
Dividends
11
-
(850,000)
(850,000)
Balance at 31 December 2023
100
565,297
565,397
Ninja Kiwi Europe Limited
Notes to the financial statements
For the year ended 31 December 2023
- 9 -
1
Accounting policies
Company information
Ninja Kiwi Europe Limited is a private company limited by shares incorporated in Scotland. The registered office is Unit 13, The Vision Building, 20 Greenmarket, Dundee, DD1 4QB. The company's principal activities and nature of its operations are disclosed in the directors' report.
1.1
Accounting convention
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The principal accounting policies adopted are set out below.
The company has taken advantage of the following disclosure exemptions under FRS 101:
the requirements of IFRS 7 Financial Instruments: Disclosures;
the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement;
the requirement in paragraph 38 of IAS 1 ‘Presentation of Financial Statements’ to present comparative information in respect of: (i) paragraph 79(a) (iv) of IAS 1, (ii) paragraph 73(e) of IAS 16 Property Plant and Equipment (iii) paragraph 118 (e) of IAS 38 Intangibles Assets, (iv) paragraphs 76 and 79(d) of IAS 40 Investment Property and (v) paragraph 50 of IAS 41 Agriculture;
the requirements of paragraphs 10(d), 10(f), 16, 38A to 38D, 39 to 40 ,111 and 134-136 of IAS 1 Presentation of Financial Statements;
the requirements of IAS 7 Statement of Cash Flows;
the requirements of paragraph 17 of IAS 24 Related Party Disclosures;
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member ; and
the requirements of paragraphs 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.
As permitted by FRS 101, the company has taken advantage of the disclosure exemptions available under that standard in relation to share based payments, financial instruments, capital management, presentation of a cash flow statement, presentation of comparative information in respect of certain assets, standards not yet effective, impairment of assets, business combinations, discontinued operations and related party transactions.
Where required, equivalent disclosures are given in the group accounts of Ninja Kiwi Limited. The group accounts of Ninja Kiwi Limited can be obtained as set out in note 20.
1.2
Going concern
The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Ninja Kiwi Europe Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
- 10 -
The company recognises revenue from the following major sources:
Management charges
Royalties
The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:
Management charges
Management charges are in relation to contract services with the parent company. There are no significant payment terms.
Royalties
Royalties are receivable in relation to games developed by the company. There are no significant payment terms.
1.4
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment
33% straight line
Plant and equipment
25% straight line
Right of use assets
7 / 3 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
1.5
Impairment of tangible and intangible assets
At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Ninja Kiwi Europe Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
- 11 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Financial assets at fair value through profit or loss
Financial assets are classified as at FVTPL when the financial asset is held for trading. This is the case if:
the asset has been acquired principally for the purpose of selling in the near term, or
on initial recognition it is part of a portfolio of identified financial instruments that the manages together and has a recent actual pattern of short-term profit taking, or
it is a derivative that is not designated and effective as a hedging instrument.
Financial assets at FVTPL are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any dividend or interest earned on the financial asset. Interest and dividends are included in 'Investment income' and gains and losses on remeasurement included in 'other gains and losses' in the statement of comprehensive income.
Ninja Kiwi Europe Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
- 12 -
Financial assets held at amortised cost
Financial assets with fixed or determinable payments and fixed maturity dates that the Company has the positive intent and ability to hold to maturity are classified as held to maturity investments.
Held to maturity investments are measured at amortised cost using the effective interest method less any impairment, with revenue recognised on an effective yield basis.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Trade Receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Financial assets at fair value through other comprehensive income
Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.
Financial assets classified as available for sale are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income. Where an AFS financial asset is disposed of or determined to be impaired, the cumulative gain or loss previously recognised in other comprehensive income is reclassified to profit or loss.
Dividends and interest earned on AFS financial assets are included in the investment income line item in the statement of comprehensive income.
Ninja Kiwi Europe Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
- 13 -
Impairment of financial assets
Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.
The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
Financial assets are impaired where there is objective evidence that, as a result of none or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.8
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Financial liabilities at fair value through profit or loss
Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:
it has been incurred principally for the purpose of repurchasing it in the near term, or
on initial recognition it is part of a portfolio of identified financial instruments that the manages together and has a recent actual pattern of short-term profit taking, or
it is a derivative that is not designated and effective hedging instrument.
Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Ninja Kiwi Europe Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
- 14 -
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event and it is probable that the company will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Ninja Kiwi Europe Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
- 15 -
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property. Right-of-use assets are measured at cost.
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.16
New standards, amendments, IFRIC interpretations and new relevant disclosure requirements
There are no amendments to accounting standards, or IFRIC interpretations that are effective for the year ended 31 December 2023 that have a material impact on the company’s financial statements.
2
Critical accounting estimates and judgements
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of each asset and note 1.4 for the useful economic lives for each class of asset.
Ninja Kiwi Europe Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 16 -
3
Revenue
2023
2022
£
£
Revenue analysed by class of business
Royalty sales
216
283
Management charge
3,374,515
3,244,495
3,374,731
3,244,778
All sales are made to the parent company Ninja Kiwi Limited, Kumeu, Auckland, New Zealand.
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Exchange losses
280
1,212
Depreciation of property, plant and equipment
92,147
81,737
Operating lease charges
60,395
38,161
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
9,500
8,500
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Staff
42
37
Directors
5
5
Total
47
42
Ninja Kiwi Europe Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
6
Employees (continued)
- 17 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,257,252
2,149,898
Social security costs
251,980
251,139
Pension costs
35,800
80,194
2,545,032
2,481,231
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
58,333
8
Investment income
2023
2022
£
£
Interest income
Other interest income
466
1,687
9
Finance costs
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on other loans
5,144
4,951
Ninja Kiwi Europe Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 18 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(259,695)
(179,248)
Adjustments in respect of prior periods
-
(96,597)
Total UK current tax
(259,695)
(275,845)
Deferred tax
Origination and reversal of temporary differences
1,632
1,517
Total tax (credit)
(258,063)
(274,328)
Changes to the UK corporation tax rates were substantively enacted as part of Finance Bill 2023 (on 10 January 2023). These changes included an increase in the main rate to 25% from April 2023. Deferred taxes at the balance sheet date, in relation to UK companies, are measured using tax rates enacted as at the balance sheet date (25%).
The charge for the year can be reconciled to the profit per the income statement as follows:
2023
2022
£
£
Profit before taxation
361,794
385,605
Expected tax charge based on a corporation tax rate of 25% (2022: 25%)
90,449
96,401
Effect of expenses not deductible in determining taxable profit
2,850
2,030
Utilisation of tax losses not previously recognised
(36,237)
(29,554)
Adjustment in respect of prior years
(96,597)
Permanent capital allowances in excess of depreciation
(5,497)
(22,142)
Depreciation on assets not qualifying for tax allowances
10,960
8,986
Deferred tax adjustments
1,632
1,517
IFRS16 spreading adjustment
(1,625)
(1,901)
Profit for Battles 2
(36,641)
(54,037)
Profit for SAS: Zombies Assault 5
(25,028)
-
Video games tax credits
(259,695)
(179,247)
Pension contributions adjustment
769
216
Taxation credit for the year
(258,063)
(274,328)
Ninja Kiwi Europe Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 19 -
11
Dividends
2023
2022
2023
2022
Amounts recognised as distributions:
per share
per share
Total
Total
£
£
£
£
Ordinary shares
Final dividend paid
8,500.00
5,000.00
850,000
500,000
12
Property, plant and equipment
Plant and equipment
Fixtures, fittings & equipment
Right of use assets
Total
£
£
£
£
Cost
At 1 January 2023
20,827
346,856
313,029
680,712
Additions
19,861
22,703
42,564
At 31 December 2023
20,827
366,717
335,732
723,276
Accumulated depreciation and impairment
At 1 January 2023
20,827
269,531
221,445
511,803
Charge for the year
43,832
48,315
92,147
At 31 December 2023
20,827
313,363
269,760
603,950
Carrying amount
At 31 December 2023
53,354
65,972
119,326
At 31 December 2022
77,325
91,584
168,909
Property, plant and equipment includes right-of-use assets, as follows:
Right-of-use assets
2023
2022
£
£
Net values at the year end
Property
45,792
91,584
Motor vehicles
20,180
-
65,972
91,584
Total additions in the year
22,703
-
Depreciation charge for the year
Property
45,792
45,792
Motor vehicles
2,523
-
48,315
45,792
Ninja Kiwi Europe Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 20 -
13
Trade and other receivables
2023
2022
£
£
Corporation tax recoverable
438,942
362,941
VAT recoverable
15,902
13,960
Amounts owed by fellow group undertakings
256,239
300,312
Other receivables
1,894
3,231
Prepayments and accrued income
37,935
35,771
750,912
716,215
Deferred tax asset (see note 16)
2,580
4,212
753,492
720,427
Deferred tax assets are expected to be recovered within one year.
14
Liabilities
Current
Non-current
2023
2022
2023
2022
Notes
£
£
£
£
Trade and other payables
15
319,022
182,228
13,719
55,017
Taxation and social security
138,297
162,860
-
-
457,319
345,088
13,719
55,017
15
Trade and other payables
Current
Non-current
2023
2022
2023
2022
£
£
£
£
Trade payables
17,925
1,390
Accruals and deferred income
217,354
113,877
Other payables
83,743
66,961
13,719
55,017
319,022
182,228
13,719
55,017
Ninja Kiwi Europe Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 21 -
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
Tax losses
£
Asset at 1 January 2022
(5,729)
Deferred tax movements in prior year
Charge/(credit) to profit or loss
1,517
Asset at 1 January 2023
(4,212)
Deferred tax movements in current year
Charge/(credit) to profit or loss
1,632
Asset at 31 December 2023
(2,580)
Deferred tax assets and liabilities are offset in the financial statements only where the company has a legally enforceable right to do so.
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
35,800
80,194
The company contributes to various private pension funds of its employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
The ordinary shares carry a vote and are entitled to any dividend or capital distribution.
19
Retained earnings
This reserve records the accumulated distributable profits made by the company net of distributions to shareholders.
Ninja Kiwi Europe Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 22 -
20
Controlling party
The company was owned 100% by its parent company, Ninja Kiwi Limited, Kumeu, Auckland, New Zealand until 31 May 2021 when Ninja Kiwi Limited was purchased by Modern Times Group MTG AB, Stockholm, Sweden, who became the ultimate parent company.
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