Company registration number 10710671 (England and Wales)
PIXL EVOLUTION LTD.
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
PIXL EVOLUTION LTD.
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
PIXL EVOLUTION LTD.
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
3,438,446
4,211,244
Current assets
Debtors
5
519,239
1,237,079
Cash at bank and in hand
556,368
276,385
1,075,607
1,513,464
Creditors: amounts falling due within one year
6
(1,193,443)
(1,436,155)
Net current (liabilities)/assets
(117,836)
77,309
Total assets less current liabilities
3,320,610
4,288,553
Creditors: amounts falling due after more than one year
7
(3,203,672)
(3,827,242)
Net assets
116,938
461,311
Capital and reserves
Called up share capital
8
135,001
125,001
Share premium account
2,165,000
1,175,000
Profit and loss reserves
(2,183,063)
(838,690)
Total equity
116,938
461,311

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 15 April 2024 and are signed on its behalf by:
Mr A J Taylor
Director
Company registration number 10710671 (England and Wales)
PIXL EVOLUTION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

Pixl Evolution Ltd. is a private company limited by shares incorporated in England and Wales. The registered office is The Walbrook Building, 25 Walbrook, London, EC4N 8AF.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The company has received confirmation from the parent company, Entertainment Technology Partners (Europe) Limited, that sufficient financial support will be provided for the foreseeable future. After reviewing the current status of operations and taking into consideration the funding available to the company, the directors have a reasonable expectation that the company has access to adequate resources to continue in operational existence for at least 12 months from the date of the approval of the financial statements, and for the foreseeable future. For this reason, the directors have adopted the going concern basis in preparation of the financial statements.true

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Turnover from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Tangible fixed assets

Tangible fixed assets 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:

Leasehold land and buildings
20% straight line
Plant and equipment
25% diminishing balance
PIXL EVOLUTION LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -

Depreciation is charged on assets under construction once the construction is complete.

 

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 credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period 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. Recoverable amount is the higher of fair value less costs to sell and value in use.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

PIXL EVOLUTION LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
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 profit and loss account 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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing 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.

1.10
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 stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

 

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.13
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.

PIXL EVOLUTION LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
2
Judgements and key sources of estimation uncertainty

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was 27 (2022 - 25).

4
Tangible fixed assets
Leasehold land and buildings
Assets under construction
Plant and equipment
Total
£
£
£
£
Cost
At 1 January 2023
27,678
124,543
5,751,858
5,904,079
Additions
-
0
-
0
443,330
443,330
Transfers
-
0
(124,543)
124,543
-
0
At 31 December 2023
27,678
-
0
6,319,731
6,347,409
Depreciation and impairment
At 1 January 2023
14,320
-
0
1,678,515
1,692,835
Depreciation charged in the year
5,113
-
0
1,211,015
1,216,128
At 31 December 2023
19,433
-
0
2,889,530
2,908,963
Carrying amount
At 31 December 2023
8,245
-
0
3,430,201
3,438,446
At 31 December 2022
13,358
124,543
4,073,343
4,211,244
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
388,778
1,153,196
Other debtors
130,461
83,883
519,239
1,237,079
PIXL EVOLUTION LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
10,381
45,554
Trade creditors
315,866
403,446
Amounts owed to group undertakings
540,597
70,597
Taxation and social security
74,669
182,123
Other creditors
251,930
734,435
1,193,443
1,436,155

Net obligations under hire purchase contracts of £Nil (2022 - £164,874), included within other creditors, were secured by fixed charges on the assets concerned.

 

The bank loan was obtained under the UK Government-backed Bounce Back Loan Scheme ("BBLS"). The loan is subject to interest charges at a fixed rate of 2.5% per annum. The Government has provided a full guarantee over the loan.

7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
15,709
25,795
Amounts owed to group undertakings
3,187,963
3,801,447
3,203,672
3,827,242

The bank loan was obtained under the UK Government-backed Bounce Back Loan Scheme ("BBLS"). The loan is subject to interest charges at a fixed rate of 2.5% per annum. The Government has provided a full guarantee over the loan.

8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of 1p each
13,500,100
12,500,100
135,001
125,001
B Ordinary shares of 1p each
27
27
-
-
E Ordinary shares of 1p each
3
3
-
-
F Ordinary shares of 1p each
3
3
-
-
G Ordinary shares of 1p each
2
2
-
-

Ordinary A and B shares have attached to them full voting, dividend and capital distribution (including on winding up) rights.

 

Ordinary E, F and G shares rank pari passu in all respects other than they shall not entitle the holders to receive notice of, attend or vote at any general meeting, or to vote on a written resolution of the company.

 

During the year the company issued 1,000,000 ordinary shares of 1p each for consideration of £1,000,000, which has been paid through the conversion of the parent company loan balance.

PIXL EVOLUTION LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
9
Operating lease commitments

At the reporting date, the company had total commitments under non-cancellable operating leases over the life of those leases of £174,923 (2022 - £296,929).

10
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Peter Reading FCCA
Statutory Auditor:
Sumer Audit
Date of audit report:
15 April 2024
Sumer Audit is the trading name of Sumer Auditco Limited
11
Parent company

The company is a wholly-owned subsidiary undertaking of Entertainment Technology Partners (Europe) Limited, a company incorporated in England and Wales, which in turn is a wholly-owned subsidiary undertaking of Entertainment Technology Partners LLC, a company incorporated in the USA.

 

The group in which the results of the company are consolidated is that headed by Entertainment Technology Partners LLC. No other group financial statements include the results of the company. The consolidated financial statements of the group can be obtained from 2350 Investors Row, Orlando, FL32837, USA.

 

The ultimate controlling party is Mr L M Goldberg, by virtue of his majority indirect shareholding in the ultimate parent company.

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