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REGISTERED NUMBER: 11410955 (England and Wales)
















Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2023

for


UNTOLD STUDIOS LIMITED



UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)








Contents of the Consolidated Financial Statements

for the Year Ended 31 December 2023





Page




Company Information  

1




Group Strategic Report  

2




Report of the Directors  

3




Report of the Independent Auditors  

5




Consolidated Income Statement  

9




Consolidated Other Comprehensive Income  

10




Consolidated Balance Sheet  

11




Company Balance Sheet  

12




Consolidated Statement of Changes in Equity  

13




Company Statement of Changes in Equity  

14




Consolidated Cash Flow Statement  

15




Notes to the Consolidated Cash Flow Statement

16




Notes to the Consolidated Financial Statements

17





UNTOLD STUDIOS LIMITED



Company Information

for the Year Ended 31 December 2023









DIRECTORS:

J W Irwin


C S Dorfman


D O'Kelly


N Davies


M B Wolfson


P Joseph


K M Glazer


A A Agyemfra





REGISTERED OFFICE:

White Collar Factory


Old Street Yard


London


EC1Y 8AF





REGISTERED NUMBER:

11410955 (England and Wales)





SENIOR STATUTORY AUDITOR:

Michael Marcus FCA FCCA





AUDITORS:

Primera Accountants Limited


First Floor


Spitalfields House


Stirling Way


Borehamwood


Hertfordshire


WD6 2FX



UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)



Group Strategic Report

for the Year Ended 31 December 2023


The directors present their strategic report of the company and the group for the year ended 31 December 2023.


REVIEW OF BUSINESS

The group is an independent Creative Studio specialising in the origination, production and visual effects on high end moving image content. The group delivers these services through world class artists and staff and unparalleled cloud based technology. The group looks to provide these services on a global basis.


With favourable market conditions during the year for advertising work and film and episodic projects the group grew strongly in 2023, managing the successful navigate the actors and script writers strikes.


The Group achieved a turnover of £40.7m (2022: £25.6m) and gross profit of £11.9m (2022: £5.1m), the turnover grew by over 59%. The profit for the year was £0.4m  (2022: loss £4.5m). Untold continues to invest in people and talent to grow revenue aggressively.  The Headcount of the business increased significantly in the year to 275 (2022: 190)


Untold continues to focus on growing top line revenue in its three verticals, Origination, Production and Visual Effects and in particular will look to further establish and grow its US and Indian operations in 2024.


KPI's


The main KPI's used by the group are:


Turnover £40.7 (2022: £25.6m) and Gross Profit £11.9 (2022: £5.1m).


PRINCIPAL RISKS AND UNCERTAINTIES

Operating within a creative and technology driven industry means the recruitment and retention of talent is vital. The business is also committed to continue to develop its technology to stay ahead of the competition. The main risks that effect the group are failure to win projects and retain the talent to deliver this work. The business uses a number of KPI's to continue to monitor these areas. The business is also exposed to other risks:-


Foreign Currency Risk - The business seeks to create natural hedges in foreign currency inflows and to the extent a material position remains open forward contracts are needed to hedge the exposure.


Liquidity Risk - The business has a number of undrawn credit facilities to provide additional liquidity if it is required.


Interest Rate Risk - Where possible all interest rates risks are hedged or fixed.


Strike Risk - The impact of the 2023 strikes and the restarting of full film and episodic production pipeline makes it hard to predict with certainty the schedule for work in 2024. The moving work schedule continues to make managing resource in this area of the business challenging.


ON BEHALF OF THE BOARD:






M B Wolfson - Director



9 April 2024



UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)



Report of the Directors

for the Year Ended 31 December 2023


The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023.


DIVIDENDS

No dividends will be distributed for the year ended 31 December 2023.


DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.


J W Irwin

C S Dorfman

D O'Kelly

N Davies

M B Wolfson

P Joseph

K M Glazer


Other changes in directors holding office are as follows:


A A Agyemfra - appointed 1 January 2023


STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group 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;

-

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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.



UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)



Report of the Directors

for the Year Ended 31 December 2023



STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.


ON BEHALF OF THE BOARD:






M B Wolfson - Director



9 April 2024


Report of the Independent Auditors to the Members of

Untold Studios Limited


Opinion

We have audited the financial statements of Untold Studios Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's 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.

Basis for opinion

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 Auditors' responsibilities for the audit of the financial statements section of our report.  We are independent of the group 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 group's and the parent 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.


Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.


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.


In connection with our audit of the financial statements, 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 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 the audit:

-

the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.


Report of the Independent Auditors to the Members of

Untold Studios Limited



Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.


We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-

adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-

the parent company financial statements are not in agreement with the accounting records and returns; or

-

certain disclosures of directors' remuneration specified by law are not made; or

-

we have not received all the information and explanations we require for our audit.


Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.


Report of the Independent Auditors to the Members of

Untold Studios Limited



Auditors' 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 a Report of the Auditors 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. We designed procedures capable of detecting non-compliance with laws and regulations and irregularities, including fraud, through:


- Obtaining an understanding of the Group and the Company and its industry through discussions with management, and the application of our cumulative audit knowledge and experience of the industry to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements including tax, pensions, employment, health and safety, data protection and anti-bribery legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.


- Identifying possible risks of material misstatement of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls, whether there was potential for management bias in the reporting of events and transactions in the financial statements relating to revenue recognition.


Our audit procedures were designed to designed to respond to the identified risks relating to non-compliance with laws and regulations and irregularities (including fraud) that are material to the financial statements.

Our audit procedures in relation to non-compliance with laws and regulations included, but were not limited to:

-Discussing with the directors and management their policies and procedures regarding compliance with laws and regulations and reviewing correspondence with regulators and with solicitors; and

- Communicating identified laws and regulations with the audit team and remaining alert to any indications of non-compliance throughout the audit; and

- Considering the risk of non-compliance with laws and regulations; and

- Considering whether the financial statement disclosures fairly represent the underlying transactions.


Our audit procedures in relation to irregularities and fraud included, but were not limited to:

-Making enquiries of directors and management as to where they considered there was susceptibility to fraud, and whether they had knowledge of actual, suspected or alleged fraud; and

- Gaining an understanding of the internal controls established to mitigate risks relating to fraud; and

- Discussing the risk of fraud and management bias with the audit team and remaining alert to any indications of fraud and management bias throughout the audit; and

-Addressing the risk of management override of controls by testing journal entries, considering the rationale behind significant or unusual transactions, and reviewing accounting estimates


There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management.


Because of these inherent limitations, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. This risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.


Report of the Independent Auditors to the Members of

Untold Studios Limited



Use of our 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 a Report of the Auditors 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.





Michael Marcus FCA FCCA (Senior Statutory Auditor)

for and on behalf of Primera Accountants Limited

First Floor

Spitalfields House

Stirling Way

Borehamwood

Hertfordshire

WD6 2FX


9 April 2024



UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)



Consolidated

Income Statement

for the Year Ended 31 December 2023



31.12.23


31.12.22


Notes

£   

£   



REVENUE

40,708,694


25,618,417




Cost of sales

(28,824,856

)

(20,549,415

)


GROSS PROFIT

11,883,838


5,069,002




Administrative expenses

(10,926,784

)

(9,252,801

)


957,054


(4,183,799

)



Other operating income

-


1,011



OPERATING PROFIT/(LOSS)

5

957,054


(4,182,788

)



Interest receivable and similar income

881


23,587



957,935


(4,159,201

)



Interest payable and similar expenses

6

(498,285

)

(410,060

)


PROFIT/(LOSS) BEFORE TAXATION

459,650


(4,569,261

)



Tax on profit/(loss)

7

(12,020

)

-



PROFIT/(LOSS) FOR THE FINANCIAL

YEAR

447,630


(4,569,261

)


Profit/(loss) attributable to:

Owners of the parent

447,630


(4,569,261

)




UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)



Consolidated

Other Comprehensive Income

for the Year Ended 31 December 2023



31.12.23


31.12.22


Notes

£   

£   



PROFIT/(LOSS) FOR THE YEAR

447,630


(4,569,261

)




OTHER COMPREHENSIVE INCOME  


Purchased of own shares

-


(655

)


Income tax relating to other comprehensive

income

-


-



OTHER COMPREHENSIVE INCOME

FOR THE YEAR, NET OF INCOME TAX

-


(655

)


TOTAL COMPREHENSIVE INCOME

FOR THE YEAR

447,630


(4,569,916

)



Total comprehensive income attributable to:

Owners of the parent

447,630


(4,569,916

)




UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)



Consolidated Balance Sheet

31 December 2023



31.12.23


31.12.22


Notes

£   

£   


FIXED ASSETS

Property, plant and equipment

9

323,137


208,743



Investments

10

-


-



323,137


208,743




CURRENT ASSETS

Debtors

11

5,546,535


4,822,569



Cash at bank and in hand

1,157,234


646,310



6,703,769


5,468,879



CREDITORS

Amounts falling due within one year

12

(10,414,206

)

(9,592,310

)


NET CURRENT LIABILITIES

(3,710,437

)

(4,123,431

)


TOTAL ASSETS LESS CURRENT

LIABILITIES

(3,387,300

)

(3,914,688

)



CREDITORS

Amounts falling due after more than one

year

13

(5,178,974

)

(5,099,870

)



PROVISIONS FOR LIABILITIES

16

(90,000

)

(90,000

)


NET LIABILITIES

(8,656,274

)

(9,104,558

)



CAPITAL AND RESERVES

Called up share capital

17

9,017


9,017



Share premium

18

1,291,405


1,291,405



Retained earnings

18

(9,956,696

)

(10,404,980

)


SHAREHOLDERS' FUNDS

(8,656,274

)

(9,104,558

)



The financial statements were approved by the Board of Directors and authorised for issue on 9 April 2024 and were signed on its behalf by:






M B Wolfson - Director




UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)



Company Balance Sheet

31 December 2023



31.12.23


31.12.22


Notes

£   

£   


FIXED ASSETS

Property, plant and equipment

9

177,041


170,695



Investments

10

51,597


51,596



228,638


222,291




CURRENT ASSETS

Debtors

11

7,108,670


5,609,513



Cash at bank

893,309


488,656



8,001,979


6,098,169



CREDITORS

Amounts falling due within one year

12

(10,309,964

)

(8,836,485

)


NET CURRENT LIABILITIES

(2,307,985

)

(2,738,316

)


TOTAL ASSETS LESS CURRENT

LIABILITIES

(2,079,347

)

(2,516,025

)



CREDITORS

Amounts falling due after more than one

year

13

(5,178,974

)

(5,099,870

)



PROVISIONS FOR LIABILITIES

16

(90,000

)

(90,000

)


NET LIABILITIES

(7,348,321

)

(7,705,895

)



CAPITAL AND RESERVES

Called up share capital

17

9,017


9,017



Share premium

18

1,291,405


1,291,405



Retained earnings

18

(8,648,743

)

(9,006,317

)


SHAREHOLDERS' FUNDS

(7,348,321

)

(7,705,895

)



Company's profit/(loss) for the financial year

356,919


(3,463,032

)



The financial statements were approved by the Board of Directors and authorised for issue on 9 April 2024 and were signed on its behalf by:






M B Wolfson - Director




UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)



Consolidated Statement of Changes in Equity

for the Year Ended 31 December 2023



Called up



share


Retained


Share


Total


capital


earnings


premium


equity

£   

£   

£   

£   


Balance at 1 January 2022

9,179


(5,835,064

)

1,291,317


(4,534,568

)



Changes in equity

Issue of share capital

(162

)

-


88


(74

)


Total comprehensive income

-


(4,569,916

)

-


(4,569,916

)


Balance at 31 December 2022

9,017


(10,404,980

)

1,291,405


(9,104,558

)



Changes in equity

Total comprehensive income

-


447,630


-


447,630



Balance at 31 December 2023

9,017


(9,957,350

)

1,291,405


(8,656,928

)




UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)



Company Statement of Changes in Equity

for the Year Ended 31 December 2023



Called up



share


Retained


Share


Total


capital


earnings


premium


equity

£   

£   

£   

£   


Balance at 1 January 2022

9,179


(5,542,630

)

1,291,317


(4,242,134

)



Changes in equity

Issue of share capital

(162

)

-


88


(74

)


Total comprehensive income

-


(3,463,687

)

-


(3,463,687

)


Balance at 31 December 2022

9,017


(9,006,317

)

1,291,405


(7,705,895

)



Changes in equity

Total comprehensive income

-


356,919


-


356,919



Balance at 31 December 2023

9,017


(8,649,398

)

1,291,405


(7,348,976

)




UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)



Consolidated Cash Flow Statement

for the Year Ended 31 December 2023



31.12.23


31.12.22


Notes

£   

£   


Cash flows from operating activities

Cash generated from operations

1

1,233,960


(1,585,041

)


Interest paid

(498,285

)

(410,060

)


Tax paid

(12,020

)

-



Net cash from operating activities

723,655


(1,995,101

)



Cash flows from investing activities

Purchase of tangible fixed assets

(292,716

)

(119,594

)


Interest received

881


-



Net cash from investing activities

(291,835

)

(119,594

)



Cash flows from financing activities

Loan repayments in year

79,104


(221,954

)


Share issue

-


175



Share buyback

-


(655

)


Net cash from financing activities

79,104


(222,434

)



Increase/(decrease) in cash and cash equivalents

510,924


(2,337,129

)


Cash and cash equivalents at beginning of

year

2

646,310


2,983,439




Cash and cash equivalents at end of year

2

1,157,234


646,310





UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)



Notes to the Consolidated Cash Flow Statement

for the Year Ended 31 December 2023


1.

RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM

OPERATIONS


31.12.23


31.12.22

£   

£   



Profit/(loss) before taxation

459,650


(4,569,261

)



Depreciation charges

178,322


133,737




R&D tax credit

-


686,856




Government grants

-


(1,011

)



Finance costs

498,285


410,060




Finance income

(881

)

(23,587

)


1,135,376


(3,363,206

)



Decrease/(increase) in trade and other debtors

723,966


(2,244,222

)



(Decrease)/increase in trade and other creditors

(625,382

)

4,022,387




Cash generated from operations

1,233,960


(1,585,041

)



2.

CASH AND CASH EQUIVALENTS



The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:



Year ended 31 December 2023


31.12.23


1.1.23

£   

£   



Cash and cash equivalents

1,157,234


646,310




Year ended 31 December 2022


31.12.22


1.1.22

£   

£   



Cash and cash equivalents

646,310


2,983,439





3.

ANALYSIS OF CHANGES IN NET DEBT



At 1.1.23

Cash flow

At 31.12.23

£   

£   

£   



Net cash



Cash at bank and in hand

646,310


510,924


1,157,234



646,310


510,924


1,157,234




Debt


Debts falling due within 1 year

(274,681

)

-


(274,681

)



Debts falling due after 1 year

(5,099,870

)

(79,104

)

(5,178,974

)


(5,374,551

)

(79,104

)

(5,453,655

)



Total

(4,728,241

)

431,820


(4,296,421

)




UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)



Notes to the Consolidated Financial Statements

for the Year Ended 31 December 2023


1.

STATUTORY INFORMATION



Untold Studios Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.


The presentation currency of the financial statements is the Pound Sterling (£).


2.

ACCOUNTING POLICIES



Basis of preparing the financial statements


These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.  



Basis of consolidation


The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2023.



No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a profit before tax for the financial year of £0.4m (2022 - loss of £3.4m).



A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.



The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.



Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.



Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.



Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group's equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder's share of changes in equity since the date of the combination.



The consolidated financial statements of the group have been prepared using the acquisition accounting method, include the financial statements of the company, and its subsidiaries, Untold Studios US  INC, Untold Studios Private Limited, Sparro Technologies and Prism Animations Ltd to 31 December 2023.



Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. Judgements in respect of deferred income, accrued income and cut-off of costs and estimation of costs to complete projects have had the most significant effects on amounts recognised in the financial statements.


Turnover

Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.



UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)



Notes to the Consolidated Financial Statements - continued

for the Year Ended 31 December 2023


2.

ACCOUNTING POLICIES - continued



Tangible fixed assets


Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.  


Short leasehold

-

in accordance with the property


Fixtures and fittings

-

20% on cost


Computer equipment

-

33% on cost



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 statement of financial position 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.

Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and
preference shares that are classified as debt, 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 tne 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.

Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.


Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.



UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)



Notes to the Consolidated Financial Statements - continued

for the Year Ended 31 December 2023


2.

ACCOUNTING POLICIES - continued


Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.


Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.


Pension costs and other post-retirement benefits


The group operates a defined contribution pension scheme.  Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.



Share based payments


The company operates a share based payment scheme for certain employees of the company.


3.

EMPLOYEES AND DIRECTORS


31.12.23


31.12.22

£   

£   



Wages and salaries

4,523,791


3,550,737




Social security costs

394,041


390,217




Other pension costs

190,713


424,637



5,108,545


4,365,591





The average number of employees during the year was as follows:


31.12.23


31.12.22



Production, artist and administrative

275


190




4.

DIRECTORS' EMOLUMENTS



Directors' remuneration in the year was £700,625 (2022:£590,000)



Highest paid director's emoluments in the year was £220,000 (2022; £192,500).



The number of directors to whom retirement benefits were accruing under defined contribution schemes was 1 (2022:1)



The highest paid director did not exercise any share options or received any shares in respect of qualifying services under a long term incentive scheme.



UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)



Notes to the Consolidated Financial Statements - continued

for the Year Ended 31 December 2023


5.

OPERATING PROFIT/(LOSS)



The operating profit (2022 - operating loss) is stated after charging:



31.12.23


31.12.22

£   

£   



Depreciation - owned assets

178,322


133,737




Auditors remuneration

15,000


10,250




Foreign exchange differences

18,648


89,473




6.

INTEREST PAYABLE AND SIMILAR EXPENSES



31.12.23


31.12.22

£   

£   



Bank loan interest

43,579


48,474




Other loan interest

394,461


361,586




Other interest

60,245


-



498,285


410,060




7.

TAXATION



Analysis of the tax charge


The tax charge on the profit for the year was as follows:


31.12.23


31.12.22

£   

£   



Current tax:


UK corporation tax

12,020


-




Tax on profit/(loss)

12,020


-





Tax effects relating to effects of other comprehensive income




There were no tax effects for the year ended 31 December 2023.



31.12.22



Gross


Tax


Net


£   

£   

£   



Purchased of own shares

(655

)

-


(655

)



8.

INDIVIDUAL INCOME STATEMENT



As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.




UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)



Notes to the Consolidated Financial Statements - continued

for the Year Ended 31 December 2023


9.

PROPERTY, PLANT AND EQUIPMENT



Group


Fixtures



Short


and


Computer



leasehold


fittings


equipment


Totals

£   

£   

£   

£   



COST


At 1 January 2023

178,115


110,416


734,104


1,022,635




Additions

-


5,061


287,655


292,716




At 31 December 2023

178,115


115,477


1,021,759


1,315,351




DEPRECIATION


At 1 January 2023

178,115


91,103


544,674


813,892




Charge for year

-


18,881


159,441


178,322




At 31 December 2023

178,115


109,984


704,115


992,214




NET BOOK VALUE


At 31 December 2023

-


5,493


317,644


323,137




At 31 December 2022

-


19,313


189,430


208,743





Company


Fixtures



Short


and


Computer



leasehold


fittings


equipment


Totals

£   

£   

£   

£   



COST


At 1 January 2023

178,115


110,416


682,937


971,468




Additions

-


5,061


132,784


137,845




At 31 December 2023

178,115


115,477


815,721


1,109,313




DEPRECIATION


At 1 January 2023

178,115


91,103


531,555


800,773




Charge for year

-


18,881


112,618


131,499




At 31 December 2023

178,115


109,984


644,173


932,272




NET BOOK VALUE


At 31 December 2023

-


5,493


171,548


177,041




At 31 December 2022

-


19,313


151,382


170,695





UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)



Notes to the Consolidated Financial Statements - continued

for the Year Ended 31 December 2023


10.

FIXED ASSET INVESTMENTS



Company


Shares in


group


undertakings

£   



COST


At 1 January 2023

51,596




Additions

1




At 31 December 2023

51,597




NET BOOK VALUE


At 31 December 2023

51,597




At 31 December 2022

51,596





The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:



Subsidiaries



Untold Studios US INC


Registered office: 149 New Montgomery Street, Ste 315, San Francisco, California 94105


Nature of business: Creative studios


%


Class of shares:

holding



Ordinary shares

100.00



31.12.23


31.12.22

£   

£   



Aggregate capital and reserves

(1,504,776

)

(1,359,599

)



Loss for the year

(1,451,177

)

(1,067,575

)




Sparro Technologies Limited


Registered office: White Collar Factory, Old Street Yard, London, EC1Y 8AF


Nature of business: Creative studios


%


Class of shares:

holding



Ordinary shares

100.00



31.12.23


31.12.22

£   

£   



Aggregate capital and reserves

1,000


1,000





Untold Studios Private Limited


Registered office: 12, Building No 10, Oshiwara, tarapore Garden CHSL, Andheri West, Mumbai City, Maharashtra, India, 400053  


Nature of business: Creative studios


%


Class of shares:

holding



Equity share of Rs. 10.00 each

99.99



31.12.23


31.12.22

£   

£   



Aggregate capital and reserves

247,424


11,536




Profit/(loss) for the year

235,888


(39,064

)




UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)



Notes to the Consolidated Financial Statements - continued

for the Year Ended 31 December 2023


10.

FIXED ASSET INVESTMENTS - continued



Prism Animation Ltd


Registered office: White Collar Factory, 1 Old Street Yard, London, England, EC1Y 8AF


Nature of business: Creative studios


%


Class of shares:

holding



Ordinary

100.00



31.12.23


£   




Aggregate capital and reserves

1





11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR




Group


Company



31.12.23


31.12.22


31.12.23


31.12.22


£   

£   

£   

£   



Trade debtors

3,260,979


3,689,666


2,675,303


3,183,468




Amounts owed by group undertakings

-


-


2,374,719


1,348,653




Other debtors

188,152


152,213


130,040


129,049




Prepayments and accrued income

2,097,404


980,690


1,928,608


948,343



5,546,535


4,822,569


7,108,670


5,609,513




12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR




Group


Company



31.12.23


31.12.22


31.12.23


31.12.22


£   

£   

£   

£   



Bank loans and overdrafts (see note 14)

231,984


231,984


231,984


231,984




Other loans (see note 14)

42,697


42,697


42,697


42,697




Trade creditors

2,928,951


1,698,727


2,870,791


1,535,372




Social security and other taxes

809,077


444,093


807,883


442,878




VAT

981,050


1,091,909


981,050


1,091,909




Other creditors

108,061


710,061


135,337


698,521




Accruals and deferred income

5,312,386


5,372,839


5,240,222


4,793,124



10,414,206


9,592,310


10,309,964


8,836,485




13.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE

YEAR




Group


Company



31.12.23


31.12.22


31.12.23


31.12.22


£   

£   

£   

£   



Bank loans (see note 14)

265,365


590,063


265,365


590,063




Other loans (see note 14)

4,913,609


4,509,807


4,913,609


4,509,807



5,178,974


5,099,870


5,178,974


5,099,870





UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)



Notes to the Consolidated Financial Statements - continued

for the Year Ended 31 December 2023


14.

LOANS



An analysis of the maturity of loans is given below:



Group


Company



31.12.23


31.12.22


31.12.23


31.12.22


£   

£   

£   

£   



Amounts falling due within one year or on

demand:



Bank loans

231,984


231,984


231,984


231,984




Other loans

42,697


42,697


42,697


42,697



274,681


274,681


274,681


274,681




Amounts falling due between one and two

years:



Bank loans - 1-2 years

231,984


231,984


231,984


231,984




Other loans - 1-2 years

136,557


127,217


136,557


127,217



368,541


359,201


368,541


359,201




Amounts falling due between two and five

years:



Bank loans - 2-5 years

33,381


358,079


33,381


358,079




Other loans - 2-5 years

4,777,052


4,382,590


4,777,052


4,382,590



4,810,433


4,740,669


4,810,433


4,740,669





Other loans comprise loans from shareholders.


15.

SECURED DEBTS



The following secured debts are included within creditors:



Group


Company



31.12.23


31.12.22


31.12.23


31.12.22


£   

£   

£   

£   



Bank loans

497,349


822,047


497,349


822,047





Coronavirus Business Interruption Loan Scheme (CBILS)


The Company received a CBILS loan of £1,000,000 in the year ended 31.12.2020. It is a government backed-guarantee loan which is repayable in 60 months, and carries an interest rate of 6% per annum. There is no capital and interest repayment in the first 12 months by the Company. Loan interest incurred in the year amounted to £42,404 (2022: £48,474).


16.

PROVISIONS FOR LIABILITIES



Group


Company



31.12.23


31.12.22


31.12.23


31.12.22


£   

£   

£   

£   



Other provisions

90,000


90,000


90,000


90,000





Aggregate amounts

90,000


90,000


90,000


90,000





UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)



Notes to the Consolidated Financial Statements - continued

for the Year Ended 31 December 2023


17.

CALLED UP SHARE CAPITAL



Allotted, issued and fully paid:


Number:

Class:

Nominal

31.12.23


31.12.22


value:

£   

£   



678,571

Ordinary A

0.001

679


679




750,000

Ordinary B

0.001

750


750




750,000

Ordinary C

0.01

7,500


7,500




17,500

Growth Share

0.005

88


88



9,017


9,017




18.

RESERVES



Group


Retained


Share



earnings


premium


Totals

£   

£   

£   




At 1 January 2023

(10,404,326

)

1,291,405


(9,112,921

)



Profit for the year

447,630


447,630




At 31 December 2023

(9,956,696

)

1,291,405


(8,665,291

)




Company


Retained


Share



earnings


premium


Totals

£   

£   

£   




At 1 January 2023

(9,005,662

)

1,291,405


(7,714,257

)



Profit for the year

356,919


356,919




At 31 December 2023

(8,648,743

)

1,291,405


(7,357,338

)




19.

RELATED PARTY DISCLOSURES



The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.



Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.



Entities that provide key management personnel services to the entity


31.12.23


31.12.22

£   

£   



Management fees  

40,000


40,000




20.

SHARE-BASED PAYMENT TRANSACTIONS



The company has an EMI Option Scheme, granting options over B Ordinary shares of £0.001 each. Number of options  granted at 1 December 2023 was £293,397. No options were granted in the year ended 31 December 2023.  None of the options had vested by 31 December 2023 and the value of the options have not changed since they were granted.



UNTOLD STUDIOS LIMITED (REGISTERED NUMBER: 11410955)



Notes to the Consolidated Financial Statements - continued

for the Year Ended 31 December 2023


21.

GOING CONCERN



The directors, having carefully considered the Group's circumstances consider that the group has the continued financial support of shareholders to enable the group to continue to be a going concern for at least 12 months from the date of signing the financial statements. Consequently, the directors consider it appropriate to prepare the financial statements on the going concern basis.