Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-3110142023-01-01falsetruefalsefalse 11981951 2023-01-01 2023-12-31 11981951 2022-01-01 2022-12-31 11981951 2023-12-31 11981951 2022-12-31 11981951 2022-01-01 11981951 1 2023-01-01 2023-12-31 11981951 1 2022-01-01 2022-12-31 11981951 d:Director1 2023-01-01 2023-12-31 11981951 d:Director2 2023-01-01 2023-12-31 11981951 d:Director3 2023-01-01 2023-12-31 11981951 d:RegisteredOffice 2023-01-01 2023-12-31 11981951 e:FurnitureFittings 2023-01-01 2023-12-31 11981951 e:FurnitureFittings 2023-12-31 11981951 e:FurnitureFittings 2022-12-31 11981951 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 11981951 e:ComputerEquipment 2023-01-01 2023-12-31 11981951 e:ComputerEquipment 2023-12-31 11981951 e:ComputerEquipment 2022-12-31 11981951 e:ComputerEquipment e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 11981951 e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 11981951 e:CurrentFinancialInstruments 2023-12-31 11981951 e:CurrentFinancialInstruments 2022-12-31 11981951 e:Non-currentFinancialInstruments 2023-12-31 11981951 e:Non-currentFinancialInstruments 2022-12-31 11981951 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 11981951 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 11981951 e:ShareCapital 2023-01-01 2023-12-31 11981951 e:ShareCapital 2023-12-31 11981951 e:ShareCapital 2022-01-01 2022-12-31 11981951 e:ShareCapital 2022-12-31 11981951 e:ShareCapital 2022-01-01 11981951 e:OtherMiscellaneousReserve 2023-01-01 2023-12-31 11981951 e:OtherMiscellaneousReserve 2023-12-31 11981951 e:OtherMiscellaneousReserve 2022-01-01 2022-12-31 11981951 e:OtherMiscellaneousReserve 2022-12-31 11981951 e:OtherMiscellaneousReserve 2022-01-01 11981951 e:OtherMiscellaneousReserve 1 2022-01-01 2022-12-31 11981951 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 11981951 e:RetainedEarningsAccumulatedLosses 2023-12-31 11981951 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 11981951 e:RetainedEarningsAccumulatedLosses 2022-12-31 11981951 e:RetainedEarningsAccumulatedLosses 2022-01-01 11981951 e:RetainedEarningsAccumulatedLosses 1 2022-01-01 2022-12-31 11981951 d:FRS102 2023-01-01 2023-12-31 11981951 d:Audited 2023-01-01 2023-12-31 11981951 d:FullAccounts 2023-01-01 2023-12-31 11981951 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 11981951 e:WithinOneYear 2023-12-31 11981951 e:WithinOneYear 2022-12-31 11981951 e:BetweenOneFiveYears 2023-12-31 11981951 e:BetweenOneFiveYears 2022-12-31 11981951 f:PoundSterling 2023-01-01 2023-12-31 iso4217:GBP xbrli:pure

Registered number: 11981951









SILICON DIGITAL GROUP LTD









DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
SILICON DIGITAL GROUP LTD
 

CONTENTS



Page
Company Information
 
1
Directors' Report
 
2 - 3
Independent Auditor's Report
 
4 - 7
Statement of Comprehensive Income
 
8
Statement of Financial Position
 
9 - 10
Statement of Changes in Equity
 
11
Notes to the Financial Statements
 
12 - 20


 
SILICON DIGITAL GROUP LTD
 
 
COMPANY INFORMATION


Directors
N Phythian 
J Ferencz 
H E J Manninen 




Registered number
11981951



Registered office
First Floor 4-5
St James Street

Newport

Isle of Wight

PO30 5HE




Independent auditor
CLA Evelyn Partners Limited
Chartered Accountants & Statutory Auditors

103 Colmore Row

Birmingham

B3 3AG




Page 1

 
SILICON DIGITAL GROUP LTD
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the audited financial statements for the year ended 31 December 2023.

Principal activity

The principal activity of the company during the year was to provide operational services to the Parent Company.

Directors

The directors who served during the year and up to the date of approval of these financial statements were:

N Phythian 
J Ferencz 
H E J Manninen 

Directors' responsibilities statement

The directors are responsible for preparing the Directors' report and the audited financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare audited financial statements for each financial year. Under that law the directors have elected to prepare the audited financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the audited 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 audited financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments 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;

prepare the audited 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 to enable them to ensure that the audited financial statements comply with the Companies Act 2006They 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.

Qualifying third party indemnity provisions

The Company has granted an indemnity to one or more of its directors against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third party indemnity provision remains in force as at the date of approving the Directors' Report.

Page 2

 
SILICON DIGITAL GROUP LTD
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Independent Auditors

The auditors, CLA Evelyn Partners Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





N Phythian
Director

Date: 30 September 2024

Page 3

 
img5d1a.png 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SILICON DIGITAL GROUP LTD
 

Opinion

We have audited the financial statements of Silicon Digital Group Ltd (the 'company') for the year ended  31 December 2023 which comprise the Statement of comprehensive income, Statement of financial position, Statement of changes in equity, and the 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 FRS 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 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.

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 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.
Emphasis of matter - reliance on parent company 
 
We draw attention to note 2.2 of the financial statements, which describes the Company's reliance on the parent company, Gamefam Inc, to continue use the Company to service its markets in the UK and for financial support for the Company to be a going concern. Our opinion is not modified in respect of this matter.
 
Page 4

 
SILICON DIGITAL GROUP LTD
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SILICON DIGITAL GROUP LTD

Other information

The other information comprises the information included in the Directors' report and financial statements, other than the financial statements and our auditor’s report thereon.  The directors are responsible for the other information contained within the Directors' report and financial statements.  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 the 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 have been prepared in accordance with applicable legal requirements.

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 directors’ 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 prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement set out on page 2, 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. 

Page 5

 
SILICON DIGITAL GROUP LTD
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SILICON DIGITAL GROUP LTD

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. 

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.  The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained a general understanding of the Company’s legal and regulatory framework through enquiry of management concerning: their understanding of the relevant laws and regulations; the entity’s policies and procedures regarding compliance; and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the Company’s industry and regulation.
We understand the Company complies with requirements of the framework through: 
The Directors' close involvement in the day-to-day running of the business, meaning that any litigation or claims would come to their attention directly; and
The engagement of external experts to ensure ongoing tax compliance and to assist with the preparation of the statutory accounts.

In the context of the audit, we have considered those laws and regulations which determine the form and content of the financial statements which are central to the company's ability to conduct business and where failure to comply could result in material penalties.

The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur. The key areas identified as part of the discussion were with regard to the manipulation of the financial statements through manual journals and incorrect recognition of revenue. This was communicated to the other members of the engagement team who were not present at the discussion.

We have identified the following laws and regulations as being of significance in the context of the Company:
The Companies Act 2006 and FRS 102 in respect of the preparation and presentation of the financial statements.

The procedures carried out to gain evidence in the above areas inclued:
Testing of expense transactions to underlying documentation to ensure the completeness of the expense population; and
Testing of manual journal entries, selected based on specific risk assessments applie based on the client processes and controls surrounding manual journals.

A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Page 6

 
SILICON DIGITAL GROUP LTD
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SILICON DIGITAL GROUP LTD

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 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.



Stephen Drew (Senior Statutory Auditor)
  
for and on behalf of
CLA Evelyn Partners Limited
 
Chartered Accountants
Statutory Auditors
  
103 Colmore Row
Birmingham
B3 3AG

 
Date: 
1 October 2024
Page 7

 
SILICON DIGITAL GROUP LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
  
694,282
-

Gross profit
  
694,282
-

Administrative expenses
  
(631,165)
(801,092)

Operating profit/(loss)
  
63,117
(801,092)

Tax on profit/(loss)
 4 
105,000
-

Profit/(loss) for the financial year
  
168,117
(801,092)

The notes on pages 12 to 20 form part of these financial statements.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Page 8

 
SILICON DIGITAL GROUP LTD
REGISTERED NUMBER:11981951

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Non-current assets
  

Tangible assets
 5 
11,591
17,433

Current assets
  

Debtors: amounts falling due after more than one year
 6 
70,000
-

Debtors: amounts falling due within one year
 6 
176,498
10,321

Cash at bank and in hand
  
23,276
64,752

  
269,774
75,073

Creditors: amounts falling due within one year
 7 
(129,846)
(109,104)

Net current assets/(liabilities)
  
 
 
139,928
 
 
(34,031)

  

Net assets/(liabilities)
  
151,519
(16,598)


Capital and reserves
  

Called up share capital 
  
1
1

Capital contribution reserve
 8 
773,998
773,998

Profit and loss account
 8 
(622,480)
(790,597)

  
151,519
(16,598)


Page 9

 
SILICON DIGITAL GROUP LTD
REGISTERED NUMBER:11981951
    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




N Phythian
Director

Date: 30 September 2024

The notes on pages 12 to 20 form part of these financial statements.

Page 10

 
SILICON DIGITAL GROUP LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Other reserves
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
1
-
10,495
10,496


Comprehensive income for the year

Loss for the year
-
-
(801,092)
(801,092)

Capital contribution reserve
-
773,998
-
773,998
Total comprehensive income for the year
-
773,998
(801,092)
(27,094)



At 1 January 2023
1
773,998
(790,597)
(16,598)


Comprehensive income for the year

Profit for the year
-
-
168,117
168,117
Total comprehensive income for the year
-
-
168,117
168,117


At 31 December 2023
1
773,998
(622,480)
151,519


The notes on pages 12 to 20 form part of these financial statements.

Page 11

 
SILICON DIGITAL GROUP LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Silicon Digital Group Ltd is a private company, limited by shares, incorporated in England and Wales. The address of the registered office is First Floor 4-5 St James Street, Newport, Isle of Wight, England, PO30 5HE and its registered number is 11981951.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

These financial statements have been prepared in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

 
2.2

Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the Company has adequate support to continue in operational existence for the foreseeable future.

The director has received confirmation from the parent company, Gamefam, Inc that it is their intention to continue to provide financial support to the company when it is needed for the period covering at least the next 12 months from the date of signing of these accounts. The Company will continue to invoice the parent company for those services for 2024 onwards. The parent company directors have prepared a group budget that demonstrates the group's ability to meet its liabilities as they fall due for a period of at least one year from the approval of these financial statements. The UK company is included within the budget, and the parent company directors have confirmed in writing that the parent company will provide financial support.

In the event that the existing trading relationship in place with Gamefam, Inc were to change, the Company may not remain a going concern. The directors do not believe this to be a likely scenario. On this basis, the directors of the Company have concluded that there are no material uncertainties that may cast doubt on the Company's ability to continue as a going concern.

On this basis, the directors consider it appropriate to prepare the accounts on the going concern basis. 

Page 12

 
SILICON DIGITAL GROUP LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts and value added tax. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are
provided in accordance with the stage of completion of the contract when all of the following
conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured
reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 13

 
SILICON DIGITAL GROUP LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.6

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures and fittings
-
33% straight line
Computer equipment
-
33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 14

 
SILICON DIGITAL GROUP LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.9

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.

 
2.10

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.11

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Page 15

 
SILICON DIGITAL GROUP LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.


3.


Employees

The average monthly number of employees, including directors, during the year was 10 (2022 -14).


4.


Taxation


2023
2022
£
£



Deferred tax


Origination and reversal of timing differences
(105,000)
-

Total deferred tax
(105,000)
-


Tax on profit/(loss)
(105,000)
-
Page 16

 
SILICON DIGITAL GROUP LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
4.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 -lower than) the standard rate of corporation tax in the UK of 23.52% (2022 -19%). The differences are explained below:

2023
2022
£
£


Profit/(loss) on ordinary activities before tax
63,117
(801,092)


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 -19%)
14,845
-

Effects of:


Losses eliminated
1,316
-

Movement in deferred tax not recognised
(122,178)
-

Remeasurement of deferred tax for changes in tax rates
1,017
-

Total tax credit for the year
(105,000)
-

Page 17

 
SILICON DIGITAL GROUP LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Tangible fixed assets





Fixtures and fittings
Computer equipment
Total

£
£
£



Cost or valuation


At 1 January 2023
466
24,886
25,352


Additions
277
-
277


Disposals
-
(197)
(197)



At 31 December 2023

743
24,689
25,432



Depreciation


At 1 January 2023
170
7,749
7,919


Charge for the year on owned assets
161
5,958
6,119


Disposals
-
(197)
(197)



At 31 December 2023

331
13,510
13,841



Net book value



At 31 December 2023
412
11,179
11,591



At 31 December 2022
296
17,137
17,433

Page 18

 
SILICON DIGITAL GROUP LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Debtors

2023
2022
£
£

Due after more than one year

Deferred tax asset
70,000
-


2023
2022
£
£

Due within one year

Amounts owed by group undertakings
121,521
-

Other debtors
4,125
4,125

Directors' current accounts
-
5,879

VAT repayable
14,535
-

Corporation tax repayable
1,317
317

Deferred tax asset
35,000
-

176,498
10,321



7.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
33,825
2,501

Other taxation and social security
31,687
39,203

Other creditors
14,366
8,538

Accruals
49,968
58,862

129,846
109,104



8.


Reserves

Capital contribution reserve

The capital contribution reserve represents capital contributions by the parent entity for which repayment will not be sought.

Page 19

 
SILICON DIGITAL GROUP LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
16,500
16,500

Later than 1 year and not later than 5 years
11,000
27,500

27,500
44,000


10.


Related party transactions

At 31 December 2023 the Company was owed £Nil by the directors (2022 - £5,879).

The company has taken advantage of the exemption available under FRS102 and not disclosed
transactions with any wholly owned group companies.


11.


Controlling party

The ultimate parent company and controlling party is Gamefam Inc., a company registered in the United States. The address of the registered office is 2052 Bundy Drive, 1090, West Los Angeles, CA, 90025. 

Page 20