Company registration number 01356753 (England and Wales)
FORBIDDEN PLANET LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
FORBIDDEN PLANET LIMITED
COMPANY INFORMATION
Directors
N A Landau
VWM Cheung
Secretary
VWM Cheung
Company number
01356753
Registered office
144 Southwark Street
London
SE1 0UP
Auditor
Mercer & Hole LLP
The Pinnacle
170 Midsummer Boulevard
Milton Keynes
Buckinghamshire
MK9 1BP
Business address
144 Southwark Street
London
SE1 0UP
FORBIDDEN PLANET LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 22
FORBIDDEN PLANET LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report and financial statements for the year ended 31 December 2023.
Review of the business
The directors are satisfied with the results, the shops all had strong sales in the year. The company’s website and fulfilment capabilities also contributed to this success.
The directors consider that turnover, gross margin and administrative costs as a proportion of sales to be the most reliable and important indicators for measuring the company’s performance. The directors consider the achieved revenue of £27.8m to be a satisfactory result.
2023 has been a successful year, the directors are pleased with the stable sales, considering the external economic conditions. Footfall and sales continue to increase post pandemic, with growth in London and other major cities as tourists’ numbers increase.
Principal risks and uncertainties
The principal risk and uncertainty to the company is considered to be the reading of trends and, as such, the demand for the products by its customers. The company is confident that, through good market research and experience of the market, the risk associated with this is greatly reduced. The company has also highlighted the following factors as potential risks to successful performance:
Political, financial and economic risk
The UK’s decision to leave the European Union and the uncertainty this has caused
Supply chain management and store portfolio
Cyber risk and business interruption
Reliance on key personnel
Brand and reputation
Suppliers’ ability to deliver product
Global supply chain interruptions, the war in Ukraine, the cost of living crisis and the impact of increasing energy prices
Key performance indicators
The directors monitor KPI’s regularly, whenever there is a variance from expectation this is investigated. Sales are analysed daily by store and product grouping. Cash flows are closely monitored on a daily basis.
Future developments
The directors do not anticipate that there will be any fundamental change in the development of the company’s business during the coming year and expect to continue to build on the performance reported in these financial statements.
VWM Cheung
Director
11 November 2024
FORBIDDEN PLANET LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company in the year under review was that of retailing entertainment merchandise and books. No significant change in the nature of these activities occurred during the year.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
For the director's interest in the shares of the ultimate parent company, please refer to that company's financial statements.
N A Landau
VWM Cheung
Post reporting date events
There are no post balance sheet events that will require adjusting in the accounts.
Auditor
The auditor, Mercer & Hole LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
VWM Cheung
Director
11 November 2024
FORBIDDEN PLANET LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
FORBIDDEN PLANET LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF FORBIDDEN PLANET LIMITED
- 4 -
Opinion
We have audited the financial statements of Forbidden Planet Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
FORBIDDEN PLANET LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF FORBIDDEN PLANET LIMITED (CONTINUED)
- 5 -
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 strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Explanation as to what extent the audit was considered capable of detecting irregularities ,including fraud
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches under General Data Protection Regulations, and we considered the extent to which non-compliance may 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 and tax legislation.
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principle risks were related to posting inappropriate entries including journals to understate revenue or overstate expenditure, and management bias in accounting estimates.
Audit procedures performed by the engagement team included:
discussions with management, including considerations of known or suspected instances of non-compliance with laws and regulations and fraud;
evaluation of the operating effectiveness of management's controls designed to prevent and detect irregularities;
challenging assumptions and judgements made by management in its significant accounting estimates;
identifying and testing journal entries.
FORBIDDEN PLANET LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF FORBIDDEN PLANET LIMITED (CONTINUED)
- 6 -
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Paul Maberly FCA
Senior Statutory Auditor
For and on behalf of Mercer & Hole LLP
11 November 2024
Chartered Accountants
Statutory Auditor
The Pinnacle
170 Midsummer Boulevard
Milton Keynes
Buckinghamshire
MK9 1BP
FORBIDDEN PLANET LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
28,008,187
28,435,047
Cost of sales
(18,203,728)
(19,129,135)
Gross profit
9,804,459
9,305,912
Administrative expenses
(9,461,447)
(8,839,666)
Other operating income
48,795
184,592
Profit before taxation
391,807
650,838
Tax on profit
7
(91,977)
(125,795)
Profit for the financial year
299,830
525,043
The profit and loss account has been prepared on the basis that all operations are continuing operations.
FORBIDDEN PLANET LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
8
20,001
40,001
Tangible assets
9
3,221,643
3,326,075
Investments
10
15,149
15,149
3,256,793
3,381,225
Current assets
Stocks
12
1,178,711
2,092,488
Debtors
13
482,817
437,420
Cash at bank and in hand
6,143,943
5,174,094
7,805,471
7,704,002
Creditors: amounts falling due within one year
14
(3,597,981)
(3,906,862)
Net current assets
4,207,490
3,797,140
Total assets less current liabilities
7,464,283
7,178,365
Provisions for liabilities
Provisions
15
137,698
128,114
Deferred tax liability
16
136,946
160,442
(274,644)
(288,556)
Net assets
7,189,639
6,889,809
Capital and reserves
Called up share capital
18
1,000
1,000
Revaluation reserve
19
443,044
443,044
Profit and loss reserves
19
6,745,595
6,445,765
Total equity
7,189,639
6,889,809
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 11 November 2024 and are signed on its behalf by:
N A Landau
Director
Company registration number 01356753 (England and Wales)
FORBIDDEN PLANET LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
1,000
443,044
5,920,722
6,364,766
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
525,043
525,043
Balance at 31 December 2022
1,000
443,044
6,445,765
6,889,809
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
299,830
299,830
Balance at 31 December 2023
1,000
443,044
6,745,595
7,189,639
FORBIDDEN PLANET LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information
Forbidden Planet Limited is a private company limited by shares incorporated in England and Wales. The registered office is 144 Southwark Street, London, SE1 0UP. The company registration no. is 01356753.
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.
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, modified to include the revaluation of freehold properties at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Titan Entertainment Group Limited. These consolidated financial statements are available from Companies House.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. In making this assessment, the directors have considered trading levels since the year end. The directors have prepared detailed budgets and forecasts to December 2025 which show that the company will remain profitable.true
Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods 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.
Retail sales, returns and allowances are reflected at the date of transactions with customers. Website sales of goods are recognised when the significant risks and rewards of ownership of the goods have passed to the customer (usually on dispatch of the goods).
FORBIDDEN PLANET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Website Development costs
5 years straight line
1.6
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:
Freehold buildings
Nil
Leasehold buildings
Over the life of the lease
Plant and machinery
7-10 years straight line
Computer equipment
5 years straight line
In accordance with the requirements of FRS102, the directors perform annual impairment reviews of the land and buildings to ensure that the carrying value is not lower than the recoverable amount. Freehold buildings are depreciated to write down the cost less estimated residual value over their remaining useful life by equal instalments. Where buildings are maintained to such a standard that their residual is not less than their cost or valuation, no depreciation is charged as it is not material. Whilst this is a departure from the general requirement of the Companies Act 2006 for depreciation to be charged on buildings, the directors consider it necessary for the financial statements to give a true and fair view.
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.
1.7
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
FORBIDDEN PLANET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.8
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 (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Where a reasonable and consistent basis of allocation can be identified, assets are allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price. Cost comprises direct materials and, where applicable, those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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.
FORBIDDEN PLANET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
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 and loans from fellow group 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 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.12
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.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
FORBIDDEN PLANET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.15
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.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
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.
FORBIDDEN PLANET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.18
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.19
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.
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Property valuations
As stated in note 9 of the financial statements, freehold property is held at fair value. Valuations are carried out by independent chartered surveyors. Calculation of fair value requires judgements to be made by the chartered surveyors which include the location, the economic environment, the condition and construction of each property.
Stock provision
The company sells entertainment merchandise and books and is subject to changing consumer demands and fashion trends. As a result it is necessary to consider the recoverability of the cost of items held for resale and the associated provisioning required. When calculating the provision, management considers the nature and condition of the items as well as applying assumptions around the saleability of them.
FORBIDDEN PLANET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Entertainment merchandise
28,008,187
28,435,047
2023
2022
£
£
Other revenue
Grants received
-
136,891
Total turnover for the company wholly undertaken in the United Kingdom.
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(10,274)
86,451
Government grants
-
(136,891)
Fees payable to the company's auditor for the audit of the company's financial statements
30,500
27,725
Depreciation of owned tangible fixed assets
133,238
135,782
Loss on disposal of tangible fixed assets
22,572
-
Amortisation of intangible assets
20,000
20,000
Operating lease charges
445,022
444,524
5
Employees
The average monthly number of persons (excluding directors) employed by the company during the year was:
2023
2022
Number
Number
Retail - store and online
155
154
Head office
22
22
Total
177
176
FORBIDDEN PLANET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 17 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
3,677,061
3,550,996
Social security costs
287,253
291,468
Pension costs
77,385
73,654
4,041,699
3,916,118
6
Directors' remuneration
The directors are both remunerated by the company's parent company, Titan Entertainment Group Ltd.
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
114,166
121,405
Adjustments in respect of prior periods
1,307
Total current tax
115,473
121,405
Deferred tax
Origination and reversal of timing differences
(23,496)
4,390
Total tax charge
91,977
125,795
An increase in the UK corporation tax rate from 19% to 25% (effective from 1 April 2023) was substantively enacted on 10 June 2021.The increase in the rate will apply to companies with profits over £250k. Also announced in the Budget on 3 March 2021 was the introduction of small profits rate of 19% to apply to profits under £50k with a tapered rate to apply on profits above this threshold but under £250k.
FORBIDDEN PLANET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Taxation
(Continued)
- 18 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
391,807
650,838
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
92,153
123,659
Tax effect of expenses that are not deductible in determining taxable profit
1,603
86
Adjustments in respect of prior years
1,307
Effect of change in corporation tax rate
(3,086)
471
Depreciation on assets not qualifying for tax allowances
1,579
Taxation charge for the year
91,977
125,795
8
Intangible fixed assets
Website Development costs
£
Cost
At 1 January 2023 and 31 December 2023
100,001
Amortisation and impairment
At 1 January 2023
60,000
Amortisation charged for the year
20,000
At 31 December 2023
80,000
Carrying amount
At 31 December 2023
20,001
At 31 December 2022
40,001
FORBIDDEN PLANET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
9
Tangible fixed assets
Freehold buildings
Leasehold buildings
Plant and machinery
Computer equipment
Total
£
£
£
£
£
Cost or valuation
At 1 January 2023
2,705,000
527,603
750,054
267,210
4,249,867
Additions
14,644
16,836
38,076
69,556
Disposals
(80,245)
(37,652)
(11,952)
(129,849)
At 31 December 2023
2,705,000
462,002
729,238
293,334
4,189,574
Depreciation and impairment
At 1 January 2023
257,151
543,941
122,700
923,792
Depreciation charged in the year
34,940
51,951
46,347
133,238
Eliminated in respect of disposals
(61,194)
(23,687)
(4,218)
(89,099)
At 31 December 2023
230,897
572,205
164,829
967,931
Carrying amount
At 31 December 2023
2,705,000
231,105
157,033
128,505
3,221,643
At 31 December 2022
2,705,000
270,452
206,113
144,510
3,326,075
The freehold property at Coventry, Liverpool and Croydon were revalued in August 2020 by Allsop LLP, whilst the freehold property at Cambridge was valued in April 2018 by Savills (UK) Ltd. Both valuers are independent real estate service companies and the valuations were provided in accordance with FRS102. The directors are not aware of any subsequent material change in the value of these properties.
If the property were sold for its revalued amount it would be necessary to replace it with a similar property, and rollover relief against the tax on the gain would be available. However, in accordance with the requirements of FRS102, deferred tax on any potential gain has been provided for in full.
If revalued assets were stated on a historical cost basis rather than a fair value basis,the total amounts included would have been as follows :
Freehold property
2023
2022
£
£
Cost
2,324,679
2,324,679
10
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
11
15,149
15,149
11
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
FORBIDDEN PLANET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Subsidiaries
(Continued)
- 20 -
Name of undertaking
Address
Class of
% Held
shares held
Direct
Forbidden Planet UK Limited
i)
Ordinary
99.00
Registered office addresses (all UK unless otherwise indicated):
i)
144 Southwark Street, London SE1 0UP
12
Stocks
2023
2022
£
£
Finished goods and goods for resale
1,178,711
2,092,488
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
11,400
Other debtors
100
255
Prepayments and accrued income
482,717
425,765
482,817
437,420
14
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
2,354,159
2,699,831
Amounts owed to group undertakings
420,329
467,960
Corporation tax
113,991
121,405
Other taxation and social security
191,121
107,710
Other creditors
19,437
22,033
Accruals and deferred income
498,944
487,923
3,597,981
3,906,862
15
Provisions for liabilities
2023
2022
£
£
Dilapidation costs
137,698
128,114
FORBIDDEN PLANET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Provisions for liabilities
(Continued)
- 21 -
Movements on provisions:
Dilapidation costs
£
At 1 January 2023
128,114
Additional provisions in the year
9,584
At 31 December 2023
137,698
16
Deferred taxation
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
80,429
103,855
Revaluations
58,115
58,115
Other short term timing differences
(1,598)
(1,528)
136,946
160,442
2023
Movements in the year:
£
Liability at 1 January 2023
160,442
Credit to profit or loss
(23,496)
Liability at 31 December 2023
136,946
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
77,385
73,654
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
FORBIDDEN PLANET LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
19
Reserves
Revaluation reserve
The revaluation reserve represents increases in the fair value of land and buildings, net of any attributable deferred tax and depreciation. It is not distributable.
Profit and loss reserves
The profit and loss account represents cumulative profits or losses net of dividends and other adjustments.
20
Financial commitments, guarantees and contingent liabilities
The company's bankers have fixed and floating charges over the company's fixed assets.
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
427,583
450,500
Between two and five years
1,312,028
1,551,583
In over five years
146,903
334,931
1,886,514
2,337,014
22
Related party transactions
The company has taken advantage of the exemptions available in FRS102 not to disclose transactions with wholly owned members of the same group.
23
Ultimate controlling party
The company is a wholly owned subsidiary of Titan Entertainment Group Limited, a company incorporated the United Kingdom and registered in England and Wales. There is no overall controlling party.
The smallest and largest group within which the company's financial statements are consolidated into are those of Titan Entertainment Group Limited. A copy of the consolidated financial statements can be obtained from Companies House.
2023-12-312023-01-01falsefalsefalseCCH SoftwareCCH Accounts Production 2024.301N A LandauVWM CheungVWM Cheung013567532023-01-012023-12-3101356753bus:Director12023-01-012023-12-3101356753bus:CompanySecretaryDirector12023-01-012023-12-3101356753bus:CompanySecretary12023-01-012023-12-3101356753bus:Director22023-01-012023-12-3101356753bus:RegisteredOffice2023-01-012023-12-31013567532023-12-31013567532022-01-012022-12-3101356753core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3101356753core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3101356753core:OtherResidualIntangibleAssets2023-12-3101356753core:OtherResidualIntangibleAssets2022-12-3101356753core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-12-3101356753core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-31013567532022-12-3101356753core:LandBuildingscore:OwnedOrFreeholdAssets2023-12-3101356753core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3101356753core:PlantMachinery2023-12-3101356753core:ComputerEquipment2023-12-3101356753core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3101356753core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3101356753core:PlantMachinery2022-12-3101356753core:ComputerEquipment2022-12-3101356753core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3101356753core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3101356753core:CurrentFinancialInstruments2023-12-3101356753core:CurrentFinancialInstruments2022-12-3101356753core:ShareCapital2023-12-3101356753core:ShareCapital2022-12-3101356753core:RevaluationReserve2023-12-3101356753core:RevaluationReserve2022-12-3101356753core:RetainedEarningsAccumulatedLosses2023-12-3101356753core:RetainedEarningsAccumulatedLosses2022-12-3101356753core:ShareCapital2021-12-3101356753core:RevaluationReserve2021-12-3101356753core:RetainedEarningsAccumulatedLosses2021-12-3101356753core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3101356753core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-01-012023-12-3101356753core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-012023-12-3101356753core:LandBuildingscore:LongLeaseholdAssets2023-01-012023-12-3101356753core:PlantMachinery2023-01-012023-12-3101356753core:ComputerEquipment2023-01-012023-12-3101356753core:UKTax2023-01-012023-12-3101356753core:UKTax2022-01-012022-12-310135675312023-01-012023-12-310135675312022-01-012022-12-3101356753core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-3101356753core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3101356753core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3101356753core:PlantMachinery2022-12-3101356753core:ComputerEquipment2022-12-31013567532022-12-3101356753core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3101356753core:Non-currentFinancialInstruments2023-12-3101356753core:Non-currentFinancialInstruments2022-12-3101356753core:Subsidiary12023-01-012023-12-3101356753core:Subsidiary112023-01-012023-12-310135675312023-01-012023-12-3101356753core:WithinOneYear2023-12-3101356753core:WithinOneYear2022-12-3101356753core:BetweenTwoFiveYears2023-12-3101356753core:BetweenTwoFiveYears2022-12-3101356753core:MoreThanFiveYears2023-12-3101356753core:MoreThanFiveYears2022-12-3101356753bus:PrivateLimitedCompanyLtd2023-01-012023-12-3101356753bus:FRS1022023-01-012023-12-3101356753bus:Audited2023-01-012023-12-3101356753bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP