REGISTERED NUMBER: |
Financial Statements for the Year Ended 31 December 2023 |
for |
Spintrex Holdings Ltd |
REGISTERED NUMBER: |
Financial Statements for the Year Ended 31 December 2023 |
for |
Spintrex Holdings Ltd |
Spintrex Holdings Ltd (Registered number: 10580970) |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
Spintrex Holdings Ltd |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
First Floor |
18 Devonshire Row |
London |
EC2M 4RH |
Spintrex Holdings Ltd (Registered number: 10580970) |
Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
as restated |
Notes | € | € |
CURRENT ASSETS |
Stocks | 5 |
Debtors: amounts falling due within one year | 6 |
Debtors: amounts falling due after more than one year |
6 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 7 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 8 |
NET (LIABILITIES)/ASSETS | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 9 |
Retained earnings | 10 | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered. |
The financial statements were approved by the director and authorised for issue on |
Spintrex Holdings Ltd (Registered number: 10580970) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Spintrex Holdings Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are presented in Euro. |
Related party exemption |
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. |
Critical accounting judgements and key sources of estimation uncertainty |
In preparing these financial statements, the directors have made the following judgements: |
Judgement is required in assessing the appropriateness of the going concern assumption. Further details to support the assessment that the going concern basis is appropriate is provided in note 2. |
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year are: |
Determining when the significant risks and rewards have transferred to the customer and a sale is recognised. This has been determined to be upon delivery to the broadcaster and commencement of the licence term. |
Determining and recognising bad debt provision for doubtful debts. |
Determining whether there are indicators of impairment of the company's tangible and intangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit. |
Turnover |
Income represents licence fees receivable from thesales anddistribution of television programmesand the distribution of rights for television channel broadcasting, excluding value added tax. |
The company's policy is to recognise licence fee incomefromthe sales and distribution of television programmes once the following criteria are met: |
a) a licence agreement has been executed by both parties; |
b) delivery to the broadcaster has occurred; and |
c) the licence term has commenced. |
The licence fee income from the distribution of rights for television channel broadcasting is recognised on monthly basis according to the contract prices. Any licence fees received in advance, which do not meet all of the above criteria, are included in deferred income until the criteria are met. Licence fees granted for a period of time are not recognised over the licence term, rather they are recognised in full in the monthof the start date of the licence term. This accounting treatment is considered the most appropriate since the licence fees are agreed in advance, they are not contingent on any future event, the customer is able to exploit the rights freely and the company has no future performance obligations subsequent to delivery. |
All turnover of the company is from outside the UK. |
Spintrex Holdings Ltd (Registered number: 10580970) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks represent acquired programming rights held for resale. Recognition of an asset in stock for acquired programming rights occurs on the signing of a contract between the company and the licence seller. |
Stocks is recognised as an expense for sold rights in the month of the start date of the licence term. Costs of purchased inventory are determined after deducting rebates and discounts. Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. |
Stock is fully written down to zero in the year when the licence expires. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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. |
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 Euros at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into Euros at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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. |
Creditors |
Short term trade 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. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash on deposit and other short term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. Bonds are recognised at cost. |
Spintrex Holdings Ltd (Registered number: 10580970) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Going concern. |
The company continues the distribution of the media content to the existing customers. |
The financial statements have been prepared on a going concern basis even though at the balance sheet date the company had net liabilities amounting to €66,282 (Restated net asset in 2022: €1,760,819) and incurred a net loss of €1,827,101 (Restated profit in 2022: €180,270). The loss for the current accounting period is due to a one-off material trade debtors provision, resulted from the economic decline and banking restrictions in the Ukraine. The directors have concluded that the combination of these circumstances represent a material uncertainty that casts significant doubt upon the company's ability to continue as a going concern |
After making necessary provisions, management believes that remaining trade debtors will be recovered in full. The company is actively exploring new trading activities and considering entering digital advertising market to benefit from additional revenue. Furthermore, to improve cash flow, the management of the company started negotiations with suppliers, to extend payment terms to match expected cash flows from customers. The shareholders expressed their willingness to provide financial support for the next 12 months as from the date of approval of the financial statements for the company to meet its current liabilities. Based on the above the director has a reasonable expectation that the company has adequate anticipated resources to continue in operational existence for the foreseeable future. A letter of continuing financial support from the ultimate beneficiary was also obtained. For these reasons, the directors continue to adopt the going concern basis in preparing the accounts. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | AUDITORS' REMUNERATION |
The auditor's fees for the audit of the company's financial statements are £12,000 plus VAT (2022: £12,000). |
5. | STOCKS |
31.12.23 | 31.12.22 |
as restated |
€ | € |
Stocks |
Provision for stock impairment | - | (4,361 | ) |
Stock represents license rights for television programmes distribution. Old and expired licences were written off in the amount of € 399,649 (2022: € 362,999). |
6. | DEBTORS |
31.12.23 | 31.12.22 |
as restated |
€ | € |
Amounts falling due within one year: |
Trade debtors |
Provision for doubtful debts | (75,323 | ) | (10,833 | ) |
Other debtors |
Hawksford client's account | 310 | 314 |
Accrued income |
Prepayments |
Spintrex Holdings Ltd (Registered number: 10580970) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
6. | DEBTORS - continued |
31.12.23 | 31.12.22 |
as restated |
€ | € |
Amounts falling due after more than one year: |
Trade debtors |
Provision for doubtful debts | (2,888,336 | ) | (1,225,481 | ) |
Aggregate amounts |
Letters extending terms of payment were negotiated and signed by customers, extending repayment term until 31 December 2026 of €5,347,033 (2022: €5,113,108). |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
as restated |
€ | € |
Trade creditors |
Tax |
VAT | 50,964 | 43,530 |
Other creditors |
Accrued expenses |
8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.12.23 | 31.12.22 |
as restated |
€ | € |
Trade creditors more than 1y | 3,588,645 | 2,727,759 |
9. | CALLED UP SHARE CAPITAL |
Allotted and issued: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | as restated |
€ | € |
Share capital 1 | £1 | 1,141,478 | 1,141,478 |
10. | RESERVES |
Retained |
earnings |
€ |
At 1 January 2023 |
Deficit for the year | ( |
) |
At 31 December 2023 | ( |
) |
Spintrex Holdings Ltd (Registered number: 10580970) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
11. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
12. | AUDITOR LIABILITY LIMITATION AGREEMENT |
An auditors' limitation of liability agreement has been approved by the members for the financial period ended 31 December 2023. The principal terms and conditions are as below: |
- The agreement limit's the amount of any liability owed to the Company by the auditors in respect of any negligence default, breach of duty or breach of trust, occurring in the course of audit of the Company's accounts and pursuant to this agreement the auditor may be guilty in relation to the Company. |
- The agreement also stipulates the maximum aggregated amount payable in event of any of the circumstances stated above. |
13. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is |