Blink Industries Limited
Financial Statements
For the year ended 31 May 2024
Pages for Filing with Registrar
Company Registration No. 08653984 (England and Wales)
Blink Industries Limited
Company Information
Directors
J Studholme
M Sneade
J Stevenson Bretton
B Yates
(Appointed 15 March 2024)
Secretary
M Sneade
(Appointed 14 August 2024)
Company number
08653984
Registered office
Tramways House
Unit 1 377 Camden Road
Holloway
London
N7 0SH
Auditor
Moore Kingston Smith LLP
Charlotte Building
17 Gresse Street
London
W1T 1QL
Blink Industries Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 10
Blink Industries Limited
Balance Sheet
As at 31 May 2024
Page 1
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
46,922
78,066
Investments
4
303
302
47,225
78,368
Current assets
Work in progress
314,695
130,036
Debtors
6
972,428
369,898
Cash at bank and in hand
43,895
932,431
1,331,018
1,432,365
Creditors: amounts falling due within one year
7
(1,811,789)
(1,232,052)
Net current (liabilities)/assets
(480,771)
200,313
Total assets less current liabilities
(433,546)
278,681
Provisions for liabilities
(18,703)
(18,703)
Net (liabilities)/assets
(452,249)
259,978
Capital and reserves
Called up share capital
8
1
1
Profit and loss reserves
(452,250)
259,977
Total equity
(452,249)
259,978
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 29 January 2025 and are signed on its behalf by:
J Studholme
Director
Company Registration No. 08653984
Blink Industries Limited
Notes to the Financial Statements
For the year ended 31 May 2024
Page 2
1
Accounting policies
Company information
Blink Industries Limited is a private company limited by shares incorporated in England and Wales. The registered office is Tramways House, Unit 1 377 Camden Road, Holloway, London, N7 0SH.
1.1
Accounting convention
These financial statements have been prepared in accordance with section 1A of FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The 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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The company made a loss for the year of £712,227 (2023: £363,370) and as at the balance sheet date had net liabilities of £452,249 (2023: £259,978 net assets). Post-year end, the operations of Blink Animation have been moved over to Blink Industries, and new jobs which were originally due to be run through Blink Animation are now being run through Blink Industries. Blink Industries has seen improved results post-year end as a result of this. For these reasons, the directors believe that the company will be able to continue to meet its liabilities as they fall due for a period of at least twelve months from the date of approval of the financial statements.
Zingiber London Limited, the ultimate parent company, has also confirmed that it will advance further sums to the company to enable it to continue to trade and meet its liabilities as they fall due for a period of at least 12 months from the date of approval of these financial statements. Consequently the directors have prepared the financial statements on the going concern basis.
1.3
Turnover
Turnover is in respect of the provision of services including fees, commissions and rechargeable expenses.
Revenue is recognised in respect of the production of commercials from the point at which the company has obtained the right to consideration in return for performance. This is considered to be when all necessary approvals during the process of pre-production have been obtained from the commissioning agency and normally equates to the date at which shooting of the commercial commences. No profit element is recognised until the company is able to estimate the profit on the commercial reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Blink Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
1
Accounting policies
(Continued)
Page 3
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:
Plant and machinery
33-50% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
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.
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.
Blink Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
1
Accounting policies
(Continued)
Page 4
1.7
Stock
Work in progress represents costs incurred on productions which are shot post year end and is valued at the lower of cost and net realisable value.
1.8
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.
1.9
Financial instruments
The company only has basic financial instruments measured at amortised cost, with no financial instruments classified as other or basic financial instruments measured at fair value.
1.10
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.
1.11
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Blink Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
1
Accounting policies
(Continued)
Page 5
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.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
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.
1.16
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.
Blink Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 6
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
14
13
3
Tangible fixed assets
Total
£
Cost
At 1 June 2023
134,881
Additions
15,525
At 31 May 2024
150,406
Depreciation and impairment
At 1 June 2023
56,815
Depreciation charged in the year
46,669
At 31 May 2024
103,484
Carrying amount
At 31 May 2024
46,922
At 31 May 2023
78,066
4
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
303
302
Blink Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
4
Fixed asset investments
(Continued)
Page 7
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 June 2023
302
Additions
1
At 31 May 2024
303
Carrying amount
At 31 May 2024
303
At 31 May 2023
302
5
Subsidiaries
Details of the company's subsidiaries at 31 May 2024 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office key
shares held
Direct
Indirect
Mystery Q Limited
1
TV Production
Ordinary
100.00
0
Boring Old Orange Limited
2
TV Production
Ordinary
100.00
0
Thayari Limited
2
TV Production
Ordinary
100.00
0
Mental Wolf Limited
2
TV Production
Ordinary
100.00
0
Never Not Needed Limited
2
TV Production
Ordinary
100.00
0
Daisy And Carrots Limited
2
TV Production
Ordinary
100.00
0
Registered Office addresses:
1
77 Dean Street, London, United Kingdom, W1D 3SH
2
Unit 1, Tramways House, 377 Camden Road, London, United Kingdom, N7 0SH
Blink Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 8
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
21,862
194
Corporation tax recoverable
16,315
71,285
Amounts owed by group undertakings
123,555
Other debtors
133,554
1,015
Prepayments and accrued income
600,002
173,849
771,733
369,898
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset
200,695
Total debtors
972,428
369,898
7
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
3,814
Amounts owed to group undertakings
1,290,154
474,532
Taxation and social security
58,626
Other creditors
2,994
2,994
Accruals and deferred income
514,827
695,900
1,811,789
1,232,052
Blink Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 9
8
Called up share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
100 ordinary shares of 1p each
1
1
1 ordinary B shares of 1p each
-
-
1
1
The 100 ordinary shares have full voting, dividend and distribution rights. The 1 B ordinary share at a value of 1p ranks pari passu with the ordinary shares in regards to dividend and capital distribution rights. However, a different rate of dividends may be declared compared to the ordinary shares.
The B ordinary share also carries no voting rights.
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Francesca Robe.
The auditor was Moore Kingston Smith LLP.
10
Operating lease commitments
Lessee
In November 2019, Blink Productions Limited signed a lease agreement on behalf of it's subsidiaries. Blink Productions hold the contractual obligation and the rental payments are recharged to it's subsidiaries. The below represents the obligation Blink Industries has to future lease payments to Blink Productions.
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2024
2023
£
£
152,458
338,944
11
Events after the reporting date
On 23 August 2024 the company incorporated a new 100% owned subsidiary, Big Hiss Limited for £1 share capital.
On 29 August 2024 the company incorporated a new 100% owned subsidiary, Feral Friends Limited for £1 share capital.
Blink Industries Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 10
12
Related party transactions
The company has taken the exemption available under FRS 102 section 33 and not disclosed transactions with 100% group companies.
During the year the company made purchases of £3,010,702 (2023: £2,022,673) and sales of £nil (2023: £664,457) to and from Blink Productions. At the year end a balance was owed to the company of £482,057 (2023: £474,332). Blink Productions is a related party by virtue of its ultimate parent company Zingiber London Limited.
13
Parent company
The company's immediate and ultimate parent company is Zingiber London Limited.
The company's ultimate controlling party is J Studholme by virtue of his control of the company's ultimate parent, Zingiber London Limited.
The smallest and largest group financial statements in which the company is consolidated are those of Zingiber London Limited. These financial statements are available from Companies House.
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