Company Registration No. 13843258 (England and Wales)
Poncle Limited
Annual report and financial statements
for the year ended 31 January 2024
Poncle Limited
Company information
Director
Luca Galante
Company number
13843258
Registered office
71 Queen Victoria Street
London
EC4V 4BE
Independent auditor
Saffery LLP
71 Queen Victoria Street
London
ECV4 4BE
Poncle Limited
Contents
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 21
Poncle Limited
Strategic report
For the year ended 31 January 2024
1
The director presents the strategic report for the year ended 31 January 2024.
Review of the business
Poncle is a computer game developer and publisher responsible for the game Vampire Survivors.
The company’s income is almost entirely derived from sales of the game. Our overheads are well controlled, and our balance sheet is solid.
Principal risks and uncertainties
The gaming market on all platforms is incredibly competitive with new games launching daily.
The principal risks to Poncle are changes in the volume of sales of the game, delays releasing the game on additional platforms, or delays releasing additional paid content (‘DLCs’).
Development and performance
In the year ended 31 January 2024, Poncle grew from 12 to 21 employees (period ended 31 January 2023: headcount increased from zero to 12). We released our game (Vampire Survivors) on Nintendo’s platform, in online co-operative mode, and added 2 more paid content updates (DLCs). The game sales performance has held in line with expectations through the year.
Financial key performance indicators
Our main source of revenue is sales of the game. For the year ended 31 January 2024, the sales of the game amounted to £8,521,641 (period ended 31 January 2023: £12,393,347). This is the primary KPI for Poncle.
Luca Galante
Director
30 January 2025
Poncle Limited
Director's report
For the year ended 31 January 2024
2
The director presents his annual report and financial statements for the year ended 31 January 2024.
Principal activities
The principal activity of the company continued to be that of developing and publishing a video game.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Luca Galante
Auditor
Saffery LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
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.
On behalf of the board
Luca Galante
Director
30 January 2025
Poncle Limited
Director's responsibilities statement
For the year ended 31 January 2024
3
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
select suitable accounting policies and then apply them consistently;
make judgements 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 financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is 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.
Poncle Limited
Independent auditor's report
To the members of Poncle Limited
4
Opinion
We have audited the financial statements of Poncle Limited (the 'company') for the year ended 31 January 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows 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 January 2024 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 director's 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 director 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 director is 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.
Poncle Limited
Independent auditor's report (continued)
To the members of Poncle Limited
5
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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's 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 strategic report or the director's 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 director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the director, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with director and by updating our understanding of the sector in which the company operates.
Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation, specifically legislation relating to creative industry tax credits.
Poncle Limited
Independent auditor's report (continued)
To the members of Poncle Limited
6
In addition, the company is subject to other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to its ability to operate or to avoid a material penalty. These include anti-bribery legislation and employment law.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance. We have reviewed management’s assessment of how the company, and production, comply with the relevant laws and regulations governing access to the creative industry tax credits.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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 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.
Isla MacGillivray
Senior Statutory Auditor
For and on behalf of Saffery LLP
30 January 2025
Statutory Auditors
71 Queen Victoria Street
London
ECV4 4BE
Poncle Limited
Statement of comprehensive income
For the year ended 31 January 2024
7
Year
Period
ended
ended
31 January
31 January
2024
2023
as restated
Notes
£
£
Turnover
3
8,521,641
12,393,347
Cost of sales
(1,221,971)
(1,027,743)
Gross profit
7,299,670
11,365,604
Administrative expenses
(2,948,191)
(872,831)
Operating profit
4
4,351,479
10,492,773
Interest receivable and similar income
7
4,699
109
Profit before taxation
4,356,178
10,492,882
Tax on profit
8
(836,371)
(1,969,156)
Profit for the financial year
3,519,807
8,523,726
The income statement has been prepared on the basis that all operations are continuing operations.
Poncle Limited
Statement of financial position
As at 31 January 2024
8
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
9
40,722
18,343
Current assets
Debtors
10
4,140,739
1,804,744
Cash at bank and in hand
8,100,445
9,369,009
12,241,184
11,173,753
Creditors: amounts falling due within one year
11
(233,048)
(2,668,370)
Net current assets
12,008,136
8,505,384
Total assets less current liabilities
12,048,858
8,523,727
Provisions for liabilities
Deferred tax liability
12
5,324
(5,324)
-
Net assets
12,043,534
8,523,727
Capital and reserves
Called up share capital
14
1
1
Profit and loss reserves
12,043,533
8,523,726
Total equity
12,043,534
8,523,727
The financial statements were approved and signed by the director and authorised for issue on 30 January 2025.
Luca Galante
Director
Company Registration No. 13843258
Poncle Limited
Statement of changes in equity
For the year ended 31 January 2024
9
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 January 2023:
Balance at 12 January 2022
-
Period ended 31 January 2023:
Profit and total comprehensive income
-
8,523,726
8,523,726
Issue of share capital
14
1
-
1
Balance at 31 January 2023
1
8,523,726
8,523,727
Period ended 31 January 2024:
Profit and total comprehensive income
-
3,519,807
3,519,807
Balance at 31 January 2024
1
12,043,533
12,043,534
Poncle Limited
Statement of cash flows
For the year ended 31 January 2024
10
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
1,698,692
9,258,534
Income taxes (paid)/refunded
(2,935,203)
135,000
Net cash (outflow)/inflow from operating activities
(1,236,511)
9,393,534
Investing activities
Purchase of tangible fixed assets
(40,708)
(24,635)
Proceeds from disposal of tangible fixed assets
3,956
Interest received
4,699
109
Net cash used in investing activities
(32,053)
(24,526)
Financing activities
Proceeds from issue of shares
1
Net cash (used in)/generated from financing activities
-
1
Net (decrease)/increase in cash and cash equivalents
(1,268,564)
9,369,009
Cash and cash equivalents at beginning of year
9,369,009
Cash and cash equivalents at end of year
8,100,445
9,369,009
Poncle Limited
Notes to the financial statements
For the year ended 31 January 2024
11
1
Accounting policies
Company information
Poncle Limited is a private company limited by shares incorporated in England and Wales. The registered office is 71 Queen Victoria Street, London, EC4V 4BE.
1.1
Reporting period
The financial statements are presented for a 12 month period from 1 February 2023 to 31 January 2024. The prior period financial statements were presented for the 12.5 month period from the incorporation date of 12 January 2022 to 31 January 2023. As a result, the comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.
1.2
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.3
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services 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.
Revenue from the distribution of the video game is recognised at the point that the individual sales on the distribution platforms can be measured reliably and when it is probable that the economic benefits associated with the transaction will flow to the entity. This occurs on a monthly basis when the sales reports are issued to the company from each distribution platform.
1.5
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:
Fixtures and fittings
4 year useful life (straight-line basis)
IT equipment
4 year useful life (straight-line basis)
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.
Poncle Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies (continued)
12
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.
1.7
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.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors, 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.
Poncle Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies (continued)
13
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within 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.
1.9
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.
Poncle Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies (continued)
14
1.10
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 income statement 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 and adjusted for any credit arising from the video games tax relief legislation.
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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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.
Poncle Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
15
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Tax credit estimate
The key accounting estimate within the financial statements for this company is the valuation of the video games tax credit available. The estimate is based on the assessment of the qualifying expenditure as per HMRC legislations and guidance plus assessment of the qualification of the underlying video game as eligible for the tax relief.
Depreciation
The company depreciates its tangible fixed assets over their estimated useful life, as more fully described in the accounting policy for Tangible assets in section 1.5 above
3
Turnover and other revenue
Year ended
Period ended
31 January
31 January
2024
2023
as restated
£
£
Turnover analysed by class of business
Video game distribution
8,142,608
12,199,563
Advertising revenue
379,033
193,784
8,521,641
12,393,347
Year ended
Period ended
31 January
31 January
2024
2023
as restated
£
£
Turnover analysed by geographical market
United States of America
6,920,087
12,393,347
Japan
1,555,876
-
Israel
45,678
-
8,521,641
12,393,347
Poncle Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
3
Turnover and other revenue (continued)
16
Year ended
Period ended
31 January
31 January
2024
2023
as restated
£
£
Other revenue
Interest income
4,699
109
4
Operating profit
Year ended
Period ended
31 January
31 January
2024
2023
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(601)
137,073
Fees payable to the company's auditor for the audit of the company's financial statements
16,800
13,500
Depreciation of owned tangible fixed assets
14,373
6,292
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
Year ended
Period ended
31 January
31 January
2024
2023
Number
Number
Video game development
17
6
Their aggregate remuneration comprised:
Year ended
Period ended
31 January
31 January
2024
2023
£
£
Wages and salaries
1,816,876
517,465
Social security costs
225,086
60,500
Pension costs
242,314
6,571
2,284,276
584,536
Poncle Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
17
6
Director's remuneration
Year ended
Period ended
31 January
31 January
2024
2023
£
£
Remuneration for qualifying services
48,100
10,285
Company pension contributions to defined contribution schemes
212,790
-
260,890
10,285
7
Interest receivable and similar income
Year ended
Period ended
31 January
31 January
2024
2023
£
£
Interest income
Interest on bank deposits
4,699
109
8
Taxation
Year ended
Period ended
31 January
31 January
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
831,047
1,969,156
Deferred tax
Origination and reversal of timing differences
5,324
Total tax charge
836,371
1,969,156
Poncle Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
8
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:
Year ended
Period ended
31 January
31 January
2024
2023
£
£
Profit before taxation
4,356,178
10,492,882
Expected tax charge based on the standard rate of corporation tax in the UK of 24.03% (2023: 19.00%)
1,046,795
1,993,648
Tax effect of expenses that are not deductible in determining taxable profit
8,819
Adjustment in respect of prior year restatement
(19,602)
Permanent capital allowances in excess of depreciation
(6,085)
Depreciation on assets not qualifying for tax allowances
1,195
Super-deduction expenditure adjustments - main pool
(78)
Amounts outside of creative industry trade
(4,404)
Video game development tax profit adjustment
(219,376)
Total net tax adjustments and transfers
29
Movement in deferred tax not recognised
4,586
Taxation charge for the period
836,371
1,969,156
9
Tangible fixed assets
Fixtures and fittings
IT equipment
Total
£
£
£
Cost
At 1 February 2023
496
24,139
24,635
Additions
40,708
40,708
Disposals
(3,956)
(3,956)
At 31 January 2024
496
60,891
61,387
Depreciation and impairment
At 1 February 2023
124
6,168
6,292
Depreciation charged in the year
124
14,249
14,373
At 31 January 2024
248
20,417
20,665
Carrying amount
At 31 January 2024
248
40,474
40,722
At 31 January 2023
372
17,971
18,343
Poncle Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
19
10
Debtors
2024
2023
as restated
Amounts falling due within one year:
£
£
Other debtors
3,147,952
549,063
Prepayments and accrued income
992,787
1,255,680
4,140,739
1,804,743
11
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
150,446
30,778
Corporation tax
2,104,156
Other taxation and social security
2,938
832
Other creditors
22,941
5,102
Accruals and deferred income
56,723
527,500
233,048
2,668,368
12
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Fixed asset timing differences
9,168
-
Short term timing differences
(3,844)
-
5,324
-
2024
Movements in the year:
£
Liability at 1 February 2023
-
Charge to profit or loss
5,324
Liability at 31 January 2024
5,324
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
Poncle Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
20
13
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
242,314
6,571
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.
14
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
15
Events after the reporting date
On 26 May 2024, the company incorporated a subsidiary, Poncle Development Ltd, registered at 71 Queen Victoria Street, London, United Kingdom, EC4V 4BE, in which it has a a shareholding of 1 ordinary share of £1 par value.
16
Related party transactions
During the year ended 31 January 2024, the company made a short-term interest free advance to a director amounting to £2,321,053 (period ended 31 January 2023: £399,598) for the purposes of a house purchase. The balance at 31 January 2024 was £2,720,651 (31 January 2023: £399,598). The loan was repaid in full following the year end on 25 May 2024.
17
Ultimate controlling party
The Company is under the sole control of Luca Galante by virtue of his 100% shareholding.
18
Prior period adjustment
During the period, the company identified advertising revenue relating to the period ended 31 January 2023 which should have been disclosed as accrued income in the period ended 31 January 2023.
The impact of the financial statements as a result of the prior period restatement made to correct the presentation is set out below:
Poncle Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
18
Prior period adjustment (continued)
21
Reconciliation of changes in equity
31 January
2023
£
Adjustments to prior year
Recognition of accrued income in prior period
103,166
Total adjustments
103,166
Equity as previously reported
8,420,561
Equity as adjusted
8,523,727
Analysis of the effect upon equity
Profit and loss reserves
103,166
103,166
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Recognition of accrued income in prior period
103,166
Profit as previously reported
8,420,560
Profit as adjusted
8,523,726
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