The directors present the strategic report and financial statements for the year ended 31 May 2024.
Zingiber is an award-winning Entertainment holding company specialising in live action, multimedia and animation moving image. The group also includes music supervision and production, and a record label.
The year ended 31st May 2024 was a considerably more challenging year than 2023 and in consequence the group made a loss of £752,238 in adjusted EBITDA.
It was a perfect storm of a year. Blink Productions struggled with costs, being still shackled to an expensive office in Wardour Street until a move to smaller office in Dean Street in November. A reduction in head count also brought overheads down. UK advertising, on which it is reliant, was in retreat.
Blink Industries, our long form division had a difficult year. Many factors played their part. The writer’s and actor’s strikes in the US shut activity down for quite a while. The BBC and Channel 4 struggled with funds and confidence to commission. The streamers retrenched and re-thought their business model with many instituting commissioning freezes. Coupled with this our development pipeline was not as good as it needed to be.
Revenues from the advertising market in the UK were down but new markets in the USA were opened up by Blink Animation which was our only division to make headway.
We have continued to focus on marketing to international markets and particularly developing our network in the USA in both advertising and long form.
Advertising clients included Lego, Chick-Fil-A, Ore Ida, Axe, Spotify, BBC, Tesco, McDonalds, Fosters, Ocado and Lunchables.
Whilst all the group companies enjoy short term payment terms, credit risk on longer projects is a factor. The companies minimise exposure to credit risk by taking a 50% pre-billed advance on all advertising jobs and staged payments on TV shows, providing partial funding. We also carefully assess the reputation and financial robustness of our clients.
Zingiber continues to be very adaptable to changing market needs and has diversified successfully to defray some of the risks of operating in a highly competitive and volatile market. Zingiber companies have benefited from their strong heritage and reputation for reliable production, creative excellence, and financial solidity to be a reassuring production partner for Advertising Agencies and Clients. Secondly, they have been able to work co-operatively to help each other in what remains a challenging period.
A considerable risk is that the economy as a whole remains in recession for a long time. Confidence in the future remains low and that means that less work is likely to be commissioned.
Brexit was already adversely affecting us in closing down free movement of high-level creative talent and making them feel unwelcome in the UK. This is particularly relevant in animation where our French animators are world class and provide the backbone of our studio. Brexit has had less affect in lessening Europe as a market for us. Our focus has been more on the US, as we continue to develop our capabilities in the Direct to Brand, Video Gaming and Music Content spaces.
All our KPIs in 2023/24 have decreased apart from turnover. The inflationary challenges in this period fed wage growth. Coupled with this we have invested in outstanding management talent, IT hardware and personnel. So, our margins fell in this period.
Key performance indicators for Zingiber London Limited are:
Turnover: £24,345,901 (2023: £22,491,777) an increase of £1,854,124 against 2023
Gross profit: £4,103,188 (2023: £5,104,624) a decrease of £1,001,436 against 2023
Gross profit margin: 16.89% (2023: 22.69%) a decrease of 5.80% against 2023
Operating loss: -£1,686,447 (2023: loss of £982,473) a decrease of £703,974 against 2023
Cash: £5,955,660 (2023: £8,535,599) a decrease of £2,579,939 against 2023
|
| 2024 | 2023 |
| Notes | £ | £ |
Operating profit/(loss) - as reported
|
|
(1,686,447) |
(982,473) |
Add back:
|
|
|
|
Depreciation of tangible fixed assets
|
4 |
134,561 |
219,337 |
Amortisation of intangible assets
|
4 |
1,153 |
1,153 |
Loss on disposal of tangible fixed assets
|
4 |
447 |
3,614 |
EBITDA
|
|
(1,550,286) |
(758,369) |
Film tax credits
|
|
798,048 |
1,087,031 |
Adjusted EBITDA
|
|
(752,238) |
328,662 |
Looking forward into 2024/25 at January 2025 we are very considerably more confident of our prospects than at the same time last year.
Blink Productions has already broken even for the year with 5 months to go. Its first feature film, Peter Hujar, premieres at Sundance in the US this month. Similarly, Blink Animation is on track to be in profit by February ’25. The directing roster is stellar and reaching maturity. We have hired a CFO and Head of Operations in Blink Industries and completely revamped the development team. We continue with production on Sunnyridge 3 for Disney +, delivering in late 2025, as well as producing a new animated 6 x 15 mins show for Netflix and Make That Movie for Channel 4. The first short of 3 for Adult Swim, ‘Peter Hair’ has been delivered. We inked an unprecedented first look deal with BBC studios for Kids and Family. At the time of writing we have projects going into paid development with Netflix & Fox / Bento Box and a movie with A24.
We are able to project forward a strong cash position for the next year at least. We have also taken steps to strengthen our commitment to greater diversity in our work force and make Zingiber a welcoming non-discriminatory culture. We have evolved and formalised our employment and safety policies and invested in HR.
Our principal areas of investment will continue to be in developing our long form slate in Blink Industries and bringing on board more highly skilled staff to build our production and development capabilities. We continue to develop our animation studio and directing roster in BlinkInk (Blink Animation).
We have focused on the US market with Blink Productions working closely with the highly innovative Missing Pieces out of New York. Blink Animations has grown direct to brand relationships that have yielded returning projects. Notably Lego, Devolver and Chick-Fil-A. In the last year Blink Industries has become a destination for service / co-production on high end international animations shows. This trend is set to continue, particularly with commissions from the USA.
On behalf of the board
The directors present their report and financial statements for the year ended 31 May 2024.
Under CA2006 s414C(11), the information relating to future developments and risk management are included in the strategic report.
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £700,000 (2023: 1,400,000). The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
In accordance with the company's articles, a resolution proposing that Moore Kingston Smith LLP be reappointed as auditor of the group will be put at a General Meeting.
We have audited the financial statements of Zingiber London Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024 which comprise the Group Statement of Comprehensive Income, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group 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).
Basis for 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 group's and parent 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.
Other information
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.
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.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Explanation as to what extent the audit was considered capable of detecting irregularities, including
fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities,
including fraud is detailed below.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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.
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 for no purpose other than to draw to the attention of the company’s members those matters we are required to include in an auditor's report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party 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.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £700,000 (2023 - £1,428,180 profit).
Zingiber London Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 77 Dean Street, London, United Kingdom, W1D 3SH.
The group consists of Zingiber London Limited and all of its subsidiaries.
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 pound.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £700,000 (2023: £1,428,180).
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 group made a loss for the year of £455,496, (2023: 297,122 profit) and as at the balance sheet date had net assets of £3,608,681 (2023: £4,764,177). The company made profits of £700,000 (2023: 1,428,180) and had net assets of £137,421 (2023: £137,421).
As a result the directors are confident that they have the ability to respond effectively to continued uncertainty and as a result, the directors believe that the group 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.
Turnover is in respect of the provision of services including fees, commissions and rechargeable expenses.
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
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.
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 recognised in the profit and loss account.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, 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.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.
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 group after deducting all of its 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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group 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 group.
The tax expense represents the sum of the tax currently payable and deferred 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 if, and only if, there is 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.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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 leased asset are consumed.
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.
In the application of the group’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.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Significant management judgement is required in determining the point at which revenue should be recognised. Revenue is recognised in respect of each production 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 commences. No profit element is recognised until the Company is able to estimate the profit on the production reliably. In arriving at this point of recognition, management have considered the liabilities and amounts that would be due if at different points of the contract, the project were to be pulled.
In relation to the SPVs owned within the group, the "percentage of completion method" is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of the contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the period in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presents as stocks, prepayments, or other assets depending on their nature, and provided it is probable they will be recovered.
The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
Blink Productions Limited, a wholly owned subsidiary of Zingiber London Limited, made a loan in 2016 to Blink Inc to fund an investment. The basis of the recoverability of the loan has been determined by reviewing the performance of the ultimate investment. The Directors have determined the performance of the ultimate investment by reviewing results and forecasts and have made a provision as detailed in Note 23.
An analysis of the group's turnover is as follows:
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
Directors' remuneration is borne by Blink Productions Limited, a subsidiary entity.
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
National Westminster Bank PLC has secured monies totalling £1,700,000 due to them by way of a fixed and floating charge over Blink Productions Limited and its assets.
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
The deferred tax liability set out above is expected to reverse within 5 years and relates to accelerated capital allowances that are expected to mature within the same period.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. At the year end £36,024 (2023: £14,562) was due for pension contributions.
The shares have attached to them full voting, dividend and capital distribution rights.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
On 23 August 2024 Blink Industries incorporated a new 100% owned subsidiary, Big Hiss Limited for £1 share capital.
On 29 August 2024 Blink Industries incorporated a new 100% owned subsidiary, Feral Friends Limited for £1 share capital.
The remuneration of key management personnel is as follows.
Company
Dividends totalling £700,000 (2023: £1,400,000) were paid in the year in respect of shares held by the company's directors.
The company has taken the exemption available under FRS102 section 33 and not disclosed transactions with 100% group companies.
Group
At the year end a balance was owed to Blink Productions Limited of £nil (2023: £6,175) in relation to J Studholme, a director of the company. This is included within other debtors.
J Studholme is a director and shareholder of Leisurezoo Limited from whom Blink Productions Limited purchased production services of £313,330 (2023: £349,996) during the year on normal commercial terms. There were no amounts due to Leisurezoo Limited from Blink Productions Limited.
B Yates is a director and shareholder of Monica Tostes Design Limited, from whom the company made purchases of £nil (2023: £1,973). B Yates is considered to be key management of Blink Productions Limited.
At the year end Blink Productions Limited was owed £204,524 (2023: £204,524) by Blink Inc., a company registered in the USA and under common control. At the year end, the balance has a provision against it of £204,524 (2023: £204,524). A total of £nil (2023: £nil) was repaid during the year in respect of this balance.
During the year Blink Productions Limited made purchases of £165,863 (2023: £165,863) from Spanish Archer LLP and had sales of £3,153 (2023: £1,277). Spanish Archer LLP is a related party by virtue of J Bland, M Sneade, J Studholme and B Yates being designated members of Spanish Archer LLP and directors of Blink Productions Limited or its parent company Zingiber London Limited. Blink Productions Limited has provided a guarantee to National Westminster Bank Plc of up to £1,700,000 in respect of a loan taken out by Spanish Archer LLP.
Effective from 6 July 2022, Blink Productions Limited ceased to be wholly owned by Zingiber London Limited, with ownership reducing to 80%. As a result, from this date forward, transactions between Blink Productions Limited and other group entities have been disclosed as related party transactions in accordance with FRS 102:
During the year Blink Productions Limited made sales of £3,237,488 (2023: £2,286,210) to Blink Animation Limited, a related party by virtue of common ownership. Blink Productions Limited made purchases of £1,524,105 (2023: £63,478) from Blink Animation Limited during this time. At the year end a balance of £356,976 (2023: £327,989) was owed from Blink Animation Limited, and a year end balance of £25,200 (2023: £nil) was owed to Blink Animation Limited.
During the year Blink Productions Limited made sales of £3,010,702 (2023: £2,022,673) to Blink Industries Limited, a related party by virtue of common ownership. Blink Productions Limited made purchases of £nil (2023: £664,457) from Blink Industries during this time. At the year end, a balance of £361,201 (2023: £474,332) was owed from Blink Industries Limited.
During the year Blink Productions Limited made sales of £426,098 (2023: £433,044) to Major Tom Limited, a related party by virtue of common ownership. Blink Productions Limited made purchases of £1,000 (2023: £nil) from Major Tom Media Limited during this time. At the year end, a balance of £33,511 (2023: £177,880) was owed from Major Tom Limited to Blink Productions Limited.
During the year Blink Productions Limited made sales of £nil (2023: £5,432) to Mystery Q Limited, a related party by virtue of common ownership. At the year end, there were no balances owed in respect of these amounts.
During the year Blink Productions Limited made sales of -£397 (2023: £23,798) to Thayari Limited, a related party by virtue of common ownership. At the year end, there were no balances owed in respect of these amounts.
During the year Blink Productions Limited made sales of £nil (2023: £38,931) to Mental Wolf Limited, a related party by virtue of common ownership. At the year end, a balance of £2,988 (2023: £2,988) was owed from Mental Wolf Limited.
During the year Blink Productions Limited made sales of £33,098 (2023: £24,286) to Never Not Needed Limited, a related party by virtue of common ownership. At the year end, a balance of £324 (2023: £97) was owed from Never Not Needed Limited.
Details of the company's subsidiaries at 31 May 2024 are as follows:
Mystery Q Limited, a subsidiary within the group, has ceased trading in the year as the production has now been delivered. The company is not deemed a going concern and is due to wind down within the next 12 months.
Boring Old Orange Limited, a subsidiary within the group, has ceased trading in the year as the production has now been delivered. The company is not deemed a going concern and is due to wind down within the next 12 months.
Thayari Limited, a subsidiary within the group, has ceased trading in the year as the production has now been delivered. The company is not deemed a going concern and is due to wind down within the next 12 months.