Zingiber London Limited
Annual Report and Financial Statements
For the year ended 31 May 2024
Company Registration No. 08601639 (England and Wales)
Zingiber London Limited
Company Information
Directors
J Studholme
M Sneade
B Yates
J S Bretton
Company number
08601639
Registered office
77 Dean Street
London
United Kingdom
W1D 3SH
Auditor
Moore Kingston Smith LLP
Charlotte Building
17 Gresse Street
London
W1T 1QL
Zingiber London Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 35
Zingiber London Limited
Strategic Report
For the year ended 31 May 2024
Page 1

The directors present the strategic report and financial statements for the year ended 31 May 2024.

Review of the business

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.

Principal risks and uncertainties and financial risk management

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.

Zingiber London Limited
Strategic Report (Continued)
For the year ended 31 May 2024
Page 2
Key performance indicators

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

 

Zingiber London Limited
Strategic Report (Continued)
For the year ended 31 May 2024
Page 3
The position of the group at year end and future developments

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

J Studholme
Director
29 January 2025
Zingiber London Limited
Directors' Report
For the year ended 31 May 2024
Page 4

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.

Principal activities

The principal activity of the company continued to be that of a holding company. The principal activity of the group continued to be that of commercial and television productions.

Results and dividends

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.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

J Studholme
M Sneade
B Yates
J S Bretton
Auditor

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.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
J Studholme
Director
29 January 2025
Zingiber London Limited
Directors' Responsibilities Statement
For the year ended 31 May 2024
Page 5

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Zingiber London Limited
Independent Auditor's Report
To the Members of Zingiber London Limited
Page 6
Opinion

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).

In our opinion the financial statements:

Basis for opinion

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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Zingiber London Limited
Independent Auditor's Report (Continued)
To the Members of Zingiber London Limited
Page 7

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the directors are responsible for assessing the group's and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or parent company or to cease operations, or have no realistic alternative but to do so.

Zingiber London Limited
Independent Auditor's Report (Continued)
To the Members of Zingiber London Limited
Page 8
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.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

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.

 

Zingiber London Limited
Independent Auditor's Report (Continued)
To the Members of Zingiber London Limited
Page 9

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:

Ÿ

 

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.

Francesca Robe (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
29 January 2025
Chartered Accountants
Statutory Auditor
Charlotte Building
17 Gresse Street
London
W1T 1QL
Zingiber London Limited
Group Statement of Comprehensive Income
For the year ended 31 May 2024
Page 10
2024
2023
Notes
£
£
Turnover
3
24,345,901
22,491,777
Cost of sales
(20,242,713)
(17,387,153)
Gross profit
4,103,188
5,104,624
Distribution costs
(184,195)
(199,461)
Administrative expenses
(6,331,656)
(5,897,556)
Other operating income
726,216
9,920
Operating loss
4
(1,686,447)
(982,473)
Interest receivable and similar income
62,751
29,157
Interest payable and similar expenses
8
(1,400)
(1,623)
Loss before taxation
(1,625,096)
(954,939)
Tax on loss
9
1,169,600
1,252,061
(Loss)/profit for the financial year
(455,496)
297,122
Other comprehensive income
-
-
Total comprehensive income for the year
(455,496)
297,122
(Loss)/profit for the financial year is attributable to:
- Owners of the parent company
(356,144)
357,229
- Non-controlling interests
(99,352)
(60,107)
(455,496)
297,122
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(356,144)
357,229
- Non-controlling interests
(99,352)
(60,107)
(455,496)
297,122

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Zingiber London Limited
Group Balance Sheet
As at 31 May 2024
Page 11
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
8,649
9,802
Tangible assets
12
176,230
241,665
Investments
13
502
502
185,381
251,969
Current assets
Stocks
14
1,018,399
801,782
Debtors
15
6,348,001
3,680,343
Cash at bank and in hand
5,955,660
8,535,599
13,322,060
13,017,724
Creditors: amounts falling due within one year
16
(9,813,502)
(8,370,258)
Net current assets
3,508,558
4,647,466
Total assets less current liabilities
3,693,939
4,899,435
Provisions for liabilities
Provisions
17
(50,000)
(100,000)
Deferred tax liability
18
(35,258)
(35,258)
(85,258)
(135,258)
Net assets
3,608,681
4,764,177
Capital and reserves
Called up share capital
20
91,041
91,041
Capital redemption reserve
18,200
18,200
Profit and loss reserves
3,658,671
4,714,815
Equity attributable to owners of the parent company
3,767,912
4,824,056
Non-controlling interests
(159,231)
(59,879)
3,608,681
4,764,177
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:
29 January 2025
J Studholme
Director
Zingiber London Limited
Company Balance Sheet
As at 31 May 2024
31 May 2024
Page 12
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
139,699
139,699
Current assets
Debtors
15
32,724
32,724
Creditors: amounts falling due within one year
16
(35,002)
(35,002)
Net current liabilities
(2,278)
(2,278)
Net assets
137,421
137,421
Capital and reserves
Called up share capital
20
91,041
91,041
Capital redemption reserve
18,200
18,200
Profit and loss reserves
28,180
28,180
Total equity
137,421
137,421

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).

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:
29 January 2025
J Studholme
Director
Company Registration No. 08601639 (England and Wales)
Zingiber London Limited
Group Statement of Changes in Equity
For the year ended 31 May 2024
Page 13
Share capital
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 June 2022
91,041
18,200
5,757,586
5,866,827
-
5,866,827
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
-
357,229
357,229
(60,107)
297,122
Dividends
10
-
-
(1,400,000)
(1,400,000)
-
(1,400,000)
Other movements
-
-
-
-
228
228
Balance at 31 May 2023
91,041
18,200
4,714,815
4,824,056
(59,879)
4,764,177
Year ended 31 May 2024:
Loss and total comprehensive income for the year
-
-
(356,144)
(356,144)
(99,352)
(455,496)
Dividends
10
-
-
(700,000)
(700,000)
-
(700,000)
Balance at 31 May 2024
91,041
18,200
3,658,671
3,767,912
(159,231)
3,608,681
Zingiber London Limited
Company Statement of Changes in Equity
For the year ended 31 May 2024
Page 14
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 June 2022
91,041
18,200
-
0
109,241
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
-
1,428,180
1,428,180
Dividends
10
-
-
(1,400,000)
(1,400,000)
Balance at 31 May 2023
91,041
18,200
28,180
137,421
Year ended 31 May 2024:
Profit and total comprehensive income for the year
-
-
700,000
700,000
Dividends
10
-
-
(700,000)
(700,000)
Balance at 31 May 2024
91,041
18,200
28,180
137,421
Zingiber London Limited
Group Statement of Cash Flows
For the year ended 31 May 2024
Page 15
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
27
(1,603,236)
1,170,598
Interest paid
(1,400)
(1,623)
Income taxes (paid)/refunded
(274,655)
396,607
Net cash (outflow)/inflow from operating activities
(1,879,291)
1,565,582
Investing activities
Purchase of tangible fixed assets
(73,612)
(76,993)
Proceeds from disposal of tangible fixed assets
4,039
15,276
Repayment of loans
6,174
(2,845)
Interest received
62,751
29,157
Net cash used in investing activities
(648)
(35,405)
Financing activities
Proceeds from issue of shares
-
228
Dividends paid to equity shareholders
(700,000)
(1,400,000)
Net cash used in financing activities
(700,000)
(1,399,772)
Net (decrease)/increase in cash and cash equivalents
(2,579,939)
130,405
Cash and cash equivalents at beginning of year
8,535,599
8,405,194
Cash and cash equivalents at end of year
5,955,660
8,535,599
Zingiber London Limited
Notes to the Financial Statements
For the year ended 31 May 2024
Page 16
1
Accounting policies
Company information

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.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest 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).

 

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Zingiber London Limited and all of its subsidiaries (i.e. entities that the Group controls through its power to govern the financial and operating policies so as to obtain economic benefits). All financial statements are made up to 31 May 2024.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the Group.

 

The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.

1.3
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 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.

Zingiber London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
1
Accounting policies
(Continued)
Page 17
1.4
Turnover

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.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Leasehold
Over the period of the lease
Plant and machinery
20%-33% straight line
Fixtures, fittings & equipment
10% 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 recognised in the profit and loss account.

Zingiber London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
1
Accounting policies
(Continued)
Page 18
1.7
Impairment of fixed assets

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.

1.8
Work in progress

Work in progress is valued at the lower of cost and net realisable value.

1.9
Cash at bank and in hand

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.

1.10
Financial instruments

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.

Zingiber London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
1
Accounting policies
(Continued)
Page 19
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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.

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 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.

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 group after deducting all of its liabilities.

Zingiber London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
1
Accounting policies
(Continued)
Page 20

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 group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

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.

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 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

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.

Zingiber London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
1
Accounting policies
(Continued)
Page 21
1.13
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.14
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.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
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 leased asset are consumed.

1.17
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.

Zingiber London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 22
2
Judgements and key sources of estimation uncertainty

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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Revenue recognition

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.

Depreciation rates

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.

Loan due from Blink Inc.

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.

Zingiber London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 23
3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Commercial and television production
23,718,655
21,807,232
Music promotions
627,246
684,545
24,345,901
22,491,777
2024
2023
£
£
Other significant revenue
Interest income
62,751
29,157
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
13,905,797
9,674,131
United States of America
8,236,316
11,523,400
Other
2,203,788
1,294,246
24,345,901
22,491,777
4
Operating profit/(loss)
2024
2023
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Exchange losses/(gains)
(9,783)
(25,421)
Research and development costs
601
660
Depreciation of owned tangible fixed assets
134,561
219,337
(Profit) on disposal of tangible fixed assets
447
3,614
Amortisation of intangible assets
1,153
1,153
Operating lease charges
433,415
513,527
Zingiber London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 24
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
9,850
8,850
Audit of the financial statements of the company's subsidiaries
98,050
76,050
107,900
84,900
For other services
Taxation compliance services
2,300
2,000
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Management
3
1
-
-
Production
13
14
-
-
Administration
8
7
-
-
Blink Animation
22
23
-
-
Blink Industries
14
12
-
-
Major Tom
4
4
-
-
Mental Wolf
4
4
-
-
Thayari
2
2
-
-
Never Not Needed
4
4
-
-
Total
74
71
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
4,036,890
4,171,224
-
0
-
0
Social security costs
467,739
482,933
-
-
Pension costs
60,990
59,846
-
0
-
0
4,565,619
4,714,003
-
0
-
0
Zingiber London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 25
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
757,968
680,318
Company pension contributions to defined contribution schemes
2,642
3,082
760,610
683,400

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
285,000
230,000
Company pension contributions to defined contribution schemes
1,321
1,321

Directors' remuneration is borne by Blink Productions Limited, a subsidiary entity.

8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
1,400
1,623
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(798,048)
(908,734)
Adjustments in respect of prior periods
(158,380)
(363,669)
Total current tax
(956,428)
(1,272,403)
Deferred tax
Origination and reversal of timing differences
(213,172)
20,342
Total tax credit
(1,169,600)
(1,252,061)
Zingiber London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
9
Taxation
(Continued)
Page 26

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:

2024
2023
£
£
Loss before taxation
(1,625,096)
(954,939)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
(406,274)
(190,988)
Tax effect of expenses that are not deductible in determining taxable profit
13,629
(2,280)
Tax effect of utilisation of tax losses not previously recognised
-
0
(8,482)
Unutilised tax losses carried forward
190,239
9,728
Permanent capital allowances in excess of depreciation
10,426
23,025
Amortisation on assets not qualifying for tax allowances
288
231
Research and development tax credit
(133,967)
(104,211)
Under/(over) provided in prior years
(24,413)
(142,506)
Deferred tax movement
(213,172)
20,342
Film tax credits
(606,356)
(856,920)
Taxation credit
(1,169,600)
(1,252,061)
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
700,000
1,400,000
Zingiber London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 27
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 June 2023 and 31 May 2024
11,532
Amortisation and impairment
At 1 June 2023
1,730
Amortisation charged for the year
1,153
At 31 May 2024
2,883
Carrying amount
At 31 May 2024
8,649
At 31 May 2023
9,802
The company had no intangible fixed assets at 31 May 2024 or 31 May 2023.
12
Tangible fixed assets
Group
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 June 2023
1,615,979
1,236,041
661,508
3,513,528
Additions
28,343
42,867
2,402
73,612
Disposals
(541,166)
(568,274)
(345,774)
(1,455,214)
At 31 May 2024
1,103,156
710,634
318,136
2,131,926
Depreciation and impairment
At 1 June 2023
1,615,979
1,034,296
621,588
3,271,863
Depreciation charged in the year
2,033
118,271
14,257
134,561
Eliminated in respect of disposals
(541,166)
(566,390)
(343,172)
(1,450,728)
At 31 May 2024
1,076,846
586,177
292,673
1,955,696
Carrying amount
At 31 May 2024
26,310
124,457
25,463
176,230
At 31 May 2023
-
0
201,745
39,920
241,665
The company had no tangible fixed assets at 31 May 2024 or 31 May 2023.
Zingiber London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 28
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
24
-
0
-
0
139,699
139,699
Unlisted investments
502
502
-
0
-
0
502
502
139,699
139,699
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 June 2023 and 31 May 2024
502
Carrying amount
At 31 May 2024
502
At 31 May 2023
502
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 June 2023 and 31 May 2024
139,699
Carrying amount
At 31 May 2024
139,699
At 31 May 2023
139,699
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
1,018,399
801,782
-
-
Zingiber London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 29
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,729,300
757,723
-
0
-
0
Corporation tax recoverable
2,369,478
477,265
-
0
-
0
Amounts owed by group undertakings
-
-
28,180
28,180
Other debtors
287,866
91,837
4,544
4,544
Prepayments and accrued income
1,725,664
2,330,997
-
0
-
0
6,112,308
3,657,822
32,724
32,724
Amounts falling due after more than one year:
Deferred tax asset (note 18)
235,693
22,521
-
0
-
0
Total debtors
6,348,001
3,680,343
32,724
32,724
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
1,827,326
1,628,876
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
35,002
35,002
Corporation tax payable
-
0
68,006
-
0
-
0
Other taxation and social security
1,134,503
647,625
-
-
Other creditors
81,541
17,180
-
0
-
0
Accruals and deferred income
6,770,132
6,008,571
-
0
-
0
9,813,502
8,370,258
35,002
35,002

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.

Zingiber London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 30
17
Provisions for liabilities
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Dilapidations provision
50,000
100,000
-
-
Deferred tax liabilities
18
35,258
35,258
-
0
-
0
85,258
135,258
-
0
-
0
18
Deferred taxation

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:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
ACAs
35,258
35,258
34,998
22,521
Tax losses
-
-
200,695
-
35,258
35,258
235,693
22,521
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 June 2023
12,737
-
Credit to profit or loss
(213,172)
-
Asset at 31 May 2024
(200,435)
-

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.

19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
60,990
59,846
Zingiber London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
19
Retirement benefit schemes
(Continued)
Page 31

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.

20
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
91,041
91,041
91,041
91,041

The shares have attached to them full voting, dividend and capital distribution rights.

21
Operating lease commitments
Lessee

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:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
449,011
492,701
-
-
Between two and five years
450,236
420,380
-
-
899,247
913,081
-
-
22
Events after the reporting date

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.

Zingiber London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 32
23
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
1,295,198
1,257,092

 

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.

Zingiber London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
23
Related party transactions
(Continued)
Page 33

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.

Zingiber London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 34
24
Subsidiaries

Details of the company's subsidiaries at 31 May 2024 are as follows:

Name of undertaking
Registered office
Nature of
Class of
% Held
business
shares held
Direct
Indirect
Blink Industries Limited
77 Dean Street, London, United Kingdom, W1D 3SH
Film and commerical production
Ordinary
100.00
Blink Productions Limited
77 Dean Street, London, United Kingdom, W1D 3SH
Film and commercial production
Ordinary
80.00
Major Tom Media Limited
6th Floor Charlotte Building, 17 Gresse Street, London, W1T 1QL, UK
Music promotions
Ordinary
100.00
Mystery Q Limited
77 Dean Street, London, United Kingdom, W1D 3SH
Film and commerical production
Ordinary
100.00
Boring Old Orange Limited
77 Dean Street, London, United Kingdom, W1D 3SH
Film and commerical production
Ordinary
100.00
Blink Animation Limited
77 Dean Street, London, United Kingdom, W1D 3SH
Film and commerical production
Ordinary
100.00
Thayari Limited
77 Dean Street, London, United Kingdom, W1D 3SH
Film and commerical production
Ordinary
100.00
Mental Wolf Limited
77 Dean Street, London, United Kingdom, W1D 3SH
Film and commerical production
Ordinary
100.00
Never Not Needed Limited
Tramways House, 377 Camden Road, London, N7 0SH, UK
Film and commerical production
Ordinary
100.00
Jambaric Limited
6th Floor Charlotte Building, 17 Gresse Street, London, W1T 1QL, UK
Real estate and letting
Ordinary
100.00
Daisy And Carrots Limited
Tramways House, 377 Camden Road, London, N7 0SH, UK
Film and commerical production
Ordinary
100.00
Zingiber London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 35
25
Going concern

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.

26
Controlling party

The ultimate controlling party is James Studholme, a director of the company, by virtue of his majority shareholding.

27
Cash (absorbed by)/generated from group operations
2024
2023
£
£
(Loss)/profit for the year after tax
(455,496)
297,122
Adjustments for:
Taxation credited
(1,169,600)
(1,252,061)
Finance costs
1,400
1,623
Investment income
(62,751)
(29,157)
Loss on disposal of tangible fixed assets
447
-
Amortisation and impairment of intangible assets
1,153
1,153
Depreciation and impairment of tangible fixed assets
134,561
219,337
Decrease in provisions
(50,000)
-
Movements in working capital:
Increase in stocks
(216,617)
(792,256)
Increase in debtors
(470,457)
(360,543)
Increase in creditors
684,124
3,085,380
Cash (absorbed by)/generated from operations
(1,603,236)
1,170,598
28
Analysis of changes in net funds - group
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
8,535,599
(2,579,939)
5,955,660
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