Sargent-Disc Limited 02020919 false 2023-07-01 2024-06-30 2024-06-30 The principal activity of the company is that of a supplier of payroll and related software services primarily within the entertainment industry. Digita Accounts Production Advanced 6.30.9574.0 true true true false true false 02020919 2023-07-01 2024-06-30 02020919 2024-06-30 02020919 bus:Director5 2024-06-30 02020919 bus:OrdinaryShareClass1 2024-06-30 02020919 bus:Consolidated 2024-06-30 02020919 2 2024-06-30 02020919 core:AcceleratedTaxDepreciationDeferredTax 2024-06-30 02020919 core:OtherDeferredTax 2024-06-30 02020919 core:RetainedEarningsAccumulatedLosses 2024-06-30 02020919 core:ShareCapital 2024-06-30 02020919 core:CurrentFinancialInstruments 2024-06-30 02020919 core:CurrentFinancialInstruments core:WithinOneYear 2024-06-30 02020919 core:CostValuation 2024-06-30 02020919 core:FurnitureFittingsToolsEquipment 2024-06-30 02020919 core:OtherPropertyPlantEquipment 2024-06-30 02020919 core:OtherProvisionsContingentLiabilities 2024-06-30 02020919 bus:FRS102 2023-07-01 2024-06-30 02020919 bus:Audited 2023-07-01 2024-06-30 02020919 bus:FullAccounts 2023-07-01 2024-06-30 02020919 bus:RegisteredOffice 2023-07-01 2024-06-30 02020919 bus:Director1 2023-07-01 2024-06-30 02020919 bus:Director2 2023-07-01 2024-06-30 02020919 bus:Director3 2023-07-01 2024-06-30 02020919 bus:Director4 2023-07-01 2024-06-30 02020919 bus:Director5 2023-07-01 2024-06-30 02020919 bus:OrdinaryShareClass1 2023-07-01 2024-06-30 02020919 bus:Consolidated 2023-07-01 2024-06-30 02020919 bus:PrivateLimitedCompanyLtd 2023-07-01 2024-06-30 02020919 core:RetainedEarningsAccumulatedLosses 2023-07-01 2024-06-30 02020919 core:ShareCapital 2023-07-01 2024-06-30 02020919 core:FurnitureFittings 2023-07-01 2024-06-30 02020919 core:FurnitureFittingsToolsEquipment 2023-07-01 2024-06-30 02020919 core:OfficeEquipment 2023-07-01 2024-06-30 02020919 core:OtherPropertyPlantEquipment 2023-07-01 2024-06-30 02020919 core:OtherProvisionsContingentLiabilities 2023-07-01 2024-06-30 02020919 core:Subsidiary1 2023-07-01 2024-06-30 02020919 core:Subsidiary1 1 2023-07-01 2024-06-30 02020919 core:UKTax 2023-07-01 2024-06-30 02020919 countries:EnglandWales 2023-07-01 2024-06-30 02020919 2023-06-30 02020919 core:RetainedEarningsAccumulatedLosses 2023-06-30 02020919 core:ShareCapital 2023-06-30 02020919 core:FurnitureFittingsToolsEquipment 2023-06-30 02020919 core:OtherPropertyPlantEquipment 2023-06-30 02020919 core:OtherProvisionsContingentLiabilities 2023-06-30 02020919 2022-07-01 2023-06-30 02020919 2023-06-30 02020919 bus:OrdinaryShareClass1 2023-06-30 02020919 2 2023-06-30 02020919 core:AcceleratedTaxDepreciationDeferredTax 2023-06-30 02020919 core:OtherDeferredTax 2023-06-30 02020919 core:CurrentFinancialInstruments 2023-06-30 02020919 core:CurrentFinancialInstruments core:WithinOneYear 2023-06-30 02020919 core:CostValuation 2023-06-30 02020919 core:FurnitureFittingsToolsEquipment 2023-06-30 02020919 core:OtherPropertyPlantEquipment 2023-06-30 02020919 core:RetainedEarningsAccumulatedLosses 2022-07-01 2023-06-30 02020919 core:ShareCapital 2022-07-01 2023-06-30 02020919 core:Subsidiary1 1 2022-07-01 2023-06-30 02020919 core:UKTax 2022-07-01 2023-06-30 02020919 2022-06-30 02020919 core:RetainedEarningsAccumulatedLosses 2022-06-30 02020919 core:ShareCapital 2022-06-30 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 02020919 (England & Wales)

Sargent-Disc Limited

Annual Report and Financial Statements

for the Year Ended 30 June 2024

 

Sargent-Disc Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Profit and Loss Account

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11 to 19

 

Sargent-Disc Limited

Company Information

Directors

L J Sargent

L E Sargent

R Agre

S A Knutson

Registered office

First Floor
St Johns House
16 Church Street
Bromsgrove
Worcestershire
B61 8DN

Auditors

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

Sargent-Disc Limited

Strategic Report for the Year Ended 30 June 2024

The directors present their strategic report for the year ended 30 June 2024.

Principal activity

The principal activity of the company is that of a supplier of payroll and related software services primarily within the entertainment industry.

Fair review of the business

The results for the year which are set out in the profit and loss account show turnover of £8,575,889 (2023 - £12,349,408) and an operating loss of £1,463,778 (2023 - operating profit of £216,333). At 30 June 2024 the company had net liabilities of £213,245 (2023 - net assets of £199,217).

Total turnover decreased compared to the prior year. The Entertainment industry, including Film and television productions in the United Kingdom, was affected by the industrial actions undertaken by the labour unions of The Writer’s Guild of America (WGA) and Screen Actors Guild – American Federation of Television and Radio Artists (SAG AFTRA), which impacted the company’s Payroll Service Fees and associated revenue streams during the latter part of 2023.

The company considered the industrial actions to have a temporary impact on its operations, and remained focused on delivering a quality of service to its core payroll business customers, and developing its ancillary software services.

During the year the company declared a dividend of £750,000 (2023: £1,250,000).

The directors consider the performance for the year and the financial position at the year-end to be satisfactory.

Principal risks and uncertainties

The management of the business and the execution of the company’s strategy are subject to a number of risks. The Board consider the principal risks and uncertainties, which are constantly monitored and remain similar to the prior year, to be:

Competitive Risk:
The company performs payroll related services for the Entertainment industry, and a reduction in volume of Feature Film and High-End television production activity occurring in the principle territory of the United Kingdom could have impact on the company’s performance.

Competitor product offering in the market could potentially reduce market share, however the group of which the company is a member, invests in Research & Development activity to ensure its Software is maintained and enhanced, and has firm commitment to deliver excellent customer service to attract and retain relationship with multinational and independent production companies.

Compliance Risk:
As part of the provision of Payroll Services, the company processes Personally Identifiable Information data of cast and crew members on behalf of its customers. The company invests significantly in its technology and employee training to ensure Data protection and compliance with regulation.

Credit Risk:
The company avoids lengthy credit terms on provision of services to customers, however takes appropriate measures and reviews to minimise exposure to bad debt expense.

Cashflow Risk:
The company continues to be cash generative and has a low level of fixed costs commitments. The nature of the company's operations means there is a high volume and value of cash transactions, however, strict control and authorisation over disbursements are in place to ensure cash balances are appropriately managed. The company has no external debt or borrowings.

Approved by the Board on 21 February 2025 and signed on its behalf by:

L E Sargent
Director

   
     
 

Sargent-Disc Limited

Directors' Report for the Year Ended 30 June 2024

The directors present their report and the financial statements for the year ended 30 June 2024.

Directors of the company

The directors who held office during the year were as follows:

L J Sargent

L E Sargent

R Agre

S A Knutson

J D Berkley (resigned 7 January 2025)

Future developments

The directors of the company acknowledge that the Entertainment industry was impacted by the labour unions’ industrial actions during 2023, however believe that business operations will return to usual volumes in the year ending 30 June 2025 and subsequently. The available production stage space continues to increase, and together with government incentive to attract production activity into the United Kingdom, result in expectation that payroll services will be required for Film Feature, Television and Streaming productions.

Financial instruments

The company's financial instruments comprise cash and liquid resources, and various other items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to finance the operations of the company. The nature of these financial instruments means that they are not subject to price risk.

The company is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through credit control procedures. Before credit terms are agreed, an assessment of the customer’s credit rating is undertaken to ensure the company is not exposed to a major credit risk. The company is exposed to credit risk on bank balances although this risk is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

The company is exposed to foreign currency risk through delivering services invoiced in currency other than the functional currency of GBP, which gives a risk in terms of exchange rate movements. Given the nature of bookkeeping, there is a natural hedge between debtor and creditor accounts, and the period of time between invoice and settlement typically short, this is a risk that the directors accept and keep under review to ensure the company's exposure is kept to a minimum.

Further disclosures concerning Credit Risk and Cashflow Risk are set out in the Strategic Report.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office.

Approved by the Board on 21 February 2025 and signed on its behalf by:

L E Sargent
Director

   
     
 

Sargent-Disc Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

 

Sargent-Disc Limited

Independent Auditor's Report to the Members of Sargent-Disc Limited

Opinion

We have audited the financial statements of Sargent-Disc Limited (the 'company') for the year ended 30 June 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

 

Sargent-Disc Limited

Independent Auditor's Report to the Members of Sargent-Disc Limited (continued)

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 4, 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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was 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:

We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits conducted in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

 

Sargent-Disc Limited

Independent Auditor's Report to the Members of Sargent-Disc Limited (continued)

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of this report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.





Julian Gaskell (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Staverton Court
Staverton
Cheltenham
GL51 0UX

21 February 2025

 

Sargent-Disc Limited

Profit and Loss Account for the Year Ended 30 June 2024

Note

2024
£

2023
£

Turnover

3

8,575,889

12,349,408

Cost of sales

 

(6,341,361)

(9,670,386)

Gross profit

 

2,234,528

2,679,022

Administrative expenses

 

(3,698,306)

(2,897,540)

Other operating income

4

-

434,851

Operating (loss)/profit

5

(1,463,778)

216,333

Other interest receivable and similar income

6

1,930,797

1,849,910

Interest payable and similar expenses

7

(18,483)

-

Profit before tax

 

448,536

2,066,243

Tax on profit

11

(110,998)

(421,847)

Profit for the financial year

 

337,538

1,644,396

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Sargent-Disc Limited

(Registration number: 02020919)
Balance Sheet as at 30 June 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

12

161,491

166,083

Investments

13

861,344

861,344

 

1,022,835

1,027,427

Current assets

 

Debtors

14

12,489,466

11,156,020

Cash at bank and in hand

 

43,592,014

52,212,732

 

56,081,480

63,368,752

Creditors: Amounts falling due within one year

15

(57,246,551)

(64,117,321)

Net current liabilities

 

(1,165,071)

(748,569)

Total assets less current liabilities

 

(142,236)

278,858

Provisions

16

(33,707)

(40,517)

Deferred tax liabilities

11

(37,302)

(39,124)

Net (liabilities)/assets

 

(213,245)

199,217

Capital and reserves

 

Called up share capital

1,000

1,000

Profit and loss account

19

(214,245)

198,217

Total equity

 

(213,245)

199,217

Approved and authorised by the Board on 21 February 2025 and signed on its behalf by:
 

L E Sargent
Director

   
     
 

Sargent-Disc Limited

Statement of Changes in Equity for the Year Ended 30 June 2024

Share capital
£

Profit and loss account
£

Total
£

At 1 July 2023

1,000

198,217

199,217

Profit for the year

-

337,538

337,538

Dividends

-

(750,000)

(750,000)

At 30 June 2024

1,000

(214,245)

(213,245)

Share capital
£

Profit and loss account
£

Total
£

At 1 July 2022

1,000

(196,179)

(195,179)

Profit for the year

-

1,644,396

1,644,396

Dividends

-

(1,250,000)

(1,250,000)

At 30 June 2023

1,000

198,217

199,217

 

Sargent-Disc Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
First Floor
St Johns House
16 Church Street
Bromsgrove
Worcestershire
B61 8DN

The principal place of business is:
5 - 7 Baring Road
Beaconsfield
Buckinghamshire
HP9 2NB

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Summary of disclosure exemptions

Sargent-Disc Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its financial statements.

Exemptions have been taken in relation to financial instruments and presentation of a statement of cash flows.

Group accounts not prepared

The financial statements contain information about Sargent-Disc Limited as an individual company and do not contain consolidated financial information as the parent of a group.

The company is exempt under section 400 of Companies Act 2006 from the requirement to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Cast & Crew Entertainment Services, Ltd..

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources available to it to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

 

Sargent-Disc Limited

Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)

 

2

Accounting policies (continued)

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities. Amounts invoiced in the year relating to services to be provided beyond the reporting date are carried forward as deferred income and released to the profit and loss account as the right to the consideration is earned.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

Sargent-Disc Limited

Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)

 

2

Accounting policies (continued)

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures and fittings

7 years straight line

Office equipment

5 years straight line

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Trade debtors

Trade debtors are amounts due from customers for goods sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Sargent-Disc Limited

Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)

 

2

Accounting policies (continued)

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

Sargent-Disc Limited

Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)

 

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2024
£

2023
£

Payroll services

6,798,099

10,148,489

Software services

1,323,305

2,042,652

Other income

454,485

158,267

8,575,889

12,349,408

The analysis of the company's turnover for the year by market is as follows:

2024
£

2023
£

United Kingdom

7,327,656

10,058,625

North America

442,278

1,235,151

Rest of the World

805,955

1,055,632

8,575,889

12,349,408

 

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2024
£

2023
£

Foreign exchange gains

-

434,851

 

5

Operating (loss)/profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

38,884

42,249

Foreign exchange losses/(gains)

62,091

(434,851)

 

6

Other interest receivable and similar income

2024
£

2023
£

Other interest receivable

299

89

Interest income on bank deposits

1,802,620

1,842,066

Interest from group undertakings

127,878

7,755

1,930,797

1,849,910

 

7

Interest payable and similar expenses

2024
£

2023
£

Interest expense on other finance liabilities

18,483

-

 

Sargent-Disc Limited

Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)

 

8

Staff costs

The aggregate payroll costs were as follows:

2024
£

2023
£

Wages and salaries

2,591,528

2,399,560

Social security costs

290,368

265,592

Pension costs, defined contribution scheme

183,607

132,693

3,065,503

2,797,845

The average number of persons employed by the company during the year, analysed by category was as follows:

2024
No.

2023
No.

Operations

25

27

Administration

16

13

Sales and marketing

3

3

Technical and IT support

14

15

58

58

 

9

Directors' remuneration

The directors received no remuneration from the company during either year. This is on the basis that the directors are remunerated for services to parent companies and do not receive any remuneration for their services to the company or its subsidiaries.

 

10

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

20,600

19,500

 

11

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

114,066

432,367

UK corporation tax adjustment to prior periods

(1,246)

-

112,820

432,367

Deferred taxation

Arising from origination and reversal of timing differences

(1,822)

(10,520)

Tax expense in the profit and loss account

110,998

421,847

 

Sargent-Disc Limited

Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)

 

11

Taxation (continued)

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 20.5%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

448,536

2,066,243

Corporation tax at standard rate

112,134

423,580

Effect of expense not deductible in determining taxable profit (tax loss)

110

251

Decrease in UK and foreign current tax from adjustment for prior periods

(1,246)

-

Tax decrease from other tax effects

-

(1,984)

Total tax charge

110,998

421,847

Deferred tax

Deferred tax assets and liabilities

2024

Liability
£

Fixed asset timing differences

40,373

Short term timing differences

(3,071)

37,302

2023

Liability
£

Fixed asset timing differences

41,284

Short term timing differences

(2,160)

39,124

 

12

Tangible assets

Fixtures and fittings
 £

Office equipment
 £

Total
£

Cost

At 1 July 2023

284,318

186,453

470,771

Additions

-

34,291

34,291

At 30 June 2024

284,318

220,744

505,062

Depreciation

At 1 July 2023

145,783

158,905

304,688

Charge for the year

22,463

16,420

38,883

At 30 June 2024

168,246

175,325

343,571

Carrying amount

At 30 June 2024

116,072

45,419

161,491

At 30 June 2023

138,535

27,548

166,083

 

Sargent-Disc Limited

Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)

 

13

Investments

Subsidiaries

£

Cost

At 1 July 2023

861,344

At 30 June 2024

861,344

Carrying amount

At 30 June 2024

861,344

At 30 June 2023

861,344

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2024

2023

Subsidiary undertakings

LeBog Software GmbH

Straßburger Str. 18, 10405 Berlin, Germany

Ordinary

100%

100%

 

14

Debtors

2024
£

2023
£

Trade debtors

6,498,070

8,769,061

Amounts owed by related parties

5,545,271

2,116,200

Other debtors

8,271

13,329

Prepayments

143,892

51,367

Accrued income

192,927

206,063

Corporation tax asset

101,035

-

12,489,466

11,156,020

 

15

Creditors

2024
£

2023
£

Due within one year

Trade creditors

33,297,881

37,624,764

Amounts due to related parties

785,041

1,802,841

Social security and other taxes

350,868

203,721

Other payables

21,678,506

22,636,954

Accrued expenses

600,295

1,002,256

Corporation tax liability

-

181,873

Deferred income

533,960

664,912

57,246,551

64,117,321

 

Sargent-Disc Limited

Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)

 

16

Provisions for liabilities

Employee benefits
£

At 1 July 2023

40,517

Additional provisions

33,707

Provisions used

(40,517)

At 30 June 2024

33,707

The provision for employee benefits relates to pro rate holiday not taken at the balance sheet date and is expected to be utilised within the next year.

 

17

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £183,607 (2023 - £132,693).

 

18

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

1,000

1,000

1,000

1,000

       
 

19

Reserves

Called up share capital
Represents the issued equity share capital of the company.

Profit and loss account
Represents cumulative profits or losses, net of dividends paid and other adjustments.

 

20

Dividends

2024
 £

2023
 £

Dividends paid

750,000

1,250,000

 

21

Parent and ultimate parent undertaking

The company's immediate parent is Cast & Crew Entertainment Services, Ltd., incorporated in England & Wales which is the parent of the smallest group preparing consolidated financial statements including the company. The registered office of Cast & Crew Entertainment Services Ltd. is First Floor, St Johns House, 16 Church Street, Bromsgrove, Worcestershire, B61 8DN. The ultimate parent is Camera Holdings LP, incorporated in United States of America. The ultimate controlling party is EQT AB. The parent of the largest group and the most senior parent entity preparing consolidated financial statements including the company is Camera Holdings LP and its registered office is 2300 Empire Avenue, 5th Floor Burbank, CA 91504, United States of America.