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Company registration number: 05360199







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
29 FEBRUARY 2024


ENVY POST PRODUCTION LIMITED






































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ENVY POST PRODUCTION LIMITED
 


 
COMPANY INFORMATION


Directors
D Cadle 
D Bocarro 
W Bottriell 
D Reynolds 
N Cadle 
J Martin 
D Sassen 
KJ Duckett 




Company secretary
A K Skinner



Registered number
05360199



Registered office
50a Rathbone Place

London

W1T 1JW




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

Magna House

18-32 London Road

Staines-Upon-Thames

TW18 4BP




Bankers
Bank of Scotland
33 Old Broad Street

London

EC2N 5BL





 


ENVY POST PRODUCTION LIMITED
 



CONTENTS



Page
Group Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditors' Report
6 - 9
Consolidated Statement of Comprehensive Income
10
Consolidated Statement of Financial Position
11
Company Statement of Financial Position
12
Consolidated Statement of Changes in Equity
13
Company Statement of Changes in Equity
14
Consolidated Statement of Cash Flows
15 - 16
Consolidated Analysis of Net Debt
17
Notes to the Financial Statements
18 - 39


 


ENVY POST PRODUCTION LIMITED
 


 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024

Principal activity
 
The principal activity of the group is the provision of TV and film post production services to the Broadcast and Advertising markets.

Business review
 
Turnover for the year was £26,212,624 compared to £23,139,098 in 2023. The loss after tax for the year was £1,766,424 (profit of £1,032,731 in 2023).
The negative factors affecting the industry since last year are well known. The results for the year reflect the large downwards shift in demand on the back of the slowdown in UK TV commissioning, the US Actors’ and Writers’ strikes affecting production, and the UK’s high inflationary climate adversely affecting advertising spend.  After navigating a very difficult period, trading has steadily improved during the current year and the company is well placed to take advantage of positive activity changes.  Looking forward, the order book for work is encouraging and we will be moving into 2025 and beyond with cautious optimism. 
Despite the challenging times, the balance sheet remains healthy, having sufficient built-up cash reserves to weather the downturn and to meet the company’s obligations.  The directors continue to focus on exploring opportunities for maximising growth and generating profits while at the same time keeping a careful eye on industry developments and making crucial decisions to allow the group to react to and manoeuvre through the changeable market conditions. Envy REMOTE, our remote editing service which won an award for Best Use of Creative Innovation at the Broadcast Tech Awards, is a great example of embracing the changing landscape, enabling us to offer complete flexibility to our clients. 
The group works on a host of projects for a wide range of TV and streaming channels, agencies and production companies and provides full post production services out of multiple sites.  The combination of our technical excellence and the ability to produce creative output of the highest quality ensures that we maintain strong relationships with our loyal clients.  By enhancing our reputation with new and innovative productions, we are able to attract a variety of work across different genres and disciplines.  We consistently rank highly in the Televisual Facilities 50 poll, both overall and in the producer polls.
ENVY Capture is our specialist on-set workflow division, offering a spectrum of services to support productions with the ability to manage the most complex projects.  During the financial year they completed work on Studio Lambert Media’s ‘The Traitors’ (UK and US), Banijay UK’s ‘Survivor’ and Optomen’s ‘At Home With the Furys’.  Current year’s trading has proved successful with growth in revenue and expansion of the team. Their quality of work has earned them a well-deserved nomination for ‘Tech Team of the Year’ at the 2024 Broadcast Tech Awards.
We place great value on the recognition of excellence and talent and we are proud of the nominations and awards received by our imaginative clients and highly skilled creatives, of which there are many.  Studio Lambert Media/The Garden Production’s ‘Squid Game: The Challenge’, a new reality game show format for Netflix, garnered several awards in 2024, including a BAFTA win for Best Reality programme, an RTS award for Entertainment and three Emmy nominations.  ‘The Traitors US’ also picked up four Emmy nominations and many other formats won or were nominated for various industry accolades, including Optomen’s ‘Sort Your Life Out’ (Reality and Popular Factual at NTAs and RTS), BBC’s ‘The Shamina Begum Story’ (Current Affairs - BAFTA) and Keo Films’ ‘Once Upon A Time in Northern Ireland (Best Documentary Series – Grierson Awards and Edinburgh TV Awards).
Envy’s Advertising division joined forces with Absolute at the start of the financial year to consolidate personnel and resources.  This was followed by a move of Absolute’s and Blind Pig’s premises to their newly refurbished home at Mortimer Street, which was completed post year end alongside a comprehensive technical upgrade. Offering both a commercial and TV/Film arm it provides a full service studio offering VFX, CGI, animation, colour and sound, giving them to opportunity to flourish in a new landscape well suited to their clients’ needs.  A range of campaigns and brands were worked on by Absolute including ‘Bulgari’, ‘Samsung’, ‘Candy Crush’, ‘IKEA’ and ‘Covergirl’ while Blind Pig provided animation for ‘The Ashley Madison Affair’, ‘National Geographic’ and ‘Ocean Outdoor’. Absolute’s Film & TV division was more directly affected by the US strikes but more generous UK tax credit reliefs recently announced by the government should positively influence future activity.  Work was carried out on ‘The Rig Season 2’ for Amazon Prime and ‘Sweetpea’ for Sky Atlantic. 

We continue to invest in the Envy Academy, which trains and nurtures young talent both from outside and within the company. The programme includes talks and workshops at academic institutions across the country and gives aspiring talent an opportunity to learn more through our popular work experience programme.  Internally, it delivers structured training, paths for progression and runs regular masterclasses hosted by our creatives, all supervised by our Staff
Page 1

 


ENVY POST PRODUCTION LIMITED
 



GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024

Development Manager. The Academy was shortlisted for ‘Best Industry Skills Initiative’ at the 2024 Broadcast Tech Innovation Awards.  The Academy is especially important considering the effect of the downturn on the industry’s workforce and the evident shortage of valuable young talent.  We are pleased to support the Film & TV Charity which helps people working in our sector who need financial, personal or work-related assistance and we also partner with other initiatives such as RISE (Women In Broadcast), Women In Film and TV and the King’s Trust.
The Directors would like to extend huge thanks to Envy’s staff.  We are grateful for their unending dedication, talent and loyalty and their hard work and efforts are very much recognised and appreciated.  Envy’s first-class reputation is because of the central part they play in providing the extremely high quality of services our clients demand.  
In May 2023, the company bought back 3,080 shares from company shareholders, which is reflected in the balance sheet at the year end.  A further 373 shares were bought back by the company after the year end in April 2024, as disclosed in the post balance sheet note.   

Financial key performance indicators
 
The Directors use a series of key performance indicators (KPIs) to assess performance of the business and these are monitored and reviewed continually throughout the year.  The KPIs for the year are:


2024
2023



Turnover
£26.213m
£23.139m
Profit before tax
(£2.315m)
£1.273m
EBITDA
(£0.425m)
£2.893m
Net increase / (decrease) in cash for the period
(£3.35m)
£0.70m
Average utilisation of suites
61%
72%

Principal risks and uncertainties
 
The risks affecting the group are reviewed by the Directors to ensure they are properly identified and managed. The principal risks and uncertainties that could have an impact on the group are detailed below.
Interest rate risk
Exposure to interest rate movements on the company’s borrowings is managed by maintaining a mixture of fixed and variable rate financing combined with maintaining reasonable debt levels.  The company’s exposure to interest rate risk applies to interest received on cash deposits and interest paid on loans.
Credit risk
Credit risk exposure arises from amounts shown as due in the balance sheet.  The company does not have significant concentrations of credit risk from our clients.  The company considers that its current policies of credit control and regular credit checks ensures that this risk is properly managed. 

Liquidity risk
The company monitors liquidity risk through ongoing review of cash flow forecasts to ensure that sufficient cash reserves are maintained to meet its ongoing obligations, in both the short and long term.  External financing is sought where needed to meet any funding requirements.
Price risk
The industry is highly competitive, with constant pressure to lower quoted prices to meet clients’ budgets and win work.  We offer a high-end service to our clients but we also recognise the need to offer attractive prices without impacting on quality or profitability, which we are well placed to do.
Rates are set within a predetermined range and prices charged for services performed are agreed with clients in advance of work commencing.  Any variations during each project are communicated to the client at the time and then costed, discussed, and charged as appropriate.  We review average hourly rates monthly, ensuring that price movements can be quickly identified. 


 
Page 2

 


ENVY POST PRODUCTION LIMITED
 



GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024

Foreign currency risk
Foreign currency exposures arise from trading with overseas clients and suppliers.  Where possible, rates are fixed in sterling.  Exchange rates are monitored closely so that currency can be converted to sterling at rates that minimise the impact of rate fluctuations. 
Technology risk
Technology is at the core of our ability to offer the most up-to-date services to our clients.  Technological advances increase the density of data and complexity of workflows, meaning that continual investment in equipment and software is required to deliver our services.  The recent rapid development of Artificial Intelligence (AI) and how it impacts our service provision in future is also an important factor to keep abreast of.  Capital investment is carefully considered and by establishing close relationships with suppliers we can ensure that any spend we commit to is carefully considered and planned, has longevity, and makes commercial sense.  
Market risk
The industry is influenced by creative and commercial decisions made by both broadcasters on programming and by companies advertising their products and services.  We provide services to a mix of clients across the Broadcast and Advertising markets which to some extent dampens our exposure to market fluctuations.  Maintaining strong relationships with our clients and industry contacts allows us to keep abreast of and react to market changes.


This report was approved by the board and signed on its behalf.




D Bocarro
Director
Date: 25 February 2025

Page 3

 


ENVY POST PRODUCTION LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024

The directors present their report and the financial statements for the year ended 29 February 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £1,766,424 (2023 - profit £1,032,731)

No dividend has been recommended to be paid.

Directors

The directors who served during the year were:

D Cadle 
D Bocarro 
W Bottriell 
D Reynolds 
N Cadle 
J Martin 
D Sassen 
KJ Duckett 

Matters covered in the Group Strategic Report

The company has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out within the company's Strategic Report the Company's Strategic Report Information required by schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties.

Page 4

 


ENVY POST PRODUCTION LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Auditors

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





................................................
D Bocarro
Director

Date: 25 February 2025

Page 5

 


ENVY POST PRODUCTION LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENVY POST PRODUCTION LIMITED

Opinion


We have audited the financial statements of Envy Post Production Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 29 February 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent Company's affairs as at 29 February 2024 and of the Group's loss 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 or the 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 Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 6

 


ENVY POST PRODUCTION LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENVY POST PRODUCTION LIMITED (CONTINUED)

Opinion on other matters 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 Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the 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 the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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 Directors' Responsibilities Statement 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 Group's and the 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 the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 


ENVY POST PRODUCTION LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENVY POST PRODUCTION LIMITED (CONTINUED)

Auditors' 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 Auditors' 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including UK Companies Act, employment law and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

We understood how the Group is complying with those legal and regulatory frameworks by, making inquiries to
management, those responsible for legal and compliance procedures and the company secretary. The engagement
partner assessed whether the engagement team collectively had the appropriate competence and capabilities to
identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this
area.

We assessed the susceptibility of the Group's financial statements to material misstatement, including how fraud might
occur. Audit procedures performed by the engagement team included:

°Identifying and assessing the design effectiveness of controls management has in place to prevent and detect
fraud;

°Understanding how those charged with governance considered and addressed the potential for override of
controls or other inappropriate influence over the financial reporting process; and

°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

°Incorrect revenue recognition;

°Posting of unusual journals and complex transactions; and

°Misappropriation of assets.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 8

 


ENVY POST PRODUCTION LIMITED


img7cd9.png
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENVY POST PRODUCTION LIMITED (CONTINUED)

Use of our 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 2006Our 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 Auditors' 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.





Andrew Cook FCA (Senior Statutory Auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
Magna House
18-32 London Road
Staines-Upon-Thames
TW18 4BP

26 February 2025
Page 9

 


ENVY POST PRODUCTION LIMITED
 


 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024

2024
2023
Note
£
£

  

Turnover
 4 
26,212,624
23,139,098

Cost of sales
  
(18,086,457)
(14,116,405)

Gross profit
  
8,126,167
9,022,693

Administrative expenses
  
(10,546,087)
(7,867,239)

Other operating income
 5 
159,583
185,174

Operating (loss)/profit
 6 
(2,260,337)
1,340,628

Interest receivable and similar income
 10 
91,402
18,445

Interest payable and similar expenses
 11 
(146,277)
(86,548)

(Loss)/profit before tax
  
(2,315,212)
1,272,525

Tax on (loss)/profit
 12 
548,788
(239,794)

(Loss)/profit for the financial year
  
(1,766,424)
1,032,731

  

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 18 to 39 form part of these financial statements.

Page 10

 


ENVY POST PRODUCTION LIMITED
REGISTERED NUMBER:05360199



CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 29 FEBRUARY 2024

29 February
As restated
28 February
2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 14 
1,684,352
1,807,531

Tangible assets
 15 
5,376,644
4,415,580

Investments
 16 
250,000
250,000

  
7,310,996
6,473,111

Current assets
  

Stocks
  
754
796

Debtors
 17 
5,905,586
6,552,657

Cash at bank and in hand
  
4,372,071
7,722,302

  
10,278,411
14,275,755

Creditors: amounts falling due within one year
 18 
(4,837,728)
(6,011,135)

Net current assets
  
 
 
5,440,683
 
 
8,264,620

Total assets less current liabilities
  
12,751,679
14,737,731

Creditors: amounts falling due after more than one year
 19 
(1,972,307)
(1,939,457)

Provisions for liabilities
  

Deferred tax
 22 
-
(380,757)

Other provisions
 23 
(994,039)
(765,491)

  
 
 
(994,039)
 
 
(1,146,248)

Net assets
  
9,785,333
11,652,026


Capital and reserves
  

Called up share capital 
 24 
860,393
863,473

Share premium account
 25 
1,387,703
1,387,703

Capital redemption reserve
 25 
57,742
54,662

Profit and loss account
 25 
7,479,495
9,346,188

  
9,785,333
11,652,026


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 

D Bocarro
D Cadle
Director
Director
Date: 25 February 2025
Date: 25 February 2025

The notes on pages 18 to 39 form part of these financial statements.

Page 11

 


ENVY POST PRODUCTION LIMITED
REGISTERED NUMBER:05360199



COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 29 FEBRUARY 2024

29 February
As restated
28 February
2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 14 
112,641
142,692

Tangible assets
 15 
5,119,685
4,190,887

Investments
 16 
2,810,835
2,855,864

  
8,043,161
7,189,443

Current assets
  

Stocks
  
754
796

Debtors
 17 
4,654,667
5,119,222

Cash at bank and in hand
  
4,069,518
7,344,497

  
8,724,939
12,464,515

Creditors: amounts falling due within one year
 18 
(3,501,673)
(4,715,468)

Net current assets
  
 
 
5,223,266
 
 
7,749,047

Total assets less current liabilities
  
13,266,427
14,938,490

  

Creditors: amounts falling due after more than one year
 19 
(1,972,307)
(1,939,457)

Provisions for liabilities
  

Deferred taxation
 22 
(63,872)
(380,757)

Other provisions
 23 
(888,386)
(715,491)

  
 
 
(952,258)
 
 
(1,096,248)

Net assets
  
10,341,862
11,902,785


Capital and reserves
  

Called up share capital 
 24 
860,393
863,473

Share premium account
 25 
1,387,703
1,387,703

Capital redemption reserve
 25 
57,742
54,662

Profit and loss account
 25 
8,036,024
9,596,947

  
10,341,862
11,902,785


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


D Bocarro
D Cadle
Director
Director
Date: 25 February 2025
Date: 25 February 2025

The notes on pages 18 to 39 form part of these financial statements.

Page 12

 


ENVY POST PRODUCTION LIMITED
 



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024


Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 March 2022
854,940
859,703
41,195
8,668,539
10,424,377


Comprehensive income for the year

Profit for the year
-
-
-
1,032,731
1,032,731
Total comprehensive income for the year
-
-
-
1,032,731
1,032,731


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(125,000)
(125,000)

Shares issued during the year
22,000
528,000
-
-
550,000

Purchase of own shares
(13,467)
-
13,467
(230,082)
(230,082)


Total transactions with owners
8,533
528,000
13,467
(355,082)
194,918



At 1 March 2023
863,473
1,387,703
54,662
9,346,188
11,652,026


Comprehensive income for the year

Loss for the year
-
-
-
(1,766,424)
(1,766,424)
Total comprehensive income for the year
-
-
-
(1,766,424)
(1,766,424)


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(50,000)
(50,000)

Purchase of own shares
(3,080)
-
3,080
(50,269)
(50,269)


Total transactions with owners
(3,080)
-
3,080
(100,269)
(100,269)


At 29 February 2024
860,393
1,387,703
57,742
7,479,495
9,785,333


The notes on pages 18 to 39 form part of these financial statements.

Page 13

 


ENVY POST PRODUCTION LIMITED
 



COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024


Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 March 2022
854,940
859,703
41,195
8,668,539
10,424,377


Comprehensive income for the year

Profit for the year
-
-
-
1,283,490
1,283,490
Total comprehensive income for the year
-
-
-
1,283,490
1,283,490


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(125,000)
(125,000)

Shares issued during the year
22,000
528,000
-
-
550,000

Purchase of own shares
(13,467)
-
13,467
(230,082)
(230,082)


Total transactions with owners
8,533
528,000
13,467
(355,082)
194,918



At 1 March 2023
863,473
1,387,703
54,662
9,596,947
11,902,785


Comprehensive income for the year

Loss for the year
-
-
-
(1,460,654)
(1,460,654)
Total comprehensive income for the year
-
-
-
(1,460,654)
(1,460,654)


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(50,000)
(50,000)

Purchase of own shares
(3,080)
-
3,080
(50,269)
(50,269)


Total transactions with owners
(3,080)
-
3,080
(100,269)
(100,269)


At 29 February 2024
860,393
1,387,703
57,742
8,036,024
10,341,862


The notes on pages 18 to 39 form part of these financial statements.

Page 14

 


ENVY POST PRODUCTION LIMITED
 



CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024

29 February
28 February
2024
2023
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(1,766,424)
1,032,731

Adjustments for:

Amortisation of intangible assets
247,028
87,117

Depreciation of tangible assets
1,588,202
1,464,869

Gain/(Loss) on disposal of tangible assets
46,473
(4,272)

Interest paid
146,277
86,548

Interest received
(91,402)
(18,445)

Taxation charge
(548,788)
239,794

Decrease/(increase) in stocks
44
(160)

Decrease in debtors
778,764
1,467,966

(Decrease)/increase in creditors
(1,626,754)
774,251

Increase in provisions
228,548
-

Corporation tax paid
(189,882)
(115,060)

Net cash (used in)/generated from operating activities

(1,187,914)
5,015,339


Cash flows from investing activities

Purchase of intangible fixed assets
(168,878)
(90,937)

Purchase of tangible fixed assets
(1,147,323)
(1,331,635)

Sale of tangible fixed assets
-
4,633

Interest received
91,402
18,445

Investment in associate
-
(250,000)

Acquisition of subsidiaries, net of cash received
-
(1,577,561)

Net cash used in investing activities

(1,224,799)
(3,227,055)
Page 15

 


ENVY POST PRODUCTION LIMITED
 



CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024

29 February
28 February

2024
2023

£
£



Cash flows from financing activities

Repayment of loans
(433,333)
(400,000)

Repayment of finance leases
(257,639)
(245,159)

Dividends paid
(50,000)
(125,000)

Interest paid
(146,277)
(86,548)

Shares bought back in the year
(50,269)
(230,082)

Net cash used in financing activities
(937,518)
(1,086,789)

Net (decrease)/increase in cash and cash equivalents
(3,350,231)
701,495

Cash and cash equivalents at beginning of year
7,722,302
7,020,827

Cash and cash equivalents at the end of year
4,372,071
7,722,322


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
4,372,071
7,722,322

4,372,071
7,722,322


The notes on pages 18 to 39 form part of these financial statements.

Page 16

 


ENVY POST PRODUCTION LIMITED
 



CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 29 FEBRUARY 2024





At 1 March 2023
Cash flows
New finance leases
At 29 February 2024
£

£

£

£

Cash at bank and in hand

7,722,302

(3,350,231)

-

4,372,071

Debt due after 1 year

(1,166,667)

400,000

-

(766,667)

Debt due within 1 year

(440,424)

33,333

-

(407,091)

Finance leases

(65,113)

257,639

(1,448,417)

(1,255,891)


6,050,098
(2,659,259)
(1,448,417)
1,942,422

The notes on pages 18 to 39 form part of these financial statements.

Page 17

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

1.


General information

Envy Post Production Limited (05360199) is a private company limited by shares, and it is incorporated and domiciled in England and Wales. Details of the company's registered office can be found on the company information page. 
The Group consists of Envy Post Production Limited ("the Company") and all of its subsidiaries. The Group's principal activity during the year was post production services. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.

Page 18

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

2.Accounting policies (continued)

  
2.4

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.
Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. 

 
2.5

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

 
2.6

Operating leases

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Page 19

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

2.Accounting policies (continued)

 
2.7

Research and development

Research expenditure is written off in the period in which it is incurred.
Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met:
- It is technically feasible to complete the intangible asset so that it will be available for use or sale;
- There is the intention to complete the intangible asset and use or sell it;
- There is the ability to use or sell the intangible asset;
- The use or sale of the intangible asset will generate probable future economic benefits;
- There are adequate technical, financial and other resources available to complete the development and to
use or sell the intangible asset; and
- The expenditure attributable to the intangible asset during its development can be measured reliably. 
Expenditure that does not meet the above criteria is expensed as incurred.

 
2.8

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over ten years.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 Amortisation is provided on the following bases:

Development costs
-
20 - 25% straight line basis
Computer software
-
20% straight line basis

 
2.9

Tangible assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 20

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

2.Accounting policies (continued)


2.9
Tangible assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Leasehold Improvements
-
Over the term of the lease
Plant and machinery
-
10% - 50% straight line
Fixtures and fittings
-
10% - 50% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.11

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

  
2.12

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

  
2.13

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Page 21

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

2.Accounting policies (continued)

 
2.14

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

 
2.15

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

Dilapidation and reinstatement provision: The Directors assess each property individually under the terms of the lease. The judgements, estimates and associated assumptions necessary to calculate the provisions are based on historical experience and other reasonable factors. 

Page 22

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Rendering of services
26,212,624
23,139,098

26,212,624
23,139,098


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
25,522,328
22,921,164

Rest of Europe
56,967
217,164

Rest of the world
633,329
770

26,212,624
23,139,098



5.


Other operating income

2024
2023
£
£

Rental income
140,999
185,174

Other income
18,584
-

159,583
185,174



6.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2024
2023
£
£

Exchange differences
12,803
10,255

Depreciation of tangible fixed assets
1,588,203
1,464,869

Amortisation of intangible assets, including goodwill
247,028
87,117

Loss/(profit) on disposal of tangible assets
46,473
(4,272)

Other operating lease rentals
3,111,162
3,310,846

Staff pension contributions
392,367
249,252

Page 23

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Group's auditors for the audit of the Group's annual financial statements
56,000
54,925


8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
29 February
Group
28 February
Company
29 February
Company
28 February
2024
2023
2024
2023
£
£
£
£


Wages and salaries
12,995,896
9,528,666
7,453,579
8,088,235

Social security costs
1,469,039
1,139,907
854,082
975,570

Cost of defined contribution scheme
392,367
249,252
242,846
202,920

14,857,302
10,917,825
8,550,507
9,266,725


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Production staff
217
188



Administrative staff
41
18



Management staff
8
5

266
211

Page 24

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
878,656
960,989

Group contributions to defined contribution pension schemes
102,810
79,492

981,466
1,040,481


During the year retirement benefits were accruing to 6 directors (2023 - 6) in respect of defined contribution pension schemes. The prior period director number has been restated from 7 to 6.

The highest paid director received remuneration of £264,428 (2023 - £324,719).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £25,500 (2023 - £22,417).


10.


Interest receivable

2024
2023
£
£


Other interest receivable
91,402
18,445

91,402
18,445


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
108,350
71,176

Finance leases and hire purchase contracts
37,927
15,372

146,277
86,548

Page 25

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
(127,484)
114,064

Adjustments in respect of previous periods
(40,547)
-

Total current tax
(168,031)
114,064

Deferred tax


Origination and reversal of timing differences
(373,766)
94,708

Effect of tax rate change on opening balance
(6,991)
29,907

Adjustments in respect of previous periods
-
1,115

Total deferred tax
(380,757)
125,730


Taxation on (loss)/profit on ordinary activities
(548,788)
239,794
Page 26

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 24.49% (2023 - 19%). The differences are explained below:

2024
2023
£
£


(Loss)/profit on ordinary activities before tax
(2,315,212)
1,272,525


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 24.49% (2023 - 19%)
(566,995)
241,780

Effects of:


Fixed asset differences
(18,560)
32,409

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
48,122
45,171

Capital allowances at super-deduction
(519)
(81,560)

Different rates on loss carry-back
36,836
-

Goodwill amortisation
40,272
7,894

Adjustments to tax charge in respect of prior periods
722
(848)

Re-measurement of deferred tax - change in the UK tax rate
(6,991)
29,907

Other timing differences
(3,559)
(1,489)

Tax relating to pre acquisition
-
(11,850)

Other permanent difference
-
27,110

Share scheme deduction
-
(93,570)

Research and Development tax relief
(41,269)
-

Deferred tax not recognised
(36,847)
44,840

Total tax charge for the year
(548,788)
239,794


13.


Dividends

29 February
28 February
2024
2023
£
£


Equity dividends on ordinary shares
50,000
125,000

50,000
125,000

After the year end the directors have proposed a dividend to be paid to the shareholders of £Nil (2023: £50,000).

Page 27

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

14.


Intangible assets

Group







Development expenditure
Computer software
Goodwill
Total

£
£
£
£



Cost


At 1 March 2023
338,239
15,525
1,661,934
2,015,698


Additions
157,628
11,250
-
168,878


Adjustment to purchase price of subsidiary
-
-
(45,029)
(45,029)



At 29 February 2024

495,867
26,775
1,616,905
2,139,547



Amortisation


At 1 March 2023
155,272
11,347
41,548
208,167


Charge for the year
77,729
3,106
166,193
247,028



At 29 February 2024

233,001
14,453
207,741
455,195



Net book value



At 29 February 2024
262,866
12,322
1,409,164
1,684,352



At 28 February 2023
182,967
4,178
1,620,386
1,807,531



Page 28

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
 
           14.Intangible assets (continued)

Company






Development expenditure
Computer software
Total

£
£
£



Cost


At 1 March 2023
290,822
15,525
306,347


Additions
5,950
11,250
17,200



At 29 February 2024

296,772
26,775
323,547



Amortisation


At 1 March 2023
152,308
11,347
163,655


Charge for the year
44,145
3,106
47,251



At 29 February 2024

196,453
14,453
210,906



Net book value



At 29 February 2024
100,319
12,322
112,641



At 28 February 2023
138,514
4,178
142,692

Page 29

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

15.


Tangible fixed assets

Group








Land & Buildings
Plant and machinery
Fixtures and fittings
Total

£
£
£
£



Cost


At 1 March 2023
4,966,685
13,632,688
5,548,997
24,148,370


Additions
463,656
1,993,834
138,250
2,595,740


Disposals
(326,347)
(4,199,564)
(1,599,199)
(6,125,110)



At 29 February 2024

5,103,994
11,426,958
4,088,048
20,619,000



Depreciation


At 1 March 2023
3,920,302
10,704,162
5,108,326
19,732,790


Charge for the year
325,278
1,090,708
172,217
1,588,203


Disposals
(280,067)
(4,199,564)
(1,599,006)
(6,078,637)



At 29 February 2024

3,965,513
7,595,306
3,681,537
15,242,356



Net book value



At 29 February 2024
1,138,481
3,831,652
406,511
5,376,644



At 28 February 2023
1,046,383
2,928,526
440,671
4,415,580

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


29 February
28 February
2024
2023
£
£



Plant and machinery
1,371,248
217,279

1,371,248
217,279


Page 30

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

           15.Tangible fixed assets (continued)


Company









Land & Buildings
Plant and machinery
Fixtures and fittings
Total

£
£
£
£

Cost or valuation


At 1 March 2023
4,890,054
13,185,710
5,548,997
23,624,761


Additions
463,656
1,822,118
138,250
2,424,024


Disposals
(249,716)
(4,155,937)
(1,599,199)
(6,004,852)



At 29 February 2024

5,103,994
10,851,891
4,088,048
20,043,933



Depreciation


At 1 March 2023
3,889,849
10,435,699
5,108,326
19,433,874


Charge for the year
310,222
997,436
172,217
1,479,875


Disposals
(234,558)
(4,155,937)
(1,599,006)
(5,989,501)



At 29 February 2024

3,965,513
7,277,198
3,681,537
14,924,248



Net book value



At 29 February 2024
1,138,481
3,574,693
406,511
5,119,685



At 28 February 2023
1,000,205
2,750,011
440,671
4,190,887

The net book value of assets held under finance leases or hire purchase contracts for the company is the same as disclosed for the group above.






Page 31

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

16.


Fixed asset investments

Group








Unlisted investments

£



Cost or valuation


At 1 March 2023
250,000



At 29 February 2024
250,000




Company








Investments in subsidiary companies
Unlisted investments
Total

£
£
£



Cost or valuation


At 1 March 2023
2,605,864
250,000
2,855,864


Post acquisition change in purchase price
(45,029)
-
(45,029)



At 29 February 2024
2,560,835
250,000
2,810,835





Direct subsidiary undertaking


The following was a direct subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Absolute Investments Limited
50a Rathbone Place, London, W1T 1JW
Intermediate holding company
Ordinary
100%


Indirect subsidiary undertakings


The following were indirect subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Absolute Post Limited
19-21 Mortimer St, London W1T 3JE
Post Production
Ordinary
100%
Blind Pig Limited
As above
Post Production
Ordinary
100%
Absolute Colour Limited
50a Rathbone Place, London, W1T 1JW
Ceased trading
Ordinary
100%
Absolute Film & TV Limited
50a Rathbone Place, London, W1T 1JW
Dormant
Ordinary
100%

Page 32

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

17.


Debtors

Group
29 February
Group
28 February


Company
29 February
Company
28 February
2024
2023
2024
2023
£
£
£
£

Due after more than one year

Other debtors
248,961
240,881
248,961
240,881

248,961
240,881
248,961
240,881

Due within one year

Trade debtors
2,789,513
3,096,620
1,727,683
2,271,077

Amounts owed by group undertakings
-
-
367,736
-

Other debtors
817,743
1,197,009
688,629
1,122,361

Prepayments and accrued income
2,049,369
2,018,147
1,621,658
1,484,903

5,905,586
6,552,657
4,654,667
5,119,222



18.


Creditors: Amounts falling due within one year

Group
29 February
Group
28 February
Company
29 February
Company
28 February
2024
2023
2024
2023
£
£
£
£

Bank loans
400,000
433,333
400,000
433,333

Trade creditors
1,189,442
1,013,452
792,847
725,471

Amounts owed to group undertakings
-
-
-
250,000

Corporation tax
122
226,342
-
128,917

Other taxation and social security
840,532
1,125,380
377,406
694,722

Obligations under finance lease and hire purchase contracts
486,221
65,113
486,221
65,113

Other creditors
325,376
641,658
232,522
522,664

Accruals and deferred income
1,596,035
2,505,857
1,212,677
1,895,248

4,837,728
6,011,135
3,501,673
4,715,468


Finance lease and hire purchase agreements are secured on the fixed assets to which they relate.

Page 33

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

19.


Creditors: Amounts falling due after more than one year

Group

29 February
Group
As restated
28 February
Company

29 February
Company
As restated
28 February
2024
2023
2024
2023
£
£
£
£

Bank loans
766,667
1,166,667
766,667
1,166,667

Net obligations under finance leases and hire purchase contracts
769,670
-
769,670
-

Accruals and deferred income
435,970
772,790
435,970
772,790

1,972,307
1,939,457
1,972,307
1,939,457


Finance lease and hire purchase agreements are secured on the fixed assets to which they relate.


20.


Loans

Group
29 February
Group
28 February
Company
29 February
Company
28 February
2024
2023
2024
2023
£
£
£
£

Analysis of the maturity of loans is given below:

Amounts falling due within one year
400,000
433,333
400,000
433,333

Amounts falling due 1-2 years
400,000
400,000
400,000
400,000

Amounts falling due 2-5 years
366,667
766,667
366,667
766,667

1,166,667
1,600,000
1,166,667
1,600,000

The bank loan is guaranteed under the Coronavirus Business Interruption Loan Scheme (CBILS) by the UK Government. Interest is charged on the loan at the Bank of England (BOE) base rate plus 2.31% and payable over the life of the loan.


21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
29 February
Group
28 February
Company
29 February
Company
28 February
2024
2023
2024
2023
£
£
£
£

Within one year
486,221
65,113
486,221
65,113

Between 1-5 years
769,670
-
769,670
-

1,255,891
65,113
1,255,891
65,113

Page 34

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

22.


Deferred taxation


Group



2024


£






At beginning of year
(380,757)


Charged to profit or loss
380,757



At end of year
-

Company


2024


£






At beginning of year
(380,757)


Charged to profit or loss
316,885



At end of year
(63,872)

Group

29 February
Group
As restated
28 February
Company

29 February
Company
As restated
28 February
2024
2023
2024
2023
£
£
£
£

Accelerated capital allowances
(701,480)
(427,121)
(613,023)
(383,389)

Short term timing differences
4,628
6,021
2,388
2,632

Losses and other deductions
696,852
40,343
546,763
-

-
(380,757)
(63,872)
(380,757)

The prior year group deferred tax breakdown was updated with the balances from the subsidiaries and this has not resulted in a change in the overall deferred tax position.
The deferred tax on the unaccounted tax losses in the group at the year-end was £15,047 (2023: £51,410).

Page 35

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

23.


Provisions


Group



Dilapidation provision
Deferred consideration
Total

£
£
£





At 1 March 2023 (as restated)
337,375
428,116
765,491


Charged to profit or loss
63,283
-
63,283


Unwind of discount
-
29,715
29,715


Released in year
(7,630)
-
(7,630)


Change in estimate
143,180
-
143,180



At 29 February 2024
536,208
457,831
994,039

The above dilapidation provision relates to the Group's present obligation to restore the properties to a specified condition. The timing of these payments is therefore uncertain as they may only occur upon the termination of the leases.
The deferred consideration is due to the vendors of Absolute Investments Limited and its subsidiaries ("the Absolute Group"), that was acquired by Envy Post Production Limited in November 2022. There is uncertainty on when the liability will fall due as its dependant upon factors outside the control of the company. 
Please see note 26 for details on prior year restatement.

Page 36

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

           23.Provisions (continued)

Company


Dilapidation provision
Deferred consideration
Total

£
£
£





At 1 March 2023 (as restated)
287,375
428,116
715,491


Unwind of discount
-
29,715
29,715


Change in estimate
143,180
-
143,180



At 29 February 2024
430,555
457,831
888,386

The above dilapidation provision relates to the Company's present obligation to restore the properties to a specified condition. The timing of these payments is therefore uncertain as they may only occur upon the termination of the leases.
The deferred consideration is due to the vendors of Absolute Investments Limited and its subsidiaries ("the Absolute Group"), that was acquired by Envy Post Production Limited in November 2022. There is uncertainty on when the liability will fall due as its dependant upon factors outside the control of the company. 


24.


Share capital

29 February
28 February
2024
2023
£
£
Authorised



2,000,000 (2023 - 2,000,000) Ordinary Shares of £1.00 each
2,000,000
2,000,000

Allotted, called up and fully paid



778,870 (2023 - 781,950) Ordinary Shares of £1.00 each
778,870
781,950

Allotted, called up and partly paid



111,675 (2023 - 111,675) Ordinary Shares of £1.00 each
81,523
81,523

The company has one class of ordinary shares which carry no right to fixed income.
During the year the company bought back 3,080 ordinary shares of £1.00 each for a total consideration of £50,269. 


Page 37

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

25.


Reserves

Share premium account

This reserve records the amount above the nominal value received for shares sold, less transaction costs. 

Capital redemption reserve

This is a statutory, non-distributable reserve which arose following the purchase of the company's own shares out of distributable profits. 

Profit and loss account

The profit and loss account represents the retention of historical profits less dividends paid and purchase of own shares.


26.


Prior year adjustment

The prior year creditors due after more than one year for the company and group have been restated from £2,367,573 to £1,939,457 after reclassifying the deferred consideration of £428,116 payable to the vendors of Absolute Investments Limited to provisions due to the uncertainty of the settlement date.


27.


Contingent liabilities

As previously disclosed, Envy Post Production acquired Absolute Investments Limited and its subsidiaries (‘the Absolute Group’) in November 2022.
It has been identified that, prior to acquisition by the group, VAT was incorrectly not charged on management charges raised between certain of the Absolute Group entities, not covered by a group VAT registration. The group is currently corresponding with HMRC to correct this matter, with the expectation that a VAT neutral position across the entities will be achieved. Penalties and interest may arise, however, the group is currently unable to assess whether this will be the case or potential quantum thereof.
Should there be a net cost arising to the group in VAT, interest and penalties, the amount payable would be deducted from the deferred consideration liability payable to the Absolute Group vendor as shown in note 23.


28.


Capital commitments




At 29 February 2024 the Group and Company had capital commitments as follows:


Group
29 February
Group
28 February
Company
29 February
Company
28 February
2024
2023
2024
2023
£
£
£
£

Contracted for but not provided in these financial statements
182,163
-
182,163
-

182,163
-
182,163
-

Page 38

 


ENVY POST PRODUCTION LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

29.


Pension commitments

The amount recognised in profit and loss as an expense in relation to defined contribution plans was £392,367 (2023: £249,252). Contributions totalling £54,031 (2023: £63,922) were payable to the fund at 29 February 2024 and are included in creditors.


30.


Commitments under operating leases

At 29 February 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
29 February
Group
28 February
Company
29 February
Company
28 February
2024
2023
2024
2023
£
£
£
£

Not later than 1 year
3,264,246
3,636,373
3,264,246
3,428,060

Later than 1 year and not later than 5 years
5,769,106
8,023,337
5,769,106
8,023,337

Later than 5 years
-
476,282
-
476,282

9,033,352
12,135,992
9,033,352
11,927,679


31.


Controlling party

The directors are of the opinion that at year end there is no ultimate controlling party. 


32.


Post balance sheet events

The company has bought back 373 ordinary shares of £1.00 each against the total consideration of £3,730 in April 2024.

 
Page 39