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COMPANY INFORMATION
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CONTENTS
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GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
The principal activity of the group is the provision of TV and film post production services to the Broadcast and Advertising markets.
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
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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.
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:
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.
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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.
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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.
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.
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 2006. They 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.
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.
The directors who served during the year were:
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.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
Under section 487(2) of the Companies Act 2006, Menzies 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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENVY POST PRODUCTION LIMITED
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 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).
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.
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.
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 Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENVY POST PRODUCTION LIMITED (CONTINUED)
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.
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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENVY POST PRODUCTION LIMITED (CONTINUED)
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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENVY POST PRODUCTION LIMITED (CONTINUED)
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 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
Magna House
18-32 London Road
TW18 4BP
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 29 FEBRUARY 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 39 form part of these financial statements.
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COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 29 FEBRUARY 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 39 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024
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CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
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CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 29 FEBRUARY 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
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
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.
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. 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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
2.Accounting policies (continued)
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.
Functional and presentation currency
Transactions and balances
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
2.Accounting policies (continued)
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.
Goodwill
Other intangible assets
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:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
2.Accounting policies (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:
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.
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.
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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
2.Accounting policies (continued)
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. 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:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
Page 26
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
12.Taxation (continued)
After the year end the directors have proposed a dividend to be paid to the shareholders of £Nil (2023: £50,000).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
Page 28
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
14.Intangible assets (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
Page 30
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
15.Tangible fixed assets (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
Page 32
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
Page 33
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
Finance lease and hire purchase agreements are secured on the fixed assets to which they relate.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
Page 35
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
Page 36
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
23.Provisions (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
Share premium account
Capital redemption reserve
Profit and loss account
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.
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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
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.
The directors are of the opinion that at year end there is no ultimate controlling party.
The company has bought back 373 ordinary shares of £1.00 each against the total consideration of £3,730 in April 2024.
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