Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-312023-07-01trueNo description of principal activitytruetruetruetrue100truetruetruetruetruefalsetruefalse89 08963806 2023-07-01 2023-12-31 08963806 2022-07-01 2023-06-30 08963806 2023-12-31 08963806 2023-06-30 08963806 2022-07-01 08963806 c:IncreaseDecreaseDueToTransitionFromPreviousStandard 2022-07-01 08963806 c:IncreaseDecreaseDueToTransitionFromPreviousStandard 2023-06-30 08963806 c:CurrentFinancialInstruments c:WithinOneYear c:IncreaseDecreaseDueToTransitionFromPreviousStandard 2022-07-01 08963806 c:CurrentFinancialInstruments c:WithinOneYear c:IncreaseDecreaseDueToTransitionFromPreviousStandard 2023-06-30 08963806 c:Non-currentFinancialInstruments c:AfterOneYear c:IncreaseDecreaseDueToTransitionFromPreviousStandard 2022-07-01 08963806 c:Non-currentFinancialInstruments c:AfterOneYear c:IncreaseDecreaseDueToTransitionFromPreviousStandard 2023-06-30 08963806 c:IncreaseDecreaseDueToTransitionFromPreviousStandard 2022-07-01 2023-06-30 08963806 1 2023-07-01 2023-12-31 08963806 1 2022-07-01 2023-06-30 08963806 2 2023-07-01 2023-12-31 08963806 2 2022-07-01 2023-06-30 08963806 3 2023-07-01 2023-12-31 08963806 3 2022-07-01 2023-06-30 08963806 4 2023-07-01 2023-12-31 08963806 4 2022-07-01 2023-06-30 08963806 7 2023-07-01 2023-12-31 08963806 7 2022-07-01 2023-06-30 08963806 10 2023-07-01 2023-12-31 08963806 10 2022-07-01 2023-06-30 08963806 e:Director1 2023-07-01 2023-12-31 08963806 e:Director2 2023-07-01 2023-12-31 08963806 e:Director2 2023-12-31 08963806 e:Director3 2023-07-01 2023-12-31 08963806 e:Director3 2023-12-31 08963806 e:Director4 2023-07-01 2023-12-31 08963806 e:Director4 2023-12-31 08963806 e:Director5 2023-07-01 2023-12-31 08963806 e:Director6 2023-07-01 2023-12-31 08963806 e:Director6 2023-12-31 08963806 e:Director7 2023-07-01 2023-12-31 08963806 e:Director7 2023-12-31 08963806 e:Director8 2023-07-01 2023-12-31 08963806 e:Director8 2023-12-31 08963806 e:RegisteredOffice 2023-07-01 2023-12-31 08963806 c:Buildings c:ShortLeaseholdAssets 2023-07-01 2023-12-31 08963806 c:Buildings c:ShortLeaseholdAssets 2023-12-31 08963806 c:Buildings c:ShortLeaseholdAssets 2023-06-30 08963806 c:LandBuildings 2023-12-31 08963806 c:LandBuildings 2023-06-30 08963806 c:PlantMachinery 2023-07-01 2023-12-31 08963806 c:PlantMachinery 2023-12-31 08963806 c:PlantMachinery 2023-06-30 08963806 c:PlantMachinery c:OwnedOrFreeholdAssets 2023-07-01 2023-12-31 08963806 c:PlantMachinery c:LeasedAssetsHeldAsLessee 2023-07-01 2023-12-31 08963806 c:FurnitureFittings 2023-07-01 2023-12-31 08963806 c:FurnitureFittings 2023-12-31 08963806 c:FurnitureFittings 2023-06-30 08963806 c:FurnitureFittings c:OwnedOrFreeholdAssets 2023-07-01 2023-12-31 08963806 c:FurnitureFittings c:LeasedAssetsHeldAsLessee 2023-07-01 2023-12-31 08963806 c:ComputerEquipment 2023-07-01 2023-12-31 08963806 c:ComputerEquipment 2023-12-31 08963806 c:ComputerEquipment 2023-06-30 08963806 c:ComputerEquipment c:OwnedOrFreeholdAssets 2023-07-01 2023-12-31 08963806 c:ComputerEquipment c:LeasedAssetsHeldAsLessee 2023-07-01 2023-12-31 08963806 c:OtherPropertyPlantEquipment 2023-07-01 2023-12-31 08963806 c:OtherPropertyPlantEquipment 2023-12-31 08963806 c:OtherPropertyPlantEquipment 2023-06-30 08963806 c:OtherPropertyPlantEquipment c:OwnedOrFreeholdAssets 2023-07-01 2023-12-31 08963806 c:OtherPropertyPlantEquipment c:LeasedAssetsHeldAsLessee 2023-07-01 2023-12-31 08963806 c:OwnedOrFreeholdAssets 2023-07-01 2023-12-31 08963806 c:LeasedAssetsHeldAsLessee 2023-07-01 2023-12-31 08963806 c:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-07-01 2023-12-31 08963806 c:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-12-31 08963806 c:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-06-30 08963806 c:Goodwill 2023-07-01 2023-12-31 08963806 c:Goodwill 2023-12-31 08963806 c:Goodwill 2023-06-30 08963806 c:IntangibleAssetsOtherThanGoodwill 2023-12-31 08963806 c:IntangibleAssetsOtherThanGoodwill 2023-06-30 08963806 c:Non-currentFinancialInstruments c:UnlistedNon-exchangeTraded 2023-12-31 08963806 c:Non-currentFinancialInstruments c:UnlistedNon-exchangeTraded 2023-06-30 08963806 c:CurrentFinancialInstruments 2023-12-31 08963806 c:CurrentFinancialInstruments 2023-06-30 08963806 c:Non-currentFinancialInstruments 2023-12-31 08963806 c:Non-currentFinancialInstruments 2023-06-30 08963806 c:Non-currentFinancialInstruments 3 2023-12-31 08963806 c:Non-currentFinancialInstruments 3 2023-06-30 08963806 c:CurrentFinancialInstruments c:WithinOneYear 2023-12-31 08963806 c:CurrentFinancialInstruments c:WithinOneYear 2023-06-30 08963806 c:Non-currentFinancialInstruments c:AfterOneYear 2023-12-31 08963806 c:Non-currentFinancialInstruments c:AfterOneYear 2023-06-30 08963806 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2023-12-31 08963806 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2023-06-30 08963806 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2023-12-31 08963806 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2023-06-30 08963806 c:ReportableOperatingSegment1 2023-07-01 2023-12-31 08963806 c:ReportableOperatingSegment1 2022-07-01 2023-06-30 08963806 c:ReportableOperatingSegment2 2023-07-01 2023-12-31 08963806 c:ReportableOperatingSegment2 2022-07-01 2023-06-30 08963806 c:UKTax 2023-07-01 2023-12-31 08963806 c:UKTax 2022-07-01 2023-06-30 08963806 c:ShareCapital 2023-07-01 2023-12-31 08963806 c:ShareCapital 2023-12-31 08963806 c:ShareCapital 2023-06-30 08963806 c:ShareCapital 2022-07-01 08963806 c:SharePremium 2023-07-01 2023-12-31 08963806 c:SharePremium 2023-12-31 08963806 c:SharePremium 1 2023-07-01 2023-12-31 08963806 c:SharePremium 2023-06-30 08963806 c:SharePremium 2022-07-01 08963806 c:SharePremium 1 2022-07-01 2023-06-30 08963806 c:OtherMiscellaneousReserve 2023-07-01 2023-12-31 08963806 c:OtherMiscellaneousReserve 2023-12-31 08963806 c:OtherMiscellaneousReserve 1 2023-07-01 2023-12-31 08963806 c:OtherMiscellaneousReserve 2023-06-30 08963806 c:OtherMiscellaneousReserve 2022-07-01 08963806 c:OtherMiscellaneousReserve 1 2022-07-01 2023-06-30 08963806 c:RetainedEarningsAccumulatedLosses 2023-07-01 2023-12-31 08963806 c:RetainedEarningsAccumulatedLosses 2023-12-31 08963806 c:RetainedEarningsAccumulatedLosses 1 2023-07-01 2023-12-31 08963806 c:RetainedEarningsAccumulatedLosses 2022-07-01 2023-06-30 08963806 c:RetainedEarningsAccumulatedLosses 2023-06-30 08963806 c:RetainedEarningsAccumulatedLosses 2022-07-01 08963806 c:RetainedEarningsAccumulatedLosses 1 2022-07-01 2023-06-30 08963806 c:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-12-31 08963806 c:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-06-30 08963806 c:FinancialAssetsAmortisedCost 2023-12-31 08963806 c:FinancialAssetsAmortisedCost 2023-06-30 08963806 c:FinancialLiabilitiesAmortisedCost 2023-12-31 08963806 c:FinancialLiabilitiesAmortisedCost 2023-06-30 08963806 c:OtherDeferredTax 2023-12-31 08963806 c:OtherDeferredTax 2023-06-30 08963806 e:OrdinaryShareClass1 2023-07-01 2023-12-31 08963806 e:OrdinaryShareClass1 2023-12-31 08963806 e:OrdinaryShareClass1 2023-06-30 08963806 e:FRS101 2023-07-01 2023-12-31 08963806 e:Audited 2023-07-01 2023-12-31 08963806 e:FullAccounts 2023-07-01 2023-12-31 08963806 e:PrivateLimitedCompanyLtd 2023-07-01 2023-12-31 08963806 c:Subsidiary1 2023-07-01 2023-12-31 08963806 c:Subsidiary1 1 2023-07-01 2023-12-31 08963806 c:Subsidiary2 2023-07-01 2023-12-31 08963806 c:Subsidiary2 1 2023-07-01 2023-12-31 08963806 c:Subsidiary3 2023-07-01 2023-12-31 08963806 c:Subsidiary3 1 2023-07-01 2023-12-31 08963806 c:Subsidiary4 2023-07-01 2023-12-31 08963806 c:Subsidiary4 1 2023-07-01 2023-12-31 08963806 c:Subsidiary5 2023-07-01 2023-12-31 08963806 c:Subsidiary5 1 2023-07-01 2023-12-31 08963806 c:Subsidiary7 2023-07-01 2023-12-31 08963806 c:Subsidiary7 1 2023-07-01 2023-12-31 08963806 14 2023-07-01 2023-12-31 08963806 14 2022-07-01 2023-06-30 08963806 c:DevelopmentCostsCapitalisedDevelopmentExpenditure c:ExternallyAcquiredIntangibleAssets 2023-07-01 2023-12-31 08963806 6 2023-07-01 2023-12-31 08963806 c:CurrentFinancialInstruments 7 2023-12-31 08963806 c:CurrentFinancialInstruments 7 2023-06-30 08963806 c:WithinOneYear 2023-12-31 08963806 c:WithinOneYear 2023-06-30 08963806 c:BetweenOneFiveYears 2023-12-31 08963806 c:BetweenOneFiveYears 2023-06-30 08963806 c:WithinOneYear c:ContractualUndiscountedValue 2023-12-31 08963806 c:WithinOneYear c:ContractualUndiscountedValue 2023-06-30 08963806 c:BetweenOneFiveYears c:ContractualUndiscountedValue 2023-12-31 08963806 c:BetweenOneFiveYears c:ContractualUndiscountedValue 2023-06-30 08963806 c:ContractualUndiscountedValue 2023-12-31 08963806 c:ContractualUndiscountedValue 2023-06-30 08963806 f:PoundSterling 2023-07-01 2023-12-31 08963806 c:ShareCapital 1 2023-07-01 2023-12-31 08963806 c:ShareCapital 1 2022-07-01 2023-06-30 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 08963806









HAMMERHEAD INTERACTIVE LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2023

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
COMPANY INFORMATION


Directors
S D Jelley 
J O'Callaghan (appointed 17 July 2023)
S Peters (appointed 17 July 2023)
J Tenbroek (appointed 17 July 2023)
S J Windsor 
D Hopkins (resigned 17 July 2023)
C D MacMillan (resigned 17 July 2023)
J M Silver (resigned 17 July 2023)




Registered number
08963806



Registered office
Unit 35 Wimbledon Business Centre
Riverside Road

London

SW17 0BA




Independent auditors
Harris & Trotter LLP
Chartered Accountants & Statutory Auditors

101 New Cavendish Street

1st Floor South

London

W1W 6XH





 
HAMMERHEAD INTERACTIVE LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 5
Independent Auditors' Report
6 - 9
Statement of Comprehensive Income
10
Statement of Financial Position
11 - 12
Statement of Changes in Equity
13
Notes to the Financial Statements
14 - 44


 
HAMMERHEAD INTERACTIVE LIMITED
 
 
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023

Introduction
 
This strategic report provides an overview of Hammerhead Interactive Limited's performance, strategy, and the key factors influencing its operations for the period ended 31 Decembert 2023. The report is intended to offer insight into how the company creates value for its stakeholders and prepares for future challenges and opportunities. Prepared in accordance with FRS 101, it highlights our strategic objectives, recent achievements, and the broader economic environment shaping our decisions.

Business review
 
The film and television, and technology industry were significantly impacted during the six months ended 31 December 2023 due to the unprecedented impact of the SAG-AFTRA and Writers’ Guild strikes (’the Strikes’). These events negatively affected the film and television sectors in the UK and globally throughout the second half of the 2023 calendar year. As a result, the company experienced a reduction in turnover in comparison to pre-acquisition prior results, for the six months ended 31 December 2023. 
With the industry wide challenges experienced for the six months ended 31, December 2023, revenue declined, and gross profit decreased from £8.5m (full year ended 30 June 2023) to £4.2m (for the six months ended 31 December 2023 along with decreases in gross profit margins by 2% going from 66% to 64%, respectively.
Whilst this financial period was largely impacted by the industry wide strikes noted above - highlighting the exposure to global macroeconomic risks associated with film and television production - it also underscores the challenges faced by the industry and the overall negative financial impact caused by a global pause in film production.

Page 1

 
HAMMERHEAD INTERACTIVE LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
The Company's principal risk flows from the trading performance. This performance in turn relies on the general levels of demand from the business. In order to minimise the risk, the business closely manages the rates that it charges in order to maximise turnover, whilst at the same time closely controlling costs.
The Company's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk.
Financial instruments
The Company's principal financial instruments comprise, bank balances, trade and other debtors and trade and other creditors. The main purpose of these instruments is to raise funds for the Company’s operations and to finance the Company’s operations.
 
Pricing risk
Contracts are generally short to-medium term in nature and the Company ensures these are carefully priced to deliver expected margin and contribution to the business while also being competitive with industry peers.
 
Credit Risk
The Company's customers are generally large, creditworthy entities. Senior management closely monitors the Company's accounts receivables to avoid significant credit exposure.
 
Liquidity and cash flow risk
The Company maintains budgets and detailed cash forecasts to ensure adequate cash resources are available and to protect against the potential variability inherent in their operations. The access to capital is key to financing the next stage of the Company's growth.
 
Interest rate risk
The Company has fixed interest in its loan commitments and therefore has limited exposure to interest rate risk.
 
Foreign exchange risk
The Company does not presently have a strategy to mitigate the impact of foreign exchange risk, which exists in relation to sales with the US and other international territories. This is prevalent due to the weakening of the Pound Sterling. The Company is currently exploring future solutions to reduce this risk.

Financial key performance indicators
 
Given the straightforward nature of the Company's operations, the directors are of the opinion that an analysis using key performance indicators is not necessary for the understanding of the development, performance and position of the business.


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



S J Windsor
Director

Date: 28 February 2025

Page 2

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the period ended 31 December 2023.

Directors

The directors who served during the period were:

S D Jelley 
J O'Callaghan (appointed 17 July 2023)
S Peters (appointed 17 July 2023)
J Tenbroek (appointed 17 July 2023)
S J Windsor 
D Hopkins (resigned 17 July 2023)
C D MacMillan (resigned 17 July 2023)
J M Silver (resigned 17 July 2023)

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

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


select suitable accounting policies and 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 Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the period, after taxation, amounted to £2,512,356 (June 2023 - loss £3,374,661).

The directors have not proposed a dividend for the period ending 31 December 2023 (June 2023 - £Nil)

Environmental matters

The Company will seek to minimise adverse impacts on the environment from its activities where possible, whilst continuing to address health, safety and economic issues. The Company has complied with all application legislation and regulations.

Page 3

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023

Future developments

The SAG-AFTRA and Writers’ Guild strikes through the second half of calendar year 2023 proved extremely challenging for much of the Film & TV production industry. Hammerhead was not impervious to the wider industry impact and a number of productions were delayed through that period and beyond. However, the Directors still consider the adoption of Virtual Production as a film making technique to be accelerating globally as real-time rendering, volumetric and mixed reality technologies mature, studios and directors are increasingly receptive to the creative solutions and efficiency they offer. Now the strikes were concluded in the Q4 calendar year timeframe, the Directors expect operations to rebound from the Strikes through calendar year 2024.
Virtual Production, as a storytelling tool, now touches every part of Hammerheads’ business, be it in Film & TV, Fashion, FMCG marketing or Sport - whether utilising Virtual World content creation services, Onset management services, and/or Virtual Human creation whether as animatable avatars or photo-realistic volumetric captures.
Prospective demand for Web3, artificial intelligence and blockchain-oriented services remains, albeit with certain concerns due to some of the sector and industry challenges encountered over the past year. Community engagement and digital merchandising remain a key agenda item as content creators and narrators look for new ways to engage with audiences and develop experiences. While this is a growing market, Web3 is not considered to be the sole fundamental source of new technology to Hammerhead Limited, and it is not expected to inhibit the Company from achieving its growth targets.
Given the challenges encountered during the second half of the 2023 calendar year, the Directors are forecasting tempered growth for the year end 31 December 2024 and beyond. However, the Directors are optimistic about a rebound and anticipate stabilised growth in the 2025 calendar year as film and television productions recover from the impact of the strikes and the wider world of entertainment continues to adopt virtual production and real-time technologies for content creation.

Engagement with employees

The Company is committed to providing equality of opportunity to all employees without discrimination and applied fair and equitable employment policies which ensure entry and progression within the Company. Appointments are determined solely by application of job criteria and competency.

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'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's auditors are aware of that information.

Post balance sheet events

In February 2024, a fellow subsidiary obtained control of a 50% Joint Venture (JV) resulting in all trade between Hammerhead Interactive Limited and the JV ceasing.
In 2024, promissory loan notes (Notes) were issued by a majority shareholder. The value of these Notes is split between a principal value of $13.6m (£10.8m) and accrued interest $327.9k (£260.1k). These Notes will be converted into equity in Q1 2025.
If these Notes were reflected on a proforma basis as having been converted to equity effective 31, December 2024, the Notes liability would have been decreased and equity would have been increased by the corresponding amounts disclosed above.

Page 4

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023

Auditors

The auditorsHarris & Trotter LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





S J Windsor
Director

Date: 28 February 2025

Page 5

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAMMERHEAD INTERACTIVE LIMITED
 

Opinion


We have audited the financial statements of Hammerhead Interactive Limited (the 'Company') for the period ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the 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 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its loss for the period 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 Company 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 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.


Page 6

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAMMERHEAD INTERACTIVE LIMITED (CONTINUED)


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.


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 Strategic Report and the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 7

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAMMERHEAD INTERACTIVE 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 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:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent imitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
• We obtained an understanding of the legal and regulatory frameworks applicable to the Company and the industry in which it operates. We determined that the following laws and regulations were most significant: IFRS and the Companies Act 2006.
• We obtained an understanding of how the Company is complying with those legal and regulatory frameworks by making enquiries of management.
• We challenged assumptions and judgments made by management in its significant accounting estimates. We did not identify any key audit matters relating to irregularities, including fraud.


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

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAMMERHEAD INTERACTIVE 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.





Daniel Walters (Senior Statutory Auditor)
  
for and on behalf of
Harris & Trotter LLP
 
Chartered Accountants
Statutory Auditors
  
101 New Cavendish Street
1st Floor South
London
W1W 6XH

28 February 2025
Page 9

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023

Period ended
31 December
As restated
30 June
2023
2023
Note
£
£

  

Turnover
 4 
6,487,720
12,753,125

Cost of sales
  
(2,317,412)
(4,289,840)

Gross profit
  
4,170,308
8,463,285

Administrative expenses
  
(5,148,378)
(11,476,524)

Other operating income
 5 
79
23,035

Operating loss
 6 
(977,991)
(2,990,204)

Impairments and Amounts Written Off
  
(784,079)
(1,619,667)

Interest payable and similar expenses
 10 
(90,836)
(123,052)

Loss before tax
  
(1,852,906)
(4,732,923)

Tax on loss
 11 
(659,450)
1,358,262

Loss for the financial period
  
(2,512,356)
(3,374,661)

Other comprehensive income:
  

Items that will not be reclassified to profit or loss:
  

Other reserves movement
  
(3,556,211)
3,543,082

  
(3,556,211)
3,543,082

Total comprehensive income for the period/year
  
(6,068,567)
168,421

The notes on pages 14 to 44 form part of these financial statements.

Page 10

 
HAMMERHEAD INTERACTIVE LIMITED
REGISTERED NUMBER: 08963806

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

31 December
As restated
30 June
2023
2023
Note
£
£

Fixed assets
  

Intangible assets
 12 
803,686
704,225

Goodwill
  
2,576,743
2,797,607

Tangible assets
 14 
760,906
803,131

Investments
 15 
985,698
1,390,112

  
5,127,033
5,695,075

Current assets
  

Debtors: amounts falling due within one year
 16 
5,186,917
4,010,042

Cash at bank and in hand
 17 
102,551
790,055

  
5,289,468
4,800,097

Creditors: amounts falling due within one year
 18 
(3,942,747)
(5,551,558)

Net current assets/(liabilities)
  
 
 
1,346,721
 
 
(751,461)

Total assets less current liabilities
  
6,473,754
4,943,614

  

Creditors: amounts falling due after more than one year
 19 
(119,628)
(232,829)

  
6,354,126
4,710,785

  

  

Net assets
  
6,354,126
4,710,785


Capital and reserves
  

Called up share capital 
 24 
2,848,985
2,018

Share premium account
 25 
9,284,923
4,419,982

Other reserves
 25 
-
3,556,211

Profit and loss account
 25 
(5,779,782)
(3,267,426)

  
6,354,126
4,710,785


Page 11

 
HAMMERHEAD INTERACTIVE LIMITED
REGISTERED NUMBER: 08963806
    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023

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




S J Windsor
Director

Date: 28 February 2025

The notes on pages 14 to 44 form part of these financial statements.

Page 12

 
HAMMERHEAD INTERACTIVE LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023


Called up share capital
Share premium account
Other reserves
Profit and loss account
Total equity

£
£
£
£
£


At 1 July 2022 (as restated)
2,018
4,419,982
13,129
107,235
4,542,364



Loss for the year
-
-
-
(3,374,661)
(3,374,661)

Share-based payments
-
-
3,543,082
-
3,543,082



At 1 July 2023 (as restated)
2,018
4,419,982
3,556,211
(3,267,426)
4,710,785



Loss for the period
-
-
-
(2,512,356)
(2,512,356)

Share-based payments
-
-
(3,556,211)
-
(3,556,211)

Shares issued during the period
2,846,967
4,864,941
-
-
7,711,908


At 31 December 2023
2,848,985
9,284,923
-
(5,779,782)
6,354,126


The notes on pages 14 to 44 form part of these financial statements.

Page 13

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

1.


General information

Hammerhead Interactive Limited is a private company limited by shares incorporated in England and Wales, with registration number 08963806. 
Its registered office and principal place of business address is Unit 35 Wimbledon Business Centre, Riverside Road, London, United Kingdom, SW17 0BA.

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 101 'Reduced Disclosure Framework'  and the Companies Act 2006.

Information on the impact of first-time adoption of FRS 101 is given in note 29.

The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

First time application of FRS 100 and FRS 101

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 101 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions under FRS 101:
the requirements of paragraphs 45(b) and 46-52 of IFRS 2 Share-based payment
the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64(o)(ii), B64(p), B64(q)(ii), B66 and B67 of IFRS 3 Business Combinations
the requirements of IFRS 7 Financial Instruments: Disclosures
the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
 - paragraph 79(a)(iv) of IAS 1;
 - paragraph 73(e) of IAS 16 Property, Plant and Equipment;
 - paragraph 118(e) of IAS 38 Intangible Assets;
the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
the requirements of IAS 7 Statement of Cash Flows
the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
the requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.

This information is included in the consolidated financial statements of Dimension UK Holdco Limited as at 31st December 2023 and these financial statements may be obtained from Companies House.

Page 14

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Going concern

The financial statements have been prepared on the going concern basis which assumes that the Company will be able to continue in operation for the foreseeable future.
The management has performed a detailed assessment which included looking at the cash flow positions, financial projections, potential future regulatory changes etc. As a result of their assessment and also based on the Company's current liquidity position, the directors are satisified that the going concern basis of preparation is appropriate for the financial statements for the period ended 31 December 2023.

 
2.4

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 except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 15

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Revenue recognition

Revenue is recognised in accordance with relevant accounting standards, IFRS 15. Revenue can be recognised when the following critera is met:
• Identification of the Contract: A contract must exist that creates enforceable rights and obligations between Dimension and the client.
• Performance Obligations: Distinct performance obligations within the project contract must be identified. These can include milestones, deliverables, or phases of the project.
• Transaction Price: The transaction price, which is the total amount of consideration expected to be received for the project, must be determined.
• Allocation of Transaction Price: The transaction price should be allocated to the identified performance obligations based on their relative standalone selling prices.
• Satisfaction of Performance Obligations: Revenue will be recognised when (or as) performance obligations are satisfied by transferring control of a good or service to the client. This can occur at specific milestones or upon completion of the project.
This policy applies to all project-based activities conducted by Dimension, including contracts for services, deliverables, and other project-related revenue streams.
Timing of Revenue Recognition
Percentage of Completion Method: For long-term projects, revenue will generally be recognised using the percentage of completion method, reflecting the extent of progress toward completion based on costs incurred relative to total estimated costs. 
Completed Contract Method: For short-term projects completed within a month or where the outcome is uncertain, revenue may be recognised upon project completion.

Page 16

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Leases

The Company as a lessee

The Company assesses whether a contract is or contains a lease, at inception of a contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate.

Lease payments included in the measurement of the lease liability comprise:

fixed lease payments (including in-substance fixed payments), less any lease incentives;


The lease liability is included in 'Creditors' on the Statement of Financial Position.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

The Company remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:

a lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

The right-of-use assets are included in the 'Intangible Assets', 'Tangible Fixed Assets' and 'Investment Property' lines, as applicable, in the Statement of Financial Position.

The Company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in note 2.15.

As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has used this practical expedient.

Page 17

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Borrowing costs

All borrowing costs are recognised in profit or loss in the period in which they are incurred.

 
2.10

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Company in independently administered funds.

Page 18

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


 
2.12

Goodwill

Goodwill represents the excess of the cost of a business combination over the total acquisition date fair value of the identifiable assets, liabilities and contingent liabilities acquired.
Cost comprises the fair value of assets given, liabilities assumed and equity instruments issued.
When a business combination agreement provides for an adjustment to the cost of the combination which is contingent on future events, the company includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably. However, if the potential adjustment is not recognised at the acquisition date but subsequently becomes probable and can be measured reliably, the additional consideration shall be treated as an adjustment to the cost of the combination. Changes in the estimated value of contingent consideration arising on business combinations completed as a consequence result in a change in the carrying value of the related goodwill.
Goodwill is capitalised as an intangible asset and is not amortised. Instead it is reviewed annually for impairment with any impairment in carrying value being charged to profit or loss. The Companies Act 2006 requires acquired goodwill to be reduced by provisions for depreciation calculated to write off the amount systematically over a period chosen by the directors, not exceeding its useful economic life. It has been deemed, however, the non-amortisation of goodwill is a departure, for the overriding purpose of giving a true and fair view. The effect of this departure has not been quantified because it is impracticable and, in the opinion of the directors, would be misleading.

Page 19

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

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.

 
2.14

Development costs

An internally generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the following have been demonstrated:
• the technical feasibility of completing the intangible asset so that it will be available for use or sale;
• the intention to complete the intangible asset and use or sell it;
• the ability to use or sell the intangible asset;
• how the intangible asset will generate probable future economic benefits;
• the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and
• the ability to measure reliably the expenditure attributable to the intangible asset during its development.
The amount initially recognised for internally generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no internally generated intangible asset can be recognised, development expenditure is recognised in profit or loss in the period in which it is incurred.
Subsequent to initial recognition, internally generated intangible assets are reported at cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.
 

Page 20

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.15

Tangible fixed 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.

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 provided on the following basis:

Short-term leasehold property
-
8 years straight-line
Plant and machinery
-
4 years straight-line
Fixtures and fittings
-
4 years straight-line
Computer equipment
-
4 years straight-line
Right of use assets
-
Over the period of the lease

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.

 
2.16

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.17

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.18

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 21

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.19

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.20

Creditors

Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

 
2.21

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 22

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Impairment of investments 
The Company considers whether the investment in subsidiaries and all other investments should be impaired. At the reporting date, where an indication of impairment is identified the recoverable value is estimated. The estimate requires the estimation of future cash flows and also a selection of appropriate discount rates in order to calculate the net present value of those cash flows.
During the prior period, a hive up took place in respect of the Company's investment in two subsidiaries, this included the recognition of a business combination via goodwill within the Company's single entity accounts.
Impairment of intangible assets
The annual amortisation charge for intangible assets is sensitive to changes in the estimated useful economic life. Impairment reviews are performed only if there is indication of impairment. The carrying amount of the intangible asset is therefore amended when neccessary to reflect the current estimate by the director of the higher of the asset's fair value in use less costs of disposal and its value in use.
Where an indication of impairment to goodwill is identified, the estimation of the recoverable value requires estimation of the future cash flows from the relevant cash generating units and also selection of appropriate discount rates in order to calculate the net present value of those cash flows.
Fixed assets depreciation
Fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets are assessed anually and may vary depending on a number of factors. In reassessing asset lives, factors such as technological innovation are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Revenue recognition
Management continually assess the projected total costs of production. On the basis of these estimates, revenue is recognised. Where productions are in progress at the period end and where billing exceeds the value of the work done, the excess is classified as deferred income and is shown within creditors.

Page 23

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

4.


Turnover

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


Period ended
31 December
As restated
30 June
2023
2023
£
£

Virtual production and volumetric capture
6,083,305
12,753,125

Contract revenue release
404,415
-

6,487,720
12,753,125


Contract revenue release relates to a historic service contract which is no longer being provided. Therefore the remainder of the deferred revenue as at 1st July 2023 has been released. 


5.


Other operating income

Period ended
31 December
As Restated
 
30 June
2023
2023
£
£

Other operating income
79
20,201

Net rents receivable
-
2,834

79
23,035


Page 24

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

6.


Operating loss

The operating loss is stated after charging:

Period ended
31 December
As Restated
 
30 June
2023
2023
£
£

Research & development charged as an expense
46,919
29,272

Depreciation of tangible fixed assets
197,828
384,058

Amortisation of intangible assets, including goodwill
(19,600)
(39,200)

Impairment of intangible assets
(379,664)
(1,619,667)

Exchange differences
27,622
(37,420)

Defined contribution pension cost
127,159
246,712

-
-


7.


Auditors' remuneration

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


Period ended
31 December
As Restated
 
30 June
2023
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
55,000
45,000

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 25

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

8.


Employees

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


Period ended
31 December
As Restated
 
30 June
2023
2023
£
£

Wages and salaries
2,912,238
5,161,517

Social security costs
377,144
656,797

Cost of defined contribution scheme
127,159
246,712

3,416,541
6,065,026


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


     Period ended
     31 December
As Restated
 
30 June
        2023
        2023
            No.
            No.







Employees
100
89

Page 26

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

9.


Directors' remuneration

Period ended
31 December
As Restated
 
30 June
2023
2023
£
£

Directors' emoluments
196,666
1,005,729

Company contributions to defined contribution pension schemes
21,037
105,501

217,703
1,111,230


During the period retirement benefits were accruing to no directors (2023 - NIL) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £88,492 (2023 - £250,000).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £2,009 (2023 - £16,250).

The value of the Company's contributions paid to a defined benefit pension scheme in respect of the highest paid director amounted to £NIL (2023 - £NIL).


10.


Interest payable and similar expenses

Period ended
31 December
As restated
30 June
2023
2023
£
£


Bank interest payable
78,046
106,053

Interest on lease liabilities
12,790
16,999

90,836
123,052

Page 27

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

11.


Taxation


Period ended
31 December
As Restated
 
30 June
2023
2023
£
£

Corporation tax


Current tax on profits for the year
(2,476)
(696,337)


(2,476)
(696,337)


Total current tax
(2,476)
(696,337)

Deferred tax


Origination and reversal of timing differences
661,926
(661,925)

Total deferred tax
661,926
(661,925)


Tax on loss
659,450
(1,358,262)
Page 28

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
 
11.Taxation (continued)


Factors affecting tax charge for the period/year

The tax assessed for the period/year is the same as (2023 - the same as) the standard rate of corporation tax in the UK of 25% (2023 - 25%) as set out below:

Period ended
31 December
As Restated
 
30 June
2023
2023
£
£


Loss on ordinary activities before tax
(1,852,906)
(4,732,923)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
(463,227)
(1,183,231)

Effects of:


Non-tax deductible amortisation of goodwill and impairment
156,320
414,717

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
740
844,903

Depreciation for period/year in excess of capital allowances
10,940
10,445

Short-term timing difference leading to an increase (decrease) in taxation
661,925
(661,925)

Relief on exercise of employee share options
(661,925)
-

Research and development tax credit from prior year
-
(475,799)

Research and development tax credit for current year
-
(311,453)

Prior year adjustment due to change in accounting framework
-
4,081

Unrelieved tax losses carried forward
954,677
-

Total tax charge for the period/year
659,450
(1,358,262)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.



Page 29

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

12.


Intangible assets






Development expenditure

£



Cost


At 1 July 2023
797,825


Additions
277,862



At 31 December 2023

1,075,687



Amortisation


At 1 July 2023
93,600


Charge for the period
19,600


Impairment charge
158,800



At 31 December 2023

272,000



Net book value



At 31 December 2023
803,687



At 30 June 2023
704,225




Indefinite useful life

The net book value of assets assessed as having an indefinite useful life are as follows:


Period ended 31 December
As Restated
 
30 June
2023
2023
£
£



Goodwill
4,417,274
4,417,274

At 31 December 2023
4,417,274
4,417,274


Page 30

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

13.


Goodwill






2023

£



Cost


At 1 July 2023
4,417,274



At 31 December 2023

4,417,274



Impairment


At 1 July 2023
1,619,667


Impairment charge
220,864



At 31 December 2023

1,840,531



Net book value



At 31 December 2023
2,576,743



At 30 June 2023
2,797,607



Cash generating units

Goodwill is allocated to the company's cash generating unit as follows:


Period ended 31 December
As Restated
 
30 June
2023
2023
£
£



Time-Slice Films Limited
1,149,781
1,248,334

TMRW Ventures Limited
1,426,962
1,549,273

2,576,743
2,797,607

Page 31
 


 
HAMMERHEAD INTERACTIVE LIMITED


 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023


14.


Tangible fixed assets









Short-term leasehold property
Plant and machinery
Fixtures and fittings
Computer equipment
Right of use assets
Total

£
£
£
£
£
£



Cost or valuation


At 1 July 2023
77,987
100,346
45,304
620,922
973,692
1,818,251


Additions
1,533
24,446
-
129,624
-
155,603



At 31 December 2023

79,520
124,792
45,304
750,546
973,692
1,973,854



Depreciation


At 1 July 2023
43,703
61,292
35,829
318,481
555,815
1,015,120


Charge for the period
9,908
11,199
1,962
73,058
15,332
111,459


Charge for the period on right-of-use assets
-
-
-
-
86,369
86,369



At 31 December 2023

53,611
72,491
37,791
391,539
657,516
1,212,948



Net book value



At 31 December 2023
25,909
52,301
7,513
359,007
316,176
760,906



At 30 June 2023
34,284
39,054
9,475
302,441
417,877
803,131

Page 32
 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

           14.Tangible fixed assets (continued)




The net book value of land and buildings may be further analysed as follows:


Period ended 31 December
As Restated
 
30 June
2023
2023
£
£

Short leasehold
25,909
34,284

25,909
34,284



15.


Fixed asset investments








Investments in subsidiary companies
Unlisted investments
Total

£
£
£



Cost or valuation


At 1 July 2023
4,035
1,386,077
1,390,112



At 31 December 2023

4,035
1,386,077
1,390,112



Impairment


Charge for the period
-
404,415
404,415



At 31 December 2023

-
404,415
404,415



Net book value



At 31 December 2023
4,035
981,662
985,697



At 30 June 2023
4,035
1,386,077
1,390,112

Page 33

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

TMRW Ventures Limited
Unit 35 Wimbledon Business Centre, Riverside Road, London, SW17 0BA, United Kingdom
Ordinary
100%
Time-Slice Films Limited
Unit 35 Wimbledon Business Centre, Riverside Road, London, SW17 0BA, United Kingdom
Ordinary
100%
8th Dimension Limited
Unit 35 Wimbledon Business Centre, Riverside Road, London, SW17 0BA, United Kingdom
Ordinary
100%
Dimension Studio NZ Limited
INTERTRUST NEW ZEALAND, Floor 26, 188 Quay Street, Auckland,1010, New Zealand
Ordinary
100%
DOME ITG, S.L.
C. de Serrano 41, Salamanca, 28001 Madrid, Spain
Ordinary
100%
Dimension Studio Limited
Unit 39 Wimbledon Business Centre, Riverside Road, London, SW17 0BA, United Kingdom
Ordinary
100%

Page 34

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

16.


Debtors

Period ended 31 December
As Restated
 
30 June
2023
2023
£
£


Trade debtors
1,718,605
461,646

Amounts owed by group undertakings
285,799
117,701

Other debtors
2,209,413
927,928

Prepayments and accrued income
973,100
1,840,842

Deferred taxation
-
661,925

5,186,917
4,010,042



17.


Cash and cash equivalents

Period ended 31 December
As Restated
 
30 June
2023
2023
£
£

Cash at bank and in hand
102,551
790,055

102,551
790,055



18.


Creditors: Amounts falling due within one year

Period ended 31 December
As restated
30 June
2023
2023
£
£

Bank loans
10,000
10,000

Other loans
-
897,005

Trade creditors
316,789
278,578

Amounts owed to group undertakings
1,458,366
1,114,764

Other taxation and social security
449,879
786,731

Lease liabilities
209,176
201,529

Other creditors
171,583
932,988

Accruals and deferred income
1,326,954
1,329,963

3,942,747
5,551,558


Page 35

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

19.


Creditors: Amounts falling due after more than one year

Period ended 31 December
As restated
30 June
2023
2023
£
£

Bank loans
16,667
23,333

Lease liabilities
102,961
209,496

119,628
232,829



20.


Loans


Analysis of the maturity of loans is given below:


Period ended 31 December
As Restated
 
30 June
2023
2023
£
£

Amounts falling due within one year

Bank loans
10,000
10,000

Other loans
-
897,005


10,000
907,005

Amounts falling due 1-2 years

Bank loans
10,000
10,000


10,000
10,000

Amounts falling due 2-5 years

Bank loans
6,667
13,333


6,667
13,333


26,667
930,338


Page 36

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

21.

Leases

Company as a lessee

The nature of the leasing activities undertaken by the Company are that of the lease of office buildings.

Lease liabilities are due as follows:


Period ended 31 December 2023
As Restated
 
30 June 2023
£
£

Not later than one year
209,176
201,529

Between one year and five years
102,961
209,496

312,137
411,025


Contractual undiscounted cash flows are due as follows:


Period ended 31 December 2023
As Restated
 
30 June 2023
£
£

Not later than one year
223,359
223,359

Between one year and five years
112,077
223,757

335,436
447,116




The following amounts in respect of leases, where the Company is a lessee, have been recognised in profit or loss:


Period ended 31 December 2023
As Restated
 
30 June 2023
£
£

Interest expense on lease liabilities
(12,790)
(16,999)

Expenses relating to short-term leases
(41,298)
(82,301)

Page 37

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

22.


Financial instruments

Period ended 31 December
As restated
30 June
2023
2023
£
£

Financial assets


Financial assets measured at fair value through profit or loss
102,551
790,055

Financial assets that are debt instruments measured at amortised cost
4,561,221
3,877,171

4,663,772
4,667,226


Financial liabilities


Financial liabilities measured at amortised cost
(2,980,376)
(5,007,206)


Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.


Financial assets that are debt instruments measured at amortised cost comprise trade and other debtors and amounts owed by group undertakings.


Financial liabilities measured at amortised cost comprise trade creditors, other creditors, bank loans and amounts owed to group undertakings.

Page 38

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

23.


Deferred taxation






2023


£






At beginning of year
661,925


Charged to profit or loss
(661,925)



At end of year
-

The deferred tax asset is made up as follows:

Period ended 31 December
As Restated
 
30 June
2023
2023
£
£


Deferred tax on options
-
661,925

-
661,925


24.


Share capital

Period ended 31 December
As Restated
 
30 June
2023
2023
£
£
Authorised, allotted, called up and fully paid



14,244,927 (2023 - 10,089) Ordinary shares of £0.20 each
2,848,985
2,018


Shares allotted comprises of 14,244,927 Ordinary shares with aggregate nominal value of £2,848,985.40. Consideration received in respect of these shares was £

Page 39

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

25.


Reserves

Share premium account

The share premium account comprises the premium on issued share capital.

Other reserves

Other reserves relate to share based payments pertaining to two EMI Share Option Schemes. This reserve was eliminated in full during the period due to the options being exercised.

Profit and loss account

The proflit and loss account comprises all realised, accumulated profits less all realised accumulated osses.

Page 40

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

Share-based payments

In the year ended 30 June 2017, the Group created an EMI Share Option Scheme for employees. Upon vesting, each option allows the holder to purchase an agreed allotment of shares at the pre-agreed option price. The maximum term of the current the scheme ends on 5 February 2027. The fair value of the options granted were determined by management using a Black-Scholes option pricing model with a vesting period of 10 years and a risk-free interest rate of 0.75%. This method was chosen as it is an industry-standard, and was judged to reflect the fair value of the options most accurately. 128 such options were granted in January 2017, and were subsequently subdivided into 640 options.
During the year ended 30 June 2023, a further 8,672 share options were granted under a separate EMI Share Option Scheme for employees. Upon vesting, each option allows the holder to purchase an agreed allotment of shares at the pre-agreed option price. The maximum term of the scheme ends on 13 September 2032. The fair value of the options granted were determined by management using a Black-scholes option pricing model with a vesting period of 1 year and a risk-free interest rate of 1.75%. This method was chosen as it is an industry-standard, and was judged to reflect the fair value of the options most accurately. A total of 8,672 options were granted in September 2022.
On 17th July 2023 all outstanding options (9,132) were exercised, as a result the full expense for both option schemes at grant has been recognised within the prior year statement of profit and loss.

31 December
31 December
30 June
30 June
Weighted average exercise price (pence)
31 December 2023
Number
31 December 2023 
Weighted average exercise price
(pence)
30 June 2023
Number
30 June 2023

Outstanding at the beginning of the year

12,649

9,132

319
 
460
 
Granted during the year


-

13,303
 
8,672
 
Exercised during the year

(12,649)

(9,132)

 
-
 
Outstanding at the end of the year

-

12,649
 
9,132
 



31 December
30 June
2023
2023
£
£


Equity-settled schemes
-
9,132

-
9,132

Page 41

 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

26.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £127,159 (2023 - £246,712). 
Contributions totalling £46,766 (2023 - £48,794) were payable to the fund at the reporting date and are included in creditors.


27.


Related party transactions

The company has taken advantage of the exemption under FRS 101 from disclosing transactions with other group entities.
During the year, the Company provided services to an entity jointly controlled by an entity under common control with the Company totalling £4,709,021 (June 2023: £9,509,171). During the year the Company was also provided services by the same related party totaling £1,801,509 (June 2023: £3,540,114) and at the year end £1,844,974 (June 2023: £599,419) was outstanding.
During the year (17 July 2023) 6,764 shares were exercised from scheme 2 by the directors.


28.


Controlling party

At the date of approval of the financial statements, the direct parent of the Company is Dimension UK Bidco Limited and the ultimate controlling party of the Company is Dimension Group Parent LLC, a US based Company.

Page 42
 


 
HAMMERHEAD INTERACTIVE LIMITED


 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

29.


First time adoption of FRS 101

The Company transitioned to FRS 101 from previously extant UK GAAP as at 1 July 2022. The impact of the transition to FRS 101 is as follows:

As previously stated
1 July
2022
Effect of transition
1 July
2022
FRS 101
(as restated)
1 July
2022
As previously stated
30 June
2023
Effect of transition
30 June
2023
FRS 101
(as restated)
30 June
2023
Note
£
£
£
£
£
£

Fixed assets
  
5,928,198
251,611
6,179,809
5,277,197
417,878
5,695,075

Current assets
  
4,494,440
-
4,494,440
4,800,099
(661,927)
4,138,172

Creditors: amounts falling due within one year
  
(5,117,952)
(116,089)
(5,234,041)
(5,368,748)
(182,810)
(5,551,558)

Net current liabilities
  
 
(623,512)
 
(116,089)
 
(739,601)
 
(568,649)
 
(844,737)
 
(1,413,386)

Total assets less current liabilities
  
 
5,304,686
 
135,522
 
5,440,208
 
4,708,548
 
(426,859)
 
4,281,689

Creditors: amounts falling due after more than one year
  
(771,564)
(126,280)
(897,844)
(23,333)
(209,497)
(232,830)

Provisions for liabilities
  
-
-
-
-
661,925
661,925

Net  assets
  
 
4,533,122
 
9,242
 
4,542,364
 
4,685,215
 
25,569
 
4,710,784

Capital and reserves
  
4,533,122
9,242
4,542,364
4,685,215
25,569
4,710,784
Page 43
 
HAMMERHEAD INTERACTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

           29.First time adoption of FRS 101 (continued)




As previously stated
30 June
2023
Effect of transition
30 June
2023
FRS 101
(as restated)
30 June
2023
Note
£
£
£

Turnover
  
12,752,578
547
12,753,125

Cost of sales
  
(4,289,840)
-
(4,289,840)

  
 
8,462,738
 
547
 
8,463,285

Administrative expenses
  
(13,128,971)
1,652,447
(11,476,524)

Other operating income
  
23,035
-
23,035

Operating profit
  
 
(4,643,198)
 
1,652,994
 
(2,990,204)

Amounts written off investments
  
-
(1,619,667)
(1,619,667)

Interest payable and similar charges
  
(106,053)
(16,999)
(123,052)

Taxation
  
1,358,262
-
1,358,262

Loss on ordinary activities after taxation and for the financial year
  
 
(3,390,989)
 
16,328
 
(3,374,661)

Explanation of changes to previously reported profit and equity:

1

The change in revenue is due to a change in the recognition of deferred revenue.
The change in administrative expenses is due to rent payable now being recognised as leases under IFRS 16, therefore rental payments have been reversed and depreciation charged.
The increase in interest payable is due to the finance interest expense component of lease under IFRS 16.

 
Page 44