Registered number:
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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COMPANY INFORMATION
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CONTENTS
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STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The director presents the strategic report for the year ended 30 September 2024.
The strategic report is designed to replace and enhance reporting previously included in the business review section of the director's report. Its purpose is to inform shareholders and help them assess how the director's have performed their duties to promote the success of the company during the year under review.
Market conditions have remained challenging with conflicts impacting on trade and consumer confidence. Interest costs have further impacted on the difficult conditions along with currency fluctuations affecting the performance of both the US and UK based businesses. The business undertook substantial stock management reviews to offset the increased cost of goods and legacy stockholding to ensure that it is more effective and structurally sound for the new financial year as the key impact areas are not expected to abate. We continued to absorb the negative effects of the UK leaving the European Union in particular freight costs which has been addressed for the new financial year.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
There are a variety of risks and uncertainties that have an impact on the performance of the company, some of which are beyond its control. Risks and uncertainties are considered and assessed by the director and mitigated where possible, the principal ones being described below:
Competition In order to attract and retain the company customers we provide high levels of customer service and source products in demand at competitive prices however as predicted we continue to experience price wars as competitors seek often to liquidate stock at low margins to reduce borrowing and interest which supresses the overall market and ultimately margin delivery. A further development this financial year was an unusually low amount of product development and successful new software releases which reduced opportunities for incremental and tactical trading activity.
Economy
Economic uncertainty mainly driven by low consumer confidence and political change in our two key marketplaces has reduced the demand and in the key seasonal trading peaks resulted in a reduction in trade compared to previous years. Whilst we continue to drive our core wholesale business, we can assume that any recovery or improvement in the economic conditions is not going to benefit in the short term so we have explored opportunities outside of the core to supplement the sales and profitability into the new financial year. Liquidity and Financing The company maintains levels of finance and liquidity necessary to perform and react to markets and prices. The company's strong financial position and backing enables the company to utilise its purchasing power in the market. The company continues to retain a strong cash reserve to ensure that it can take advantage of price fluctuations and changes in pricing models by manufacturers and other wholesalers. Commercial The company focusses its efforts on being able to service the marketplace offering the latest gaming products and a relevant back catalogue with competitive price positioning. We have further developed our supplier base to manage market changes and source at competitive prices globally. We have also established further business opportunities outside of core business by servicing regional retailers with wholesale product supply.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Pricing Due to the nature of the financial instruments used by the company, there is an exposure to exchange currency risk. The company's approach to managing this risk is to maintain accounts in multiple currencies combined with using hedging contracts to ensure the impact of exchange variances is minimal on the company's finances.
The market has been difficult in this financial year not least as innovation in product development is a key growth area and drives market share for manufacturers in meeting consumer demand. The company has continued to seek out opportunities in this area which have been limited in comparison to the last two years and with demand fuelled by covid hardware demand. The business believes that there is still substantial opportunity for growth in core gaming business though the expansion of our business in strategic markets.
Brexit/Global Trading
As a result of the continued negative impact of Brexit on our business we undertook a strategic review of the European marketplace and as a result now have physical warehousing capability within the EU to reduce costs, improve transaction speeds and competitive position. Global trading is supressed by conflict, economic uncertainty and political change in the UK and US. We have also absorbed the impact of regional trade policy changes imposed by suppliers and manufacturers of key products and categories. Whilst we expect this to increase further, we have new trading relationships in place to offset the level of impact on our business whilst providing us with strategic partnerships in key marketplaces.
We remain committed to our three-year business development strategy, which remains focussed on the following:
- Development of key regional market places/countries - Increased product procurement for manufacturers and authorised agents/partners/retailers - Reduction of stock turn across the business to improve cash flow and reduce costs - Development of our people within the business and attracting new talent We have seen significant success across all areas of our strategic pillars and we see material benefits manifested over the balance period of the plan.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The key financial performance indicators used to determine the progress and performance of the company are:
Turnover Turnover for the period is £53,192,548 (2023: £82,980,631). The decrease whilst strategic in part to reduce stockholding and associated costs was impacted upon by the restabilising of the business through restructuring. The economic factors noted in the paper summarise key areas of impact however in addressing the cost base and cash management along with physical capability to service our key markets more effectively we are positioned to enter a period of growth with the reduction of risk of further negative impact as experience in this financial year. Gross Profit The company's gross profit ends at £2,291,110, which is an increase of £393,675 compared to last year (2023: £2,021,512). This leads to a gross margin of 4.3% against 2.4% in 2023. The gross profit is directly affected by the reduction in turnover year on year. Also of significant impact is interest at levels higher than the business has had to absorb in the last few years of trading. The actions taken to address these trends resulted in the delivery of percentage margin improvement in the last quarter of the year which provided the basis for a new financial year budget based on the upward trend. Result for the year The result for the company shows a pre-tax loss in 2024 of £1,261,579, compared to a pre-tax loss in 2023 of £2,117,152. This leads to a EBT margin of -2.4% against -2.6% in 2023. The company continues to have a strong financial position with a solvency ratio of 47.6%, which is slightly lower than last year (49.3%).
Market share
The company enjoys a strong market share in the UK and overseas but experienced challenges in some markets that were offset by the continued focus applied to a fast pace of change across the industry and competitive landscape.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The core of Click Entertainments strategy is sales, marketing and distribution. As noted in the trading summaries the business is predominantly trading in gaming products the Directors and senior leadership team have realised growth in profitability through the diversification of product portfolio and offer. We set out at the start of this financial year to leverage our strength and abilities of global reach and the core commercial strategy remains clear: Grow the core business geographically, build distribution partnerships with publishers and manufacturers, grow out from this core into new markets and product categories, and we have demonstrated success in all of these areas and are now seeing the benefits stating to flow thorough our performance indexes.
The hard work to reduce costs has delivered significant reductions and positive performance against the budget and by addressing the supressed revenue growth we have put ourselves in a strong position to deliver growth across the company into the medium and long term futures. S172 Statement The director of the Company, as those of all UK companies, must act in accordance with a set of general duties. These duties are detailed in section 172 of the UK Companies Act 2006 which is summarised as follows: 'A director of a company must act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of the shareholders as a whole and, in doing so have a regard (amongst other matters) to: * the likely consequences of any decisions in the long-term; * the interests of the company's employees; * the need to foster the company's business relationships with suppliers, customers and others; * the impact of the company's operations on the community and the environment; * the desirability of the company maintaining a reputation for high standards of business conduct; and * the need to act fairly as between members of the company.' Strategy The expertise and experience of its Staff and Senior Managers both in Commercial and Non-Commercial functions is key to leading this, particularly when it comes to short and long term strategic decisions. Click Entertainment has so far shown that it can adapt quickly to new and often unpredictable events whilst remaining sustainable and profitable. Long term decision making in a trading business is unpredictable. The director’s decision making is therefore made with input from the entire Senior Management Team this allows a holistic approach using all collective and diverse expertise which helps to mitigate negative impacts through vigilance and being prepared but also allows the business to consolidate on successes as a whole. Interests of the company's employees Click Entertainment has during this year maintained a stable and low turnover rate with only two employees (4.1%) leaving the business in the second half of the financial year. We expect retention and attraction of new talent to be further enhanced by the introduction of performance review frameworks linked to clear reward structures for achievement. The company has also introduced and improved half yearly employee surveys which in its first instance was positive verses the average across the group companies, this is a transparent process involving employees in the further development of any areas that are identified as needing improvement. We also believe that the company has made significant steps in improving colleague engagement through the cascade of company results, strategic goals and individual contributions. All the above is secured by a valued meeting cadence and mechanic for cascade through functional line management in an open, informal culture.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Business relationships with suppliers, customers and others The Company has continued to enhance and build new relationships with its existing and new customers and sees this being a key method to retain and expand business. With the relaxation of international travel restrictions the company is meeting face to face to build relationships with customers, suppliers and other industry partners to develop new business, research both new and old markets and maintain current business by taking a personal approach to meeting developing customer needs. The Company’s reputation is key to maintaining relationships, doing business within legal parameters, training staff in good governance and business conduct (bribery and corruption and money laundering) as well as having the correct checking and authorisation mechanisms to ensure legal compliance and standards of conduct. This helps to reduce risk from competition. The Environment, Sustainability and Community Click Entertainment is currently recycling as much of its waste product as commercially viable over and above legal requirements wherever possible. International travel for the business is restricted to when absolutely necessary and longer trips visiting multiple partners is being undertaken to reduce air travel, take advantage of lower carbon travel options (such as trains) and reduce costs. Microsoft Teams and other video conferencing is used whenever suitable and possible to reduce travel. Staff have been encouraged to work part of the week from home to reduce car and public transport carbon emissions. The Company has made a drive to recruit from the local labour pool to increase its links with the community and so that the diversity makeup of the Company’s employees is representative of the local population within Croydon. Local business have been used to provide services such as hotels, food and other services wherever possible.
This report was approved by the board and signed on its behalf.
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DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The director presents his report and the financial statements for the year ended 30 September 2024.
The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the director is required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.
The loss for the year, after taxation, amounted to £947,663 (2023 - loss £1,618,589).
The director who served during the year were
The company has a financial risk management policy in place. The main focus is managing credit risk and the exposure on foreign currency. There are credit insurers in place to mitigate credit risk. The company purchases hedging instruments to offset the risk posed by specific foreign exchange positions.
The director plans to continue growing the organisation organically and continue to focus on increased turnover and margin within core business and explore opportunities to expand the product portfolio and associated incremental margin contributions.
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DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The director recognises that Click Entertainment's employees are fundamental and core to our business and delivery of our strategic ambitions. The success of our business depends on attracting, retaining and motivating employees. From ensuring that we remain a responsible employer, from pay and benefits to our health, safety and workplace environment, the director factors the implications of decisions on employees and the wider workforce, where relevant and feasible. Continued focus in this area resulted in 4.2% staff turnover in the financial year.
This is achieved using a number of formal and informal method’s which we are further improving through a performance management framework and strategic planning. - 1:1 Performance review process (Formal) - Engagement surveys (Formal) - Management events with staff (Informal) - Staff social committee meeting feedback (Formal) - Strategic planning (Formal) Delivering on our strategy requires strong mutually beneficial relationships with suppliers, customers and regulatory bodies. Our meeting cadence and governance is in place to monitor and manage this. Click Entertainment continues to promote our core values of Winning attitude, Honesty, Business Acumen, Pride and Team player. Which when promoted and applied within our business relationships ensures the long-term sustainability of relationships through mutual benefits. The director is active in key stakeholder meetings to assess the company performance, and new and existing business development through the attendance of trade shows globally to engage with a broader spectrum of customers and suppliers.
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DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Emissions resulting from activities for which the company is responsible involving the combustion of gas or consumption of fuel for the purposes of transport (in tonnes of CO2 equivalent):
2024 8.59 2023 14.95 2022 15.41 2021 16.18 2020 20.55 Emissions resulting from the purchase of the electricity by the company for its own use, including the purposes of transport (in tonnes of CO2 equivalent) 2024 2.76 2023 5.87 2022 6.05 2021 7.56 2020 4.66 Energy consumed from activities for which the company is responsible involving the combustion of gas or the consumption of fuel for the purposes of transport, and the annual quantity of energy consumed resulting from the purchase of electricity by the company for its own use, including for the purposes of transport, in kWh: 2024 44,296 2023 109,887 2022 110,675 2021 147,657 2020 124,755 The reporting period 2019-20 is being used to set the “base year” and as such, data for periods before 2018-19 for comparison is not reported.
We have used the Greenhouse Gas Protocol to calculate our emissions taking data from all existing energy providers.
Included in our data are emissions and energy usage from our operational sites (including 100% of the emissions and energy from space in our sites that maybe sublet).
Emissions per £million of turnover per year (tCO2e/TO£mr/year): 0.1974976 (2023-24: 0.0172306).
There have been no significant events affecting the company since the year end.
The auditors, Venthams, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLICK ENTERTAINMENT LIMITED
We have audited the financial statements of Click Entertainment Limited (the 'Company') for the year ended 30 September 2024, which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows 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 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.
In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLICK ENTERTAINMENT LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The director is 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.
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 Director's Report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLICK ENTERTAINMENT 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 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:
Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. The following laws and regulations were identified as being of significance to the entity: • Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax, Health and Safety, Cyber Regulations, and Pensions legislation. Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes and internal manuals and guidance; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud. No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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 CLICK ENTERTAINMENT 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
Summit House
12 Red Lion Square
WC1R 4QH
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STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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BALANCE SHEET
AS AT 30 SEPTEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Click Entertainment Limited is a private company limited by shares, incorporated in England and Wales. The address of the registered office is Unit 3/4 ZK Park, 23 Commerce Way, Croydon, London, CR0 4ZS.
The company operates in the wholesale and distribution of video games, consoles and accessories
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 management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
Functional and presentation currency
Transactions and balances
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 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, on a reducing balance basis.
Depreciation is provided on the following basis:
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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
Stock valuation and obsolesence Stock is valued at the lower of cost and net realisiable value. Obsolesence is reviewed in the light of slow moving stock and forecasts of expected sale value based on trends of sales of that particular product
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
11.Taxation (continued)
The company has losses of £2,826,460 (2023: £1,594,483) to use against future trading profits.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Foreign exchange reserve
Profit and loss account
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 £31,184 (2023: £28,182). Contributions totalling £8,372 (2023: £6,340) were payable to the fund at the balance sheet date and are included in creditors.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
During the year as part of a group reconstruction, the entire shareholding of the company was transferred from Dangaard Electronics A/S to Selskabet af 01.10.2023 A/S. Under the terms of the demerger, the rights and obligations of the company were deemed to have been transferred with effect from 1 October 2023. The registered office of both Dangaard Electronics A/S and Selskabet af 01.10.2023 A/S is Industrivej 8, DK-6330, Padborg.
At the balance sheet date, the parent company was deemed to be Selskabet af 01.10.2023 A/S, in the preceding year the parent company was Dangaard Electronics A/S. The ultimate parent company is Aktieselskabet Fladkær (Fladkær Ltd), a company incorporated in Denmark with its registered office at Skovbakken 10, Kruså, 6340, Denmark. The ultimate controlling party is limited company Aktieselskabet Fladkær (Fladkær Ltd), a company incorporated in Denmark with its registered office at Skovbakken 10, Kruså, 6340, Denmark. According to Danish Financial Statements Act s. 112, paragraph 1, a consolidated financial statement is not prepared by Dangaard. The financial statements of Dangaard Electronics A/S and its subsidiary companies are included in the consolidated financial statements for Fleggaard Holding A/S and limited company Fladkær. The consolidated accounts for the group are available on the website of Fleggaard Holding A/S.
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