Company registration number 09950733 (England and Wales)
ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
COMPANY INFORMATION
Directors
Mr M L Goldstein
Mr D Seidel
Company number
09950733
Registered office
1010 Eskdale Road
Winnersh Triangle
Wokingham
Berkshire
RG41 5TS
Auditor
Gravita Audit II Limited
Aldgate Tower
2 Lenman Street
London
E1 8FA
ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Statement of financial position
7
Statement of changes in equity
8
Notes to the financial statements
9 - 20
ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activities

The principal activity of the Company continued to be that of the provision of payroll and accounting services.

 

The Company is a wholly owned subsidiary of Entertainment Partners UK HoldCo Limited, a company incorporated in the United Kingdom.

Results and dividends

The results for the year are set out on page 6.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr M L Goldstein
Mr D Seidel
Post reporting date events

Subsequent to the reporting date, but prior to the date of signing these financial statements, the following events of note took place:

 

The Company issued further Ordinary share capital of £1 each as follows:

 

Auditor

In accordance with the company's articles, a resolution proposing that Gravita Audit II Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

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

ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Going concern

The directors have at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

This expectation arises due to continued support of the parent undertaking, Entertainment Partners UK HoldCo Limited, should the need for further financial support arise.

Small company exemptions

The Company has taken advantage of exemptions available to UK small companies under section 415A and 414B of the Companies Act 2006, to not deliver a strategic report with these financial statements and not to include optional disclosures for UK small companies within the directors report on matters of research and development activities and future developments.

On behalf of the board
Mr D Seidel
Director
27 May 2025
ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
- 3 -
Opinion

We have audited the financial statements of Entertainment Partners UK Payroll Services 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 notes to the financial statements, including 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 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. However, because not all future events or conditions can be predicted this statement is not a guarantee as to the company's ability to continue as a going concern.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED (CONTINUED)
- 4 -
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 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:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED (CONTINUED)
- 5 -

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment by for example forgery, or intentional misrepresentation or through collusion. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

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

Other matters

The company took advantage of the exemption from audit conferred by Section 477 of the Companies Act 2006 in respect of its financial statements for the year ended 31 January 2022. Accordingly, the comparative figures in the financial statements for the year ended 31 January 2022 are unaudited.

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 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Paul Woosey (Senior Statutory Auditor)
For and on behalf of Gravita Audit II Limited
27 May 2025
Chartered Accountants
Statutory Auditor
Aldgate Tower
2 Lenman Street
London
E1 8FA
ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
Year
Period
ended
ended
31 December
31 December
2023
2022
Notes
£
£
Revenue
3
1,372,823
401,461
Administrative expenses
(2,404,633)
(912,100)
Other operating income
3
-
0
384,457
Operating loss
4
(1,031,810)
(126,182)
Investment income
7
50,916
-
Finance costs
8
(4,778)
(983)
Other gains and losses
9
(193,267)
26,136
Loss before taxation
(1,178,939)
(101,029)
Tax on loss
10
-
0
-
0
Loss and total comprehensive loss for the financial year
(1,178,939)
(101,029)
ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 7 -
2023
2022
Notes
£
£
£
£
Non-current assets
Intangible assets
11
1,004,306
-
0
Property, plant and equipment
12
-
0
313,608
1,004,306
313,608
Current assets
Trade and other receivables
13
509,194
134,907
Cash and cash equivalents
6,424,479
3,453,425
6,933,673
3,588,332
Current liabilities
14
(8,044,184)
(4,164,311)
Net current liabilities
(1,110,511)
(575,979)
Total assets less current liabilities
(106,205)
(262,371)
Non-current liabilities
14
-
(189,895)
Net liabilities
(106,205)
(452,266)
Equity
Called up share capital
19
152
150
Share premium account
1,524,998
-
0
Retained deficit
(1,631,355)
(452,416)
Total equity
(106,205)
(452,266)

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 27 May 2025 and are signed on its behalf by:
Mr D Seidel
Director
Company registration number 09950733
ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
Share capital
Share premium account
Retained deficit
Total
Notes
£
£
£
£
Balance at 1 February 2022
150
-
0
(351,387)
(351,237)
Period ended 31 December 2022:
Loss and total comprehensive loss for the year
-
-
(101,029)
(101,029)
Balance at 31 December 2022
150
-
0
(452,416)
(452,266)
Year ended 31 December 2023:
Loss and total comprehensive loss for the year
-
-
(1,178,939)
(1,178,939)
Transactions with owners in their capacity as owners:
Issue of share capital
19
2
1,524,998
-
1,525,000
Balance at 31 December 2023
152
1,524,998
(1,631,355)
(106,205)
Retained deficit
Retained deficit represent the cumulative retained profit and loss of the business, net of dividends paid.
Share premium account
Share premium account includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.
ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
1
Accounting policies
Company information

Entertainment Partners UK Payroll Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1010 Eskdale Road, Winnersh Triangle, Wokingham, Berkshire, RG41 5TS. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Reporting period

The comparative reporting period was that of 11 months, whereas the current period is that of a full year. Due to differing reporting lengths, the financial statements and their supporting notes may not be entirely comparable.

1.2
Accounting convention

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:

Where required, equivalent disclosures are given in the group accounts of Entertainment Partners UK HoldCo Limited, the parent company. The group accounts are available to the public and can be obtained as set out in note 22.

1.3
Going concern

The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

This expectation arises due to continued support of the parent undertaking, Entertainment Partners UK HoldCo Limited, should the need for further financial support arise.

ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 10 -
1.4
Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer and revenue is stated net of discounts and rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

The company recognises revenue from the following major sources:

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Payroll fees

Payroll fees relate to revenue generated for payroll administration services provided to clients. Payroll fee revenue is recognised by the Company at the time the service is provided, and is invoiced on a weekly or monthly basis in the same month the service is delivered.

1.5
Intangible assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

 

 

Amortisation is commenced on intangible assets when they are substantially completed and start generating economic benefits for the Company.

1.6
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
Over lease term of 3.25 years
Computers
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

1.7
Impairment of tangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Impairment of financial assets

Financial assets carried at amortised cost are assessed for indicators of impairment at each reporting end date.

 

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the asset.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.10
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

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.

1.15
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of FRS 101. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

2
Critical accounting estimates and judgements

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Critical judgements
Capitalisation of development costs

Management have assessed that costs incurred in accordance with development of the Company's specialist products and services should be capitalised as intangible assets and subsequently amortised over their estimated useful lives, when the product being developed is completed and begins generating economic benefits for the Company. Management consider a range of criteria in the judgement of what costs should be capitalised, such as the technical feasibility of completing the intangible asset, the intention to complete the asset, the ability to use or sell the asset, how the asset will generate economic benefits and being able to reliably measure the expenditure attributable to the asset.

3
Revenue
2023
2022
£
£
Revenue analysed by class of business
Payroll fees
1,372,823
401,461
2023
2022
£
£
Other operating income
Release of loans payable to other parties
-
384,457

Payroll fees relate to sales made only in the United Kingdom.

4
Operating loss
2023
2022
Operating loss for the year is stated after charging:
£
£
Exchange losses
7,956
19,454
Depreciation of property, plant and equipment
10,154
4,858
Depreciation of right-of-use assets
90,318
15,053
Loss on disposal of property, plant and equipment
51,847
-
ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
15,000
17,250
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Administrative staff
19
12

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
826,964
467,908
Social security costs
87,970
53,915
Pension costs
40,171
12,613
955,105
534,436
7
Investment income
2023
2022
£
£
Interest income
Interest on bank deposits
50,916
-
0
8
Finance costs
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on lease liabilities
4,778
983
9
Other gains and losses
2023
2022
£
£
Other gains and losses
(193,267)
26,136

Other losses incurred during the year relate to the loss arising upon termination of a lease to which the Company was party to.

ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
10
Taxation

The charge for the year can be reconciled to the loss per the income statement as follows:

 

2023
2022
£
£
Loss before taxation
(1,178,939)
(101,029)
Expected tax credit based on a corporation tax rate of 23.52% (2022: 19.00%)
(277,286)
(19,196)
Effect of expenses not deductible in determining taxable profit
35,480
1,147
Other adjustment to taxable profits
(21,243)
(2,859)
Effect of super deduction enhanced capital expenditure
-
(2,278)
Change in unrecognised deferred tax assets
257,022
26,745
Depreciation on assets not qualifying for tax allowances
21,243
2,860
Effect of change in tax rates applied to unrecognised deferred tax
(15,216)
(6,419)
Taxation charge for the year
-
-

An increase in the rate of corporation tax from 19% to 25% became effective from 1 April 2023. This will impact the Company's future tax charges accordingly for any profits taxed at the main rate.

 

The Company has tax adjusted losses carried forward of £2,193,080 (2022: £1,207,257), timing differences relating to accelerated capital allowances of £nil (2022: £35,127) and other timing difference with carrying value of £14,887 (2022: £7,750), for which a net deferred tax asset of £551,992 (2022: £294,970) has not been recognised in the financial statements, as the timing and probability of future taxable profits arising, against which to utilise these losses, is uncertain. The unrecognised deferred tax asset stated is calculated at 25%, being the rate of tax at the reporting date.

 

The unused tax losses do not have an expiry date.

11
Intangible fixed assets
Development costs
£
Cost
Additions
1,004,306
At 31 December 2023
1,004,306
Carrying amount
At 31 December 2023
1,004,306
ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
12
Property, plant and equipment
Leasehold land and buildings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
293,534
40,793
-
0
334,327
Additions
-
0
7,032
19,842
26,874
Disposals
(293,534)
(47,825)
(19,842)
(361,201)
At 31 December 2023
-
0
-
0
-
0
-
0
Accumulated depreciation and impairment
At 1 January 2023
15,053
5,666
-
0
20,719
Charge for the year
90,318
10,154
-
0
100,472
Eliminated on disposal
(105,371)
(15,820)
-
0
(121,191)
At 31 December 2023
-
0
-
0
-
0
-
0
Carrying amount
At 31 December 2023
-
0
-
0
-
0
-
0
At 31 December 2022
278,481
35,127
-
0
313,608

Property, plant and equipment includes right-of-use assets, as follows:

Right-of-use assets
2023
2022
£
£
Net values at the year end
Leasehold land and buildings
-
278,481
Total additions in the year
-
293,534
Depreciation charge for the year
Leasehold land and buildings
90,318
15,053
ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
13
Trade and other receivables
2023
2022
£
£
Trade receivables
475,127
120,283
Provision for bad and doubtful debts
(32,037)
-
443,090
120,283
VAT recoverable
34,503
-
Amounts owed by fellow group undertakings
-
0
1,748
Other receivables
1,295
1,105
Prepayments and accrued income
30,306
11,771
509,194
134,907
14
Liabilities
Current
Non-current
2023
2022
2023
2022
Notes
£
£
£
£
Trade and other payables
16
8,001,404
4,021,154
-
0
-
0
Taxation and social security
42,780
52,935
-
-
Lease liabilities
17
-
0
90,222
-
0
189,895
8,044,184
4,164,311
-
189,895
15
Fair value of financial liabilities

The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.

16
Trade and other payables
2023
2022
£
£
Trade payables
289,838
925,913
Amount received from parent in advance of share issue
-
0
525,000
Amounts owed to fellow group undertakings
1,352,277
103,358
Accruals and deferred income
91,576
15,232
Other payables
6,267,713
2,451,651
8,001,404
4,021,154
ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
17
Lease liabilities
2023
2022
Maturity analysis
£
£
Within one year
-
95,000
In two to five years
-
193,958
Total undiscounted liabilities
-
288,958
Future finance charges and other adjustments
-
(8,841)
Lease liabilities in the financial statements
-
280,117

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2023
2022
£
£
Current liabilities
-
0
90,222
Non-current liabilities
-
0
189,895
-
280,117
2023
2022
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
4,778
983
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
40,171
12,613

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

At the period end, contributions of £12,573 (2022: £7,750) were payable in relation to defined contribution schemes.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued, authorised and fully paid
Ordinary of £1 each
25
23
25
23
ENTERTAINMENT PARTNERS UK PAYROLL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
19
Share capital
(Continued)
- 20 -
2023
2022
2023
2022
Preference share capital
Number
Number
£
£
Issued, authorised and fully paid
Preference of £1 each
127
127
127
127
Preference shares classified as equity
127
127
Total equity share capital
152
150

Each Ordinary share carries no voting rights, subordinated rights in respect of dividends, distributions (including on winding up) and capital, as set out in article 44 of the Company's Articles of Association.

 

Each preference share carries full voting rights, preferential rights in respect of dividends, the right to participate in a distribution and preferential rights in respect to capital. The preference shares are non-redeemable.

 

During the year, 2 Ordinary shares of £1 each were allotted at a total premium of £1,524,998.

20
Events after the reporting date

Subsequent to the reporting date, but prior to the date of signing these financial statements, the following events of note took place:

 

The Company issued further Ordinary share capital of £1 each as follows:

 

21
Related party transactions

During the prior period, a loan of £384,457 owed by the Company to a former director in period ended 31 January 2022, was released by the counterparty and written off to the Company's benefit of the same amount at the time of selling the entity to the new owners.

22
Controlling party

The immediate parent company is Entertainment Partners UK HoldCo Limited, whose registered office is 1010 Eskdale Road, Winnersh Triangle, Wokingham, RG41 5TS.

 

The smallest and largest group to consolidate the results of the company is the Entertainment Partners UK HoldCo Limited group, whose financial statements are available from its registered office, noted above.

 

The ultimate parent company is EP Global Production Solutions, LLC, a company formed under the laws of Delaware in the United States of America. The registered office of the company is 2950 North Hollywood Way Burbank, CA 91505 United States.

 

EP Global Production Solutions, LLC is owned by a number of shareholders and no one shareholder can exert individual control. As such, there is not deemed to be an ultimate controlling party.

2023-12-312023-01-01Mr M L GoldsteinMr D SeidelfalsefalseCCH SoftwareiXBRL Review & Tag 2024.2099507332023-01-012023-12-3109950733bus:Director12023-01-012023-12-3109950733bus:Director22023-01-012023-12-3109950733bus:RegisteredOffice2023-01-012023-12-31099507332023-12-31099507332022-02-012022-12-3109950733core:ContinuingOperations2023-01-012023-12-310995073312023-01-012023-12-310995073312022-02-012022-12-3109950733core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3109950733core:RetainedEarningsAccumulatedLosses2022-02-012022-12-3109950733core:IntangibleAssetsOtherThanGoodwill2023-12-3109950733core:IntangibleAssetsOtherThanGoodwill2022-12-3109950733core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-12-31099507332022-12-3109950733core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3109950733core:ComputerEquipment2023-12-3109950733core:MotorVehicles2023-12-3109950733core:ContinuingOperations2023-12-3109950733core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3109950733core:ComputerEquipment2022-12-3109950733core:MotorVehicles2022-12-3109950733core:CurrentFinancialInstruments2023-12-3109950733core:CurrentFinancialInstruments2022-12-3109950733core:ShareCapital2023-12-3109950733core:ShareCapital2022-12-3109950733core:SharePremium2023-12-3109950733core:SharePremium2022-12-3109950733core:RetainedEarningsAccumulatedLosses2023-12-3109950733core:RetainedEarningsAccumulatedLosses2022-12-3109950733core:SharePremium2022-01-3109950733core:RetainedEarningsAccumulatedLosses2022-01-3109950733core:ShareCapital2023-01-012023-12-3109950733core:SharePremium2023-01-012023-12-3109950733core:Held-to-maturityFinancialAssets2023-01-012023-12-3109950733core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-01-012023-12-3109950733core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3109950733core:ComputerEquipment2022-12-3109950733core:MotorVehicles2022-12-31099507332022-12-3109950733core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3109950733core:ComputerEquipment2023-01-012023-12-3109950733core:MotorVehicles2023-01-012023-12-3109950733core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3109950733core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3109950733core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3109950733core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3109950733core:Non-currentFinancialInstruments2023-12-3109950733core:Non-currentFinancialInstruments2022-12-3109950733bus:PrivateLimitedCompanyLtd2023-01-012023-12-3109950733bus:FRS1012023-01-012023-12-3109950733bus:Audited2023-01-012023-12-3109950733bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP