IRIS Accounts Production v25.1.3.33 13396458 director 1.3.24 31.1.25 31.1.25 false true false false false true false Ordinary 0.01000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh133964582024-02-29133964582025-01-31133964582024-03-012025-01-31133964582023-02-28133964582023-03-012024-02-29133964582024-02-2913396458ns15:EnglandWales2024-03-012025-01-3113396458ns14:PoundSterling2024-03-012025-01-3113396458ns10:Director12024-03-012025-01-3113396458ns10:PrivateLimitedCompanyLtd2024-03-012025-01-3113396458ns10:SmallEntities2024-03-012025-01-3113396458ns10:AuditExempt-NoAccountantsReport2024-03-012025-01-3113396458ns10:SmallCompaniesRegimeForDirectorsReport2024-03-012025-01-3113396458ns10:SmallCompaniesRegimeForAccounts2024-03-012025-01-3113396458ns10:FullAccounts2024-03-012025-01-311339645812024-03-012025-01-3113396458ns10:OrdinaryShareClass12024-03-012025-01-3113396458ns10:RegisteredOffice2024-03-012025-01-3113396458ns5:CurrentFinancialInstruments2025-01-3113396458ns5:CurrentFinancialInstruments2024-02-2913396458ns5:ShareCapital2025-01-3113396458ns5:ShareCapital2024-02-2913396458ns5:FurtherSpecificReserve1ComponentTotalEquity2025-01-3113396458ns5:FurtherSpecificReserve1ComponentTotalEquity2024-02-2913396458ns5:RetainedEarningsAccumulatedLosses2025-01-3113396458ns5:RetainedEarningsAccumulatedLosses2024-02-2913396458ns5:IntangibleAssetsOtherThanGoodwill2024-03-012025-01-3113396458ns5:IntangibleAssetsOtherThanGoodwill2024-02-2913396458ns5:IntangibleAssetsOtherThanGoodwill2025-01-3113396458ns5:IntangibleAssetsOtherThanGoodwill2024-02-2913396458ns5:PlantMachinery2024-02-2913396458ns5:PlantMachinery2024-03-012025-01-3113396458ns5:PlantMachinery2025-01-3113396458ns5:PlantMachinery2024-02-2913396458ns5:WithinOneYearns5:CurrentFinancialInstruments2025-01-3113396458ns5:WithinOneYearns5:CurrentFinancialInstruments2024-02-2913396458ns5:WithinOneYear2025-01-3113396458ns5:WithinOneYear2024-02-2913396458ns5:BetweenOneFiveYears2025-01-3113396458ns5:BetweenOneFiveYears2024-02-2913396458ns5:AllPeriods2025-01-3113396458ns5:AllPeriods2024-02-2913396458ns10:OrdinaryShareClass12025-01-311339645812024-03-012025-01-31
REGISTERED NUMBER: 13396458 (England and Wales)













UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD 1 MARCH 2024 TO 31 JANUARY 2025

FOR

METAPHYSIC LIMITED

METAPHYSIC LIMITED (REGISTERED NUMBER: 13396458)






CONTENTS OF THE FINANCIAL STATEMENTS
for the Period 1 March 2024 to 31 January 2025




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


METAPHYSIC LIMITED

COMPANY INFORMATION
for the Period 1 March 2024 to 31 January 2025







DIRECTOR: P Narasimhan





REGISTERED OFFICE: 10 John Street
London
WC1N 2EB





REGISTERED NUMBER: 13396458 (England and Wales)





ACCOUNTANTS: Oury Clark Chartered Accountants
Herschel House
58 Herschel Street
Slough
Berkshire
SL1 1PG

METAPHYSIC LIMITED (REGISTERED NUMBER: 13396458)

BALANCE SHEET
31 January 2025

31.1.25 29.2.24
as restated
Notes £    £    £   
FIXED ASSETS
Intangible assets 4 11,347,085 6,507,541
Tangible assets 5 1,177,647 2,066,789
12,524,732 8,574,330

CURRENT ASSETS
Debtors 6 3,060,228 3,021,373
Cash at bank 376,311 448,492
3,436,539 3,469,865
CREDITORS
Amounts falling due within one year 7 27,318,794 18,185,716
NET CURRENT LIABILITIES (23,882,255 ) (14,715,851 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(11,357,523

)

(6,141,521

)

CAPITAL AND RESERVES
Called up share capital 9 1 1
Other reserves 203,456 134,660
Retained earnings (11,560,980 ) (6,276,182 )
SHAREHOLDERS' FUNDS (11,357,523 ) (6,141,521 )

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 31 January 2025.

The members have not required the company to obtain an audit of its financial statements for the period ended 31 January 2025 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 12 June 2025 and were signed by:



P Narasimhan - Director


METAPHYSIC LIMITED (REGISTERED NUMBER: 13396458)

NOTES TO THE FINANCIAL STATEMENTS
for the Period 1 March 2024 to 31 January 2025

1. STATUTORY INFORMATION

Metaphysic Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The directors of the entity's parent company, Metaphysic Inc. have provided a formal commitment to support the company financially for the foreseeable future, for a period in excess of 12 months and 1 day from the date of the approval of these financial statements. As a result of this commitment the directors have continued to adopt the going concern basis in preparing these financial statements.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Changes in accounting policies
During the year ended 31 January 2025, the company's Director decided to change its accounting policy for its method of recording R&D development costs in the financial statements. Previously, R&D development costs were recorded as expenses through the income statement. R&D development costs will now be capitliased on the balance sheet and amortised across the projects useful lives as the Director believes this is a true reflection of these costs for the company.

This change was also made because it is inline with the accounting policies used by the Group who acquired the existing Group on 14 February 2025.

The change in accounting policy has been applied retrospectively, and the comparative financial information has been restated accordingly. The effect of the change is to decrease reported loss for the year ended 31 January 2025 by £4,839,543, increase the non-current assets in the year by £11,347,085 and to increase the opening balance of retained earnings by £6,507,541. The impact on the prior year financial statements is disclosed in the prior year adjustment note.

During the year ended 31 January 2025, the company's Director decided to change its accounting policy for its method of recording R&D tax credit in the financial statements. Previously, R&D tax credit was recorded on a cash received basis. R&D tax credits will now be recorded an on accrual basis, The Director believes this is a true reflection of amounts relevant to the year that we are reporting for.

This change was also made because it is inline with the accounting policies used by the Group who acquired the existing Group on 14 February 2025.

The change in accounting policy has been applied retrospectively, and the comparative financial information has been restated accordingly. The effect of the change is to decrease reported loss for the year ended 31 January 2025 by £448,230, increase the current assets in the year by £2,144,454 and to increase the opening balance of retained earnings by £1,696,224. The impact on the prior year financial statements is disclosed in the prior year adjustment note.

METAPHYSIC LIMITED (REGISTERED NUMBER: 13396458)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Period 1 March 2024 to 31 January 2025

2. ACCOUNTING POLICIES - continued

Turnover
The director have opted to apply the revenue recognition policy of the group, to which it was part of post year end.

Revenue Recognition
The Group applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfils its obligations under each of its arrangements:
- identify the contract with a customer,
- identify the performance obligations in the contract,
- determine the transaction price,
- allocate the transaction price to performance obligations in the contract, and
- recognize revenue as the performance obligation is satisfied.

Rendering of visual effects services:
The Group provides visual special effects services to clients in the film, broadcast and commercials sectors. These services are generally provided as fixed price contracts with contract terms generally ranging over a period of three to twelve months. The Group recognizes revenue when, or as, we satisfy our performance obligations under a contract. A performance obligation is the unit of account for revenue recognition and refers to a promise in a contract to transfer a distinct service or good to the customer. The Group contracts have a single performance obligation related to the delivery of visual effects services, that may involve significant integration of various activities that are performed together to deliver a combined service and the promise to transfer the individual services is not separately identifiable from other promises in our contracts and, therefore, is not distinct. The Group recognizes revenue over the period of the contract as the Group's performance does not create an asset with an alternative use to it since the project will be specific to the customer and the Group has an enforceable right to payment for performance completed to date. The Group uses an input method based on labor days spent as a proportion of the estimated total for the project to recognize revenue. Labor days are adjusted for productivity efficiencies by geography based on past experiences.

Rendering of Other Production Services:
The Group provides Other Production Services to clients in the film, broadcast and commercials sectors. These services are generally provided as fixed price contracts with contract terms generally ranging over a period of one to six months. The Group recognizes revenue when, or as, we satisfy our performance obligations under a contract. The Group uses an input method based on studio and equipment rental days for rental revenues, labor hours/days spent for digital intermediate as a proportion of the total deliverable to recognize revenue. Taxes, such as sales or value-added taxes, collected from customers and remitted directly to government authorities are excluded from the transaction price and not recorded in revenues and expenses.

Contracts with variable consideration terms:
Some customer contracts for the provision of services are structured so that the economic benefits that flow to the Group are subject to variability based on a future event, such as the performance of the film at the box office. Certain contracts with customers also have variable consideration provisions that are based on achieving certain minimum amounts of government tax credits based on various factors including the value of work performed and qualifying labor spend in specific locations.

The Group generally determines standalone selling prices based on the prices included in the client contracts, using expected costs plus margin. The price as specified in our client contracts is generally considered the standalone selling price as it is an observable input that depicts the price as if sold to a similar client in similar circumstances. For variable consideration, the Group estimates the transaction price at contract inception, including any variable consideration, and updates the estimate each reporting period for any changes in circumstances. The Group estimates the amount of variable consideration using the expected value method and determines the portion, if any, of that amount for which it is probable that a significant reversal will not subsequently occur.

When the determination to recognize revenue for variable consideration is reached, the Group calculates revenue following the input method for contract revenue recognition using the amount of variable consideration determined to not be probable of significant reversal.


METAPHYSIC LIMITED (REGISTERED NUMBER: 13396458)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Period 1 March 2024 to 31 January 2025

2. ACCOUNTING POLICIES - continued
Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of 3 years

Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses. Depreciation is provided at the following annual rates in order to write off the cost less estimates residual value of each asset over its estimated useful life.

Plant and machinery etc - 33% on cost and 20% on cost

Taxation
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Research Costs: Expenditure on research activities is recognised as an expense when incurred.

Development Costs: Development costs are capitalised only when the company can demonstrate all of the following:

- 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;
- the ability to measure reliably the expenditure attributable to the intangible asset during its development.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

METAPHYSIC LIMITED (REGISTERED NUMBER: 13396458)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Period 1 March 2024 to 31 January 2025

2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Financial instruments
Basic Financial Instruments as covered by Section 11 of FRS 102 are measured at amortised cost. The company does not have any Other Financial Instruments as covered by Section 12 of FRS 102.

Share based scheme
The company participates in a group share-based payment plan, and recognises and measures its share based payment expense on the basis of a reasonable allocation of the expense recognised for the group. The allocation is based on the number of employees benefitting from the share-based payment plan employed by each group entity. The share based payment expense is recognised in the income statement as an expense with a corresponding credit to other reserves.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the period was 48 (2024 - 35 ) .

4. INTANGIBLE FIXED ASSETS
Other
intangible
assets
£   
COST
At 1 March 2024 7,294,226
Additions 5,565,880
At 31 January 2025 12,860,106
AMORTISATION
At 1 March 2024 786,685
Charge for period 726,336
At 31 January 2025 1,513,021
NET BOOK VALUE
At 31 January 2025 11,347,085
At 29 February 2024 6,507,541

METAPHYSIC LIMITED (REGISTERED NUMBER: 13396458)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Period 1 March 2024 to 31 January 2025

5. TANGIBLE FIXED ASSETS
Plant and
machinery
etc
£   
COST
At 1 March 2024 2,614,546
Additions 160,356
Disposals (832,926 )
At 31 January 2025 1,941,976
DEPRECIATION
At 1 March 2024 547,757
Charge for period 458,012
Eliminated on disposal (241,440 )
At 31 January 2025 764,329
NET BOOK VALUE
At 31 January 2025 1,177,647
At 29 February 2024 2,066,789

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.1.25 29.2.24
as restated
£    £   
Trade debtors 292,998 904,006
Other debtors 2,767,230 2,117,367
3,060,228 3,021,373

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.1.25 29.2.24
as restated
£    £   
Trade creditors 423,342 392,299
Amounts owed to group undertakings 23,887,929 17,661,570
Taxation and social security 157,192 128,995
Other creditors & accruals 2,850,331 2,852
27,318,794 18,185,716

8. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.1.25 29.2.24
as restated
£    £   
Within one year 80,067 85,786
Between one and five years - 71,489
80,067 157,275

METAPHYSIC LIMITED (REGISTERED NUMBER: 13396458)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Period 1 March 2024 to 31 January 2025

9. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.1.25 29.2.24
value: as restated
£    £   
100 Ordinary £0.01 1 1

10. POST BALANCE SHEET EVENTS

On 14 February 2025 the group was acquired by DNEG S.A.R.L.

11. ULTIMATE CONTROLLING PARTY

There is no ultimate controlling party.