Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
Dolby Europe Limited
Annual report and financial statements
for the year ended 30 September 2024
Company Registration number 06035472
1
Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
Company Information
Directors
Grace Chu
Daniel Rodriguez
Susan Way
Registered number
06035472
Registered office
4-6 Soho Square
London
W1D 3PZ
United Kingdom
Bankers
Bank of America
London
EC1A 1HQ
United Kingdom
Solicitors
Bristow's LLP
London
EC4Y 0DH
United Kingdom
Statutory auditors
Grant Thornton
Charter Accountants & Statutory Auditors
13-18 City Quay
Dublin
D02 ED70
Ireland
2
Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
TABLE OF CONTENT
A.
Strategic Report for the year ended September 30, 2024
4
B.
Directors' Report
6
C.
Independent Auditor's report to the members of Dolby Europe Limited
9
D.
Profit and Loss account for the year ended September 30, 2024
13
E.
Balance Sheet for the year ended September 30, 2024
14
F.
Statement of Changes in Equity for the year ended September 30, 2024
15
G.
Notes (forming part of the financial statements)
16
3
Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
A.
Strategic Report for the year ended September 30, 2024
The directors present their Strategic Report & Financial Statements for the year ended September 30, 2024.
Principal Activities & Business Review:
During the year, the company performed liaison services for Dolby International AB (DIAB), including carrying out a large number of product & technology demonstrations for customers, exhibiting Dolby products at European trade shows, assisting DIAB to secure technology wins from companies based in Europe, and assisting Dolby Laboratories International Services (DLIS) to build relationships and to define broadcast standards across Europe.
Profit for 2024 is GBP 1,178,008 compared to GBP 914,313 from 2023 which is as expected. This is mainly driven by a decrease in our revenue in line with higher tax expense along with cost of business rate decreased.
Development of the Company's business; profit and position:
2024
2023
2022
Net Sale
18,657,351
19,103,700
18,878,399
% Ops.Marg. Profit
7%
6%
9%
Net Asset
16,105,379
14,927,372
14,013,060
Debt/Equity Ratio
44%
54%
63%
The 1-points increase in Operating Profit Margin is a in line with Dolby expectation.
The 10-points decrease in Debt/Equity Ratio is in line with the increase of the total assets, mainly driven by the increase in cash in bank and on hand position in FY24.
Principal risks, uncertainties, and future developments:
During FY24, the company continued to support Sales & Marketing across Europe on behalf of its affiliate, DIAB The directors consider that the Company's exposure to price risk, credit risk, liquidity risk and cash flow risk are not material for the assessment of the financial position and profit of the Company. Dolby Europe Limited has no external loans or covenants. All operational expenses are settled with the intercompany agreement and cost-plus agreement with DIAB. which has a strong balance sheet position and is expected to repay its debt towards Dolby Europe Limited as it becomes due.
The company is not expecting significant changes around the business model.
The Company forms part of a group of companies headed by DIAB, which is a EMEA revenue generating unit. The Company's revenue structure is a Cost-Plus monthly invoice addressed to DIAB. The Company has no significant decrease in demand of services to be provided and no significant financing implications due to the Company's position in providing marketing and sales services.
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Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
Change in immediate parents' company
No changes compared to last year.
By order of the Board of Director
On: 24 June 2025
Susan Way
Director
4-6 Soho Square
London
W1D 3P2
5
Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
B.
Directors' Report
The directors present their report & the audited financial statements for the year ended September 30, 2024.
Dividends:
The directors recommend that £Nil dividend is paid in respect of the current financial year 2024 (Prior year was £Nil).
Political and charitable contributions:
The company made £Nil charitable donation and £Nil political contribution during the year 2024 (Prior year was £Nil).
Environmental Impact:
As part of our wider responsibility to the environment the Company actively monitors its energy usage and continually looks to ensure its use of energy is as efficient as possible. During the year the Company has continued to proactively manage its energy usage. Its energy usage in the year was 980,144 kwH, which is equivalent to 202.96 KG of carbon dioxide. These emissions and energy consumption have been measured in accordance with industry practice.
Directors:
The directors who held office during the year were as follows:
Grace Chu
Daniel Rodriguez
Susan Way
Post balance-sheet events:
On 17th June 2025, the company exercised a break clause in the lease agreement for its London office premises. The lease, which was originally due to expire in 2030, will now terminate early on 23rd March 2026 in accordance with the terms of the lease agreement. This event occurred after the balance sheet date and does not provide evidence of conditions that existed at 30 September 2024. Therefore, no adjustment has been made in these financial statements.
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Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
Disclosure of information to auditor:
As far as the directors are aware, there is no relevant audit information of which the company's auditor are unaware; and
The directors have taken all the steps that they ought to have taken as directors to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
Other information:
An indication of likely future developments in the business and particulars of significant events which have occurred since the end of the financial year have been included in the Strategic Report on page 3.
Independent auditor:
Pursuant to Section 487 of the Companies Act 2006, Grant Thornton Ireland were appointed the new auditor during the year.
Section 172 statement:
The Directors of the Company are required to promote the success of the Company for the benefit of the Members / Shareholders as a whole. Section 172(1) of the Companies Act 2006) expands this duty and requires the Directors to consider a broader range of interested parties when considering the promotion of the Company.
This wider group of stakeholders will include employees, customers, regulators and others, and the Board will look to understand and consider the needs of each stakeholder, although recognizing that different stakeholders may have conflicting priorities and not all decisions made will be to the benefit of all stakeholder groups. When making decisions the Board should consider the following:
the likely consequences of any decisions in the long-term.
the interests of the Company's employees (if applicable).
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 environment.
the desirability of the Company to maintain a reputation for high standards of business conduct, and the need to act fairly as between members of the Company.
At every Board meeting the Directors review the performance of the Company against its strategy. The compliance with existing legal and regulatory requirements are reviewed, together with any new regulations that are to be introduced or are being proposed. Any new regulations are discussed and their potential impact on the Company and its stakeholders assessed. The Board recognizes the importance of and is committed to understanding the views of Shareholders and maintaining communication with its Shareholders in the most appropriate manner.
The Directors believe that they have effectively implemented their duties under section 172 of the Companies Act 2006. The Company has considered the long-term strategy of the business and consider that this strategy will continue to deliver long term success to the business and its stakeholders.
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Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
Statement of Directors' responsibilities:
The directors are responsible for preparing the Strategic Report, the Directors' Report, and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.
Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently.
make judgements and 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 group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities.
By order of the Board of Director
On: 24 June 2025
Susan Way
Director
4-6 Soho Square
London
W1D 3P2
8
C.
Independent Auditor's report to the members of Dolby Europe Limited
Opinion:
We have audited the financial statements of Dolby Europe Limited (“Company”), which comprise the profit and loss account, balance sheet, statement of changes in equity for the year ended 30 September 2024, and the related notes to the financial statements, including a material accounting policy information.
The financial reporting framework that has been applied in the preparation of the financial statements is applicable law and FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, Dolby Europe Limited's financial statements:
give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice of the assets, liabilities and financial position of the Company as at 30 September 2024 and of its financial performance for the year then ended; and
have been properly prepared in accordance with the requirements of the Companies Act 2006.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (‘ISAs (UK)') and applicable law. Our responsibilities under those standards are further described in the ‘Responsibilities of the auditor 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 FRC's Ethical Standard and the ethical pronouncements established by Chartered Accountants Ireland, applied as determined to be appropriate in the circumstances for the entity. 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.
Conclusion relating to Going Concern:
In auditing the financial statements, we have concluded that the directors' use of going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the [Group and] Company's ability to continue as a going concern for a period of at least twelve months from the date when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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Other information
Other information comprises information included in the annual report, other than the financial statements and our auditor's report thereon, including the Directors' Report and the Strategic Report. The directors are responsible for the other information. 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.
In connection with our audit of the financial statements, 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 audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies in the financial statements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:
the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any material misstatements in the Strategic Report and the Directors' Report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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Responsibilities of management and those charged with governance for the financial statements
As explained more fully in the Directors' responsibilities statement, management is responsible for the preparation of the financial statements which give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS 102, and for such internal control as directors determine necessary to enable the preparation of financial statements are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is 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 management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
Responsibilities of the auditor for the audit of the financial statements
The objectives of an auditor 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 their 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.
A further description of an auditor's 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 auditor's report.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to compliance with Data Privacy law, Employment Law, Environmental Regulations, and Pensions Legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and UK tax legislation. The Audit engagement partner considered the experience and expertise of the engagement team to ensure that the team had appropriate competence and capabilities to identify or recognise non-compliance with the laws and regulation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and management bias through judgements and assumptions in significant accounting estimates, in particular in relation to significant one-off or unusual transactions. We apply professional scepticism through the audit to consider potential deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the financial statements.
In response to these principal risks, our audit procedures included but were not limited to:
enquiries of management on the policies and procedures in place regarding compliance with laws and regulations, including consideration of known or suspected instances of non-compliance and whether they have knowledge of any actual, suspected or alleged fraud;
inspection of the Company's regulatory and legal correspondence and review of minutes of board meetings during the year to corroborate inquiries made;
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gaining an understanding of the entity's current activities, the scope of authorisation and the effectiveness of its control environment to mitigate risks related to fraud;
discussion amongst the engagement team in relation to the identified laws and regulations and regarding the risk of fraud, and remaining alert to any indications of non-compliance or opportunities for fraudulent manipulation of financial statements throughout the audit;
identifying and testing journal entries to address the risk of inappropriate journals and management override of controls
designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing
challenging assumptions and judgements made by management in their significant accounting estimates, including stocks and trade debtors;
review of the financial statement disclosures to underlying supporting documentation and inquiries of management.
The primary responsibility for the prevention and detection of irregularities including fraud rests with those charged with governance and management. As with any audit, there remains a risk of non-detection or irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or override of internal controls.
The purpose of our audit work and to whom we owe our responsibilities
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.
Michael Shelley (Senior Statutory Auditor)
For and on behalf of
Grant Thornton
Chartered Accountants & Statutory Audit Firm
13-18 City Quay
Dublin 2
Ireland
Date: 25 June 2025
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Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
D.
Profit and Loss account for the year ended September 30, 2024
Description
Notes
2024
2023
GBP
GBP
Turnover
18,657,351
19,103,702
Gross Profit
18,657,351
19,103,702
Administrative expenses
(2,259,483)
(2,735,421)
Marketing expenses
(15,015,984)
(15,302,064)
Operating profit
1,381,885
1,066,217
Interest receivable and similar incomes
(3)
246,281
253,656
Interest payable and similar expenses
(4)
(45,471)
Profit before taxation
1,582,694
1,319,873
Tax on profit
(5)
(404,687)
(405,560)
Income for the financial year
1,178,008
914,313
Other Comprehensive Income
-
-
Total Comprehensive Income for the financial year
1,178,008
914,313
All results relate to continuing operations.
All company notes form part of the financial statements. Notes attached from page 16 to page 28.
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Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
E.
Balance Sheet for the year ended
September 30, 2024
30 September 2024
Description
Notes
2024
2023
GBP
GBP
Fixed assets
Tangible assets
(6)
7,846,333
8,958,551
7,846,333
8,958,551
Current assets
Debtors
(7)
1,753,016
1,611,211
Amounts owed by group undertakings
(7)'
1,639,780
3,877,779
Cash at bank and in hand
11,993,707
8,611,307
15,386,503
14,100,297
Creditors
(2,904,636)
Amounts due within one year
(8)
(2,488,721)
(2,700,250)
Amounts owed to group undertakings
(8)
(2,146,280)
(5,604,886)
(4,635,001)
Net current assets
10,751,501
8,495,411
Total assets less current liabilities
18,597,835
17,453,962
Creditors:
(572,283)
Amounts due after more than one year
(10)
(494,239)
(1,954,308)
Provision for liabilities
(9)
(1,998,217)
(2,526,591)
(2,492,456)
Net assets
16,105,379
14,927,371
Capital and reserves
Called-up share capital
(11)
1
1
Profit and loss account
16,105,378
14,927,370
16,105,379
14,927,371
Total Equity
16,105,379
14,927,371
These financial statements were approved by the board of directors on
24th June 2025
24 June 2025
and were signed on its behalf by:
Susan Way
Director
Company registration number: 06035472
All company notes form part of the financial statements. Notes attached from page 16 to page 28.
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Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
F.
Statement of Changes in Equity for the year ended September 30, 2024
Description
Called Up Share Capital
Profit & Loss Account
Total Equity
GBP
GBP
GBP
Balance at 01-10-2022
1
14,013,057
14,013,058
Comprehensive Income for the year
Profit for the financial year
914,313
914,313
Share based remuneration
(11)
1,968,356
1,968,356
Share Based Payments Recharged
(1,968,356)
(1,968,356)
Total Comprehensive Income for the year
-
914,313
914,313
Balance at 30-09-2023
1
14,927,370
14,927,371
Comprehensive Income for the year
Profit for the financial year
1,178,008
1,178,008
Share based remuneration
(11)
1,756,593
1,756,593
Share Based Payments Recharged
(1,756,593)
(1,756,593)
Total Comprehensive Income for the year
-
1,178,008
1,178,008
Balance at 30-09-2024
1
16,105,378
16,105,379
All company notes form part of the financial statements. Notes attached from page 16 to page 28.
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Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
G.
Notes (forming part of the financial statements)
General Notes:
1.
General Information:
Dolby Europe Limited (the “Company”) is a company limited by shares and incorporated and domiciled in the United Kingdom at 4-6 Soho Square, London, W1D 3P2 under the Company Registration number 06035472.
The Company performed liaison services for Dolby international AB (DIAB), including carrying out a large number of product & technology demonstration for customers, exhibiting Dolby products in Europe and assisting Dolby Laboratories International Services (DLIS) to build relationships and to define broadcast standards across Europe.
2.
Statement of compliance:
The financial statements have been prepared in accordance with Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS 102") as issued in August 2014. The amendments to FRS 102 issued in July 2015 and effective immediately have been applied. The presentation currency of these financial statements is sterling. All amounts in the financial statements have been rounded to the nearest pound.
The Company's parent undertaking, Dolby Laboratories Inc., includes the Company in its consolidated financial statements. These consolidated financial statements of Dolby Laboratories Inc. are available to the public and may be obtained from its registered office at 1275 Market Street, San Francisco, California.
3.
Summary of significant accounting policies:
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in the financial statements. In these financial statements, the company is a qualifying entity (for the purposes of this FRS) and has applied the exemptions available under FRS 102 in respect of the following disclosures:
reconciliation of the number of shares outstanding from the beginning to end of the period.
related parties' disclosures.
cash flow statement and related note; and
key management personnel compensation
As the consolidated financial statements of Dolby Laboratories Inc. include the equivalent disclosures, the Company has also taken the exemptions under FRS 102 available in respect of the following disclosures:
certain disclosures required by FRS 102.26 Share Based Payments: and
the disclosures required by FRS 102.11 Basic Financial Instruments and FRS 102.12 Other Financial Instrument Issues in respect of financial instruments not falling within the fair value accounting rules of Paragraph 36(4) of Schedule 1
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Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
4.
Basis of Preparation:
The financial statements have been prepared on a going concern basis, under the historical cost convention, as modified by the recognition of certain financial assets and liability measured at fair value.
5.
Going Concern:
The directors have undertaken a going concern review for the entity and have prepared the financial statements on a going concern basis which the directors consider to be appropriate for the following reasons.
The Company has reported net assets of GBP 16,105,379 a profit for the year of GBP 1,178,008 and a cash balance of GBP 11,993,707 for the year ended on September 30, 2024. The Company performs liaison services for its ultimate parent company, Dolby International AB (DIAB) as outlined on page 3 of the Strategic Report.
As a result, the ability of the company to continue as a going concern is based on the ability of DIAB (the ‘Group') to continue as a going concern and require the company's services. The Company carries out large number of product & technology demonstrations for customers, exhibiting Dolby products at European trade shows, assisting the Group to secure technology wins from companies based in Europe, and building relationships across Europe. The above services, relationships and capabilities are not held elsewhere in the Group or externally to the Group and therefore could not be realistically replaced in the short to medium term.
The business continues to trade at a profit due to its existing contractual arrangements with other group companies. The ability to achieve its forecasts is dependent on the Groups continued use of the services of Dolby Europe Limited. The Group has indicated its intention to support the UK market for at least the period covered by the forecasts, through December 2028.
Consequently, the directors are confident that the company will have sufficient funds to continue for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
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Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
6.
Tangible fixed assets and depreciation:
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. The Company assesses at each reporting date whether tangible fixed assets (including those leased under a finance lease) are impaired.
Depreciation is charged to the profit and loss account on a straight-line basis over the estimated useful lives of each part of an item of tangible fixed assets. Leased assets are depreciated over the shorter of the lease term and their useful lives. Land is not depreciated. The estimated useful lives are as follows:
Leasehold improvements: End of lease term
Plant and equipment: 3-15 years
Computer equipment: 3-5 years
Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since last annual reporting date in the pattern by which the Company expects to consume an asset's future economic benefits.
7.
Impairment of assets:
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognized immediately in profit or loss.
If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
8.
Operating Lease:
Rentals under operating leases are charged to the profit and loss account on a straight-line basis over the life of the lease. Benefits received and receivable as an incentive to sign an operating lease are recognized on a straight-line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate.
9.
Foreign Currencies:
Transactions in foreign currencies are translated to the company's functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency at foreign exchange rates ruling at the dates the fair value was determined. Foreign exchange differences arising on translation are recognized in the profit and loss account.
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Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
10.
Taxation:
Tax on the profit or loss for the year comprises of current and deferred tax. Tax is recognized in the profit and loss account except to the extent that it relates to items recognized directly in equity or other comprehensive income, in which case it is recognized directly in equity or other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in previous years.
Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognized in the financial statements. The following timing differences are not provided for; differences between accumulated depreciation and tax allowances for the cost of a fixed asset if and when all conditions for retaining the tax allowances have been met; and differences relating to investment subsidiaries, to the extent that it is not probable that they will reverse in the foreseeable future and the reporting entity is able to control the reversal of the timing difference. Deferred tax is not recognized on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense.
Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet date. Deferred tax balances are not discounted.
Unrelieved tax losses and other deferred tax assets are recognized only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
The OECD has introduced a framework to implement a 15% global minimum corporate tax, referred to as Pillar 2 or the minimum tax directive. The minimum tax directive has been adopted by the EU for implementation by its Member States into national legislation by the end of 2023 and may also be adopted by other jurisdictions. To the extent these actions take place in the countries that we operate, it is possible that these law changes and efforts may increase uncertainty and have an adverse impact on our effective tax rates or operations. The Dolby Group continues to monitor the impact of the implementation of these rules.
11.
Turnover:
The company charges Dolby International AB at cost plus. The rate of this being 8% for R&D services provided by the company and 6% for G&A services.
All turnover is generated from activities undertaken in the United Kingdom.
12.
Debtors:
Short term debtors are measured at transaction price, less any impairment. Loans receivables are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
13.
Creditors:
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
19
Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
14.
Share based payments:
The share option program allows employees to acquire shares of the ultimate parent company Dolby Laboratories Inc. Services received in equity-settled share-based payment transactions are recognized when services are received. The fair value of options granted and those not yet vested is recognized as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the employees become unconditionally entitled to the options. The fair value of the options granted is measured using an option pricing model, taking into account the terms and conditions upon which the options were granted. The amount recognized as an expense is adjusted to reflect the actual number of share options that vest except where forfeiture is only due to share prices not achieving the threshold for vesting.
For corresponding recharges made by Dolby Laboratories Inc. to the company an adjustment to the capital contribution is recognized (decrease in equity) and an intercompany liability is recorded.
15.
Post-retirement benefits:
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The amount charged to the profit and loss account represents and contributions payable to the scheme in respect of the accounting period.
16.
Provisions:
A provision is recognized in the balance sheet when the Company has a present legal or constructive obligation because of a past event that can be reliably measured, and it is probable that an outflow of economics benefits will be required to settle the obligation. Provisions are recognized at the best estimate of the amount required to settle the obligation at the reporting date.
20
Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
Explanatory Notes:
1.
Expenses and Auditor's remunerations:
Included in profit/loss are the following
2024
2023
GBP
GBP
Auditor's remuneration
Audit of these financial statements
54,331
50,000
Tax compliance Services
11,150
11,150
Other tax advisory services
13,000
13,000
78,481
74,150
Hire of other assets - operating leases
1,078,164
995,658
Depreciation and other amounts written off tangible fixed assets
1,500,755
1,473,142
2.
Staff numbers and costs:
The average number of persons employed by the company during the year, analyzed by category, was as follows:
Number of employees:
Description
2024
2023
GBP
GBP
Marketing & Business Development
63
72
63
72
Aggregate Payroll Costs:
Description
2024
2023
GBP
GBP
Wages & salaries
6,330,392
7,331,477
Social Security costs
681,794
756,079
Share based remuneration
1,756,593
1,968,356
Other pension costs
389,371
434,919
9,158,149
10,490,832
The directors are also directors of other group companies. The directors consider their services to the company insignificant compared with the group and therefore, zero renumeration is reported for the company in respect of these directors.
21
Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
3.
Interests Receivables:
Description
2024
2023
GBP
GBP
Foreign exchange gain
246,281
253,656
246,281
253,656
4.
Interests Payables:
Description
2024
2023
GBP
GBP
Other interests payables
45,471
45,471
5.
Taxation:
Analysis of charges in the period
2024
2023
GBP
GBP
UK Corporation Tax
Current tax on income for the period
528,041
445,275
Adjustments in respect of prior periods
(26,494)
123,353
501,547
568,628
Deferred taxes (refer to Note 7)
Origination / reversal of timing differences
116,441
66,272
Adjustments in respect of prior periods
(213,301)
(245,972)
Effect of change in tax rate
16,633
(96,860)
(163,068)
Tax charges / (credit) on profit
404,687
405,560
22
Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
The charge for taxation is based on the profit for the year and considers taxation deferred because of timing differences between the treatment of certain items for taxation and accounting purposes.
Current tax, including UK corporation tax, is provided at amounts expected to be paid (or recovered) using tax rates and laws that have been enacted, or substantially enacted, by the balance sheet date.
Deferred tax is recognized without discounting, in respect of all timing differences between the treatment of certain items for taxation and accounting purposes which have arisen but not reversed by the balance sheet date, except as otherwise required by FRS 19.
Reconciliation of tax charges:
Tax assessed for the year is lower than the standard rate of corporation tax in the UK for the year ended September 30, 2024 of 25% (2023: 22%).
The difference is explained below:
2024
2023
GBP
GBP
Profit before tax
1,582,694
1,319,870
Current tax at 25 % (2023: 22%)
395,674
290,371
Effects of:
Return to provision adjustment in respect of prior years
(26,494)
123,353
Other permanent differences
35,508
(24,797)
Re-measurement of deferred tax-charge in UK tax rate
16,633
Tax charge for the year
404,687
405,560
Factors that may affect future, current and total tax charges:
The directors consider that the deferred tax asset is recoverable to the extent that, based on all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of timing differences can be deducted.
23
Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
6.
Tangibles Fixed Assets:
Leasehold improvement
Computer equipment
Plant & equipment
Total
GBP
GBP
GBP
GBP
COST
At beginning of year
16,749,397
7,400,280
2,147,813
26,297,490
Additions
100,385
241,044
68,768
410,196
At end of year
16,849,782
7,641,324
2,216,581
26,707,686
DEPRECIATION
At beginning of year
9,166,654
6,144,570
2,027,715
17,338,939
Charge for year
1,005,838
418,610
97,967
1,522,415
At end of year
10,172,492
6,563,180
2,125,682
18,861,354
Net book value
At 30 September 2024
6,677,290
1,078,144
90,899
7,846,333
At 30 September 2023
7,582,743
1,255,710
120,098
8,958,551
7.
Debtors:
2024
2023
GBP
GBP
Other debtors
246,529
195,473
Deferred tax asset
469,581
372,721
Prepayments and accrued income
1,036,907
1,043,018
TOTAL
1,753,016
1,611,211
All debtors are due within one year.
Prepayments consist of advance rental payments and other prepaid expenses.
24
Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
2024
2023
GBP
GBP
Amounts owed by group undertakings
1,639,780
3,877,779
TOTAL
1,639,780
3,877,779
Amounts owed by group undertakings are unsecured, interest free and are repayable on a quarterly basis.
2024
2023
GBP
GBP
Deferred Tax asset
At start of the year
372,721
209,653
(Credit )/ Charges to profit and loss
96,860
163,068
TOTAL
469,581
372,721
Element of deferred taxation
2024
2023
GBP
GBP
Fixed Asset timing differences
(781,768)
(880,122)
Stock Compensation timing difference
1,234,289
1,234,289
Other timing difference
17,060
18,554
TOTAL
469,581
372,721
25
Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
8.
Creditors:
2024
2023
GBP
GBP
Trade creditors
413,991
133,744
Corporation tax
260,647
62,747
Accruals
1,814,083
2,708,145
TOTAL
2,488,721
2,904,636
Trade creditors and accruals are payable at various dates in the next 3 months in accordance with the suppliers' usual and customary credit terms.
2024
2023
GBP
GBP
Amounts owed to group undertakings
2,146,280
2,700,250
TOTAL
2,146,280
2,700,250
Amounts owed to group undertakings are unsecured, interest free, and are repayable on a quarterly basis.
9.
Provisions for liabilities:
2024
2023
GBP
GBP
At beginning of year
1,954,307
2,203,180
Added Provision for leased car
1,798
Discounting
43,908
(134,784)
Settlement during the year
(115,887)
At the end of the Year
1,998,217
1,954,307
A dilapidation provision has been recognized in the financial statements to cover the costs of work required to be carried out on premises leased by the company, as noted in leases as a requirement to make good. The provision is the best estimate of the amount needed at the end of the leasing period in line with the lease contract and represents management's best estimate as to the cost of restoring leased property to its original condition at the end of the lease.
The Company decided post year end to exercise the break clause on the lease of the office building.
26
Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
10.
Creditors (amount falling due after more than one year)
2024
2023
GBP
GBP
Creditors (deferred rent)
494,239
572,283
TOTAL
494,239
572,283
11.
Called-up share capital
Authorised and Called up share capital unpaid
2024
2023
GBP
GBP
1 ordinary share of GBP 1 each
1
1
TOTAL
1
1
Share capital represents the nominal value of shares that have been issued.
Profit and loss account includes all current and prior period retained profit and losses.
12.
Pension scheme:
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to GBP 389,371 (2023: GBP 434,919). There were no outstanding contributions at the end of the financial year.
13.
Contingent Liabilities:
Dolby Europe Limited has no contingent liabilities as at September 30, 2024.
27
Dolby Europe Limited
Financial Statements for the year ended September 30, 2024
14.
Commitments:
At September 30, 2024, the company had capital commitments of GBP nil (2023 GBP nil)
Future Minimum Lease Payments under non-cancellable Operating leases are as follows:
Payments due
2024
2023
Land & Building
Land & Building
GBP
GBP
Not later than one year
1,100,000
1,100,000
Later than one year and not later than five years
4,400,000
4,400,000
Later than five years
1,375,000
2,475,000
TOTAL
6,875,000
7,975,000
The company has a lease over one property in London with annual rental of GBP 1,100,000 (Soho Square) which expires in March 2031. Total expenses charged to the Profit and Loss for all leases including storage rent and yearly lease for additional spaces in current year are of GBP 1,078,164.
The Company decided post year end to exercise the break clause on the lease of the office building.
15.
Ultimate parent company and parent undertaking of larger group of which the company is a member which the company is a member
The company is a subsidiary undertaking of Dolby International AB and the ultimate parent company is Dolby Laboratories Inc. incorporated in the United States of America.
The largest group in which the results of the company are consolidated is that headed by Dolby Laboratories Inc. incorporated in the United States of America. The consolidated financial statements of Dolby Laboratories Inc. are available to the public from its registered office at 1275 Market Street, San Francisco, California.
16.
Post balance-sheet events:
The Company decided post year end to exercise the break clause on the lease of the office building.
28
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