SMUGGLER London Limited
Annual Report and Financial Statements
For the year ended 31 December 2024
Company Registration No. 06806477 (England and Wales)
SMUGGLER London Limited
Company Information
Directors
F Brown
B Carmody
P Milling Smith
Company number
06806477
Registered office
2-3 Bourlet Close
London
United Kingdom
W1W 7BQ
Auditor
Moore Kingston Smith LLP
Charlotte Building
17 Gresse Street
London
W1T 1QL
Bankers
Barclays Bank Plc
27 Soho Square
London
W1D 3QR
SMUGGLER London Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of income and retained earnings
9
Balance sheet
10
Statement of cash flows
12
Notes to the financial statements
13 - 24
SMUGGLER London Limited
Strategic Report
For the year ended 31 December 2024
Page 1
The directors present the strategic report for the year ended 31 December 2024.
Fair review of the business
Since the Company was founded in 2009, SMUGGLER London has been one of the fastest growing production companies in the UK. At its core it stands for creative originality, integrity and excellence.
SMUGGLER London is an award-winning advertising and entertainment production company specialising in Film, Theatre, TV, Commercial and Music Videos on a global and regional scale. With a presence in America, the company has been able to win over some prestigious clients like McDonalds, Disney, Nike, Burberry, and Brunello Cucinelli. All of which increasing their exposure and reputation within the industry.
The year ended 31 December 2024 was a solid year. Revenues held up despite uncertainty in the industry.
Principal risks and uncertainties
The principal risk to business growth continues to be that of client retention and winning new business. However, exposure to this risk is being reduced by providing clients with high quality work, as well as investment into marketing and pitches. The directors are certain this will continue.
SMUGGLER continues to be very adaptable to changing market needs and has diversified successfully to defray some of the risk of operating in a highly competitive and volatile market.
The preparation of monthly management accounts also allows the directors to make key financial decisions in a timely manner.
Key performance indicators
The key performance indicator (KPI) measures are:
a) Gross profit margin - this has increased from 15% to 19%
b) Operating profit margin - this has increased from 5% to 7%
Despite the addition of US service jobs that the London office took on for the US office, SMUGGLER, the London office was able to increase the overall margins. Any service job that is taken on from our US office effects the overall margin.
These KPIs are monitored on a monthly basis as part of the management review process.
Other performance indicators
Financial risk management
The company’s operations expose it to limited financial risks that include credit risk and foreign exchange risk. Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the companies finance department.
Credit Risk
The company has implemented policies that require appropriate credit verification procedures on potential customers. Trade debtors are monitored on an on going basis and provision is made for doubtful debts where necessary.
The company minimises exposure to credit risk by taking a 50% pre-billed advance on all jobs providing partial funding and carefully assessing the financial robustness of our clients.
Foreign exchange risk
The company actively manages foreign exchange rate risk.
SMUGGLER London Limited
Strategic Report (Continued)
For the year ended 31 December 2024
Page 2
Other information and explanations
Future prospects
Overall, the Company has continued to grow year on year since it was founded back in 2009, and is strongly positioned to take advantage of new business opportunities.
The first 5 months of 2025 were excellent for SMUGGLER London. The long-standing investment in SMUGGLER continues to bear fruit as our development slate grew in scope of credibility.
F Brown
Director
16 July 2025
SMUGGLER London Limited
Directors' Report
For the year ended 31 December 2024
Page 3
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of the production of short films, television and cinema adverts.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £1,295,382. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
F Brown
B Carmody
P Milling Smith
Auditor
The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.
On behalf of the board
F Brown
Director
16 July 2025
SMUGGLER London Limited
Directors' Responsibilities Statement
For the year ended 31 December 2024
Page 4
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The 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.
SMUGGLER London Limited
Independent Auditor's Report
To the Members of SMUGGLER London Limited
Page 5
Opinion
We have audited the financial statements of SMUGGLER London Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
SMUGGLER London Limited
Independent Auditor's Report (Continued)
To the Members of SMUGGLER London Limited
Page 6
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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 material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement, 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.
SMUGGLER London Limited
Independent Auditor's Report (Continued)
To the Members of SMUGGLER London Limited
Page 7
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.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
SMUGGLER London Limited
Independent Auditor's Report (Continued)
To the Members of SMUGGLER London Limited
Page 8
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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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.
Steven Rushmer
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
16 July 2025
Chartered Accountants
Statutory Auditor
Charlotte Building
17 Gresse Street
London
W1T 1QL
SMUGGLER London Limited
Statement of Income and Retained Earnings
For the year ended 31 December 2024
Page 9
2024
2023
Notes
£
£
Turnover
3
26,652,375
30,783,209
Cost of sales
(21,714,527)
(26,239,090)
Gross profit
4,937,848
4,544,119
Administrative expenses
(3,187,189)
(3,051,569)
Operating profit
4
1,750,659
1,492,550
Interest receivable and similar income
7
53,844
94,975
Interest payable and similar expenses
8
(1,447)
(2,384)
Profit before taxation
1,803,056
1,585,141
Tax on profit
9
(347,186)
(187,554)
Profit for the financial year
1,455,870
1,397,587
Retained earnings brought forward
3,234,917
2,624,732
Dividends
10
(1,295,382)
(787,402)
Retained earnings carried forward
3,395,405
3,234,917
The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.
SMUGGLER London Limited
Balance Sheet
As at 31 December 2024
Page 10
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
113,142
124,635
Current assets
Debtors
12
4,152,399
3,816,571
Cash at bank and in hand
2,896,174
3,213,873
7,048,573
7,030,444
Creditors: amounts falling due within one year
13
(3,748,185)
(3,889,350)
Net current assets
3,300,388
3,141,094
Total assets less current liabilities
3,413,530
3,265,729
Creditors: amounts falling due after more than one year
14
(18,123)
(24,144)
Provisions for liabilities
Deferred tax liability
16
(6,666)
-
(6,666)
Net assets
3,395,407
3,234,919
Capital and reserves
Called up share capital
18
2
2
Profit and loss reserves
3,395,405
3,234,917
Total equity
3,395,407
3,234,919
The financial statements were approved by the board of directors and authorised for issue on 16 July 2025 and are signed on its behalf by:
F Brown
Director
Company Registration No. 06806477
SMUGGLER London Limited
Statement of Changes in Equity
For the year ended 31 December 2024
Page 11
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
2
2,624,732
2,624,734
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
1,397,587
1,397,587
Dividends
10
-
(787,402)
(787,402)
Balance at 31 December 2023
2
3,234,917
3,234,919
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
1,455,870
1,455,870
Dividends
10
-
(1,295,382)
(1,295,382)
Balance at 31 December 2024
2
3,395,405
3,395,407
SMUGGLER London Limited
Statement of Cash Flows
For the year ended 31 December 2024
Page 12
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
1,462,900
120,396
Interest paid
(1,447)
(2,384)
Income taxes paid
(551,107)
(317,079)
Net cash inflow/(outflow) from operating activities
910,346
(199,067)
Investing activities
Purchase of tangible fixed assets
(9,848)
(28,053)
Repayment of loans
28,991
24,997
Interest received
53,844
94,975
Net cash generated from investing activities
72,987
91,919
Financing activities
Payment of finance leases obligations
(5,650)
(4,713)
Dividends paid
(1,295,382)
(787,402)
Net cash used in financing activities
(1,301,032)
(792,115)
Net decrease in cash and cash equivalents
(317,699)
(899,263)
Cash and cash equivalents at beginning of year
3,213,873
4,113,136
Cash and cash equivalents at end of year
2,896,174
3,213,873
SMUGGLER London Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 13
1
Accounting policies
Company information
SMUGGLER London Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2-3 Bourlet Close, London, United Kingdom, W1W 7BQ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
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 pound.
The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have 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.
These financial statements are prepared on the going concern basis. The directors consider based on the on-going level of trading and available cash balances that the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements.
1.3
Turnover
Revenue is recognised in respect of each production from the point at which the company has obtained the right to consideration in return for performance. This is considered to be when all necessary approvals during the process of pre-production have been obtained from the commissioning agency and normally equates to the date at which the shooting of the film commences. No profit element is recognised until the company is able to estimate the profit on the production reliably.
1.4
Tangible fixed assets
Tangible fixed assets 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:
Fixtures, fittings & equipment
15% straight line
Computer equipment
33% straight line
Motor vehicles
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 credited or charged to profit or loss.
SMUGGLER London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 14
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and 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.
1.6
Financial instruments
The company only has basic financial instruments measured at amortised cost with no financial instruments classified as other or basic instruments measured at fair value.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
SMUGGLER London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 15
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
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 profit and loss account 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 taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
1.9
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 stock or fixed 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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.
SMUGGLER London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 16
1.12
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Revenue recognition
Significant management judgement is required in determining the point at which revenue should be recognised. Revenue is recognised in respect of the production of commercials from the point at which the company has obtained the right to consideration in return for performance. This is considered to be when all necessary approvals during the process of pre-production have been obtained from the commissioning agency and normally equates to the date at which shooting of the commercial commences. No profit element is recognised until the company is able to estimate the profit on the commercial reliably. In arriving at this point of recognition, management have considered the liabilities and amounts that would be due if at different points of the contract, the project were to be pulled.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Production fees
25,083,789
28,965,348
US service jobs
1,568,586
1,817,861
26,652,375
30,783,209
SMUGGLER London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
3
Turnover and other revenue
(Continued)
Page 17
2024
2023
£
£
Turnover analysed by geographical market
UK
18,016,605
20,037,727
USA
3,044,254
1,052,035
Europe
5,473,492
5,424,894
Rest of the World
118,024
4,268,553
26,652,375
30,783,209
2024
2023
£
£
Other significant revenue
Interest income
53,844
94,975
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
23,335
13,770
Fees payable to the company's auditor for the audit of the company's financial statements
41,500
38,500
Depreciation of owned tangible fixed assets
21,341
27,305
Operating lease charges
193,404
189,745
5
Employees
2024
2023
Number
Number
Administration
10
8
Production
14
13
Total
24
21
SMUGGLER London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
5
Employees
(Continued)
Page 18
2024
2023
£
£
Wages and salaries
1,495,423
1,437,037
Social security costs
213,062
171,013
Pension costs
115,638
79,646
1,824,123
1,687,696
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
149,640
110,750
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
53,844
94,975
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
53,844
94,975
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
1,447
2,384
SMUGGLER London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 19
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
503,774
375,560
Adjustments in respect of prior periods
(100,000)
(188,006)
Total current tax
403,774
187,554
Deferred tax
Origination and reversal of timing differences
(56,588)
Total tax charge
347,186
187,554
2024
2023
£
£
Profit before taxation
1,803,056
1,585,141
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
450,764
372,508
Tax effect of expenses that are not deductible in determining taxable profit
2,142
3,052
Research and development tax credit
(100,000)
(188,006)
Fixed asset differences
2,736
Movements in deferred tax not recognised
(8,456)
Taxation charge for the year
347,186
187,554
10
Dividends
2024
2023
£
£
Interim paid
1,295,382
787,402
SMUGGLER London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 20
11
Tangible fixed assets
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2024
189,927
168,987
45,114
404,028
Additions
3,360
6,488
9,848
At 31 December 2024
193,287
175,475
45,114
413,876
Depreciation and impairment
At 1 January 2024
136,400
142,993
279,393
Depreciation charged in the year
2,314
19,027
21,341
At 31 December 2024
138,714
162,020
300,734
Carrying amount
At 31 December 2024
54,573
13,455
45,114
113,142
At 31 December 2023
53,527
25,994
45,114
124,635
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Vehicles under hire purchase
45,114
45,114
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
817,807
1,989,982
Corporation tax recoverable
100,000
224,695
Amounts owed by group undertakings
339,886
22,221
Other debtors
98,950
112,406
Prepayments and accrued income
2,745,834
1,467,267
4,102,477
3,816,571
Deferred tax asset (note 16)
49,922
4,152,399
3,816,571
SMUGGLER London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 21
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
15
5,738
5,367
Trade creditors
906,669
354,586
Amounts owed to group undertakings
98,345
43,070
Corporation tax
124,764
396,792
Other taxation and social security
507,581
884,278
Other creditors
395,294
438,629
Accruals and deferred income
1,709,794
1,766,628
3,748,185
3,889,350
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
15
18,123
24,144
15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
5,738
5,367
In two to five years
18,123
24,144
23,861
29,511
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
SMUGGLER London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 22
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
-
6,666
-
-
Retirement benefit obligations
-
-
49,922
-
-
6,666
49,922
-
2024
Movements in the year:
£
Liability at 1 January 2024
6,666
Credit to profit or loss
(56,588)
Asset at 31 December 2024
(49,922)
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so.
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
115,638
79,646
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.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
The holders of the ordinary shares have full voting rights, with one vote per share.
Smuggler Group LLC holds both the shares in Smuggler London Limited and is the immediate controlling party.
SMUGGLER London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 23
19
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
204,187
189,745
Between two and five years
822,000
15,812
In over five years
17,125
1,043,312
205,557
20
Directors' transactions
21
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
385,405
346,505
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Other information
As permitted by FRS 102 Section 33 "related party disclosures", the financial statements do not disclosure transactions with other members of a wholly owned group.
At the year end, Smuggler London Limited was owed an amount of £17,493 (2023: £nil) by division 7 LLC, a company which is majority but not wholly owned by the group.
At the year end, Smuggler London Limited was owed an amount of £3,237 (2023: £2,968) by The Bad Ass Librarians Limited, a company of which PM Smith is a Director and shareholder.
During the year, the company paid dividends of £1,295,382 (2023: £787,402).
Included in other debtors at the year end is an amount of £25,013 (2023: £54,004) due to the company by its directors.
SMUGGLER London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 24
22
Ultimate controlling party
The immediate parent undertaking of the company is Smuggler Group LLC, a company registered in New York.
Smuggler Group LLC is the parent undertaking of the smallest group, that prepares consolidated financial statements that include the company. Copies can be obtained from 99 Washington Avenue, Suite 805, Albany, New York, 12210.
Rare Bird Holdings Inc is the parent undertaking of the largest group, that prepares consolidated financial statements that include the company. Copies can be obtained from 8383 Wilshire Boulevard, Suite 1000, Beverly Hills, CA 90211.
There is no single ultimate controlling party.
23
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,455,870
1,397,587
Adjustments for:
Taxation charged
347,186
187,554
Finance costs
1,447
2,384
Investment income
(53,844)
(94,975)
Depreciation and impairment of tangible fixed assets
21,341
27,305
Movements in working capital:
(Increase)/decrease in debtors
(439,592)
1,121,369
Increase/(decrease) in creditors
130,492
(2,520,828)
Cash generated from operations
1,462,900
120,396
24
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
3,213,873
(317,699)
2,896,174
Obligations under finance leases
(29,511)
5,650
(23,861)
3,184,362
(312,049)
2,872,313
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