Company registration number 13007242 (England and Wales)
VDMS UK HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
VDMS UK HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr S Roue
Mr J Trautman
Company number
13007242
Registered office
316-318 Latimer Road
London
W106QN
Auditor
Sedulo Audit Limited
Statutory Auditor
St Paul's House
23 Park Square
Leeds
West Yorkshire
United Kingdom
LS1 2ND
VDMS UK HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 37
VDMS UK HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Review of the business
In 2024, the media and entertainment industry experienced a dynamic shift, driven by technological advancements and evolving consumer behaviours. The integration of artificial intelligence (AI) into content creation and distribution became increasingly prevalent, with media organisations leveraging generative AI. This technological evolution has reshaped workflows and audience engagement across the sector.
The group has strategically aligned with these industry trends, focusing on enhancing our service offerings and expanding our market presence. Our commitment to innovation and adaptability has positioned us to capitalise on the evolving landscape of the media services industry.
Principal risks and uncertainties
As a global business, the group faces the following risks and uncertainties:
Technological Disruptions
The rapid advancement of technologies, particularly AI and immersive media, presents both opportunities and challenges. We continuously invest in research and development to stay ahead of technological trends and mitigate potential disruptions to our services.
Economic Uncertainty
Global economic fluctuations can affect client budgets and demand for services. The group remains vigilant in monitoring economic indicators to adjust strategies accordingly.
Key performance indicators
Financial key performance indicators
For the financial year ended 31 December 2024, the group achieved a turnover of £37.3 million, maintaining a stable revenue level with only a 2.7% decrease despite a challenging market, reflecting strong client retention.
The group delivered over £11m in gross profit while navigating a year of increased cost pressures and operational restructuring.
Administration expenses as a percentage of turnover were improved by 8.3% highlighting continued efforts to rationalise overheads and improve cost efficiency.
Our gross margin was recalibrated to align with strategic investment in delivery capacity and long-term scalability.
Other key performance indicators
The directors do not believe there are any key performance indicators other than those already disclosed in the financial statements.
Future Developments
Looking ahead, the group is well-positioned to capitalize on the growing demand for innovative media services. Our focus will remain on leveraging technological advancements, to enhance our service offerings and expand our market reach.
We will continue to invest in our workforce, ensuring our employees are equipped with the skills necessary to navigate the evolving media landscape. Our commitment to sustainability and ethical practices will guide our operations as we strive for long-term success.
VDMS UK HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Directors' Statement of Compliance with Duty to Promote the Success of the Group
The Directors of the Company, as those of all UK companies, must act in accordance with a set of general duties. These duties detailed in section 172 of the UK Companies Act 2006 which is summarised as follows:
A director of a Company must act in a way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its shareholders as a whole and, in doing so have regard (amongst other matters) to:
1. The likely consequences of any decisions in the long term:
The group continues to invest in equipment and technology and develop its people and processes to enable it to be competitive for the short, medium and long term.
2. The interest of the group's employees:
Our employees are at the heart of our group, and we are dedicated to fostering a safe and supportive environment that empowers them to succeed. We also uphold a strong commitment to diversity and inclusion, implementing initiatives and policies that ensure every employee is respected and treated equitably.
3. The need to foster the group's business relationships with suppliers' customers and others business relationships:
Our customers remain central to our mission, and our teams provide exceptional service and quality. We aim to sustain a strong reputation by adhering to high standards of business conduct. This year, we have devoted considerable effort to collaborating with our customers, identifying best practices, and staying adaptable to meet their evolving needs.
Our business thrives on solid vendor relationships, and we are committed to strengthening these partnerships. By working together, we ensure the sourcing of high-quality products at competitive prices, all while prioritising ethical and sustainable practices. We value our diverse network of vendors and have implemented efficient systems to guarantee timely payments.
4. The impact of the group's operations on the community and the environment:.
As a responsible group, we recognise the importance of protecting the environment and minimising our carbon footprint. We are constantly integrating sustainable practices across our operations, including reducing energy consumption, recycling waste, and promoting the use of environmentally friendly products. Our commitment to advancing sustainability remains our priority.
5. The desirability of the group maintaining a reputation for high standards of business conduct:
The group prides itself on its professional reputation and ethical processes. We are regularly audited by external bodies to ensure the highest compliance.
6. The need to act fairly as between stakeholders of the group:
Fairness and equality are a major strength of the business, we work with members at all levels and promote a good working relationship between all colleagues.
Mr S Roue
Director
7 August 2025
VDMS UK HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 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 and group continued to be that of the provision of digital media supply chain services.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr S Roue
Mr J Trautman
Qualifying third party indemnity provisions
The group has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Financial risk management
The group's operations expose it to a number of financial risks, which include cash flow risk, foreign exchange risk and credit risk.
Cash flow risk
The Directors closely monitor the group's cash flow position to ensure it maintains sufficient liquidity to meet its operational and strategic obligations. Cash flow risks primarily relate to the timing of customer receipts, the management of working capital, and foreign currency exposures in relation to intercompany and third-party transactions. The group mitigates these risks through regular cash forecasting maintaining a 12 week and 12 month operating model, strong credit control processes, and maintaining appropriate cash reserves. In addition, the group maintains open lines of communication with its key customers and suppliers to manage payment terms effectively. The Directors are satisfied that the group has adequate resources and controls in place to manage cash flow risks and to continue operating as a going concern for the foreseeable future.
Foreign exchange risk
As an international business, we are exposed to the risk of currency fluctuations. To manage this, we actively monitor exchange rate movements and implement measures to minimise their effects on our operations.
Credit risk
The group has implemented policies that require appropriate credit checks on customers before sales are made.
Post reporting date events
The directors are of the opinion that there are no significant balance sheet events.
Auditor
Sedulo Audit Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Energy and carbon report
As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
VDMS UK HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Matters covered in the Group strategic report
The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments, and engagement with suppliers, customers and others.
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 auditor of the company 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 auditor of the company is aware of that information.
On behalf of the board
Mr S Roue
Director
7 August 2025
VDMS UK HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
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 group and company, and of the profit or loss of the group 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 group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
VDMS UK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VDMS UK HOLDINGS LIMITED
- 6 -
Opinion
We have audited the financial statements of VDMS UK Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 Financial Reporting Standard 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 group's and the parent company's affairs as at 31 December 2024 and of the group's loss 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 group and parent 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 group's and parent 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.
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.
VDMS UK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VDMS UK HOLDINGS LIMITED
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Enquiring of directors and inspection of policy documentation as to the Company's high-level policies and procedures to prevent and detect fraud, as well as whether they have knowledge of any actual, suspected or alleged fraud.
Reading Board and sub committee meeting minutes.
Considering remuneration incentive schemes and performance targets for management, directors and sales staff.
Using analytical procedures to identify any unusual or unexpected relationships.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
VDMS UK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VDMS UK HOLDINGS LIMITED
- 8 -
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.
Sam Perkin (Senior Statutory Auditor)
For and on behalf of Sedulo Audit Limited, Statutory Auditor
Chartered Accountants
Statutory Auditor
St Paul's House
23 Park Square
Leeds
West Yorkshire
LS1 2ND
United Kingdom
7 August 2025
VDMS UK HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
as restated
Notes
£
£
Turnover
3
37,376,228
38,392,332
Cost of sales
(26,256,056)
(21,549,704)
Gross profit
11,120,172
16,842,628
Administrative expenses
(14,240,232)
(17,874,335)
Operating loss
4
(3,120,060)
(1,031,707)
Interest receivable and similar income
8
13,674
Interest payable and similar expenses
9
(163,953)
(82,611)
Loss before taxation
(3,284,013)
(1,100,644)
Tax on loss
10
(319,584)
(114,723)
Loss for the financial year
24
(3,603,597)
(1,215,367)
Other comprehensive income
Currency translation gain/(loss) arising in the year
497,312
(286,787)
Total comprehensive income for the year
(3,106,285)
(1,502,154)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
VDMS UK HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
11
7,010,091
7,955,609
Other intangible assets
11
801,171
957,831
Total intangible assets
7,811,262
8,913,440
Tangible assets
12
2,498,538
1,862,243
10,309,800
10,775,683
Current assets
Stocks
15
2,430
2,430
Debtors
16
11,096,230
9,180,692
Cash at bank and in hand
1,250,608
3,985,166
12,349,268
13,168,288
Creditors: amounts falling due within one year
17
(15,946,257)
(14,702,944)
Net current liabilities
(3,596,989)
(1,534,656)
Total assets less current liabilities
6,712,811
9,241,027
Creditors: amounts falling due after more than one year
18
(671,638)
(92,271)
Provisions for liabilities
Deferred tax liability
21
13,658
14,956
(13,658)
(14,956)
Net assets
6,027,515
9,133,800
Capital and reserves
Called up share capital
23
20
20
Share premium account
24
15,112,879
15,112,879
Other reserves
24
234,019
(263,293)
Profit and loss reserves
24
(9,319,403)
(5,715,806)
Total equity
6,027,515
9,133,800
VDMS UK HOLDINGS LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 7 August 2025 and are signed on its behalf by:
07 August 2025
Mr S Roue
Director
Company registration number 13007242 (England and Wales)
VDMS UK HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 12 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Investments
13
6,746,003
6,746,003
Current assets
Debtors
16
15,229,081
15,277,476
Creditors: amounts falling due within one year
17
(7,299,225)
(6,602,093)
Net current assets
7,929,856
8,675,383
Net assets
14,675,859
15,421,386
Capital and reserves
Called up share capital
23
20
20
Share premium account
24
15,112,879
15,112,879
Profit and loss reserves
24
(437,040)
308,487
Total equity
14,675,859
15,421,386
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £745,527 (2023 - £232,888 loss).
The financial statements were approved by the board of directors and authorised for issue on 7 August 2025 and are signed on its behalf by:
07 August 2025
Mr S Roue
Director
Company registration number 13007242 (England and Wales)
VDMS UK HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Share premium account
Currency translation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
£
£
As restated for the period ended 31 December 2023:
Balance at 1 January 2023
20
15,112,879
23,494
9,076
15,145,469
2,087,247
17,232,716
Year ended 31 December 2023:
Loss for the year as previously reported
-
-
-
(1,236,619)
(1,236,619)
-
(1,236,619)
Prior year adjustments (note 32)
21,252
21,252
21,252
Other comprehensive income:
Currency translation differences
-
-
(286,787)
(286,787)
-
(286,787)
Total comprehensive income
-
-
(286,787)
(1,215,367)
(1,502,154)
-
(1,502,154)
Purchase of shares in subsidiary from non-controlling interest
-
-
-
(4,509,515)
(4,509,515)
(2,087,247)
(6,596,762)
Balance at 31 December 2023
20
15,112,879
(263,293)
(5,715,806)
9,133,800
9,133,800
Year ended 31 December 2024:
Loss for the year
-
-
-
(3,603,597)
(3,603,597)
-
(3,603,597)
Other comprehensive income:
Currency translation differences
-
-
497,312
497,312
-
497,312
Total comprehensive income
-
-
497,312
(3,603,597)
(3,106,285)
-
(3,106,285)
Balance at 31 December 2024
20
15,112,879
234,019
(9,319,403)
6,027,515
-
6,027,515
VDMS UK HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
As restated for the period ended 31 December 2023:
Balance at 1 January 2023
20
15,112,879
541,375
15,654,274
Year ended 31 December 2023:
Loss for the year as previously reported
-
-
(315,656)
(315,656)
Prior year adjustments (note 32)
82,768
82,768
Balance at 31 December 2023
20
15,112,879
308,487
15,421,386
Year ended 31 December 2024:
Loss and total comprehensive income for the year
-
-
(745,527)
(745,527)
Balance at 31 December 2024
20
15,112,879
(437,040)
14,675,859
VDMS UK HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
28
(2,480,816)
9,280,606
Interest paid
(163,953)
(82,611)
Income taxes paid
(320,882)
(289,664)
Net cash (outflow)/inflow from operating activities
(2,965,651)
8,908,331
Investing activities
Purchase of intangible assets
(307,840)
(433,643)
Proceeds from disposal of intangibles
29,828
-
Purchase of tangible fixed assets
(1,572,935)
(417,760)
Proceeds from disposal of tangible fixed assets
246,808
-
Interest received
13,674
Net cash used in investing activities
(1,604,139)
(837,729)
Financing activities
Proceeds of borrowings
556,672
-
Movement on finance leases obligations
781,248
(134,650)
Purchase of shares in subsidiary from non-controlling interest
-
(6,596,762)
Net cash generated from/(used in) financing activities
1,337,920
(6,731,412)
Net (decrease)/increase in cash and cash equivalents
(3,231,870)
1,339,190
Cash and cash equivalents at beginning of year
3,985,166
2,932,763
Effect of foreign exchange rates
497,312
(286,787)
Cash and cash equivalents at end of year
1,250,608
3,985,166
VDMS UK HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
59,278
6,592
Interest paid
(59,278)
(20,266)
Net cash outflow from operating activities
-
(13,674)
Investing activities
Interest received
13,674
Net cash generated from investing activities
-
13,674
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
VDMS UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
1
Accounting policies
Company information
VDMS UK Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 316-318 Latimer Road, London, W106QN.
The group consists of VDMS UK Holdings Limited and all of its subsidiaries.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Business combinations
The consolidated group financial statements consist of the financial statements of the parent company VDMS UK Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.3
Basis of consolidation
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.4
Going concern
The directors have reviewed forecasts and the performance of the group for the going concern assessment period, including EBITDA and net cash inflows, and consider the company to be a going concern.
The group has also received assurance from VDMS Parent Holdings, LLC that it will continue to provide operational and financial support for a period of at least 12 months from the date of approval of these financial statements. The directors are confident of the intention and ability of the parent company to provide the support.
The directors do not consider there to be a material uncertainty relating to going concern that may cast significant doubt over the ability of the group to meet its obligations as they fall due. Therefore, the financial statements have been prepared on the going concern basis.
VDMS UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.5
Turnover
Turnover from end to end content management and digital media supply chain solution is recognised on an accruals basis in line with relevant agreements.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:
Sale of goods
Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the group has transferred the significant risks and rewards of ownership to the buyer;
the group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the group will receive the consideration due under the transaction; and
the costs incurred, or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of turnover can be measured reliably
it is probable that the group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
1.7
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
20% straight line
Assets in progress
No amortisation until completion
VDMS UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.8
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:
Leasehold improvements
Over the lease term
Fixtures and fittings
20% straight line
Computers
20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.9
Fixed asset investments
Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Consolidated statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
1.10
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
VDMS UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.11
Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
1.12
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.
1.13
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
VDMS UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 21 -
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 group 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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.14
Equity instruments
Equity instruments issued by the group 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 group.
1.15
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
VDMS UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 22 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.16
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.
1.17
Retirement benefits
The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the group in independently administered funds.
1.18
Leases
Operating leases: the group as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Leased assets: the group as lessee
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
VDMS UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 23 -
1.19
Foreign exchange
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place: All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
Accrued income
The directors consider that an area where uncertainty of estimation arises is accrued income. The directors must use their judgement to assess the stage of completion of projects and as a result, the amount of income to recognise.
Goodwill impairment
Goodwill is subject to an annual review for indicators of impairment. Based on the evaluation of both external and internal indicators and financial performance, management has concluded that no indicators of impairment were identified as at 31 December 2024. This assessment is supported by the continued strategic importance of the investments, stable management, and no concerns raised by the board.
VDMS UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
3
Turnover and other revenue
The whole of turnover is attributable to the principal activity of the group.
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
11,679,802
10,011,647
Rest of Europe
13,095,764
12,029,063
Rest of world
12,600,662
16,351,622
37,376,228
38,392,332
2024
2023
£
£
Other revenue
Interest income
-
13,674
4
Operating loss
2024
2023
£
£
Operating loss for the year is stated after charging:
Exchange losses
672,599
23,126
Depreciation of owned tangible fixed assets
673,000
577,629
Loss on disposal of tangible fixed assets
16,832
-
Amortisation of intangible assets
1,380,190
1,219,712
Operating lease charges
1,607,710
1,403,747
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
16,200
24,000
Audit of the financial statements of the company's subsidiaries
24,300
36,000
40,500
60,000
For other services
Taxation compliance services
7,175
9,300
All other non-audit services
6,800
17,300
13,975
26,600
VDMS UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Admin
60
96
-
-
Operational
219
190
-
-
Total
279
286
0
0
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
12,122,584
12,631,704
Social security costs
905,976
1,789,287
-
-
Pension costs
210,188
208,826
13,238,748
14,629,817
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
263,067
239,016
Company pension contributions to defined contribution schemes
12,700
603
275,767
239,619
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
263,067
239,016
Company pension contributions to defined contribution schemes
12,700
603
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1)
VDMS UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
-
13,674
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
163,953
82,611
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
319,584
114,723
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(3,284,013)
(1,100,644)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
(821,003)
(258,871)
Tax effect of expenses that are not deductible in determining taxable profit
72,664
471,774
Tax effect of income not taxable in determining taxable profit
(312,845)
Unutilised tax losses carried forward
525,247
Under/(over) provided in prior years
(114,922)
Deferred tax adjustments in respect of prior years
(4,141)
(83,827)
Foreign tax effects
556,987
Losses carried back
117,834
Movement on non-qualifying assets
(10,170)
Other
(4,999)
Fixed asset differences
-
3,346
Movement in deferred tax not recognised
-
275,119
Differences in foreign tax rates
-
32,313
Remeasurement of deferred tax for changes in rate
-
(10,199)
Taxation charge
319,584
114,723
VDMS UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Taxation
(Continued)
- 27 -
The group has tax losses of £3,294,854 (2023: £804,563) to offset against future trading profits. A deferred tax asset of approximately £824,000 (2023: £189,000) has not been provided in respect of these losses due to the uncertainty over the timing of their recovery.
11
Intangible fixed assets
Group
Goodwill
Software
Assets in progress
Total
£
£
£
£
Cost
At 1 January 2024
9,455,184
1,267,909
10,723,093
Additions
231,101
76,739
307,840
Disposals
(30,085)
(30,085)
Transfers
2,603
(2,603)
At 31 December 2024
9,455,184
1,471,528
74,136
11,000,848
Amortisation and impairment
At 1 January 2024
1,499,575
310,078
1,809,653
Amortisation charged for the year
945,518
434,672
1,380,190
Disposals
(257)
(257)
At 31 December 2024
2,445,093
744,493
3,189,586
Carrying amount
At 31 December 2024
7,010,091
727,035
74,136
7,811,262
At 31 December 2023
7,955,609
957,831
8,913,440
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.
VDMS UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
12
Tangible fixed assets
Group
Leasehold improvements
Assets under construction
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 January 2024
1,126,048
284,533
2,198,318
3,608,899
Additions
115,025
429,398
151,446
877,066
1,572,935
Disposals
(14,925)
(647,536)
(662,461)
Transfers
(252,065)
252,065
At 31 December 2024
1,241,073
162,408
688,044
2,427,848
4,519,373
Depreciation and impairment
At 1 January 2024
757,713
224,360
764,583
1,746,656
Depreciation charged in the year
77,024
114,174
481,802
673,000
Eliminated in respect of disposals
(398,821)
(398,821)
At 31 December 2024
834,737
338,534
847,564
2,020,835
Carrying amount
At 31 December 2024
406,336
162,408
349,510
1,580,284
2,498,538
At 31 December 2023
368,335
60,173
1,433,735
1,862,243
The company had no tangible fixed assets at 31 December 2024 or 31 December 2023.
Group finance leases
The net book value of assets held under finance leases at the reporting date totalled £811,084.
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
6,746,003
6,746,003
VDMS UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
13
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024 and 31 December 2024
6,746,003
Carrying amount
At 31 December 2024
6,746,003
At 31 December 2023
6,746,003
14
Subsidiaries
Details of the company's subsidiaries at 31 December 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
The Future Media Group Limited
316-318 Latimer Road, London, W10 6QN, UK
Ordinary
100.00
-
Visual Data Media Services Limited
316-318 Latimer Road, London, W10 6QN, UK
Ordinary
0
100.00
VDMS France Holdco, SAS
36 Rue Scheffer, 75116, Paris, France
Ordinary
0
100.00
Holding V&A, SAS
70 Rue Jean Bleuzen, 92170, Vanves, France
Ordinary
0
100.00
Técnicas de Sonorización, S.A
Av. del lngeniero Conde de Torroja, 22, 28022, Madrid, Spain
Ordinary
0
100.00
Studio 7 Synchron und Untertitel GmbH
Leopoldstraße 5 (1. OG), 76133, Karlsruhe, Germany
Ordinary
0
100.00
EVA Studios Germany GmbH
Franklinstarße 12, D, 10587, Berlin, Germany
Ordinary
0
100.00
EVA France ST'S0l, SAS
70 Rue Jean Bleuzen, 92170,Vanves, France
Ordinary
0
100.00
Visual Data Signapore PTE. Ltd
1 Marina Boulevard, Singapore, 018989
Ordinary
0
100.00
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
2,430
2,430
-
-
Stock recognised through cost of sales during the year was £Nil (2023: £13,665).
VDMS UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
6,798,109
5,305,857
Amounts owed by group undertakings
717,621
-
15,229,081
15,277,476
Other debtors
383,986
539,748
Prepayments and accrued income
3,196,514
3,261,151
11,096,230
9,106,756
15,229,081
15,277,476
Amounts falling due after more than one year:
Other debtors
73,936
Total debtors
11,096,230
9,180,692
15,229,081
15,277,476
Transactions with group companies are conducted at arms length with standard credit terms.
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
20
328,140
126,259
Other borrowings
19
556,672
Trade creditors
1,401,732
1,579,715
Amounts owed to group undertakings
8,312,859
6,018,714
7,299,225
6,602,093
Other taxation and social security
753,188
1,407,050
-
-
Other creditors
700,346
65,586
Accruals and deferred income
3,893,320
5,505,620
15,946,257
14,702,944
7,299,225
6,602,093
Transactions with group companies are conducted at arms length with standard credit terms.
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
20
671,638
92,271
VDMS UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Other loans
556,672
Payable within one year
556,672
20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
328,140
126,259
In two to five years
671,638
92,271
999,778
218,530
-
-
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
13,658
14,956
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
14,956
-
Credit to profit or loss
(1,298)
-
Liability at 31 December 2024
13,658
-
VDMS UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
210,188
208,826
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. Outstanding pension commitments at the year end amounted to £27,353 (2023: £60,039) and are included within other creditors.
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
20
20
20
20
24
Reserves
Share premium
Share premium represents amounts paid by members of the Group for share capital above the nominal value of the shares acquired.
Translation currency reserve
The translation currency reserve comprises translations differences arising from the translation of financial statements of the group's foreign entities into sterling (£).
25
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
1,442,378
1,319,500
-
-
Between two and five years
4,226,030
2,257,817
-
-
In over five years
1,030,986
-
-
-
6,699,394
3,577,317
-
-
26
Events after the reporting date
No events materially affecting the assessment of these financial statements have occurred after the balance sheet date.
VDMS UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
27
Related party transactions
The company has taken advantage of the exemptions available under FRS 102 regarding transactions with entities that are part of the group headed by VDMS Parent holdings LLC, on the grounds that all direct and indirect subsidiary undertakings which are party to such transactions are wholly owned members of the group.
During the year, a director paid expenses totaling £634,254 (2023: £138,178) on behalf of the group. As at 31 December 2024, £38,587 (2023: £41,691) was owed to the director.
During the year, the group incurred expenses totalling £430,674 (2023: £422,736) from entities that are under common control of the group. As at 31 December 2024 £25,887 (2023: £Nil) was owed by the group to these related entities.
28
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Loss after taxation
(3,603,597)
(1,215,367)
Adjustments for:
Taxation charged
319,584
114,723
Finance costs
163,953
82,611
Investment income
(13,674)
Loss on disposal of tangible fixed assets
16,832
-
Amortisation and impairment of intangible assets
1,380,190
1,219,712
Depreciation and impairment of tangible fixed assets
673,000
577,629
Movements in working capital:
Decrease in stocks
-
11,419
(Increase)/decrease in debtors
(1,915,538)
10,610,403
Increase/(decrease) in creditors
484,760
(2,106,850)
Cash (absorbed by)/generated from operations
(2,480,816)
9,280,606
VDMS UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 34 -
29
Cash generated from operations - company
2024
2023
£
£
Loss after taxation
(745,527)
(232,888)
Adjustments for:
Finance costs
59,278
20,266
Investment income
(13,674)
Movements in working capital:
Decrease in debtors
48,395
1,819,948
Increase/(decrease) in creditors
697,132
(1,587,060)
Cash generated from operations
59,278
6,592
30
Analysis of changes in net funds/(debt) - group
1 January 2024
Cash flows
Exchange rate movements
31 December 2024
£
£
£
£
Cash at bank and in hand
3,985,166
(3,231,870)
497,312
1,250,608
Borrowings excluding overdrafts
-
(556,672)
-
(556,672)
Obligations under finance leases
(218,530)
(781,248)
-
(999,778)
3,766,636
(4,569,790)
497,312
(305,842)
31
Analysis of changes in net funds - company
1 January 2024
31 December 2024
£
£
32
Prior period adjustment
During the preparation of the financial statements for the period ended 31st December 2024, management identified the following adjustments relating to the prior year. Whilst not necessary to restate the prior year figures, the directors have decided to adjust the figures in order to present a more accurate financial position for both the current and prior year.
VDMS UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
32
Prior period adjustment
(Continued)
- 35 -
Changes to the balance sheet - group
As previously reported
Adjustment
As restated at 31 Dec 2023
£
£
£
Fixed assets
Other intangibles
1,016,028
(58,197)
957,831
Current assets
Debtors due within one year
9,184,011
(3,319)
9,180,692
Creditors due within one year
Other creditors
(13,252,403)
82,768
(13,169,635)
Net assets
9,112,548
21,252
9,133,800
Capital and reserves
Profit and loss reserves
(5,737,058)
21,252
(5,715,806)
Changes to the profit and loss account - group
As previously reported
Adjustment
As restated
Period ended 31 December 2023
£
£
£
Cost of sales
(21,546,385)
(3,319)
(21,549,704)
Administrative expenses
(17,939,545)
65,210
(17,874,335)
Interest receivable and similar income
34,047
(20,373)
13,674
Interest payable and similar expenses
(62,345)
(20,266)
(82,611)
Loss after taxation
(1,236,619)
21,252
(1,215,367)
Reconciliation of changes in equity - group
1 January
31 December
2023
2023
Notes
£
£
Adjustments to prior year
Revaluation of loans
1
-
82,768
Correction of amortisation charge
2
-
(58,197)
Correction of rent deposit
3
-
(3,319)
Total adjustments
-
21,252
Equity as previously reported
17,232,716
9,112,548
Equity as adjusted
17,232,716
9,133,800
Analysis of the effect upon equity
Profit and loss reserves
-
21,252
VDMS UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
32
Prior period adjustment
(Continued)
- 36 -
Reconciliation of changes in loss for the previous financial period
2023
Notes
£
Adjustments to prior year
Revaluation of loans
1
82,768
Correction of amortisation charge
2
(58,197)
Correction of rent deposit
3
(3,319)
Total adjustments
21,252
Loss as previously reported
(1,236,619)
Loss as adjusted
(1,215,367)
Changes to the balance sheet - company
As previously reported
Adjustment
As restated at 31 Dec 2023
£
£
£
Creditors due within one year
Other creditors
(6,684,861)
82,768
(6,602,093)
Capital and reserves
Profit and loss reserves
225,719
82,768
308,487
Changes to the profit and loss account - company
As previously reported
Adjustment
As restated
Period ended 31 December 2023
£
£
£
Administrative expenses
(349,703)
123,407
(226,296)
Interest receivable and similar income
34,047
(20,373)
13,674
Interest payable and similar expenses
-
(20,266)
(20,266)
Loss after taxation
(315,656)
82,768
(232,888)
VDMS UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
32
Prior period adjustment
(Continued)
- 37 -
Reconciliation of changes in equity - company
1 January
31 December
2023
2023
£
£
Adjustments to prior year
Revaluation of loans
1
-
82,768
Equity as previously reported
15,654,274
15,338,618
Equity as adjusted
15,654,274
15,421,386
Analysis of the effect upon equity
Profit and loss reserves
-
82,768
Reconciliation of changes in loss for the previous financial period
2023
£
Adjustments to prior year
Revaluation of loans
1
82,768
Loss as previously reported
(315,656)
Loss as adjusted
(232,888)
Notes to reconciliation
Note 1
During the year, a review of historic intercompany balances identified errors relating to the treatment of intercompany loans and related transactions. These included a net adjustment of £83k for the omission of foreign exchange differences from loan to equity conversion and on foreign currency loans, an adjustment to correct related party loan balance, and a late recognition of intercompany interest.
Note 2
Management reassessed software balances and concluded that these were partially met for the recognition criteria under FRS 102. As a result, an adjustment of £58k has been made to derecognise amounts previously capitalised, relating to prior periods.
Note 3
A rent deposit of £3k relating to a 2023 terminated lease has been adjusted accordingly.
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