Company registration number 09631806 (England and Wales)
SPLICE POST LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
SPLICE POST LIMITED
COMPANY INFORMATION
Directors
D Western
D Dolniak
Company number
09631806
Registered office
21A Perseverance Works
Kingsland Road
London
E2 8DD
Auditor
Gravita II LLP
Aldgate Tower
2 Leman Street
London
United Kingdom
E1 8FA
SPLICE POST LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
SPLICE POST LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

The directors present the strategic report for the year ended 30 September 2024.

Review of the business

Splice Post is a leading independent post-production company with facilities in Shoreditch and Old Street, London. Established in Shoreditch in 2002, it has grown into one of the UK’s premier post-production companies.

With a strong reputation, industry-renowned talent, and state-of-the-art facilities, Splice Post is positioned for continued growth. Year-on-year revenue increases have been driven by strategic investments in both personnel and technology. The company remains committed to long-term, sustainable expansion by continuously investing in talent, facilities, and innovative technologies.

Principal risks and uncertainties

Splice Post is exposed to financial, operational, market, and reputational risks. The company has implemented strategic measures to mitigate these risks effectively.

Financial challenges stem from rising interest rates and inflationary pressures along with stagnant tariffs. A proactive and hands on approach to finance with regular review and retaining agility allows the company to react to these challenges.

Operational risks include temporary capacity reductions, technology service failures and loss of key staff. The company operates robust DR and BC policies and culture to protect against operational risk.

Market risks arise from external factors in the film and television industry dictating a dynamic landscape. Stagnant tariffs are challenging and beyond control so the company regularly reviews and implements operation and commercial efficiencies to match market conditions.

The company has a strong reputation. To protect and enhance its standing in the industry, Splice prioritizes delivery of creative excellence, delivered on robust and advanced technologies, with a team of subject matter experts a the top of their field in all areas.

Splice Post remains well-positioned for sustained growth and industry leadership.

Key performance indicators

The key financial highlights are as follows:

 

 

 

 

2024

2023

 

 

 

 

£

£

Turnover

 

 

 

8,768,149

8,745,4896

 

 

 

 

 

 

EBITDA

 

 

 

1,017,524

1,609,539

 

 

 

 

 

 

Net assets

 

 

 

1,146,875

1,476,696

 

 

 

 

 

 

 

On behalf of the board

D Western
Director
18 August 2025
SPLICE POST LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -

The directors present their annual report and financial statements for the year ended 30 September 2024.

Principal activities

The principal activity of the company during the year was the provision of Post-Production Services. There have been no significant changes in the nature of the company’s activities during the year.

Business Review

Splice Post has continued to perform well, achieving turnover and profit targets as forecast.

 

Key highlights for the year include:

Market conditions remain healthy, with continued investment in the post-production sector. The directors consider the results for the year satisfactory and remain confident in the company’s future prospects.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £230,000 (2023: £276,000)

Directors

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

D Western
D Dolniak
Future developments

Splice Post remains focused on future growth and creative excellence. Continued investment in creative talent, technology and operational efficiency will allow the company to continue it’s trajectory of growth and sustained creative output of the highest quality.

Statement of directors' responsibilities

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

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

In preparing these financial statements, the directors are required to:

SPLICE POST LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -

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.

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
D Western
Director
18 August 2025
SPLICE POST LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SPLICE POST LIMITED
- 4 -
Opinion

We have audited the financial statements of Splice Post Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, 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 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:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

SPLICE POST LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SPLICE POST LIMITED (CONTINUED)
- 5 -
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 and the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

 

SPLICE POST LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SPLICE POST LIMITED (CONTINUED)
- 6 -

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

 

 

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

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

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment by for example forgery, or intentional misrepresentation or through collusion. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

 

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Filiz Zekia FCCA (Senior Statutory Auditor)
For and on behalf of Gravita II LLP, Statutory Auditor
Chartered Accountants
Aldgate Tower
2 Leman Street
London
E1 8FA
United Kingdom
19 August 2025
SPLICE POST LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
8,768,149
8,745,486
Cost of sales
(3,512,250)
(3,385,114)
Gross profit
5,255,899
5,360,372
Administrative expenses
(5,492,546)
(4,844,222)
Other operating income
189,798
77,714
Operating (loss)/profit
3
(46,849)
593,864
Interest receivable and similar income
6
4,213
2,383
Interest payable and similar expenses
7
(185,497)
(161,822)
(Loss)/profit before taxation
(228,133)
434,425
Tax on (loss)/profit
8
128,312
(73,296)
(Loss)/profit for the financial year
(99,821)
361,129

The income statement has been prepared on the basis that all operations are continuing operations.

SPLICE POST LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 SEPTEMBER 2024
30 September 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
70,021
36,376
Tangible assets
11
3,709,941
3,385,042
3,779,962
3,421,418
Current assets
Debtors
12
1,769,047
1,628,223
Cash at bank and in hand
682,339
823,936
2,451,386
2,452,159
Creditors: amounts falling due within one year
13
(2,403,957)
(2,124,746)
Net current assets
47,429
327,413
Total assets less current liabilities
3,827,391
3,748,831
Creditors: amounts falling due after more than one year
14
(2,166,707)
(1,758,326)
Provisions for liabilities
Deferred tax liability
17
513,809
513,809
(513,809)
(513,809)
Net assets
1,146,875
1,476,696
Capital and reserves
Called up share capital
19
100
100
Profit and loss reserves
20
1,146,775
1,476,596
Total equity
1,146,875
1,476,696

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 18 August 2025 and are signed on its behalf by:
D Western
D Dolniak
Director
Director
Company registration number 09631806 (England and Wales)
SPLICE POST LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
100
1,391,467
1,391,567
Year ended 30 September 2023:
Profit and total comprehensive income
-
361,129
361,129
Dividends
9
-
(276,000)
(276,000)
Balance at 30 September 2023
100
1,476,596
1,476,696
Year ended 30 September 2024:
Loss and total comprehensive income
-
(99,821)
(99,821)
Dividends
9
-
(230,000)
(230,000)
Balance at 30 September 2024
100
1,146,775
1,146,875
SPLICE POST LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
2,251,777
1,464,395
Interest paid
(185,497)
(161,822)
Income taxes (paid)/refunded
(128,089)
54,792
Net cash inflow from operating activities
1,938,191
1,357,365
Investing activities
Purchase of intangible assets
(49,804)
(40,567)
Purchase of tangible fixed assets
(1,373,113)
(447,172)
Interest received
4,213
2,383
Net cash used in investing activities
(1,418,704)
(485,356)
Financing activities
Repayment of bank loans
(583,428)
(125,098)
Payment of finance leases obligations
149,487
(238,748)
Dividends paid
(230,000)
(276,000)
Net cash used in financing activities
(663,941)
(639,846)
Net (decrease)/increase in cash and cash equivalents
(144,454)
232,163
Cash and cash equivalents at beginning of year
823,936
591,773
Cash and cash equivalents at end of year
679,482
823,936
Relating to:
Cash at bank and in hand
682,339
823,936
Bank overdrafts included in creditors payable within one year
(2,857)
-
0
SPLICE POST LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
1
Accounting policies
Company information

Splice Post Limited is a private company limited by shares incorporated in England and Wales. The registered office is 21A Perseverance Works, Kingsland Road, London, E2 8DD.

 

The main business address of the company is it's flagship facility address, 19-21 Nile Street, London, N1 7LL.

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
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.

1.3
Turnover

The turnover of the company is generated wholly through the post production facilities. The work undertaken fits broadly into one of the following categories: Feature Film, Broadcast, Commercial, Pilot or Subscription Video on Demand (SVOD).

 

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT.

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

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
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.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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:

Development costs
25% straight line
SPLICE POST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

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

Leasehold land and buildings
Over the term of the lease
Plant and equipment
4 Years Straight Line
Fixtures and fittings
4 Years 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.

1.7
Impairment of fixed assets

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

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.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

SPLICE POST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
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.

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.

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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, 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.

SPLICE POST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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 company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

1.10
Taxation

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

Current tax

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

Deferred tax

Deferred tax 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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

SPLICE POST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.11
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.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases
As lessee

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 statement of financial position 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 profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

As lessor

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.14
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. It was assessed that the provisions against work in progress was deemed the only significant accounting estimate in the year.

SPLICE POST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
3
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
45,283
36,667
Depreciation of owned tangible fixed assets
1,048,214
1,011,484
(Profit)/loss on disposal of tangible fixed assets
-
5,223
Amortisation of intangible assets
16,159
4,191
Operating lease charges
1,283,696
945,930
4
Employees

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

2024
2023
Number
Number
100
96

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,725,465
3,482,371
Social security costs
382,725
348,728
Pension costs
159,710
139,395
4,267,900
3,970,494
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
34,838
35,928
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
4,213
2,383
SPLICE POST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,757
1,460
Other interest on financial liabilities
64,613
70,161
66,370
71,621
Other finance costs:
Interest on finance leases and hire purchase contracts
117,560
90,201
Other interest
1,567
-
0
185,497
161,822
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
128,088
Adjustments in respect of prior periods
(128,312)
(54,792)
Total current tax
(128,312)
73,296

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
(Loss)/profit before taxation
(228,133)
434,425
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
(57,033)
95,574
Tax effect of expenses that are not deductible in determining taxable profit
15,265
19,579
Permanent capital allowances in excess of depreciation
(27,069)
58,205
Amortisation on assets not qualifying for tax allowances
4,040
922
Research and development tax credit
(128,312)
(54,792)
Utilisation of tax losses
64,797
(46,128)
Other tax adjustments
-
0
(64)
Taxation (credit)/charge for the year
(128,312)
73,296
9
Dividends
2024
2023
£
£
Interim paid
230,000
276,000
SPLICE POST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
10
Intangible fixed assets
Development costs
£
Cost
At 1 October 2023
40,567
Additions
49,804
At 30 September 2024
90,371
Amortisation and impairment
At 1 October 2023
4,191
Amortisation charged for the year
16,159
At 30 September 2024
20,350
Carrying amount
At 30 September 2024
70,021
At 30 September 2023
36,376
11
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 October 2023
485,967
4,731,846
1,743,195
6,961,008
Additions
145,908
569,732
657,473
1,373,113
At 30 September 2024
631,875
5,301,578
2,400,668
8,334,121
Depreciation and impairment
At 1 October 2023
140,827
2,366,704
1,068,435
3,575,966
Depreciation charged in the year
42,206
702,498
303,510
1,048,214
At 30 September 2024
183,033
3,069,202
1,371,945
4,624,180
Carrying amount
At 30 September 2024
448,842
2,232,376
1,028,723
3,709,941
At 30 September 2023
345,140
2,365,142
674,760
3,385,042

Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:

2024
2023
£
£
Plant and equipment
755,388
645,434
SPLICE POST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
884,410
1,057,880
Corporation tax recoverable
128,313
-
0
Other debtors
127,675
18,982
Prepayments and accrued income
628,649
551,361
1,769,047
1,628,223
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
2,857
126,000
Obligations under finance leases
16
365,500
347,997
Trade creditors
946,267
564,880
Corporation tax
-
0
128,088
Other taxation and social security
503,847
426,527
Other creditors
244,598
170,660
Accruals and deferred income
340,888
360,594
2,403,957
2,124,746

Included within bank loans and overdrafts is a bank loan of £nil (2023: £126,000). The bank loan was secured by way of a fixed charge over the leasehold properties held by Splice TV Limited as well as a cross guarantee with Splice TV Limited and Splice West Limited. The facility is further guaranteed by the shareholders of the company. The loan was fully repaid in the year.

 

Included within other creditors is an amount of £44,760 (2023: £83,813) due to the directors of the company. The loans are unsecured, interest free, and repayable on demand.

14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
-
0
457,428
Obligations under finance leases
16
642,082
510,098
Other creditors
799,024
212,873
Accruals and deferred income
725,601
577,927
2,166,707
1,758,326
SPLICE POST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
14
Creditors: amounts falling due after more than one year
(Continued)
- 20 -

Included within bank loans and overdrafts is a bank loan of £nil (2023: £457,428). The bank loan was secured by way of a fixed charge over the leasehold properties held by Splice TV Limited as well as a cross guarantee with Splice TV Limited and Splice West Limited. The facility is further guaranteed by the shareholders of the company. The loan was fully repaid in the year.

 

Included within other creditors is an amount of £651,951 (2023: £16,466) due to Splice TV Limited, a company under common control.

Included within other creditors is an amount of £147,073 (2023: £196,407) due to Splice West Limited, a company under common control.

 

15
Loans and overdrafts
2024
2023
£
£
Bank loans
-
0
583,428
Bank overdrafts
2,857
-
0
2,857
583,428
Payable within one year
2,857
126,000
Payable after one year
-
0
457,428

The bank loan was secured by way of a fixed charge over the leasehold properties held by Splice TV Limited as well as a cross guarantee with Splice TV Limited and Splice West Limited. The facility was further guaranteed by the shareholders of the company.

 

16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
365,500
347,997
In two to five years
642,082
510,098
1,007,582
858,095

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 3-7 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

SPLICE POST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
564,907
564,907
Tax losses
(49,815)
(49,815)
Short term timing differences
(1,283)
(1,283)
513,809
513,809
There were no deferred tax movements in the year.
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
159,710
139,395

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.

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 25p each
360
360
90
90
Ordinary A of 25p each
40
40
10
10
400
400
100
100

There are two classes of Ordinary shares. There are no restrictions on the distribution of dividends and repayment of capital.

20
Profit and loss reserves

Retained earnings represents accumulated comprehensive income for the year and prior periods less dividends paid.

21
Operating lease commitments
As lessee
SPLICE POST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
21
Operating lease commitments
(Continued)
- 22 -

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 1 year
1,098,426
612,673
Years 2-5
4,393,704
2,450,692
After 5 years
3,934,199
2,603,860
9,426,329
5,667,225
22
Cash generated from operations
2024
2023
£
£
(Loss)/profit after taxation
(99,821)
361,129
Adjustments for:
Taxation (credited)/charged
(128,312)
73,296
Finance costs
185,497
161,822
Investment income
(4,213)
(2,383)
(Gain)/loss on disposal of tangible fixed assets
-
5,223
Amortisation and impairment of intangible assets
16,159
4,191
Depreciation and impairment of tangible fixed assets
1,048,214
1,011,484
Movements in working capital:
Increase in debtors
(12,511)
(179,555)
Increase in creditors
1,246,764
29,188
Cash generated from operations
2,251,777
1,464,395
23
Analysis of changes in net debt
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
823,936
(141,597)
682,339
Bank overdrafts
-
0
(2,857)
(2,857)
823,936
(144,454)
679,482
Borrowings excluding overdrafts
(583,428)
583,428
-
Lease liabilities
(858,095)
(149,487)
(1,007,582)
(617,587)
289,487
(328,100)
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