REGISTERED NUMBER: 08645373 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements for the Year Ended 31 December 2024

for

Eastwest Television Distribution Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

5

Report of the Independent Auditors

7

Statement of Income and Retained Earnings

11

Balance Sheet

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

DIRECTOR:

R Y Filatov

REGISTERED OFFICE:

First Floor

3-5 St John Street

London

EC1M 4AA

REGISTERED NUMBER:

08645373 (England and Wales)

AUDITORS:

Zenith Audit Ltd

3rd Floor North

Warwick House

65/66 Queen Street

London

EC4R 1EB

The director presents his strategic report for the year ended 31 December 2024.

STRATEGY AND BUSINESS MODEL

The company's principal activity is trading of licenses for television broadcasting. Its main sales markets are focused in Ukraine, CIS and Baltic countries, however the company has clients all over the World. Since the company was established, it achieved strong partnerships with famous media space suppliers such as Sony Pictures, Warner Bros., The Walt Disney Company and many others. The company's vision is to continue to supply Eastern Europe with high-quality shows, movies and other program products.

REVIEW OF BUSINESS

The company's development to date, financial results and position as presented in the financial statements are considered satisfactory and the director is planning to make efforts to achieve sustainable development for future periods and to reduce possible risks.

KEY PERFORMANCE INDICATORS

The company key financial highlights are as follows:

31/12/2024

31/12/2023

$

$

$

$

Licenses

Services

Licenses

Services

Turnover

2,893,668

9,797,087

4,335,185

10,424,618

Gross profit/(loss)

440,900

701,001

237,204

623,957

Gross profit margin

15.24%

7.15%

5.47%

5.99%

The company has committed to develop and maintain long-term business relationships with the primary suppliers of programming rights on the global market. The company is looking to meet and provide for the needs and requirements of customers i.e. being able to find supplies for the most specialized programming rights as demanded by the customers.

The company has also been exploring new revenue streams which resulted in the new services being offered in the field of digital marketing. This proved to be a successful venture that has resulted in the sustained profit with increasing profit margin.

The company will continue to maintain strict compliance with the agreed terms of licenses and control and prevent any violations.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risk and uncertainty facing the company is the security situation in Kiev and Ukraine generally. Ukraine is under attack from Russian armed forces. In addition, the company faces risks and uncertainties with consumer tastes and demand on program products, which the company is distributing.

The popularity of content is difficult to predict and can change rapidly, and low consumer demand for the company's program products will adversely affect its results. The revenues derived from the sale, distribution and licensing of television programming, high-quality shows, movies, formats and other content depend primarily on widespread public acceptance of that content, which is difficult to predict. The popularity of the content distributed by the company depends on many factors. The Company is always aiming to supply the content, which will be highly demanded by our customers; however, there is no guarantee. The decline in economic activity and changes in political conditions in the UK, Europe and CIS counties, including the impact of Brexit and pandemic, can also affect the financial results of the Company.

The risks are subject for regular review by the Director to mitigate their impact on the Company.

WAR IN UKRAINE IMPACT

The ongoing war in Ukraine is affecting the company's business activity. However, at the moment the company's activities in the media sphere have remained unchanged and the company continues the distribution of the media content to the existing customers. As a consequence of the war, the company has lost the Russian media market, which before 2022 was around 2-5% of total turnover. This impact is insignificant, and the company is planning to replace it with operations in the European market. The restriction of the National Bank of Ukraine for companies to repay debts that arose after 24.02.2022 affects the Company's ability to receive money from related parties. These debts will be paid immediately once the restriction is lifted.

PAYMENT POLICY

The Company does not have a formal code that it follows with regard to payments to suppliers. Content purchase management of the Company generally agrees payment terms with suppliers when they enter into the contracts for the supply of program rights. Suppliers are in that way made aware of these terms.

FINANCIAL RISK

The Company's principal financial instruments are non-derivative and comprise of trade and other receivables, cash and cash equivalents, loans and borrowings, and trade and other payables. The main purpose of these instruments is to raise funds for the Company's operations and to finance the Company's trading activities. The Company has exposure to liquidity and market risk.

EMPLOYEES

The Company is committed to a policy of equal opportunities in employment by which the Company continues to ensure that all aspects of selection and retention are based on merit and suitability for the job without considerations of sex, marital status, nationality, color, race, ethnicity, sexual orientation or any disability.

POLITICAL MATTERS

The Company could be affected by political instability or social and economic changes in the countries in which it operates. This could include the granting and renewal of permits and changes to foreign trade or legislation that could affect the business environment and negatively impact the Company's business and financial performance. The Director continues to view the political, social and economic environment within the UK favorably and remains optimistic about the conditions for business in the region.

FOREIGN EXCHANGE AND INFLATION

Fluctuations in rates of exchange or inflation in the jurisdictions that the Company is dealing with could result in future increased costs. The main currency of the contracts generally is US Dollars, however approx. 5% of the contracts could be in other currency and fluctuations in exchange rates can give rise to exchange gains and losses in the income statement, but we assess the risk as low. Where possible the Company conducts its business and maintains its financial assets and liabilities in US dollars. The Company generally does not hedge its exposure to foreign currency risk in respect of operating expenses.

ON BEHALF OF THE BOARD:

R Y Filatov - Director

24 September 2025

The director presents his report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company is trading of licenses for television broadcasting and advertising.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTOR

R Y Filatov held office during the whole of the period from 1 January 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Zenith Audit Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R Y Filatov - Director

24 September 2025

Opinion

We have audited the financial statements of Eastwest Television Distribution Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 company's affairs as at 31 December 2024 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies 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 the audit:

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is 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 director determines 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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:

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:

We performed risk assessment procedures and obtained an understanding of the company and its environment, the applicable financial reporting framework, the applicable laws and regulations, the company's system of internal control and the fraud risk factors relevant to the company that affect the susceptibility of assertions to material misstatement due to fraud. We made enquiries with management regarding actual or suspected fraud, non-compliance with laws and regulations, potential litigation and claims. The engagement partner led a discussion among the audit team with particular emphasis on how and where the company's financial statements may be susceptible to material misstatement due to fraud, including how fraud might occur. The engagement partner assessed that the engagement team collectively had the appropriate competence and capability to identify or recognise non-compliance with laws and regulations.

We considered compliance with UK Companies Act 2006 and the applicable tax legislation as the key laws and regulations which non-compliance cold directly lead to material misstatement due to fraud at the financial statement level. We evaluated whether the selection and application of accounting policies by the company may be indicative of fraudulent financial reporting. Our audit procedures responsive to assessed risks of material misstatement due to fraud at the assertion level included but were not limited to:

- Testing the appropriateness of manual journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements;

- Making inquiries of individuals involved in the financial reporting process about inappropriate or unusual activity relating to the processing of journal entries;

- Selecting and testing journal entries and other adjustments made at the end of a reporting period and throughout the period;

- Reviewing accounting estimates for biases that could represent a risk of material misstatement due to fraud.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements due to irregularities, including fraud, may not be detected, even though we have properly planned and performed our audit in accordance with the auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve collusion, forgery, intentional omissions, override of internal controls, or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Milena Mitova (Senior Statutory Auditor)

for and on behalf of Zenith Audit Ltd

3rd Floor North

Warwick House

65/66 Queen Street

London

EC4R 1EB

25 September 2025

TURNOVER

3

12,690,755

14,759,803

Cost of sales

(11,548,854

)

(13,898,642

)

GROSS PROFIT

1,141,901

861,161

Administrative expenses

(692,106

)

(563,806

)

449,795

297,355

Other operating income

64,769

356,185

OPERATING PROFIT

5

514,564

653,540

Interest receivable and similar income

11,828

290,956

526,392

944,496

Interest payable and similar expenses

7

(24,536

)

(24,469

)

PROFIT BEFORE TAXATION

501,856

920,027

Tax on profit

8

(125,464

)

(212,694

)

PROFIT FOR THE FINANCIAL YEAR

376,392

707,333

Retained earnings at beginning of year

1,820,383

1,113,050

RETAINED EARNINGS AT END OF YEAR

2,196,775

1,820,383

CURRENT ASSETS

Stocks

9

647,591

1,118,516

Debtors

10

27,532,889

28,301,053

Cash at bank

3,550,125

3,751,251

31,730,605

33,170,820

CREDITORS

Amounts falling due within one year

11

(29,210,430

)

(30,000,059

)

NET CURRENT ASSETS

2,520,175

3,170,761

TOTAL ASSETS LESS CURRENT LIABILITIES

2,520,175

3,170,761

CREDITORS

Amounts falling due after more than one year

12

-

(1,026,978

)

NET ASSETS

2,520,175

2,143,783

CAPITAL AND RESERVES

Called up share capital

14

323,400

323,400

Retained earnings

15

2,196,775

1,820,383

SHAREHOLDERS' FUNDS

2,520,175

2,143,783

The financial statements were approved by the director and authorised for issue on 24 September 2025 and were signed by:

R Y Filatov - Director

Cash flows from operating activities

Cash generated from operations

1

(260

)

4,037,444

Tax paid

(212,694

)

-

Net cash from operating activities

(212,954

)

4,037,444

Cash flows from investing activities

Interest received

11,828

3,545

Net cash from investing activities

11,828

3,545

Cash flows from financing activities

Loan repayments in year

-

(1,597,000

)

Net cash from financing activities

-

(1,597,000

)

(Decrease)/increase in cash and cash equivalents

(201,126

)

2,443,989

Cash and cash equivalents at beginning of year

2

3,751,251

1,307,262

Cash and cash equivalents at end of year

2

3,550,125

3,751,251

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.24

31.12.23

$

$

Profit before taxation

501,856

920,027

Bad debts and written off creditors

124,314

(29,612

)

Finance costs

24,536

24,469

Finance income

(11,828

)

(290,956

)

638,878

623,928

Decrease in stocks

470,925

1,356,713

Decrease in trade and other debtors

523,849

10,343,490

Decrease in trade and other creditors

(1,633,912

)

(8,286,687

)

Cash generated from operations

(260

)

4,037,444

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

$

$

Cash and cash equivalents

3,550,125

3,751,251

Year ended 31 December 2023

31.12.23

1.1.23

$

$

Cash and cash equivalents

3,751,251

1,307,262

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

$

$

$

Net cash

Cash at bank

3,751,251

(201,126

)

3,550,125

3,751,251

(201,126

)

3,550,125

Debt

Debts falling due within 1 year

-

(1,051,513

)

(1,051,513

)

Debts falling due after 1 year

(1,026,978

)

1,026,978

-

(1,026,978

)

(24,535

)

(1,051,513

)

Total

2,724,273

(225,661

)

2,498,612

1.	STATUTORY INFORMATION

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

The presentation currency of the financial statements is the US Dollar ($).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The financial statements have been prepared on a going concern basis.

Despite of the war in Ukraine, the company's activities in media sphere have remained relatively unchanged. The company continues the distribution of the media content to the existing customers. The effect of loss of Russian market is insignificant (around 2-5%) and Russian market is being replaced with the European market.

At the year end, company had net current assets of $2,520,175 (2023: net current assets of $3,170,761) and made a profit before taxation of $501,856 (2023: profit before taxation of $920,027).

In addition, the debtors balance of $24,766,710 (2023: $26,088,776) receivable from the related parties was still outstanding at the date of approval of the financial statements due to the banking restrictions in Ukraine. The management believes that trade debtors will be recovered in full. To improve cash flow, the management of the company started negotiations with suppliers, in order to extend payment terms to match expected cash flows from customers. The shareholders expressed their willingness and ability to provide financial support for the next 12 months as from the date of approval of the financial statements in order for the company to meet its current liabilities. Based on the above the director considers that the company is a going concern for the period of twelve months from the date of approval of these financial statements.

Significant judgements and estimates

In preparing these financial statements, the directors have made the following judgements:

Judgement is required in assessing the appropriateness of the going concern assumption. Further details to support the assessment that the going concern basis is appropriate is provided in note 2.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year are:

Determining when the significant risks and rewards have been transferred to the customer and a sale is recognized. This has been determined to be upon delivery to the broadcaster and commencement of the license term.

Determining and recognizing bad debt provision for doubtful debts.

Determining whether leases entered into by the company either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

The Company holds acquired television content rights as inventory, which are recognised at cost and subsequently measured at the lower of cost and net realisable value (NRV), in accordance with applicable accounting standards.

Management exercises significant judgement in assessing the recoverability of these rights, particularly in estimating the NRV. This involves evaluating the expected revenue from licensing or broadcasting the content; the remaining licence term or expiry date of rights; relevance and timeliness of the content and audience trends, platform preferences, and current market demand.

If it is determined that the recoverable amount is lower than the carrying value-for example, due to declining demand, limited remaining usage rights, or cancellation of broadcast plans-an impairment loss is recognised to reduce inventory to NRV.

Turnover

Turnover of license distribution

Income represents license fees receivable from the distribution of television programs, excluding value added tax. The company's policy is to recognize license fee income once the following criteria are met:

a) a license agreement has been executed by both parties;

b) delivery to the broadcaster has occurred; and

c) the license term has commenced.

Any license fees received in advance, which do not meet all of the above criteria, are included in deferred income until the criteria are met and the below approaches applied:

1. When license fees are granted for a number of years, the license revenue and related cost of sales are recognized in equal amounts over the course of the license term.

2. When license fees are granted for a fixed period and not divided into multiple years, the license revenue and related cost of sales are recognized in full at the start of the license term. This accounting treatment is considered the most appropriate since the license fees are agreed in advance, they are not contingent on any future event, the customer is able to exploit the rights freely and the company has no future performance obligations subsequent to delivery.

Turnover of services

Turnover represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the value of the consideration due.

Where a contract has only been partially completed at the balance sheet date, turnover represents the value of service provided to that date based on a proportion of the total expected consideration at completion. Where payments are received in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year.

Stocks

Inventory consists of acquired television content rights held for licensing, broadcasting, or distribution. These rights are initially recognised at cost, which includes the purchase price and directly attributable costs necessary to bring the rights to their intended use.

Inventories are subsequently measured at the lower of cost and net realisable value (NRV). NRV is the estimated selling price in the ordinary course of business, less the estimated costs necessary to make the sale.

The cost of television rights is typically expensed based on the pattern of the consumption, such as the number of planned broadcasts or the duration of availability on distribution platforms.

Where television rights are not expected to generate sufficient future economic benefits-due to expiry, loss of market relevance, or changes in broadcasting schedules-an impairment loss is recognised to reduce the carrying amount to NRV.

The valuation of inventory involves management judgement, particularly in forecasting future revenues, assessing audience demand, and determining the remaining useful life of the rights.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Foreign currencies

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

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Trade and other debtors

Trade and other debtors are initially recognized at the transaction price and thereafter stated at amortized cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the debtors are stated at cost less impairment losses for bad and doubtful debts.

Trade and other creditors

Trade and other creditors are initially recognized at fair value and thereafter stated at amortized cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. The company does not have long-term creditors.

Loans and borrowings

Loans and borrowing are recognized initially at fair value, net of transaction costs incurred and subsequently carried at amortized cost using the effective interest method.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.12.24

31.12.23

$

$

Turnover of sale of licenses

2,893,668

4,335,185

Turnover of services income

9,797,087

10,424,618

12,690,755

14,759,803

Revenue was generated outside of the UK.

4.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

$

$

Wages and salaries

35,227

29,611

Other pension costs

560

472

35,787

30,083

The average number of employees during the year was as follows:

31.12.24

31.12.23

Administrative staff

2

2

31.12.24

31.12.23

$

$

Director's remuneration

16,183

14,458

Director's pension contribution for the year under review amounted to $432 (2023: $226).

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.24

31.12.23

$

$

Other operating leases

35,132

46,912

Foreign exchange differences

(64,769

)

(135,459

)

Bad debt provision

124,314

191,114

6.	AUDITORS' REMUNERATION

31.12.24

31.12.23

$

$

Fees payable to the company's auditors for the audit of the company's financial statements

19,438

19,095

Fees payable to the company's auditors for the audit of the company's financial statements for the current year are £15,000 plus VAT, the same as last year.

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

$

$

Interest payable

24,536

24,469

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.12.24

31.12.23

$

$

Current tax:

UK corporation tax

125,464

212,694

Tax on profit

125,464

212,694

UK corporation tax has been charged at 25% (2023 - 23.50%).

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is the same as the standard rate of corporation tax in the UK.

31.12.24

31.12.23

$

$

Profit before tax

501,856

920,027

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.500%)

125,464

216,206

Effects of:

Expenses not deductible for tax purposes

-

352

Utilisation of tax losses

-

(4,050

)

Adjustments to tax charge in respect of previous periods

-

186

Total tax charge

125,464

212,694

9.

STOCKS

31.12.24

31.12.23

$

$

Programming rights and formats

647,591

1,118,516

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.12.23

$

$

Trade debtors

2,211,232

2,044,651

Amounts due from related party

24,766,710

26,088,776

Other debtors

523,160

13,234

Loans issued

-

120,146

Advances paid to suppliers

-

16,600

VAT

31,787

17,646

27,532,889

28,301,053

During the year company has written off $120,000 of loan receivable as irrecoverable (2023: $nil).

In December 2023, loans receivable from a related party for the total amount of $10,385,585 were offset against the trade payable to the same party. No such offset was present in the current year. However, in 2025 $1,209,505.31 of related party debt was offset against trade payable to the same party. Only $303,108 was owed to that party at the end of the year under review.

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.12.23

$

$

Other loans (see note 13)

1,051,513

-

Trade creditors

5,151,569

4,348,216

Amounts due to related party

22,202,400

24,465,677

Tax

125,464

212,694

Withholding tax

51,222

54,290

Other creditors

17,059

35,318

Accruals and deferred income

571,203

843,923

Accrued expenses

40,000

39,941

29,210,430

30,000,059

In December 2023, loans receivable from a related party for the total amount of $10,385,585 were offset against the trade receivable to the same party. There was no such offset in the current year. However, in 2025 $1,209,505.31 of related party debt was offset against trade receivable to the same party. Only $311,942 was owed from that party at the end of the year under review.

12.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.24

31.12.23

$

$

Other loans (see note 13)

-

1,026,978