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Registered number: 06096443 SUPERMASSIVE GAMES LIMITED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
SUPERMASSIVE GAMES LIMITED COMPANY INFORMATION
Directors | M Habedank
| A Hansen
| R Henrysson
| G P Law
Registered number | 06096443
Registered office | New Kings Court
| Tollgate
| Chandlers Ford
| Eastleigh
| Hampshire
| SO53 3LG
Independent auditors | Cooper Parry Group Limited
| Statutory Auditor
| New Derwent House
| 69-73 Theobalds Road
| Holborn
| London
| WC1X 8TA
Solicitors | Blake Morgan
| New Kings Court
| Tollgate
| Chandlers Ford
| Eastleigh
| Hampshire
| SO53 3LG
SUPERMASSIVE GAMES LIMITED CONTENTS
| Page
Group strategic report | 1 - 3
Directors' report | 4 - 7
Independent auditors' report | 8 - 10
Consolidated profit and loss account | 11
Consolidated balance sheet | 12
Company balance sheet | 13
Consolidated statement of changes in equity | 14
Company statement of changes in equity | 15
Consolidated statement of cash flows | 16
Notes to the financial statements | 17 - 33
SUPERMASSIVE GAMES LIMITED GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
Introduction
The directors present their strategic report of the company and the group for the year ended 31 December 2024.
Business review
Supermassive Games continued a strategy of primarily developing cinematic narrative games in 2024. The group comprises Supermassive Games Limited as the parent, Supermassive Games 1 Limited, Supermassive Games 2 Limited and Supermassive Games 3 Limited as production and development subsidiaries and Starshape Games Limited which operates as a digital asset production and licensing company. The studio continues to invest in its own intellectual property (including the Dark Pictures series of games) as well as work on projects on a ‘Work for Hire’ basis for leading publishers. Following a detailed review of the business, the difficult decision was made in early 2024 to cease a number of self-funded development projects and enter a collective consultation period with staff, with a view to reducing headcount in the company. The company consequently made 81 staff redundant in April 2024. At the same time the company restructured the organisation, and finalised changes to the senior management team, concluding a six-month period of change. Subsequent to the reporting date, during July 2025, the group initiated a further consultation and restructure process, which is expected to result in the reduction of approximately 36 roles. This initiative forms part of the group’s continued efforts to align its cost base with strategic priorities. At the date of approval of these financial statements, the consultation process remains ongoing. Whilst these decisions and events resulted in short-term turbulence for the company, it is believed that the focus on a smaller number of projects, a reduction in the overall cost base and a more efficient structure will enable the company to grow sustainably in the years ahead, and better weather the continuing headwinds facing the industry. The application of the Video Games Tax Relief and its replacement the Video Games Expenditure Credit continues to make a significant contribution to sources of development income and will have a positive future influence over the appetite for placing development work in the UK. The tax reliefs enable the studio to continue to be able to invest in game titles, senior and technical staff, and new processes which enhance its innovation capability and productivity. Key performance indicators - financial and non-financial Turnover for the year was £16.3m (2023: £21.2m) and the loss for the year was £15.3m (2023 loss: £17.1m). The reduction in turnover and the continued loss reflect a reduction in the number of Work For Hire projects undertaken in 2024, and the absence of new game releases generating royalties during the year. By the end of 2024, Supermassive Games employed 214 staff at its two Guildford-based studios.
Principal risks and uncertainties
The directors have assessed the group’s ability to continue as a going concern in light of the prevailing economic conditions, industry-wide challenges, and internal performance forecasts. This assessment included a detailed review of the group’s cash flow projections, updated monthly and aligned with the group’s long-term strategic resource planning. Page 1
SUPERMASSIVE GAMES LIMITED GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 The video game development and publishing sector continues to experience a difficult trading environment, characterised by subdued consumer spending and evolving commercial strategies from key publishing partners. These market conditions have had a direct impact on the timing and availability of new work-for-hire opportunities, which remain limited. While this presents a significant challenge in the short term, the directors remain confident in the group’s medium- to long-term prospects, underpinned by the anticipated recovery of the industry and the group’s strong creative and technical capabilities. Nevertheless, significant risks do still exist and should be recognised here. The key risks facing the group in the current environment include: 1. Sales reductions due to economic factors and restricted consumer spending 2. Shifts in strategy by major publishing partners Economic factors and consumer Spending The global economic environment continues to be challenging, with various factors impacting consumers' disposable income to spend on video games. However, the group continues to innovate, incorporating new gameplay elements into its forthcoming games to attract new players, and with its strong brand in the market and targeted marketing campaigns, the business is positive in achieving the expected level of sales. Management are continuously reviewing their cost base. Partner strategy changes Changes to third party publisher strategies carry a risk to the business, as they could lead to termination of Agreements. Whilst robust commercial agreements have protected rights to the greatest extent possible, the risk of termination is still present. The group is also impacted by delays to signing new work for hire agreements. In light of the above, the directors maintain ongoing oversight of the group’s cost base and remain committed to taking appropriate measures to ensure continued financial discipline. The directors have received written confirmation of continued financial support from the group’s ultimate commercial parent entity, Egmont International Holding A/S. Taking into account this support, the group’s existing cash resources, and its forecasts, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for at least twelve months from the date of approval of these financial statements. Accordingly, the financial statements have been prepared on a going concern basis. Section 172(1) statement As required by Section 172 of the Companies Act 2006, the directors of Supermassive Games Limited present the following statement, describing how they have acted in a way they consider would most likely promote the success of the company for the benefit of its members as a whole, while having regard to the matters set out in Section 172(1)(a)-(f) of the Act. a. Decision-making processes In our decision-making processes, the Board has consistently taken into account the likely long-term consequences of decisions. The company only works with top-level publishing partners on its Work For Hire projects, ensuring the long-term reputation of the company is upheld. The decision in early 2024 to reduce the number of self-published projects and make a number staff redundant was made with the long-term stability and success of the company in mind. Page 2
SUPERMASSIVE GAMES LIMITED GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 b. Considering the interests of our employees The Board acknowledges that our employees are fundamental to the long-term success of the company. During the financial year, we conducted multiple employee engagement surveys, utilised a confidential employee voice platform, and held numerous open-door sessions with senior leadership, which provide staff multiple forums in which they can share feedback, concerns or ideas with the company. Additionally, we have continued working to improve our studio-wide training resources for staff to use in aid of personal and professional development. c. Fostering business relationships with suppliers, customers and others We have maintained strong relationships with our key stakeholders, including suppliers, customers, and business partners. The company continually works to build relationships with Publishers and all suppliers, to ensure they want to work with us on a repeat basis. We are developing communities through social media platforms, which is helping to grow the overall Supermassive Games brand with customers. d. Impact on the community and the environment The Board is committed to ensuring that the company operates responsibly within the communities in which we are based and to minimizing our environmental footprint. We continue our work to support initiatives around educational outreach and promoting the industry. We have also taken steps to reduce our carbon footprint by reducing business travel where possible and considering alternative suppliers to secure more environmentally friendly packaging. e. Maintaining a reputation for high standards of business conduct Maintaining our reputation for high standards of business conduct is critical to our ongoing success. Throughout the year, we have complied with our responsibilities to report on Gender Pay Gap and Modern Day Slavery, strengthened our policies and training around GDPR and Cyber Security, and reviewed wider policies around business ethics such as bullying & harassment. f. Acting fairly between members The Board is committed to acting fairly between all members of the company. The ultimate controlling party of the company is Egmont Fonden, and the Board makes all decisions to enhance the reputation and long-term value of that entity. Looking forward The Board remains focused on promoting the long-term success of Supermassive Games Limited. As we move forward, we will continue to consider the impact of our decisions on all stakeholders, ensuring that our operations contribute positively to the broader community and environment while delivering sustainable value to our shareholders. This report was approved by the board and signed on its behalf.
G P Law Director
Date: 25 September 2025
Page 3
SUPERMASSIVE GAMES LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The directors present their report and the financial statements for the year ended 31 December 2024.
Directors' responsibilities statement
The directors are responsible for preparing the group strategic report, the directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group 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 for the group's financial statements 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; and ∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and to 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Principal activity
The principal activity of the group during the year was computer games development.
Tax credits
As a UK-based video game developer, the group is able to take advantage of both the Video Games Tax Relief scheme and it’s successor, the Video Games Expenditure Credit schemes. This positions the group well to compete globally as a cost-effective development centre. Employee involvement The group's policy is to consult and discuss with employees about matters likely to affect employees' interests. Information about matters of concern to employees is given through information bulletins, company meetings and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
Results and dividends
The loss for the year, after taxation, amounted to £15,287,454 (2023: £17,077,210). No dividends will be distributed for the year ended 31 December 2024 (2023: £Nil). Page 4
SUPERMASSIVE GAMES LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Directors
The directors who served during the year were:
M Habedank
A Hansen
T Rehling (Resigned 4 June 2025)
R Henrysson (Appointed 23 January 2024)
G P Law (Appointed 23 January 2024)
P Samuels (Resigned 31 January 2024)
J P Samuels (Resigned 31 January 2024)
Financial risk management
The company's operations expose it to a variety of risks that include credit risk, liquidity risk and interest rate risk. Liquidity risk The group's cash flow is regularly monitored. In the short term liquidity risk is managed by utilising prearranged credit facilities. Liquidity risk is also managed by monitoring outstanding debtors and ensuring publishers pay milestone payments and royalties within the agreed credit terms. The business uses both short- and longer-term cash flow projections to ensure that it can appropriately manage expected short-falls in cash balances. Credit risk Credit risk arises primarily from credit exposures to publishers, including outstanding milestone and royalty invoices. Exposure to credit risk arising from cash and cash equivalents, deposits with banks and amounts with other financial institutions is limited to daily working capital requirements. The group assesses the credit quality of customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal and external ratings. Outstanding receivables are frequently monitored and credit terms strictly controlled. Interest rate risk Supermassive Games Limited has £17.5m (2023: £13.7m) of intercompany debt at the year end in the form of a revolving credit facility. An element of the interest charged on this debt is based on the LIBOR rate. The group has no other interest-bearing borrowings therefore interest rate risk is considered to be low. Disabled persons Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees. Tax credits As a UK-based Video game developer, the group is able to take advantage of the Video Games Development Tax Credit scheme, which became effective in April 2014. This positions the group well to compete globally as a cost effective development centre. Page 5
SUPERMASSIVE GAMES LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Employee involvement The group's policy is to consult and discuss with employees, in staff councils and at meetings, matters likely to affect employees' interests. Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance. Streamlined energy and carbon reporting Qualification and reporting methodology The methodology used in the calculation of these disclosures was based on the HM Government Environmental Reporting Guidelines 2019 and the Greenhouse Gas Reporting conversion factors of 2024. Intensity measurement The intensity measurement ratio is total gross emissions in metric tonnes CO2e per average employee headcount. Measures taken to improve energy efficiency Electricity provision for Ranger House is on a green tariff (i.e. electricity from renewable sources) from Smartest Energy. Electricity provision for 65 Woodbridge Road was on a green tariff (i.e. electricity from renewable sources) from Smartest Energy between January and June, and after that on a standard tariff. We are intending to return to a green tariff from June 2025. 65 Woodbridge Road also utilises ground source heat pumps to reduce the electricity requirements for heating the building.
Group strategic report
The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (strategic report and director's report) Regulations 2013 to set out in the company's strategic report information required by the Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations 2008 Schedule 7 to be contained in the director's report. Page 6
SUPERMASSIVE GAMES LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Disclosure of information to auditors
Each of the persons who are directors at the time when this directors' report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the company and the group's auditors are unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the group's auditors are aware of that information.
Post balance sheet events
In July 2025, Supermassive Games initiated a further reorganisation plan, which included entering into a consultation period. The proposed restructure is expected to result in the reduction of approximately 36 roles. This decision forms part of the group’s continued efforts to align its cost base with strategic priorities.
Auditors
The auditors, Cooper Parry Group Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board and signed on its behalf.
G P Law Director
Date: 25 September 2025
Page 7
SUPERMASSIVE GAMES LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUPERMASSIVE GAMES LIMITED
Opinion
We have audited the financial statements of Supermassive Games Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024, which comprise the consolidated profit and loss account, the group and company balance sheet, the group and company statement of changes in equity, the consolidated statement of cash flows, the consolidated analysis of net debt and the related notes, 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 group's and of 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.
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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 or the 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.
Other information
The other information comprises the information included in the annual report other than the financial statements and our Auditors' 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. Page 8
SUPERMASSIVE GAMES LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUPERMASSIVE GAMES LIMITED (CONTINUED)
Opinion 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 group 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 group strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the group 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: ∙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' responsibility statement set out on page 4, 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 group's and 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 group or the parent company or to cease operations, or have 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 an Auditors' 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 group 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. Page 9
SUPERMASSIVE GAMES LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUPERMASSIVE GAMES LIMITED (CONTINUED) We gained an understanding of the legal and regulatory framework applicable to the company and group and the industry in which it operates, and considered the risk of acts by the company and group that were contrary to applicable laws and regulations, including fraud. We discussed with the directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance. During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our procedures in relation to fraud, included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates and challenged the assumptions and judgements made by management in its significant accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Our tests included agreeing the financial statement disclosures to underlying supporting documentation. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 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 Auditors' 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 Auditors' 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. Azfar Doshi (Senior Statutory Auditor) for and on behalf of Cooper Parry Group Limited Statutory Auditor New Derwent House 69-73 Theobalds Road Holborn London WC1X 8TA 29 September 2025 Page 10
SUPERMASSIVE GAMES LIMITED CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2024
| 2024 | 2023
Note | £ | £
Turnover | 4 | 16,276,117 | 21,241,016
Cost of sales |  | (2,113,956) | (8,197,466)
Gross profit |  | 14,162,161 | 13,043,550
Administrative expenses |  | (35,554,012) | (38,574,706)
Other operating income | 5 | 9,117,585 | 9,102,698
Operating loss | 6 | (12,274,266) | (16,428,458)
Interest receivable and similar income | 10 | 97,061 | 1,970
Interest payable and similar expenses | 11 | (1,251,392) | (650,722)
Loss before tax |  | (13,428,597) | (17,077,210)
Tax on loss | 12 | (1,858,857) | -
Loss for the financial year |  | (15,287,454) | (17,077,210)
Loss for the year attributable to: |  |  |
Owners of the parent |  | (15,287,454) | (17,077,210)
The notes on pages 17 to 33 form part of these financial statements.
Page 11
SUPERMASSIVE GAMES LIMITED REGISTERED NUMBER: 06096443 CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 14 |  | 12,045,599 |  | 16,459,091
Tangible assets | 15 |  | 2,197,167 |  | 3,695,606
|  |  | 14,242,766 |  | 20,154,697
Current assets |  |  |  |  |
Debtors | 17 | 14,319,836 |  | 15,474,916 |
Bank and cash balances |  | 3,271 |  | 2,892,352 |
|  | 14,323,107 |  | 18,367,268 |
Creditors: amounts falling due within one year | 18 | (25,033,239) |  | (18,924,568) |
Net current liabilities |  |  | (10,710,132) |  | (557,300)
Total assets less current liabilities |  |  | 3,532,634 |  | 19,597,397
Creditors: amounts falling due after more than one year | 19 |  | - |  | (777,309)
Net assets |  |  | 3,532,634 |  | 18,820,088
Capital and reserves |  |  |  |  |
Called up share capital | 20 |  | 12,056 |  | 12,056
Share premium account | 21 |  | 6,270,180 |  | 6,270,180
Capital redemption reserve | 21 |  | 2,900 |  | 2,900
Profit and loss account | 21 |  | (2,752,502) |  | 12,534,952
|  |  | 3,532,634 |  | 18,820,088
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
G P Law
Director
Date: 25 September 2025
The notes on pages 17 to 33 form part of these financial statements. Page 12
SUPERMASSIVE GAMES LIMITED REGISTERED NUMBER: 06096443 COMPANY BALANCE SHEET AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 14 |  | 18,607,607 |  | 24,299,455
Tangible assets | 15 |  | 2,197,167 |  | 3,695,606
Investments | 16 |  | 4 |  | 4
|  |  | 20,804,778 |  | 27,995,065
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 17 | 7,365,110 |  | 6,357,640 |
Bank and cash balances |  | 3,271 |  | 2,892,352 |
|  | 7,368,381 |  | 9,249,992 |
Creditors: amounts falling due within one year | 18 | (68,111,080) |  | (53,764,431) |
Net current liabilities |  |  | (60,742,699) |  | (44,514,439)
Total assets less current liabilities |  |  | (39,937,921) |  | (16,519,374)
Creditors: amounts falling due after more than one year | 19 |  | - |  | (777,309)
Net liabilities |  |  | (39,937,921) |  | (17,296,683)
Capital and reserves |  |  |  |  |
Called up share capital | 20 |  | 12,056 |  | 12,056
Share premium account | 21 |  | 6,270,180 |  | 6,270,180
Capital redemption reserve | 21 |  | 2,900 |  | 2,900
Profit and loss account | 21 |  | (46,223,057) |  | (23,581,819)
Shareholders' deficit |  |  | (39,937,921) |  | (17,296,683)
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
G P Law
Director
Date: 25 September 2025
The notes on pages 17 to 33 form part of these financial statements. Page 13
SUPERMASSIVE GAMES LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
| Called up share capital | Share premium account | Capital redemption reserve | Profit and loss account | Total equity
| £ | £ | £ | £ | £
At 1 January 2023 | 12,056 | 6,270,180 | 2,900 | 29,612,162 | 35,897,298
Loss for the year | - | - | - | (17,077,210) | (17,077,210)
At 1 January 2024 | 12,056 | 6,270,180 | 2,900 | 12,534,952 | 18,820,088
Loss for the year | - | - | - | (15,287,454) | (15,287,454)
At 31 December 2024 | 12,056 | 6,270,180 | 2,900 | (2,752,502) | 3,532,634
| The notes on pages 17 to 33 form part of these financial statements.
Page 14
SUPERMASSIVE GAMES LIMITED COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
| Called up share capital | Share premium account | Capital redemption reserve | Profit and loss account | Total equity
| £ | £ | £ | £ | £
At 1 January 2023 | 12,056 | 6,270,180 | 2,900 | 4,175,435 | 10,460,571
Loss for the year | - | - | - | (27,757,254) | (27,757,254)
At 1 January 2024 | 12,056 | 6,270,180 | 2,900 | (23,581,819) | (17,296,683)
Loss for the year | - | - | - | (22,641,238) | (22,641,238)
At 31 December 2024 | 12,056 | 6,270,180 | 2,900 | (46,223,057) | (39,937,921)
| The notes on pages 17 to 33 form part of these financial statements.
Page 15
SUPERMASSIVE GAMES LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
|  |  | 2024 | 2023
|  |  | £ | £
Cash flows from operating activities |  |
Loss for the financial year | (12,274,266) | (16,428,458)
Adjustments for: |  |
Amortisation of intangible assets | 3,477,466 | 8,116,004
Depreciation of tangible assets | 1,497,652 | 1,216,055
Impairments of fixed assets | 6,694,716 | 9,117,275
Loss on disposal of tangible assets | 787 | -
Decrease in debtors | 1,155,080 | 4,443,096
Increase in creditors | 5,331,297 | 11,265,124
Interest paid | (1,251,392) | (650,722)
Video games expenditure attributable tax receivable | (1,858,857) | -
Net cash generated from operating activities | 2,772,483 | 17,078,374
Cash flows from investing activities |  |
Purchase of intangible fixed assets | (5,758,690) | (14,051,144)
Purchase of tangible fixed assets | - | (2,157,808)
Interest received | 97,061 | 1,970
Net cash from investing activities | (5,661,629) | (16,206,982)
Net (decrease)/increase in cash and cash equivalents | (2,889,146) | 871,392
Cash and cash equivalents at beginning of year | 2,892,352 | 2,020,960
Cash and cash equivalents at the end of year | 3,206 | 2,892,352
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 3,271 | 2,892,352
Bank overdrafts | (65) | -
The notes on pages 17 to 33 form part of these financial statements.
Page 16
SUPERMASSIVE GAMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
1. | General information
Supermassive Games 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. 2.Accounting policies
| 2.1 | Basis of preparation of 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. The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound. The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements: ∙Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues': Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in the consolidated profit and loss account and in other comprehensive income; and ∙Section 33 'Related Party Disclosures': Compensation for key management personnel. The following principal accounting policies have been applied:
| 2.2 | Basis of consolidation
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The consolidated financial statements incorporate those of Supermassive Games Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). All financial statements are made up to 31 December 2024. 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. The directors consider that in order to show the net cash movement in debtors and creditors the foreign exchange movement between the prior year and current year should be removed from the brought forward balances when analysing the cash flow movements. Page 17
SUPERMASSIVE GAMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.3 | Going concern
The directors have assessed the group’s ability to continue as a going concern in light of the prevailing economic conditions, industry-wide challenges, and internal performance forecasts. This assessment included a detailed review of the group’s cash flow projections, updated monthly and aligned with the group’s long-term strategic resource planning. The video game development and publishing sector continues to experience a difficult trading environment, characterised by subdued consumer spending and evolving commercial strategies from key publishing partners. These market conditions have had a direct impact on the timing and availability of new work-for-hire opportunities, which remain limited. While this presents a significant challenge in the short term, the directors remain confident in the group’s medium- to long-term prospects, underpinned by the anticipated recovery of the industry and the group’s strong creative and technical capabilities. Nevertheless, significant risks do still exist and should be recognised here. The key risks facing the group in the current environment include: 1. Sales reductions due to economic factors and restricted consumer spending 2. Shifts in strategy by major publishing partners Economic factors and consumer Spending The global economic environment continues to be challenging, with various factors impacting consumers' disposable income to spend on video games. However, the group continues to innovate, incorporating new gameplay elements into its forthcoming games to attract new players, and with its strong brand in the market and targeted marketing campaigns, the business is positive in achieving the expected level of sales. Management are continuously reviewing their cost base. Partner strategy changes Changes to third party publisher strategies carry a risk to the business, as they could lead to termination of Agreements. Whilst robust commercial agreements have protected rights to the greatest extent possible, the risk of termination is still present. The group is also impacted by delays to signing new work for hire agreements. In light of the above, the directors maintain ongoing oversight of the group’s cost base and remain committed to taking appropriate measures to ensure continued financial discipline. The directors have received written confirmation of continued financial support from the group’s ultimate commercial parent entity, Egmont International Holding A/S. Taking into account this support, the group’s existing cash resources, and its forecasts, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for at least twelve months from the date of approval of these financial statements. Accordingly, the financial statements have been prepared on a going concern basis. Page 18
SUPERMASSIVE GAMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.4 | Turnover
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: 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.
| 2.5 | Royalty income
Royalties are recognised on an accruals basis in accordance with the substance of the relevant agreement. Royalty income is based upon a percentage of turnover of specific products within the licensee's portfolio. Income is recognised within the corresponding period within which the licensee's turnover was generated where this information is available. In the absence of turnover information from a licensor a best estimate is used.
| 2.6 | Other operating income
The Video Games Tax Relief (VGTR) and Video Games Expenditure Credit (VGEC) are recognised on an accruals basis where there is a reasonable expectation that the balance will be recovered. The income is generated through government tax incentives specific to the video games industry and does not relate to ordinary trading income. On this basis the income is recognised as 'other operating income'.
| 2.7 | Taxation
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company and the group operate and generate income. Page 19
SUPERMASSIVE GAMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.8 | 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 the consolidated profit and loss account except when deferred in other comprehensive income as qualifying cash flow hedges.
| 2.9 | Interest payable and similar expenses
Interest payable and similar expenses are charged to the consolidated profit and loss account over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.
| 2.10 | Interest receivable and similar income
Interest receivable and similar income is recognised in the consolidated profit and loss account using the effective interest method.
| 2.11 | Pensions
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to the consolidated profit and loss account in the period to which they relate.
| 2.12 | Intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. The estimated useful lives range as follows:
|  |  |  | Development expenditure | - |  | See accounting policy 2.13
|  |  |  | Other intangible fixed assets | - |  | 2 years straight line
Page 20
SUPERMASSIVE GAMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.13 | Research and development
Capitalised development costs correspond to the costs incurred in the development of new games or software projects to the extent that the company has determined that: 1. the project is technically and commercially feasible; 2. the project is clearly defined and related expenditure is separately identifiable; and 3. current and future costs are expected to be exceeded by future earnings. Development costs will include payroll, outsourcing, direct costs and other relevant expenses relating to the project. Deferred development expenditure for each product is reviewed at the end of each accounting period and where the circumstances which have justified the deferral of the expenditure, as set out above, no longer apply, or are considered doubtful, an impairment provision is made. Where applicable, capitalised development expenditure is presented net of VGTR and VGEC, to the extent that the relief is directly attributable to qualifying projects. Research expenditure is written off in the year in which it is incurred. If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
| 2.14 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Leasehold property | - | Straight line over the life of the lease
|  |  |  | Fixtures and fittings | - | 33% straight line
|  |  |  | Equipment | - | 33% straight line
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the consolidated profit and loss account. Page 21
SUPERMASSIVE GAMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.15 | Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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). Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
| 2.16 | Investments in subsidiaries
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
| 2.17 | Financial instruments
Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument. Basic financial assets Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are classified as recoverable in under one year and subsequently carried at cost and impaired as required. Financial assets classified as receivable within one year are not amortised. 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, including trade and other creditors, are classified as payable within one year 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. 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 cost less discounts, if required. Page 22
SUPERMASSIVE GAMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.18 | Leases
Rentals paid under operating leases are charged to the consolidated profit and loss account on a straight-line basis over the lease term.
| 2.19 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. In the consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the group's cash management.
3. | Judgements in applying accounting policies 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 items in the financial statements where these judgements and estimates have been made include: Project stage of completion Project completion is assessed based on the total costs incurred to date as a percentage of the total costs which are anticipated over the life of the project. Revenue received on projects is deferred or accrued in line with these calculations which the board deem is a more accurate reflection of the projects stage of completion. Amortisation of development costs The board have determined to amortise development costs over a finite period, as detailed in the Intangible assets accounting policy, which is deemed to be appropriate in line with the the forecasts prepared for the respective games. Provision for bad debts The group assesses trade receivables at each reporting date and recognises a bad debt provision for amounts considered irrecoverable. The provision is based on customer credit risk, payment history, ongoing disputes, and market conditions. As at the year-end, specific provisions have been made for overdue or disputed balances, considering ongoing negotiations and the likelihood of recovery. The provision is reviewed regularly and updated based on the latest available information. As at the year-end, the board deem the provision to be adequate and no further provision is required. Provision for dilapidations The group recognises a dilapidation provision for leased properties where it has a legal or constructive obligation to restore the premises to their original condition upon exit. The provision is estimated based on the expected costs required to meet these obligations. The group reviews this estimate periodically, considering any updated cost assessments, lease terms, and changes in market conditions that may impact the required restoration costs. Adjustments to the provision are made as necessary to reflect the most current and reliable information. Page 23
SUPERMASSIVE GAMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
4. | Turnover
| An analysis of turnover by stream is as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Development income | 9,115,962 | 12,129,401
| Royalty income | 7,082,808 | 8,734,229
| Other Income | 77,347 | 377,386
|  | 16,276,117 | 21,241,016
Analysis of turnover by country of destination:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| United Kingdom | 203,196 | 183,695
| Rest of Europe | 10,683,418 | 6,846,666
| Rest of the world | 5,389,503 | 14,210,655
|  | 16,276,117 | 21,241,016
5. | Other operating income
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Key man insurance income | 1,183,305 | -
| Video Games Tax Relief Credit | 498,852 | 9,102,698
| Video Games Expenditure Credit | 7,435,428 | -
6. | Operating loss
| The operating loss is stated after charging:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Depreciation | 1,497,651 | 1,216,055
| Exchange differences | 111,932 | (11,906)
| Other operating lease rentals | 1,161,521 | 2,904,259
| Share-based payment | 5,929,477 | 8,116,004
| Loss on disposal of fixed assets | 787 | -
Page 24
SUPERMASSIVE GAMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
7. | Auditors' remuneration
| During the year, the group obtained the following services from the group's auditors:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Fees payable to the auditors in respect of: |  |
| Audit of the financial statements of the group and the company | 56,000 | 53,846
| All other non-audit services | 21,715 | 18,850
8. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Wages and salaries | 16,927,549 | 18,485,783 | 16,927,549 | 18,485,783
| Social security costs | 1,765,220 | 2,103,251 | 1,765,220 | 2,103,251
| Cost of defined contribution scheme | 466,900 | 510,073 | 466,900 | 510,073
|  | 19,159,669 | 21,099,107 | 19,159,669 | 21,099,107
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2024 | 2023
|  |  | No. | No.
|  | Employees | 261 | 355
9. | Directors' remuneration
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Directors' emoluments | 293,322 | 303,771
| Group contributions to defined contribution pension schemes | 11,319 | 2,103
|  | 304,641 | 305,874
| During the year retirement benefits were accruing to 1 director (2023: Nil) in respect of defined contribution pension schemes.
| The highest paid director received remuneration of £139,645 (2023: £215,852).
| The value of the group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £11,093 (2023: £(535)).
Page 25
SUPERMASSIVE GAMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
10. | Interest receivable and similar income
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Interest received | 97,061 | 1,970
11. | Interest payable and similar expenses
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Bank interest payable | 1,105,680 | -
| Loans from group undertakings | 145,627 | 650,722
| Other interest payable | 85 | -
|  | 1,251,392 | 650,722
12. | Taxation
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Video game expenditure attributable tax | 1,858,857 | -
| Tax on loss | 1,858,857 | -
Page 26
SUPERMASSIVE GAMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 12.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25% (2023:25%). The differences are explained below:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Loss on ordinary activities before tax | (13,428,597) | (17,077,210)
| Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023:25%) | (3,357,149) | (4,269,303)
| Effects of: |  |
| Non trade loan relationships | - | 162,188
| Capital allowances for year in excess of depreciation | 10,156 | (292,610)
| Fixed asset timing differences | (184,002) | 111,661
| Other permanent timing differences | 10,938 | (185)
| Unrelieved tax losses carried forward | - | 6,563,924
| Income not taxable for tax purposes | (423,758) | (2,275,675)
| Group relief surrendered | 1,859,351 | -
| Deferred tax movements not recognised | 3,943,321 | -
| Total tax charge for the year | 1,858,857 | -
| Factors that may affect future tax charges
There were no factors that may affect the future tax changes.
13. | Parent company profit for the year
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and loss account in these financial statements. The loss after tax of the parent company for the year was £22,641,238 (2023:loss £27,757,254). Page 27
SUPERMASSIVE GAMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
14. | Intangible assets
| Group
|  | Patents | Development expenditure | Total
|  | £ | £ | £
| Cost |  |  |
| At 1 January 2024 | 788,441 | 32,709,280 | 33,497,721
| Additions | - | 5,758,690 | 5,758,690
| Impairment | - | (6,694,716) | (6,694,716)
| At 31 December 2024 | 788,441 | 31,773,254 | 32,561,695
| Amortisation |  |  |
| At 1 January 2024 | 788,441 | 16,250,189 | 17,038,630
| Charge for the year | - | 3,477,466 | 3,477,466
| At 31 December 2024 | 788,441 | 19,727,655 | 20,516,096
| Net book value |  |  |
| At 31 December 2024 | - | 12,045,599 | 12,045,599
| At 31 December 2023 | - | 16,459,091 | 16,459,091
Page 28
SUPERMASSIVE GAMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 14.Intangible assets (continued)
| Company
|  | Development expenditure
|  | £
| Cost |
| At 1 January 2024 | 49,192,153
| Additions | 8,971,829
| Impairment | (8,734,200)
| At 31 December 2024 | 49,429,782
| Amortisation |
| At 1 January 2024 | 24,892,698
| Charge for the year | 5,929,477
| At 31 December 2024 | 30,822,175
| Net book value |
| At 31 December 2024 | 18,607,607
| At 31 December 2023 | 24,299,455
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SUPERMASSIVE GAMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
15. | Tangible fixed assets
| Group and Company
|  | Leasehold property | Fixtures and fittings | Computer equipment | Total
|  | £ | £ | £ | £
| Cost |  |  |  |
| At 1 January 2024 | 2,928,322 | 999,782 | 1,513,544 | 5,441,648
| Disposals | - | - | (2,185) | (2,185)
| At 31 December 2024 | 2,928,322 | 999,782 | 1,511,359 | 5,439,463
| Depreciation |  |  |  |
| At 1 January 2024 | 588,400 | 395,081 | 762,561 | 1,746,042
| Charge for the year | 729,200 | 318,600 | 449,852 | 1,497,652
| Disposals | - | - | (1,398) | (1,398)
| At 31 December 2024 | 1,317,600 | 713,681 | 1,211,015 | 3,242,296
| Net book value |  |  |  |
| At 31 December 2024 | 1,610,722 | 286,101 | 300,344 | 2,197,167
| At 31 December 2023 | 2,339,922 | 604,701 | 750,983 | 3,695,606
16. | Fixed asset investments
| Company
|  | Investments in subsidiary companies
|  | £
| At 1 January 2024 | 4
| At 31 December 2024 | 4
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SUPERMASSIVE GAMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
| Subsidiary undertakings
| The following were subsidiary undertakings of the company:
| Name | Registered office | Principal activity | Class of shares | Holding
| Starshape Games Limited | New Kings Court, Tollgate, Chandlers Ford, Eastleigh, Hampshire, SO53 3LG. | Production and licensing of digital assets | Ordinary | 100%
| Supermassive Games 1 Limited | New Kings Court, Tollgate, Chandlers Ford, Eastleigh, Hampshire, SO53 3LG. | Computer games development | Ordinary | 100%
| Supermassive Games 2 Limited | New Kings Court, Tollgate, Chandlers Ford, Eastleigh, Hampshire, SO53 3LG. | Computer games development | Ordinary | 100%
| Supermassive Games 3 Limited | New Kings Court, Tollgate, Chandlers Ford, Eastleigh, Hampshire, SO53 3LG. | Computer games development | Ordinary | 100%
17. | Debtors
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Trade debtors | 1,813,125 | 1,524,050 | 1,813,125 | 1,524,050
| Other debtors | 138,439 | 622,378 | 134,118 | 610,734
| Prepayments and accrued income | 5,417,867 | 4,235,106 | 5,417,867 | 4,222,856
| VGTR and VGEC receivable | 6,950,405 | 9,093,382 | - | -
|  | 14,319,836 | 15,474,916 | 7,365,110 | 6,357,640
18. | Creditors: Amounts falling due within one year
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Bank overdrafts | 65 | - | 65 | -
| Trade creditors | 91,974 | 172,489 | 65,173 | 44,830
| Amounts owed to group undertakings | 17,513,008 | 13,662,063 | 60,681,553 | 48,882,390
| Other taxation and social security | 410,959 | 590,578 | 410,959 | 590,578
| Other creditors | 551,099 | 838,531 | 551,099 | 838,531
| Accruals and deferred income | 6,466,134 | 3,660,907 | 6,402,231 | 3,408,102
|  | 25,033,239 | 18,924,568 | 68,111,080 | 53,764,431
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SUPERMASSIVE GAMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
19. | Creditors: Amounts falling due after more than one year
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Accruals and deferred income | - | 777,309 | - | 777,309
|  | - | 777,309 | - | 777,309
20. | Share capital
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 3,000 (2023: 3,000) Ordinary shares of £1.00 each | 3,000 | 3,000
|  | 3,000 (2023: 3,000) Ordinary B shares of £1.00 each | 3,000 | 3,000
|  | 1,200 (2023: 1,200) Ordinary C shares of £1.00 each | 1,200 | 1,200
|  | 1,000 (2023: 1,000) Ordinary D shares of £1.00 each | 1,000 | 1,000
|  | 1,770 (2023: 1,770) Ordinary E shares of £1.00 each | 1,770 | 1,770
|  | 1,530 (2023: 1,530) Ordinary F shares of £1.00 each | 1,530 | 1,530
|  | 5,561 (2023: 5,561) Employee Non Voting shares of £0.10 each | 556 | 556
|  |  | 12,056 | 12,056
| Dividends are payable on all classes of shares. In the event of a winding up, the assets of the company are distributed in proportion to the amounts paid up on all classes of shares.
21. | Reserves
Share premium account Includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares is deducted from share premium. Capital redemption reserve The capital redemption reserve contains the nominal value of own shares that have been acquired by the company and cancelled. Profit and loss account The consolidated profit and loss accounts represents accumulated profits and losses for the current period and prior periods less dividends paid. Page 32
SUPERMASSIVE GAMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
22. | Pension commitments
The group operates a defined contribution scheme. The pension cost charge represents contributions payable by the group to the fund and amounted to £466,900 (2023: £510,073). Contributions totalling £Nil (2023: £Nil) were payable to the fund at the statement of financial position date.
23. | Commitments under operating leases
| At 31 December 2024 the group and the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Not later than 1 year | 1,107,252 | 1,351,026 | 1,107,252 | 1,352,367
| Later than 1 year and not later than 5 years | 1,981,847 | 3,750,783 | 1,981,847 | 3,749,442
|  | 3,089,099 | 5,101,809 | 3,089,099 | 5,101,809
24. | Related party transactions
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. The company has a cash pool facility with its ultimate parent, Egmont Fonden, which is controlled by the ultimate parent. The company pays interest to the ultimate parent at market rates. The balance outstanding under this facility as at the year-end is £16,723,710. Amounts were also owed to other group companies totalling £789,299.
25. | Post balance sheet events
In July 2025, Supermassive Games initiated a further reorganisation plan, which included entering into a consultation period. The proposed restructure is expected to result in the reduction of approximately 36 roles. This decision forms part of the group’s continued efforts to align its cost base with strategic priorities. At the date of approval of these financial statements, the consultation process remains ongoing.
26. | Controlling party
The ultimate parent undertaking and controlling party is Egmont Fonden, a company incorporated in Denmark, whose registered office is Vognmagergade 11, 1148 Copenhagen K, Denmark.
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