Caseware UK (AP4) 2024.0.164 2024.0.164 2023-12-31 2023-12-31 2023-12-31 false motion picture and television programme production 1 2023-01-01 1 false false false 09872092 2023-01-01 2023-12-31 09872092 2022-01-01 2022-12-31 09872092 2023-12-31 09872092 2022-12-31 09872092 2022-01-01 09872092 1 2023-01-01 2023-12-31 09872092 d:Director1 2023-01-01 2023-12-31 09872092 d:RegisteredOffice 2023-01-01 2023-12-31 09872092 c:FurnitureFittings 2023-01-01 2023-12-31 09872092 c:CurrentFinancialInstruments 2023-12-31 09872092 c:CurrentFinancialInstruments 2022-12-31 09872092 c:CurrentFinancialInstruments c:WithinOneYear 2023-12-31 09872092 c:CurrentFinancialInstruments c:WithinOneYear 2022-12-31 09872092 c:ShareCapital 2023-12-31 09872092 c:ShareCapital 2022-12-31 09872092 c:ShareCapital 2022-01-01 09872092 c:SharePremium 2023-01-01 2023-12-31 09872092 c:SharePremium 2023-12-31 09872092 c:SharePremium 2022-12-31 09872092 c:SharePremium 2022-01-01 09872092 c:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 09872092 c:RetainedEarningsAccumulatedLosses 2023-12-31 09872092 c:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 09872092 c:RetainedEarningsAccumulatedLosses 2022-12-31 09872092 c:RetainedEarningsAccumulatedLosses 2022-01-01 09872092 c:AcceleratedTaxDepreciationDeferredTax 2023-12-31 09872092 c:AcceleratedTaxDepreciationDeferredTax 2022-12-31 09872092 d:OrdinaryShareClass1 2023-01-01 2023-12-31 09872092 d:OrdinaryShareClass1 2023-12-31 09872092 d:OrdinaryShareClass1 2022-12-31 09872092 d:FRS102 2023-01-01 2023-12-31 09872092 d:Audited 2023-01-01 2023-12-31 09872092 d:FullAccounts 2023-01-01 2023-12-31 09872092 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 09872092 c:Subsidiary1 2023-01-01 2023-12-31 09872092 c:Subsidiary1 1 2023-01-01 2023-12-31 09872092 d:Consolidated 2023-12-31 09872092 d:ConsolidatedGroupCompanyAccounts 2023-01-01 2023-12-31 09872092 e:PoundSterling 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 09872092 CHARACTER 7 LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
CHARACTER 7 LIMITED
COMPANY INFORMATION
Director | S J N W Garrett
Registered number | 09872092
Registered office | 5 Elstree Gate
| Elstree Way
| Borehamwood
| Hertfordshire
| WD6 1JD
Independent auditors | Sopher + Co LLP
| Chartered Accountants & Statutory Auditors
| 5 Elstree Gate
| Elstree Way
| Borehamwood
| Hertfordshire
| WD6 1JD
CHARACTER 7 LIMITED
CONTENTS
| Page
Group Strategic Report | 1 - 2
Director's Report | 3 - 4
Independent Auditors' Report | 5 - 8
Consolidated Statement of Comprehensive Income | 9
Consolidated Statement of Financial Position | 10
Company Statement of Financial Position | 11
Consolidated Statement of Changes in Equity | 12
Company Statement of Changes in Equity | 13
Consolidated Statement of Cash Flows | 14
Consolidated Analysis of Net Debt | 15
Notes to the Financial Statements | 16 - 25
CHARACTER 7 LIMITED
GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2023
Introduction
The directors present the strategic report and financial statements for the year ended 31 December 2023. This strategic report has been prepared for the activities of the group of Character 7 Limited and its subsidiary undertaking. The director, in preparing this strategic report, has complied with s414C of the Companies Act 2006. Overview Character 7 Limited is a 100% parent of Buried Treasure Productions Limited. The Group's principal activities is that of motion picture and television programme production.
Business review
Character 7 Limited is a small-sized production company focused on the development and production of television content. During the previous year ended 31 December 2022, the Group expanded its operations through its wholly-owned subsidiary special purpose vehicle, Buried Treasure Productions Limited, which commenced production of the television series “Culprits” for Disney, which was broadcast in 2023. Financial and Operational Review The production of the television series during the current and previous year materially increased the Group’s scale, resulting in the Group exceeding the small company thresholds under the Companies Act 2006. As a result, consolidated financial statements have been prepared for the first time for the year ended 31 December 2023. Although the Group exceeded the size threshold in the prior year, consolidated accounts were not prepared at that time, due to differing accounting periods between the parent company and subsidiary, and the significance of the impact of this production on size threshold not being fully appreciated. The Director has now taken the necessary steps to ensure that consolidated financial statements are prepared in accordance with FRS 102 and the requirements of the Companies Act 2006, with full comparative information. Review of the Year The Group’s principal activity remained the development, production, and exploitation of television content. Revenues and costs associated with the production of “Culprits” are included within the consolidated accounts, reflecting the Group’s expanded operations and reporting requirements, with turnover of £5.5 million (2022 - £38.6 million.). After accruing High-End Television Tax Credits, the Group achieved a profit after taxation for the year of £2.38 million (2022 – loss £0.06 million). The financial position of the Group at the reporting date was strong with net assets of £3.1 million (2022 - £0.76 million), all represented by cash in hand and with no debt.
Principal risks and uncertainties
The Director considers that the principal risks facing the Group relate to the funding, production, and delivery of television projects, as well as changes in audience demand and broadcaster commissioning decisions. The Group depends on securing timely financing for productions and on retaining key creative and operational personnel to deliver projects on schedule and within budget. Failure to comply with legal, contractual, or regulatory requirements, including intellectual property and broadcasting rules, could also have financial or reputational consequences. The Director manages these risks through careful project and financial planning, diversifying funding sources, robust legal oversight, and retaining key talent. Page 1
CHARACTER 7 LIMITED
GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Financial key performance indicators
The Director monitors the performance of the business using a small number of key financial measures, including turnover, gross margin, and operating profit, which provide an indication of production activity and profitability. Cash flow and the level of working capital are also closely monitored to ensure the Group can meet its obligations and fund future productions. This report was approved by the board on 24 November 2025 and signed on its behalf.
S J N W Garrett Director
Page 2
CHARACTER 7 LIMITED
DIRECTOR'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The director presents his report and the financial statements for the year ended 31 December 2023.
Director
The director who served during the year was:
S J N W Garrett
Director's responsibilities statement
The director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated 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 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 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 the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the director is required to: ∙select suitable accounting policies for the Group's financial statements and then apply them consistently; ∙make judgments 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 Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Results and dividends
The profit for the year, after taxation, amounted to £2,380,100 (2022 - loss £57,961). No dividends were paid. The director does not recommend a payment of a final dividend.
Disclosure of information to auditors
The director at the time when this Director's Report is approved has confirmed that: ∙so far as he is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and ∙he 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.
Events after the year end
There have been no significant events affecting the Group since the year end. Page 3
CHARACTER 7 LIMITED
DIRECTOR'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Auditors
Under section 487(2) of the Companies Act 2006, Sopher + Co LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier. This report was approved by the board on 24 November 2025 and signed on its behalf.
S J N W Garrett Director
Page 4
CHARACTER 7 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHARACTER 7 LIMITED
Opinion
We have audited the financial statements of Character 7 Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Group Statement of Comprehensive Income, the Group and Company Statements of Financial Position, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity 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 2023 and of the Group's 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 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 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 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 director with respect to going concern are described in the relevant sections of this report. Page 5
CHARACTER 7 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHARACTER 7 LIMITED (CONTINUED)
Other information
The director is responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
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 Director's 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 Director's 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 or the Director's 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 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 directors
As explained more fully in the Director's Responsibilities Statement set out on page 3, 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 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 director is 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 director either intends to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so. Page 6
CHARACTER 7 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHARACTER 7 LIMITED (CONTINUED)
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: ∙the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; ∙we identified the laws and regulations applicable to the Company through discussions with directors and other management, and from our commercial knowledge and experience of the motion picture and television programme production sector; ∙we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; ∙we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and ∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: ∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; ∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and ∙understanding the design of the Company’s remuneration policies. To address the risk of fraud through management bias and override of controls, we: ∙performed analytical procedures to identify any unusual or unexpected relationships; ∙tested journal entries to identify unusual transactions; ∙assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and ∙investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: ∙agreeing financial statement disclosures to underlying supporting documentation; ∙reading the minutes of meetings of those charged with governance; ∙enquiring of management as to actual and potential litigation and claims; and ∙reviewing correspondence with HMRC, relevant regulators and the Company’s legal advisors. Page 7
CHARACTER 7 LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHARACTER 7 LIMITED (CONTINUED) There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment 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 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. Stephen Iseman FCA (Senior Statutory Auditor) for and on behalf of Sopher + Co LLP Chartered Accountants Statutory Auditors 5 Elstree Gate Elstree Way Borehamwood Hertfordshire WD6 1JD 24 November 2025 Page 8
CHARACTER 7 LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2023
| 2023 | 2022
Note | £ | £
Turnover | 4 | 5,487,598 | 38,574,905
Cost of sales |  | (4,594,870) | (45,866,672)
Gross profit/(loss) |  | 892,728 | (7,291,767)
Administrative expenses |  | (589,476) | (492,681)
Other operating income | 5 | 177,741 | 2,942
Operating profit/(loss) |  | 480,993 | (7,781,506)
Interest receivable and similar income |  | 1,703 | -
Interest payable and similar expenses |  | (2) | -
Profit/(loss) before taxation |  | 482,694 | (7,781,506)
Taxation | 8 | 1,897,406 | 7,723,545
Profit/(loss) for the financial year |  | 2,380,100 | (57,961)
Profit/(loss) for the year attributable to: |  |  |
Owners of the parent Company |  | 2,380,100 | (57,961)
There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.
There was no other comprehensive income for 2023 (2022:£NIL).
The notes on pages 16 to 25 form part of these financial statements.
Page 9
CHARACTER 7 LIMITED REGISTERED NUMBER:09872092
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023
|  | 2023 |  | 2022
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 9 |  | 486,724 |  | 428,989
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 11 | 4,443,718 |  | 12,449,863 |
Cash at bank and in hand |  | 5,580,547 |  | 1,982,453 |
|  | 10,024,265 |  | 14,432,316 |
Current liabilities |  |  |  |  |
Creditors: amounts falling due within one year | 12 | (7,343,226) |  | (14,079,315) |
Net current assets |  |  | 2,681,039 |  | 353,001
Total assets less current liabilities |  |  | 3,167,763 |  | 781,990
Deferred taxation | 13 |  | (25,273) |  | (19,600)
Net assets |  |  | 3,142,490 |  | 762,390
Capital and reserves |  |  |  |  |
Called up share capital | 14 |  | 1 |  | 1
Share premium account | 15 |  | 6,378 |  | 6,378
Profit and loss account | 15 |  | 3,136,111 |  | 756,011
Equity attributable to owners of the parent Company |  |  | 3,142,490 |  | 762,390
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 November 2025.
S J N W Garrett
Director
The notes on pages 16 to 25 form part of these financial statements. Page 10
CHARACTER 7 LIMITED REGISTERED NUMBER:09872092
COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023
|  | 2023 |  | 2022
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 9 |  | 486,724 |  | 428,989
Investments | 10 |  | 1 |  | 1
|  |  | 486,725 |  | 428,990
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 11 | 438,316 |  | 1,416,204 |
Cash at bank and in hand |  | 2,817,319 |  | 489,843 |
|  | 3,255,635 |  | 1,906,047 |
Current liabilities |  |  |  |  |
Creditors: amounts falling due within one year | 12 | (599,597) |  | (1,565,347) |
Net current assets |  |  | 2,656,038 |  | 340,700
Total assets less current liabilities |  |  | 3,142,763 |  | 769,690
Deferred taxation | 13 |  | (25,273) |  | (19,600)
Net assets |  |  | 3,117,490 |  | 750,090
Capital and reserves |  |  |  |  |
Called up share capital | 14 |  | 1 |  | 1
Share premium account | 15 |  | 6,378 |  | 6,378
Profit and loss account carried forward |  |  | 3,111,111 |  | 743,711
|  |  | 3,117,490 |  | 750,090
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 November 2025.
S J N W Garrett
Director
The notes on pages 16 to 25 form part of these financial statements. Page 11
CHARACTER 7 LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2023
| Called up share capital | Share premium account | Profit and loss account | Equity attributable to owners of parent Company | Total equity
| £ | £ | £ | £ | £
At 1 January 2022 | 1 | 6,378 | 813,972 | 820,351 | 820,351
Loss for the year | - | - | (57,961) | (57,961) | (57,961)
At 1 January 2023 | 1 | 6,378 | 756,011 | 762,390 | 762,390
Profit for the year | - | - | 2,380,100 | 2,380,100 | 2,380,100
At 31 December 2023 | 1 | 6,378 | 3,136,111 | 3,142,490 | 3,142,490
| The notes on pages 16 to 25 form part of these financial statements.
Page 12
CHARACTER 7 LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2023
| Called up share capital | Share premium account | Profit and loss account | Total equity
| £ | £ | £ | £
At 1 January 2022 | 1 | 6,378 | 813,970 | 820,349
Loss for the year | - | - | (70,259) | (70,259)
At 1 January 2023 | 1 | 6,378 | 743,711 | 750,090
Profit for the year | - | - | 2,367,400 | 2,367,400
At 31 December 2023 | 1 | 6,378 | 3,111,111 | 3,117,490
| The notes on pages 16 to 25 form part of these financial statements.
Page 13
CHARACTER 7 LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023
|  |  | 2023 | 2022
|  |  | £ | £
Cash flows from operating activities |  |
Profit/(loss) for the financial year | 2,380,100 | (57,961)
Adjustments for: |  |
Depreciation of tangible assets | 56,678 | 17,184
Interest paid | 2 | -
Interest received | (1,703) | -
Taxation charge | (1,897,406) | (7,723,545)
Decrease/(increase) in debtors | 2,119,209 | (4,425,445)
(Decrease)/increase in creditors | (6,736,089) | 13,796,042
Corporation tax received/(paid) | 7,790,015 | (144,333)
Net cash generated from operating activities | 3,710,806 | 1,461,942
Cash flows from investing activities |  |
Purchase of tangible fixed assets | (114,413) | (439,416)
Interest received | 1,703 | -
Net cash from investing activities | (112,710) | (439,416)
Cash flows from financing activities |  |
Interest paid | (2) | -
Net cash used in financing activities | (2) | -
Net increase in cash and cash equivalents | 3,598,094 | 1,022,526
Cash and cash equivalents at beginning of year | 1,982,453 | 959,927
Cash and cash equivalents at the end of year | 5,580,547 | 1,982,453
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 5,580,547 | 1,982,453
| 5,580,547 | 1,982,453
The notes on pages 16 to 25 form part of these financial statements.
Page 14
CHARACTER 7 LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT FOR THE YEAR ENDED 31 DECEMBER 2023
|  | At 1 January 2023 | Cash flows | At 31 December 2023
|  | £ | £ | £
Cash at bank and in hand | 1,982,453 | 3,598,094 | 5,580,547
The notes on pages 16 to 25 form part of these financial statements.
Page 15
CHARACTER 7 LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
1. | General information
Character 7 Limited is a private limited liability company incorporated in England and Wales, with its registered office address at 5 Elstree Gate, Elstree Way, Borehamwood, Hertfordshire, WD6 1JD. The principal activity of the Company is that of a holding company. The Groups activity is that of content creation for broadcast media. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3). The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The following principal accounting policies have been applied:
| 2.2 | Basis of consolidation
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. Page 16
CHARACTER 7 LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 2.Accounting policies (continued)
| 2.3 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is £ Sterling. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'. On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
| 2.4 | Turnover
Turnover comprises production fees and amounts receivable for the exploitation of rights and royalties net of Value Added Tax. production turnover is recognised over the period of production on a stage of completion basis. Royalties receivable are accounted for on a royalty earnings basis as part of turnover.
| 2.5 | Pensions
Defined contribution pension plan The Group contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds. Page 17
CHARACTER 7 LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 2.Accounting policies (continued)
| 2.6 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. 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 reporting date in the countries where the Company and the Group operate and generate income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that: - The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and - Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
| 2.7 | 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. Depreciation is provided on the following basis:
|  |  |  | Fixtures and fittings | - | 10% - 25% 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 profit or loss.
| 2.8 | Debtors
Short-term debtors are measured at the transaction price, less any impairment.
| 2.9 | 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. Page 18
CHARACTER 7 LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 2.Accounting policies (continued)
| 2.10 | Creditors
Short-term creditors are measured at the transaction price.
| 2.11 | Financial instruments
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors.
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
In the application of the Company’s and Group's accounting policies, the director is 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 otherfactors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Critical judgements In the opinion of the director, there were no other critical judgements or other uncertainties in these financial statements.
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2023 | 2022
|  |  |  |  | £ | £
| UK | 146,389 | 103,956
| Rest of the world | 5,341,209 | 38,470,949
|  | 5,487,598 | 38,574,905
5. | Other operating income
|  |  |  |  | 2023 | 2022
|  |  |  |  | £ | £
| Insurance claims receivable | 177,741 | 2,942
Page 19
CHARACTER 7 LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
6. | Auditors' remuneration
| During the year, the Group obtained the following services from the Groups's auditors:
|  |  |  |  | 2023 | 2022
|  |  |  |  | £ | £
| Fees payable to the Groups's auditors for the audit of the consolidated and parent Company's financial statements | 17,500 | -
| Fees payable to the Groups's auditors in respect of: |  |
| All taxation advisory services not included above | 1,504 | 2,301
| All non-audit services not included above | 27,005 | 25,000
7. | Employees
| Staff costs, including director's remuneration, were as follows:
|  | Group | Group | Company | Company
|  | 2023 | 2022 | 2023 | 2022
|  | £ | £ | £ | £
| Wages and salaries | 187,679 | 170,167 | 187,679 | 170,167
| Social security costs | 18,815 | 16,858 | 18,815 | 16,858
| Cost of defined contribution scheme | 2,394 | 2,291 | 2,394 | 2,291
|  | 208,888 | 189,316 | 208,888 | 189,316
| The average monthly number of employees, including the director, during the year was as follows:
|  |  | Group | Group | Company | Company
|  |  | 2023 | 2022 | 2023 | 2022
|  |  | No. | No. | No. | No.
|  | Director and employees | 14 | 59 | 1 | 1
| Director remuneration During the year, the Group provided private medical insurance to the director, valued at £2,363 (2022: £NIL). No other remuneration, fees, or benefits were provided.
Page 20
CHARACTER 7 LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
8. | Taxation
|  |  |  |  | 2023 | 2022
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | (1,903,079) | (7,743,145)
| Deferred tax |  |
| Origination and reversal of timing differences | 5,673 | 19,600
| Taxation | (1,897,406) | (7,723,545)
| Factors affecting tax charge for the year
| The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:
|  |  |  |  | 2023 | 2022
|  |  |  |  | £ | £
| Profit/(loss) on ordinary activities before tax | 482,694 | (7,781,506)
| Profit/(loss) on ordinary activities multiplied by the standard rate of corporation tax in the UK of 25% (2022 - 19%) | 120,674 | (1,478,486)
| Effects of: |  |
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | - | 26,799
| Capital allowances for year in excess of depreciation | - | (27,642)
| Utilisation of tax losses | (120,674) | -
| Unrelieved tax losses carried forward | - | 1,466,407
| High-End Television Tax Credits | (1,903,079) | (7,730,223)
| Deferred tax | 5,673 | 19,600
| Total tax charge for the year | (1,897,406) | (7,723,545)
| Factors that may affect future tax charges
The Group has losses approximately of £9.6m (2022 - £8.9m) available to carry forward against future profits or surrender as group relief. No provision has been made for a deferred tax asset in respect of these losses in view of uncertainty as to when they may prove recoverable. Page 21
CHARACTER 7 LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
9. | Tangible fixed assets
| Group and Company
|  | Fixtures and fittings
|  | £
| Cost |
| At 1 January 2023 | 456,466
| Additions | 114,413
| At 31 December 2023 | 570,879
| Depreciation |
| At 1 January 2023 | 27,477
| Charge for the year on owned assets | 56,678
| At 31 December 2023 | 84,155
| Net book value |
| At 31 December 2023 | 486,724
| At 31 December 2022 | 428,989
10. | Fixed asset investments
| Company
|  | Investments in subsidiary companies
|  | £
| Cost |
| At 1 January 2023 | 1
| At 31 December 2023 | 1
Page 22
CHARACTER 7 LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
| Subsidiary undertaking
| The following was a subsidiary undertaking of the Company:
| Name | Registered office | Class of shares | Holding
| Buried Treasure Production Limited | 5 Elstree Gate, Elstree Way, Borehamwood, Hertfordshire, WD6 1JD | Ordinary | 100%
11. | Debtors
|  | Group | Group | Company | Company
|  | 2023 | 2022 | 2023 | 2022
|  | £ | £ | £ | £
| Trade debtors | 15,175 | 30,146 | 19,853 | 30,146
| Other debtors | 2,564,931 | 4,644,808 | 411,058 | 1,341,372
| Prepayments and accrued income | 7,401 | 31,762 | 7,405 | 31,762
| Tax recoverable | 1,856,211 | 7,743,147 | - | 12,924
|  | 4,443,718 | 12,449,863 | 438,316 | 1,416,204
12. | Creditors: Amounts falling due within one year
|  | Group | Group | Company | Company
|  | 2023 | 2022 | 2023 | 2022
|  | £ | £ | £ | £
| Trade creditors | 303,759 | 712,283 | 279,664 | 15,750
| Amounts owed to group undertakings | - | - | 1 | 1
| Other taxation and social security | 282,932 | 538,253 | 282,932 | 164,596
| Other creditors | 2,462,638 | 10,001,481 | - | -
| Accruals and deferred income | 4,293,897 | 2,827,298 | 37,000 | 1,385,000
|  | 7,343,226 | 14,079,315 | 599,597 | 1,565,347
Page 23
CHARACTER 7 LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
13. | Deferred taxation
| Group and company
|  | 2023
|  | £
| At beginning of year | 19,600
| Charged to profit or loss | 5,673
| At end of year | 25,273
|  | Group | Group | Company | Company
|  | 2023 | 2022 | 2023 | 2022
|  | £ | £ | £ | £
| Accelerated capital allowances | 25,273 | 19,600 | 25,273 | 19,600
14. | Share capital
|  |  |  |  | 2023 | 2022
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 1 (2022 - 1) Ordinary share of £1 | 1 | 1
15. | Reserves
Share premium account The share premium reserve includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium
16. | Pension commitments
The Group contributes to a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. Contributions totalling £514 (2023 - £514) were payable to the fund at the reporting date and are included in creditors. Page 24
CHARACTER 7 LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
17. | Related party transactions
| At the reporting date the Group was owed £10,858 (2022 - £Nil) by the director, included in other debtors which was repaid after the year end. Interest has been charged at the official HMRC rate. The Company has taken advantage of the exemption under FRS102 33.1A Related Party Disclosures not to disclose transactions entered into between two or more members of a group, provided that any subsidiary undertaking which is a party to the transaction is wholly owned by a member of that group.
18. | Events after the year end
There were no significant events after the year end.
19. | Controlling party
The controlling party is S J N W Garrett.
Page 25