The directors present their Strategic Report for Blue Ant International Limited (“the Company and the Group”) for the year ended 31 August 2024.

Strategic Management

Business Model

The Group’s principal activity is the distribution of native 4K nature, natural history, factual, reality, lifestyle, formats, documentaries, series and wildlife content internationally for broadcast on television and online. In addition, the Group acts as an agent for the distribution of television channels internationally. The directors do not expect the nature of these activities to change significantly in the next year.

Strategic Focus

The Group will continue to focus on the acquisition and sale of a catalogue of international program rights including the pre-sale and sale of certain owned content rights. The main demographic focus will be placed on English-speaking and other mature media markets in the US, Germany, France, UK and Australia. The Group is also seeking to grow its business by increasing the number of output distribution deals and expanding into more overseas locations.

Business Environment

Principal risks and uncertainties - external environment

The key external business risks and uncertainties affecting the Group relate to the general economic environment, changes in corporate tax rates and international tax laws, as well as competition from other television distribution companies for content. These risks are mitigated by the fact that the Group is a part of a large, diversified group of companies that produces and creates content globally. The Group’s management actively monitors industry trends and the broader economic environment to mitigate the impact to the Group of any significant external changes.

Principal risks and uncertainties - internal environment

The Group’s key financial risks are credit risk and liquidity risk. The credit risk on trade and other receivables is limited because the counterparties are diverse and generally do not have a history of collectability issues. Liquidity risk is managed through the fact that the company funds its operations from shareholder contributions.

Future developments

The group has no plans to change the nature of its operations, or its underlying business model in 2025 and beyond. Management believes that the business is well positioned to weather any other internal and external uncertainties that may impact future results. The success of the group’s business model continues to be based on its ability to acquire and distribute content globally, and management believes that this success will continue at least into the near future.

The Group’s Key Performance Indicators (“KPIs”), which management considers in evaluating the performance of the business, are revenue and gross profit.

Profitability and Operations

The following table summarises the historical business performance of the group for the year ended 31 August 2024:

The increase in revenue from the prior year is due to distribution revenue, driven in part by prioritizing the sale of original series and pre-sales. Pre-sales flow directly into the production at a lower commission which contributes to the lower margin rate year over year.

Financial Position

The following table summarises the financial position of the Group as at 31 August 2024:

Overall, the Group’s balance sheet remains strong, with total assets exceeding total liabilities. During the year, the Group reorganized their production and distribution business to optimize effectiveness of the distribution team under unified leadership and increased spend on library acquisitions. The Group continues to be well-capitalized and positioned for sustainability and resilience going forward. 

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 August 2024.

The principal activity of the group continued to be that of distributing video content across a range of traditional and digital media platforms.

The results for the year are set out on page 11.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

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

The group's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

The group's current policy concerning the payment of trade creditors is to:

• settle the terms of payment with suppliers when agreeing the terms of each transaction;

• ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and

• pay in accordance with the company's contractual and other legal obligations.

Trade creditors of the group at the year end were equivalent to 31 day's purchases, based on the average daily amount invoiced by suppliers during the year.

Details on the future developments over the group have been included in the Strategic Report.

In accordance with the company's articles, a resolution proposing that Moore Kingston Smith LLP be reappointed as auditor of the company and group will be put at a General Meeting.

Each director in office at the date of approval of this annual report confirms that:

• so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

• the director has taken all the steps that he / she ought to have taken as a director in order to make himself / herself aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the group financial statements in accordance with UK adopted International Accounting Standards (UK IFRS), and the parent company financial statements in accordance with FRS 101 'Reduced Disclosure Framework' (United Kingdome Generally Accepted Accounting Practice). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company and of the profit or loss of the group for that period.

In preparing the group financial statements, International Accounting Standard 1 requires that directors:

• properly select and apply accounting policies;

• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

• provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and

• make an assessment of the company's ability to continue as a going concern.

In preparing the company financial statements, United Kingdom Generally Accepted Accounting Practice requires that directors:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Blue Ant International Limited (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended 31 August 2024 which comprise the Group Income Statement, the Group Statement of Comprehensive Income, the Group and Company Statement Of Financial Position, the Group and Company Statement of Changes in Equity, the Group Statement of Cash Flows and the Group and Company notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in the preparation of the group's financial statements is applicable law and UK adopted international accounting standards. The financial reporting framework that has been applied in the preparation of the parent company's financial statements is applicable law and United Kingdom Accounting Standards,including Financial Reporting Standard 101 Reduced Disclosure Framework (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 August 2024 and of the group's profit for the year then ended;

• have been properly prepared in accordance with UK adopted International Accounting Standards.

• the parent company financial statements 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

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

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

• the parent company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

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

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

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

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the limited liability partnership’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the members.

• Conclude on the appropriateness of the members’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the limited liability partnership’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the limited liability partnership to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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 objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

• We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, for the group financial statements, UK adopted International Accounting Standards, for the company financial statements, UK Accounting Standards as issued by the Financial Reporting Council, and UK taxation legislation.

• We obtained an understanding of how the parent company complies with these requirements by discussions with management and those charged with governance.

• We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

• We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.

• Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

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

Blue Ant International Limited ("the Company") and its subsidiaries (together 'the group'), incorporated on 8 June 2015, is a private corporation domiciled in the UK and produces and distributes video content across a range of traditional and digital media platforms. The address of its registered office is 6th Floor 9 Appold Street, London, United Kingdom, EC2A 2AP.

These consolidated and separate financial statements represent the year ended 31 August 2024 (and contain comparative information).

The principal accounting policies applied in the preparation of these financial statements are set out below. The functional and presentational currency of the Company is the United States dollar (US$).

The principal accounting policies applied in the preparation of these consolidated and separate financial statements have been applied consistently in both years presented and are set out below.

These group financial statements have been prepared in accordance with UK adopted International Accounting Standards (UK IFRS) and with the requirements of the Companies Act 2006 as applicable to those companies reporting under those standards.

These consolidated and separate financial statements have been prepared using the historical cost convention and have been prepared on a going concern basis. See note 1.4 for specific going concern disclosure.

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 cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.

Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.

The consolidated group financial statements consist of the financial statements of the parent company Blue Ant International Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in associates.

All financial statements are made up to 31 August 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into alignment with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

During the year the truegroup made profits of $1,565,272 (2023: $2,576,544) and at the year end had net assets of $14,001,925 (2023: $10,749,493) and net current liabilities of $1,260,226 (2023: $1,421,689). This includes $5,781,730(2023: $4,413,195) owed to fellow group undertakings. The directors of the group headed by Blue Ant Media Inc, (the parent company of Blue Ant International Limited) have confirmed that they will not seek repayment of the outstanding liability of $5,781,730 owed to fellow group companies until such time as the company is able to repay without compromising its ability to continue to trade and meet its external liabilities as they fall due. On this basis the directors have, at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to settle its liabilities and continue in operational existence for the foreseeable future, which reflects a period of at least 12 months from the date of approval of the financial statements and concluded that there are no material uncertainties relating to going concern. The company therefore continues to adopt the going concern basis of accounting in preparing the financial statements.

Revenue is recognised at an amount that reflects the expected consideration receivable in exchange for transferring goods or services to a customer, applying the following five steps:

1.    Identify the contract with the customer;

2.    Identify the performance obligation in the contract;

3.    Determine the transaction price;

4.    Allocate the transaction price to the performance obligations in the contract; and

5.    Recognise revenue when (or as) the entity satisfies the performance obligation.

The Group applies the following specific revenue recognition policies:

Content distribution revenue is license fees for the right to exhibit film and television programs in specified geographic markets and within specified time periods. Revenue is recognised at the start of the license period, when the customer has access to and control over the licensed content.

Production revenue includes revenue from the license of proprietary content as well as revenue from production

services for third parties. Licensing is tied to episodic delivery of programs, which are each considered separate

performance obligations, and is recognized when the production is complete and the underlying content has been

delivered to the customer. Production services revenue is recognized based on an input method, using the

proportion of costs incurred in the period relative to total expected costs.

Channel distribution revenue is the commission earned for selling channel subscriptions on the behalf of another party. Revenue is recognised when the obligations of the agent contracts are fulfilled, generally at the time of sale.

Gross Versus net revenue

Third party arrangements are evaluated to determine whether the Group acts as the principal or agent under the specific terms of each arrangement. To the extent that the Group acts as the principal in an arrangement, revenues are reported on a gross basis; revenues and expenses are recognised in their respective financial statement line items. Conversely, if the Group acts as the agent, revenues are reported on a net basis; revenues are net of any related expenses.

Determination of principal or agent classification is based on an evaluation of whether the nature of the Company's promise is a performance obligation to provide specific goods or services to the customer (principal), or simply arrange for those goods and services to be provided to the customer by a third party (agent). The most significant factors to consider include whether the Group controls the good or service immediately before it is transferred to the customer, is primarily responsible for fulfilling the promise to provide the specified goof or service, has inventory risk before transferring the specified good or service, and has discretion in establishing prices for the specified good or service.

Goodwill represents the excess of the cost of acquisition of incorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less impairment losses.

The gain on a bargain purchase is recognised in profit or loss in the period of the acquisition. This occurs when the cost of acquisition of less than the fair values of the net assets acquired.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit on the pro-rate basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not subsequently reversed.

Intangible assets represent distribution rights obtained by the Group for a set period. These rights grant the Group the ability to distribute content without ownership of the underlying intellectual property. Distribution rights come with a contractual license term between 3 to 10 years. However, amortization is over an accelerated four years, within the contractual period, to reflect that the main benefits are received within this timeframe. Specifically, these rights are amortized over four years with rates of 50% / 20% / 20% / 10%. Amortization expenses for intangible assets are included under administrative expenses in the statement of profit.

Changes in useful life and content abandonment

The distribution rights library is regularly reviewed by management to confirm each asset’s ongoing value to the Group. Programs deemed unsuitable for distribution or broadcast are considered "abandoned," and their carrying value is fully written off in the same period.

Property, plant and equipment are carried at cost, less accumulated depreciation and accumulated impairment losses.

The cost of an item of property, plant and equipment consists of the purchase price, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use and an initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Depreciation is recognised based on the cost of an item of property, plant and equipment, less its estimated residual value, over its estimated useful life through administrative expenses in the statement of profit at the following rates:

An asset's residual value, useful life and amortisation method are reviewed, and adjusted if appropriate, on an annual basis.

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

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

The Group has applied IFRS 9 Financial Instruments during the year, under which financial instruments are measured and classified based on the business model in which they are held and the characteristics of the underlying cash flows. IFRS 9 contains three primary measurement categories for financial assets: measured at fair value through profit and loss ("FVPL"), amortized cost, and fair value through other comprehensive income ("FVOCI").

The Group has determined the following classification of its assets and liabilities at initial recognition:

Asset/liability                        Classification and Measurement

Cash and cash equivalents                    Amortised cost

Trade and other receivables                Amortised cost

Trade and other Payables                    Amortised cost

All financial assets are recognized and derecognized on the trade date, which is the date that the Company commits to purchase or sell the asset. The Group has not classified any financial instruments as FVOCI.

Loans and other receivables that have fixed or determinable payments that are not quoted in an active market are held at amortised cost using the effective interest method, less any impairment. Interest income is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.

Financial assets carried at amortised cost are assessed for indicators of impairment at each reporting end date.

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

For trade receivables, the simplified approach permitted by IFRS 9 is applied, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

The group recognises financial debt when the group becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as 'other financial liabilities'.

Other financial liabilities are recognised initially at fair value net of any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method. Other financial liabilities are de-recognised when the obligations are discharged, cancelled or expired.

Financial liabilities are derecognised when, and only when, the group’s obligations are discharged, cancelled, or they expire.

The nature and purpose of the reserve categories are as follows:

Accumulated paid-in capital represents the contributions from the Group's ultimate parent that do not result in the issuance of new shares.

Cumulative translation adjustments, arising from exchange differences on translation of foreign currency transactions, are recognized in OCI and accumulated in a separate reserve within equity.

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

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

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the group has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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

The following describes the Group's accounting policy for leases under IFRS 16, applied from the date of initial application:

The Group recognizes right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized at the inception of the lease, initial direct costs incurred, and lease payments made at or before the lease commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the lease term.

Right-of-use assets are tested for recoverability when an indicator of impairment exists. Impairment is assessed at the lowest CGU level, and is measured by comparing the recoverable amount to its carrying value and recording an impairment expense where the carrying value exceeds the recoverable amount.

The Group recognizes lease liabilities at the commencement date of the lease, measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable. In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date.

The amount of lease liabilities is increased through interest expense and reduced for lease payments made at the time of the payment. In addition, the carrying amount of lease liabilities is remeasured if there is a modification to the lease or a change in the assessment of the option to purchase the underlying asset.

The consolidated financial statements are presented in United States Dollars (USD), which is the functional and presentation currency of the Group and its parent company. Drive Media Rights Limited has a functional currency of British Pounds Sterling (GBP). For consolidation purposes, its financial statements are translated into USD as follows:

Assets and Liabilities: Translated at the closing exchange rate prevailing at the reporting date.

Income and Expenses: Translated at the average exchange rate for the period.

Equity: Translated at historical rates.

Exchange Differences

Transactions and Balances: Exchange gains and losses arising from the conversion of transactions and monetary balances denominated in foreign currencies into the entity’s functional currency are recognized in profit or loss in the period in which they arise.

Translation to Presentation Currency: Exchange differences resulting from translating the financial statements of entities with a functional currency different from the Group’s presentation currency (USD) are recognized in Other Comprehensive Income (OCI) and accumulated in the Foreign Currency Translation Reserve within equity.

New standards, amendments, IFRIC and new disclosures

Amendments to IAS 1, Classification

The IASB issued 'Classification of Liabilities as Current or Non-current (Amendments to IAS 1)' providing a more general approach to the classification of liabilities under IAS 1 based on the contractual arrangements in place at the reporting date. The amendments were originally effective for annual reporting periods beginning on or after 1 January 2022, however, their effective date had been delayed to 1 January 2024.

Amendments to IAS 7 & IFRS 7, Supplier Financing Arrangements

The IASB issued 'Supplier Financing Arrangements (Amendments to IAS 7 & IFRS 7)' providing information about addition disclosures to be provided around the Group's use of supplier financing arrangements. This amendment will have no impact on the amounts recognised in the financial statements. The effective date is for annual reporting periods beginning on or after 1 January 2024.

Amendments to IFRS 16, Leases

The IASB issued Lease Liability in a Sale and Leaseback (Amendments to IFRS 16), providing clarification on how a seller-lessee measures lease liabilities arising from sale and leaseback transactions. This amendment will have no impact on the amounts recognised in the financial statements other than additional disclosures where applicable. The effective date is for annual reporting periods beginning on or after 1 January 2024.

Expected future standards - IFRS 18, Presentation and Disclosure

The IASB introduced a new IFRS Accounting Standard, IFRS 18 to replace IAS 1 Presentation of Financial Statements. This new standard establishes detailed requirements for classifying and aggregating income and expenses in the income statement, as well as disclosure obligations for management defined performance measures. The standard applies for annual reporting periods beginning on or after 1 January 2027 and has been endorsed for use in the UK. The group is currently working to identify the impact the amendments will have on the primary financial statements and notes

The preparation of the financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and judgements that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period.

In the opinion of the Directors, there are no significant judgements made in preparing the consolidated financial statements.

By their nature, the use of estimates means actual results could differ from these estimates. Estimates are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Estimates are reviewed on an ongoing basis and any revisions to estimates are recognised prospectively.

The estimates that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are:

Determining whether tangible and intangible assets are impaired requires an estimation of their fair value less cost of disposal and their value in use. The value in use and fair value calculations require management to estimate the future cash flows expected to arise from the asset and a suitable discount rate in order to calculate present value. Changes in these assumption, particularly future cash flows and discount rates could result is a material change in the carrying amount of the intangible assets. See Note 11 and 12 for the carrying amounts of the acquired intangible and tangible assets respectively. .

Assessing whether goodwill is impaired requires estimating its recoverable amount, which is the higher of fair value less costs of disposal and value in use. This involves forecasting future cash flows for the cash-generating units to which goodwill is allocated, determining long-term growth assumptions beyond the forecast period, and selecting an appropriate discount rate that reflects market conditions and specific risks. Changes in these estimates, particularly revenue growth, operating margins, discount rates, and terminal growth could result in a material change in the carrying amount of goodwill.

Management reviews the program rights to determine if the programs are drawing audiences and suit the channel's themes. If it is determined that shows will no longer be utilised in the same manner, or abandoned, the estimated useful lives require adjustment.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

The charge for the year can be reconciled to the profit/(loss) per the income statement as follows:

During the year the company disposed of $752,718 of intangible assets in a related party asset transfer to their ultimate parent, Blue Ant Media Inc.

Details of the company's subsidiaries at 31 August 2024 are as follows:

Registered office addresses (all UK unless otherwise indicated):

As permitted by section 479A of the Companies Act 2006, the subsidiaries named above are exempt from the requirements of the Companies Act 2006 relating to the audit of individual accounts. In order to meet this exemption, the Company has given guarantees under section 479C of the Companies Act 2006.

Post year end, on 2 December 2024, 100% of the Share Capital of Drive Media Rights Limited was transferred from Ben Barrett Consulting Limited and Lillavision Limited (previously owned 50% each) to Blue Ant International Limited. This did not effect the overall ownership of Drive Media Rights Limited from a group perspective.

On 15 April 2025, Drive Television Limited, Ben Barrett Consulting Limited and Lillavision Limited were dissolved.

The average credit period taken on the provision of services was 130 days.

Management believes that the risk of non-collection of the unimpaired trade receivables is not material and therefore no ECL provision has been recognised. Management assesses, based on actual payments at the date of preparation of the accounts, that there was no significant increase in credit risk as at 31 August 2024.

The Directors consider that the carrying value of trade and other receivables approximates to fair value.

The directors consider that the carrying amount of trade and other receivables differs from fair value as follows:

No significant receivable balances are impaired at the reporting end date.

During 2021, a counterparty initiated a termination of a multi-year output agreement. As a result, the group incurred termination costs of $2,301,000. These costs were included in transaction and other costs. The amount unpaid as of 31 August 2024 and 31 August 2023, of $1,200,000 were included in accruals.

Amounts owed to fellow group undertakings are interest free, unsecured and repayable on demand. Amounts owed to parent company are subject to 5% interest, unsecured and repayable on demand.

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

The following are the major deferred tax liabilities and assets recognised by the group and movements thereon during the current and prior reporting period.

The amount recognised as an expense for the defined contribution scheme in the year was $40,937 (2023: $60,534). No contributions were payable to the fund at the statement of financial position date.

During the year 1,717,576 ordinary shares were issued with a nominal value of $1 each. Bringing the total share capital balance to $2,317,576.

The group considers its capital structure to consist of cash, debt and capital stock, and makes adjustments to the structure based on the funds available to the company in order to support the acquisition and development of content rights, licenses and programming. The directors rely on the expertise of the company's management to sustain future development of the business.

Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the company, is reasonable. There were no changes (2023 - no changes) in the company's approach to capital management in the year ended August 31 2024 relative to the prior year.

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

The groups immediate parent is Blue Ant Media Inc, incorporated in Canada. Blue Ant Media Inc, is the only group to consolidate these financial statements for the year ended 31 August 2024. The registered address of the ultimate parent company is 99 Atlantic Avenue, Toronto, Canada, M6K 3JB.

As permitted by trues408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was $507,303 (2023 - $2,421,262 profit).

Blue Ant International Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, 9 Appold Street, London, United Kingdom, EC2A 2AP. The company's principal activities and nature of its operations are disclosed in the directors' report.

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable law.

The financial statements are prepared in United States dollar (US$), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest $.

Non-current investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the parent company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the group holds a longterm interest and has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

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

Their aggregate remuneration comprised:

During the prior year, the Company disposed of $752,718 of intangible assets in a related party asset transfer to their ultimate parent, Blue Ant Media Inc.

Details of the company's principal operating subsidiaries are included in note 13.

Amounts due to fellow group undertakings relate to distribution expenses and owing for content rights within the group.

Amounts owed to fellow subsidiary group undertakings are interest free, unsecure and repayable on demand. Amounts owed to parent company are subject to 5% interest, unsecured and repayable on demand.

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

The fair value of the company's lease obligations is approximately equal to their carrying amount.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.