The directors present the strategic report for the year ended 31 March 2025.
The principal activity of the company is the production of live immersive experiences spanning theatre, TV, digital and gaming. Alongside this work, the company has an emphasis on talent development, workshops and masterclasses.
Financial Overview
Revenue from continuing operations for the year ended 31 March 2025 was £6.4m (2024: £2.6m). The Group recorded an operating profit on continuing operations of £0.2m (2024: profit of £0.5m). The result from discontinued activities relates to the company’s production of The Burnt City which staged its last performance on 24 September 2023. The production was funded by theatrical investment loans which are repayable only up to the value of the assets available to the production on closure. Included in the 2024 result on discontinued activities is a credit of £2,463,500 which represents the balance of theatrical loans which will not be repaid as insufficient assets are available.
The position of the Group as at the balance sheet date is set out in the consolidated statement of financial position on page 12 and in related notes on pages 17-36. As detailed in note 1.4 of the accounts the Group breached certain financial covenants in relation to a loan received from Arts Council England (‘ACE’) under the Cultural Recovery Fund as part of its support to the theatrical sector during the Covid-19 pandemic. As at the year end ACE had the right to demand immediate repayment of the loan because of the default and for that reason the loan is presented as wholly payable within one year. However ACE did not exercise this right and has subsequently agreed to waive the historic events of default and to a suspension period during which one of the two covenant tests on which the Group failed will not be tested.
At the date of signature of these accounts the Group is not in default under the agreement.
At the year end the Group had cash and cash equivalents of £4.7m (2024: £6.3m).
Overview of Significant Events and Future Developments.
Viola’s Room, a new linear format production by the Company opened in May 2024 and extended its run through to December 2024. The Company invested its own funds in the production and was able to recoup all costs from the initial run, which was a stronger result than initially anticipated. Off the back of the critical success of this production an international tour was booked, starting with a season in New York opening in June 2025.
The success of Viola’s Room led Punchdrunk to explore the potential of another new format which combines theatre and technology to create a live action video game. Punchdrunk invested in a prototype for this in 24/25 with a view to moving into production in 25/26.
Building on the revised business model of 2023/24, key development continued on major co-productions (including mask shows and collaborations with existing IP) which form the backbone of the company’s three-year pipeline. Significant strategic work was undertaken to increase the workforce and the Company’s producing capacity to ensure that it was sustainable for the Company to grow from focussing on one production per annum to multiple productions in multiple territories. The foundational work undertaken in 2024/25 paves the way for the Company to be able to open four live projects in 2025/26 and continue to develop new opportunities for the future.
Alongside this work, the Company continued to pursue its community and talent development strands. This included growing the output to include international opportunities alongside the Woolwich-based focus, with a workshop programme in South Korea proving demand and further opportunities for the Company’s practice.
Alongside Punchdrunk’s traditional mask show formats, the Company takes an optimistic view of the use of technology, and seeks to remain progressive by building tech advancements into its workflows. The Company takes time to ensure that any incorporation of technologies is handled ethically and legally.
The business remains partly funded by the ACE loan. As detailed in note 1.4 the Directors are confident that the Company will meet the requirements of the financial covenants within the loan agreements. However they recognise that in the event of a covenant breach ACE have the right to demand immediate repayment of the loan and the Group may not have sufficient funds available to make such repayment and in any event such a repayment would have a significant impact on the ability of the group to continue to trade.
The Company continues to mitigate this risk through regular and constructive dialog with ACE and the Department for Culture, Media and Sport.
The Directors are responsible for determining the level of risk acceptable to the business. This is subject to regular review. The company seeks to mitigate it risks through the application of strict limits and controls and a monitoring process at operational level. Where it is appropriate and cost effective, risks are passed to insurers.
The Directors consider the principal risk to be strategic, compliance, operational, financial and exchange rate. The Board mitigates these risks with suitable monitoring and control on a frequent and timely basis.
The key performance indicators that the group uses in operating the business are outlined below. The movement in these indicators is consistent with the financial results reported in these financial statements.
The board drives business performance through setting clearly defined budgets from which it derives key performance indicators, taking appropriate action where required to enhance the financial results of the business. The group considers its key performance indicators to be:
- Show attendance and advance bookings figures and how they compare to budget;
- Operating margins and how they compare to budget;
- Overhead expenditure and how it compares to budget.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 March 2025.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
In accordance with the company's articles, a resolution proposing that Moore Kingston Smith LLP be reappointed as auditor of the group will be put at a General Meeting.
We have audited the financial statements of Punchdrunk Global Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Group Profit And Loss Account, the Group Statement of Comprehensive Income, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for 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
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.
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 company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ 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 group's or the parent company’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 group or the parent company 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, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We obtained an understanding of how the 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 noncompliance 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 for no purpose other than to draw to the attention of the company’s members those matters we are required to include in an auditor's report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party 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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £96,077 (2024 - £173,408 profit).
Punchdrunk Global Ltd (“the company”) is a private limited company domiciled and incorporated in
England and Wales. The registered office is The Carriageworks, 5 Carriage Street, London SE18 6DJ.
The group consists of Punchdrunk Global Ltd and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company Punchdrunk Global Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 March 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line 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.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
The financial statements have been prepared on a going concern basis.
Included within creditors falling due within one year is a Repayable Finance loan administered by Arts Council England (‘ACE’) totalling £3,610,460 (note 20). This loan was extended to the company under the Cultural Recovery Scheme as part of governmental support to the theatre sector during the Covid-19 pandemic. In June 2023 the company breached certain debt cover and interest cover covenants included within the loan agreements. The company remained in breach at each of the subsequent contractual covenant assessment dates up to 30 June 2025. Such a breach represents an event of default under the agreement and at the year end ACE had the right to demand immediate repayment of the loan.
The board meets with ACE on a quarterly basis to provide a business update and to discuss the loan. Subsequent to the year end ACE agreed to waive each of the historic events of default and to a suspension period during which one of the covenant tests on which the Group failed will not be tested. The other covenant test on which the Group failed no longer applies. At the date of signature of these accounts the Group is therefore not in default under the agreement.
As part of the directors’ consideration of whether it is appropriate to prepare these financial statements on a going concern basis the directors have prepared forecasts covering a period of 12 months from the date of signature of these accounts. Those forecasts indicate that the Group has sufficient funds to meet its liabilities, including the contractual repayments on the ACE loan, as they fall due for a period of not less than 12 months from the date of signature of the accounts.
The forecasts also indicate that the Group will meet the requirements of the covenant tests for the duration of that same period. Therefore while entirety of the ACE loan balance outstanding at 31 March 2025 of £3,610,460 is presented in these accounts as repayable within one year on the basis that ACE had the right to demand immediate repayment at that point in time, the value of contractual payments which will be made within the 12 months of the year end is £746,400.
On that basis the directors therefore consider it appropriate to continue to prepare the accounts on a going concern.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
The licence fees that are generated through the sale of a license to overseas producers are recognised when specific milestones are met, and once the milestones are met they are non-refundable.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period 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 company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy. Where no active trading market is present and fair value cannot be measured reliably these instruments are measured at cost less impairment.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
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 profit and loss account 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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, 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 if, and only if, there is 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.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The 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.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
The estimation of the cost of restoration of the two leased buildings to their original condition at the end of their lease.
Certain projects undertaken by the group have multiple phases and span accounting periods. Revenue on these projects is recognised based on the stage of completion of the contract. The appropriate method of assessing the degree of completion varies by project. In some instances it is determined based on the proportion of costs incurred for work performed up to the end of the period by comparison to estimated total cost of delivering the project i.e. an inputs based methodology; in other instances it is determined based on an assessment of the stage of completion of the outputs defined within the contract.
In either case the directors are required to make estimates around job progress and/or costs expected to be incurred to complete the project. These assessments rely to a large degree on the directors’ experience and understanding of the work that the company has contracted to perform and are made with the input of the of the project managers and the producers who have day-to-day oversight of delivery.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).
The 2024 write back is in relation loans from investors which were used to fund the group's theatrical production of 'The Burnt City'. These loans are structured such that they are repaid from the profits of the production. Under the terms of the investment loan agreements amounts advanced to the group are repayable only to the extent that there are assets available within the production SPVs, PGL Woolwich Limited and TBC Show Limited. The production of 'The Burnt City' closed in September 2023 and as the final trading position of the theatrical production companies is now known, investment creditor have been written back to the extent that they exceed the value of assets available.
The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
In the prior year, the group discontinued the operations of TBC Show Limited and PGL Woolwich Limited following the closure of the production 'The Burnt City' in September 2023. The profit from discontinued operations includes post-tax profit of £8,199(2024: £1,583,633).
Details of the company's subsidiaries at 31 March 2025 are as follows:
PGL Woolwich Limited and TBC Show Limited are exempt from audit by virtue of s479A of Companies Act 2006. In order to qualify for this exemption Punchdrunk Global Ltd provides each of these companies a parental guarantee as required by sdection 479C of the Companies Act 2006.
As at the balance sheet date the company owed £3,610,460 to Arts Council England "ACE" with regards to a Repayment Finance Agreement. Borrowings are to be repaid over a 10 year period, to be paid every 6 months, after 48 months from the commencement of the loan. Interest of 7% is charged per annum.
The company breached EBIT to finance charge and EBIT to debt service in relation to the ACE loan tests performed during the year. Such a breach represents an event of default under the loan agreement and ACE has the right to request immediate repayment of the loan therefore the loan has been classed in the financial statements as payable within one year.
Subsequent to the year end ACE agreed a formal waiver of these events of default and at the date of signature of these accounts the Group is not in breach of the terms of the loan.
Provisions represent an estimation of the full cost of dilapidations, restoring the company's two leased buildings back to their original condition on expiry of their lease.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
All share options issued by the company are equity-settled and had a vesting period of 1-3 years. All share options outstanding at 31 March 2025 had vested, but not yet been exercised. Share options can be exercised within a maximum period of 10 years after the grant date, or earlier in the event of the sale of the majority by value of the Company's trade and assets, the sale of the majority share capital of the Company or the flotation of the Company on a recognised stock exchange in the UK. The average remaining contractual life before automatic lapse of the share options outstanding at 31 March 2025 is 3 to 5 years. The exercise price of the outstanding options is £0.000017. The fair value of equity-settled share options granted is estimated at the date of grant using a value at which shares were issued to external shareholders, taking into account the terms and conditions upon which the options were granted, which in the directors opinion was deemed to be an appropriate model for fairly representing time impact and other risk factors across the life of the options.
There is no share based payments charge for either the current or prior year.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
In November 2025 Arts Council England ("ACE") agreed to waive all historic events of default in relation to a repayable finance agreement. Since the Group was in default at the year end all amounts payable under the agreement are presented within amounts falling due within one year.
As a result of the waiver repayments will revert to their original contracted instalment dates. See note 20 for further information.
The company has taken the exemption under Section 33 Related Party Disclosures paragraph 33.1A from disclosing transactions with other members of a wholly owned group.
Felix Barrett
During the year royalties of £24,350 (2024: £59,864) were payable to Felix Barrett, a director of the company and shareholder of group's parent. As at the balance sheet date £265,694 (2024: £241,344) was owed to Felix Barrett.