Company registration number 03114800 (England and Wales)
COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
COMPANY INFORMATION
Director
K S Sonnenfeld
Company number
03114800
Registered office
28 Chancery Lane
London
United Kingdom
WC2A 1LB
Auditor
Azets Audit Services
5 Yeomans Court
Ware Road
Hertford
Hertfordshire
United Kingdom
SG13 7HJ
COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Director's responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 22
COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Principal activities

The Company provides creative services and applied technologies to the film, television and advertising communities.

Review of the business and future outlook

The results for the Company show a profit after tax of £536,834 (31 December 202 3: loss after tax of £4 0,575) and turnover of £18,421,550 (31 December 202 3: £17,278,750). The profit after tax for the current year, as compared to loss after tax in the previous period, can be attributed primarily to a decrease in interest expense on intercompany loans as significant repayments have been made.

At the year end the Company has net liabilities of £2,138,499 (202 3: £2,675,333) and cash of £5 40,267 (202 3: £5,494,289). Further comment on business performance has been included in the table below.

The Company continues to work with major film studios, advertising agencies and large brands on some of their major projects. The Company has performed well and is expected to perform above budget.

Key Performance Indicators ("KPIs")

It is considered that turnover and EBITDA (operating profit adding back depreciation and amortisation) are the key performance indicators of the business. The results for continuing operations are:

KPI | 31 Dec 2024 | 31 Dec 2023 | Increase/ (decrease) | Comments
| £000 | £000 |  |
Turnover | 18,422 | 17,279 | 7% | Increase is attributed to a larger volume of episodic shows in 2024 compared to 2023.
Gross profit | 6,104 | 7,371 | -17% | Decrease driven by an 8% salary raise and headcount increase in line with increased revenue in 2024. In addition, general cost increase from global administrative expenses allocation.
Operating profit | 1,043 | 1,397 |  |
Depreciation and Amortisation | 821 | 1,180 |  |
EBITDA | 1,864 | 2,577 | -28% | Decline driven by global administrative expenses allocation and exchange differences.
EBITDA margin % | 10% | 15% |  |
Profit/(loss) after taxation | 537 | (41) |  |
Proft/(loss) after taxation margin % | 3% | 0% |  |

COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties

The Company’s performance is impacted by the general economic climate in the UK and North America. This risk is managed by ensuring that the Company operates across a range of markets with a broad client base. Risks which the board have considered have been detailed below.

Staff retention

We recognise that there is a risk to the organisation if we are unable to attract the right people who are committed to our values, particularly as we grow in both size and significance. We continue to invest in our people providing general and specific training for staff across the business, along with a track record of delivering successful internship and apprenticeship schemes which allows us to attract and develop graduate-​level talent each year. The Company provides an annual appraisal process for all employees where performance and career development are discussed. There are a wide range of training opportunities available to staff at all levels.

Data governance

A major risk to the Company and to our customers is unauthorised access to client’s information. Good data governance is one of the essential objectives of the Company. Continual investment in process, technology, data security, cyber security and our people ensure we minimise this risk.

War in Ukraine/​ Conflict in Middle East

While the assessment of the impact of the evolving war in Ukraine and the conflict in the Middle East on the Company is ongoing, it is not currently expected to have a material direct impact on the Company unless it escalates and broadens further. The Company has no activities within Ukraine, Russia or the Middle East and therefore, it is expected to have an immaterial direct financial impact on the Company.

Industry risk

As with other companies in the film industry, the Company was affected by the Screen Actors Guild (SAG-AFTRA) strike and the Writers Guild of America (WGA) strike where Actors and Writers fought to negotiate new contracts with the Alliance of Motion Picture and Television Producers (AMPTP) for higher pay, streaming residuals and protections against the use of Artificial Intelligence. The SAG-AFTRA strike had a short-term impact on the revenue pipeline of the Company. However, due to the strong local pipeline the impact was not material. To this end, the Board believes that the risks associated with the strike was successfully navigated and a full recovery has been made. Government fiscal policy A risk to the Company and to our customers is that governments levy taxes or reduce tax incentives that impact levels of content production in the countries in which we operate. This risk is minimised by maintaining strong relationships with our trade associations and government officials and maintaining a breadth of operations across many different regions.

On behalf of the board

K S Sonnenfeld
Director
2 April 2026
COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

The director presents his annual report and financial statements for the year ended 31 December 2024.

Dividends

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

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

K S Sonnenfeld
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its director during the year. These provisions remain in force at the reporting date.

Financial risk management

The Company’s operations expose it to a variety of financial risks that include the effects of credit risk, interest, exchange rate risk, industry risk and the current risks of rising inflation and global energy crisis. The Company is reliant on its board of directors to actively manage its risk exposure. Given the size of the Company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the group’s finance department.

Credit risk

The Company has implemented policies that require appropriate credit checks on potential customers before sales are made. Where debt finance is utilised, this is subject to pre-approval by the board of directors and such approval is limited to respected financial institutions.

Interest and exchange rate cash flow risk

The Company has interest bearing liabilities and foreign currency assets. Interest bearing liabilities includes an intercompany loan which accrues interest at a fixed rate.

Inflation and global energy crisis

Senior management continue to monitor interest and inflation rates. Inflation levels have not had a significant impact on the majority of the Company’s cost base which is largely driven by staff, software and facility costs. We anticipate that these costs would remain stable. To mitigate the risk of inflation, the Company is focusing on creating flexibility in the global staff workforce.

The global energy crisis has not had a direct material impact on the Company’s operations.

Employees

Although the Company is in the process of developing a formal performance management program, each of the Company’s departments are tasked with appraising and assessing employee performance and career development based on their own internal calendars and as needed. There are a wide range of informal and formal training opportunities available to staff at all levels.

Company-wide staff presentations are held on an as-needed basis.

Pursuant to applicable law, it is the Company’s policy that disabled persons or persons who become disabled whilst in the employment of the Company should be considered for employment, training, career development and promotion on the basis of their abilities and aptitudes in common with all employees.

Political Donations

No political donations were made during the year (31 December 2023: £nil).

COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Going concern

The financial statements have been prepared on a going concern basis which the director considers to be appropriate for the following reasons. The director has prepared cash flow forecasts for a period of at least 12 months from the date of approval of these financial statements which indicate that, taking account of severe but plausible downsides, the Company will have sufficient funds to meet its liabilities as they fall due for that period. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate. Further details regarding the adoption of the going concern basis can be found in the statement of accounting policies in the financial statements.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the fair review of the business.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487 (2) of the Companies Act 2006.

On behalf of the board
K S Sonnenfeld
Director
2 April 2026
COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

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

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

- select suitable accounting policies and then apply them consistently;

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

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

COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
- 6 -
Opinion

We have audited the financial statements of Company 3 Studios UK LTD (Formerly Company 3 / Method London Limited) (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity 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).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 1.1 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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 director's r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the director's report have been prepared in accordance with applicable legal requirements.

COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the director's r eport.

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

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

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

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

Responsibilities of director

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

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
- 8 -

Extent to which 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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we 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. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

- Reviewing minutes of meetings of those charged with governance;

- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk 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.

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.

Alison Nayler BSc FCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
2 April 2026
Chartered Accountants
Statutory Auditor
5 Yeomans Court
Ware Road
Hertford
Hertfordshire
United Kingdom
SG13 7HJ
COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
18,421,550
17,278,750
Cost of sales
(12,317,460)
(9,907,979)
Gross profit
6,104,090
7,370,771
Administrative expenses
(5,060,861)
(6,245,506)
Other operating income
-
0
271,715
Operating profit
4
1,043,229
1,396,980
Interest payable and similar expenses
(506,395)
(1,602,416)
Profit/(loss) before taxation
536,834
(205,436)
Tax on profit/(loss)
6
-
0
164,861
Profit/(loss) for the financial year
536,834
(40,575)
COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
7
2,697
2,238
Tangible assets
8
1,587,352
2,061,110
1,590,049
2,063,348
Current assets
Stocks
9
38,646
-
Debtors
10
4,650,192
13,267,158
Cash at bank and in hand
540,267
5,494,289
5,229,105
18,761,447
Creditors: amounts falling due within one year
11
(8,877,775)
(23,420,250)
Net current liabilities
(3,648,670)
(4,658,803)
Total assets less current liabilities
(2,058,621)
(2,595,455)
Provisions for liabilities
Deferred tax liability
12
79,878
79,878
(79,878)
(79,878)
Net liabilities
(2,138,499)
(2,675,333)
Capital and reserves
Called up share capital
15
2
2
Profit and loss reserves
(2,138,501)
(2,675,335)
Total equity
(2,138,499)
(2,675,333)
The financial statements were approved and signed by the director and authorised for issue on 2 April 2026
K S Sonnenfeld
Director
Company Registration No. 03114800
COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
2
(2,634,760)
(2,634,758)
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
(40,575)
(40,575)
Balance at 31 December 2023
2
(2,675,335)
(2,675,333)
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
536,834
536,834
Balance at 31 December 2024
2
(2,138,501)
(2,138,499)
COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

Company 3 Studios UK LTD (Formerly Company 3 / Method London Limited) is a private company limited by shares incorporated in England and Wales. The registered office is 28 Chancery Lane, London, United Kingdom, WC2A 1LB.

1.1
Accounting convention

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 a mounts 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.

This 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. T he company has therefore taken advantage of e xemptions from the following disclosure requirements:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

The financial statements of the company are consolidated in the financial statements of Infinity Topco Limited. These consolidated financial statements are available from its registered office, 28 Chancery Lane, London, England, WC2A 1LB.

1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

As at 31 December 2024 the company had net current liabilities of £3,648,670 (31 December 2023: £4,658,803) and the company had net liabilities of £2,138,499 (31 December 2023: £2,675,333). In the year ended 31 December 2024 the company made a profit of £536,834 (year ended 31 December 2023: loss of £40,575). Notwithstanding this the directors have prepared the financial statements on a going concern basis for the following reasons.

The directors have prepared cash flow forecasts for a period of at least 12 months from the date of approval of these financial statements which indicate that, taking account of severe but plausible downsides, the company will have sufficient funds to meet its liabilities as they fall due for that period.

The company is fully integrated within its Group, the ultimate parent company has provided a letter of support confirming that it will, for at least 12 months from the date of the approval of these financial statements, continue to provide support, if required.

Based on the above indicators the directors believe that it remains appropriate to prepare the financial statements on a going concern basis. To this end the financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.

COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The point in time that revenue becomes receivable is considered to be the date that the work order on a job is signed off as being complete. Before this point no revenue is recognised, as the director believes it cannot be reliably measured in line with the requirements of FRS102.

The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
1 to 4 years
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
1 - 50 years
Plant and machinery
1 - 10 years
Fixtures and fittings
1 - 10 years
Computers
3 years

Included within leasehold improvements are some assets which are under construction and are not depreciated.

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 credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company 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.

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.

COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -

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.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

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

1.9

Trade and other debtors

Trade and other debtors are measured at transaction price less any impairment unless the arrangement constitutes a financing transaction in which case the transaction is measured at the present value of the future receipts discounted at the prevailing market rate of interest.

Other financial assets

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.

Impairment of financial assets

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.

COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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.

1.10

Trade and other creditors

Trade and other creditors are measured at their transaction price unless the arrangement constitutes a financing transaction in which case the transaction is measured at present value of future payments discounted at prevailing market rate of interest. Other financial liabilities are initially measured at fair value net of their transaction costs. They are subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

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 th r ough 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Taxation

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

Current 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Deferred tax

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 when the company 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.

1.12
Employee benefits

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.

1.13
Retirement benefits

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

1.14
Leases

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 lease s asset are consumed.

1.15
Foreign exchange

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.

COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
2
Judgements and key sources of estimation uncertainty

The preparation of financial statements requires management to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 a continuing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The director considers that there are no significant judgements or estimates in the preparation of these financial statements.

3
Turnover

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

2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
18,421,550
17,278,750
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
8,736
(327,746)
Fees payable to the company's auditor for the audit of the company's financial statements
47,725
45,450
Fees payable to the company's auditor for other services
9,535
6,170
Depreciation of owned tangible fixed assets
818,962
1,147,084
Amortisation of intangible assets
2,238
33,124
Rent charges
1,184,969
1,053,112

Audit fees are incurred on behalf of C3 UK Holdings Limited of £8,350 (202 3: £7,950).

Cost of sales and administrative expenditure classification

Company 3 Studios UK Ltd now report their costs for internal reporting by profit centre to align with the overall group. This has enabled the costs for the year ended 31 December 2024 to be allocated in a greater level of detail between cost of sales and administrative expenditure. Expenditure is therefore not directly comparable to the prior year.

COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
5
Employees

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

2024
2023
Number
Number
120
116

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
8,259,917
7,579,309
Social security costs
894,583
812,576
Pension costs
253,034
236,985
9,407,534
8,628,870

The Director of the company has been remunerated for their services through other group companies.

COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
6
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
-
0
(164,861)

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit/(loss) before taxation
536,834
(205,436)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
134,209
(48,319)
Tax effect of expenses that are not deductible in determining taxable profit
59,295
292,875
Adjustments in respect of prior years
(1,035)
-
0
Effect of change in corporation tax rate
-
0
24,826
Group relief
(3,476)
-
0
Accelerated Capital Allowance
-
0
(21,605)
Movement in deferred tax not recognised
(188,993)
(412,638)
Taxation charge/(credit) for the year
-
(164,861)

The company had unrecognised tax losses available of £102,668 (2023: £1,087,344).

Factors that may affect future tax charges

The Finance Act 2021 was substantively enacted in May 2021 and has increased the corporation tax rate from 19% to 25% with effect from 1 April 2023 on profits over £250,000. The rate for small profits under £50,000 remains at 19%. When the company's profits fall between £50,000 and £250,000 it will be able to claim an amount of marginal relief providing a gradual increase in corporation tax rate. For the financial year ended 31 December 2023, the current weighted average tax rate was 23.5%. Deferred tax balances at the reporting date have been measured using these enacted tax rates as they are expected to apply in the reporting periods when the timing differences reverse.

COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
7
Intangible fixed assets
Software
£
Cost
At 1 January 2024
184,052
Additions
2,697
At 31 December 2024
186,749
Amortisation and impairment
At 1 January 2024
181,814
Amortisation charged for the year
2,238
At 31 December 2024
184,052
Carrying amount
At 31 December 2024
2,697
At 31 December 2023
2,238
8
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 January 2024
3,627,021
401,736
123,565
6,239,784
10,392,106
Additions
55,113
3,115
48,376
238,600
345,204
At 31 December 2024
3,682,134
404,851
171,941
6,478,384
10,737,310
Depreciation and impairment
At 1 January 2024
2,633,020
298,608
44,322
5,355,046
8,330,996
Depreciation charged in the year
103,309
39,468
12,507
663,678
818,962
At 31 December 2024
2,736,329
338,076
56,829
6,018,724
9,149,958
Carrying amount
At 31 December 2024
945,805
66,775
115,112
459,660
1,587,352
At 31 December 2023
994,001
103,128
79,243
884,738
2,061,110
9
Stocks
2024
2023
£
£
Raw materials and consumables
38,646
-
COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,959,043
1,970,713
Amounts owed by group undertakings
1,515,792
10,430,166
Other debtors
1,012
-
0
Prepayments and accrued income
1,174,345
866,279
4,650,192
13,267,158
11
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
303,588
147,415
Amounts owed to group undertakings
6,892,240
21,958,628
Taxation and social security
1,102,556
937,921
Deferred income
13
254,971
-
0
Other creditors
129,136
198,561
Accruals and deferred income
195,284
177,725
8,877,775
23,420,250

At the year end the company owed £53,773 (2023: £42,784) in respect of employer pension contributions.

12
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
79,878
79,878
There were no deferred tax movements in the year.
13
Deferred income
2024
2023
£
£
Other deferred income
254,971
-
COMPANY 3 STUDIOS UK LTD (FORMERLY COMPANY 3 / METHOD LONDON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
253,034
236,985

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
2
2
2
2
16
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
297,000
102,000
17
Related party transactions

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. There are no related party transactions in the period to disclose.

18
Ultimate controlling party

Company 3 Studios UK Ltd is a wholly owned subsidiary of C3 UK Holdings Limited.

The ultimate parent company is Infinity Topco Limited, a limited company registered in England and Wales. Infinity Topco Limited is the smallest and largest group for which accounts are prepared that include the consolidated results of the company. The registered address is 28 Chancery Lane, London, England, WC2A 1LB. Copies of the financial statements can be obtained from Companies House.

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