Stink Digital Limited
Annual Report and Financial Statements
For the year ended 31 December 2024
Company Registration No. 07141790 (England and Wales)
Stink Digital Limited
Company Information
Director
D Bergmann
Secretary
E Lotter
Company number
07141790
Registered office
64-66 Redchurch Street
London
England
E2 7DP
Auditor
Moore Kingston Smith LLP
Charlotte Building
17 Gresse Street
London
W1T 1QL
Stink Digital Limited
Contents
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
Stink Digital Limited
Strategic Report
For the year ended 31 December 2024
Page 1

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

Fair review of the business

Since the company was founded in 2010, Stink Digital Ltd has grown extensively. The company is expert in creative advertising and digital experience that moves fluidly between brand and digital customer experiences.

The company operates in a highly competitive market where there is an ongoing risk of losing creative talent to competitors and manages this risk by having in place comprehensive contracts with fixed terms and notice periods wherever practical.

The company continues to have adequate levels of cash reserves post year end and the directors have prepared profit and cashflow forecasts which show that the company has sufficient cash to trade for a period of 12 months from the signing of these accounts. The financial statements have therefore been prepared on a going concern basis.

The company's key measurement of the effectiveness of its operations is the margin of operating profit, which reduced from a profit of £1,663,443 in 2023 to a loss of £2,998,586 in 2024. The 2024 loss was entirely driven by two intercompany related exceptional items (Note 4 on page 17).

The balance sheet on page nine shows the financial position at the year-end of net assets reducing to £1,673,079 from £2,684,399 in 2023.

The business has good credit controls in place to enable it to maintain a cash positive working capital position. These KPIs are monitored on a monthly basis, as part of the management review process.

Financial risk management

Stink Digital Limited's operations expose it to limited financial risks that include credit risk and foreign exchange risk. Given the size of Stink Digital Limited, 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 company's finance departments.

Credit risk

The company has implemented policies that require appropriate credit verification procedures on potential customers. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Foreign exchange risk

The company actively manages foreign exchange rate risk.

On behalf of the board

D Bergmann
Director
8 April 2026
Stink Digital Limited
Director's Report
For the year ended 31 December 2024
Page 2

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

Principal activities

The principal activity of the company continued to be that of a TV production company.

Results and dividends

The results for the year are set out on page 8.

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:

D Bergmann
Auditor

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

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.

On behalf of the board
D Bergmann
Director
8 April 2026
Stink Digital Limited
Director's Responsibilities Statement
For the year ended 31 December 2024
Page 3

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.

Stink Digital Limited
Independent Auditor's Report
To the Members of Stink Digital Limited
Page 4
Opinion

We have audited the financial statements of Stink Digital Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, 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 FRS 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 loss for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 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.

Stink Digital Limited
Independent Auditor's Report (Continued)
To the Members of Stink Digital Limited
Page 5

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.

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.

Stink Digital Limited
Independent Auditor's Report (Continued)
To the Members of Stink Digital Limited
Page 6
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.

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 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 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.

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.

Stink Digital Limited
Independent Auditor's Report (Continued)
To the Members of Stink Digital Limited
Page 7

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 non-compliance or suspected non-compliance with laws and regulations.

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

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

Use of our report

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

Joanna Cosgrove
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
9 April 2026
Chartered Accountants
Statutory Auditor
Charlotte Building
17 Gresse Street
London
W1T 1QL
Stink Digital Limited
Statement of Comprehensive Income
For the year ended 31 December 2024
Page 8
2024
2023
Notes
£
£
Turnover
3
6,725,024
17,763,187
Cost of sales
(3,079,038)
(12,129,717)
Gross profit
3,645,986
5,633,470
Administrative expenses
(3,672,333)
(3,970,027)
Exceptional items
4
(2,972,239)
-
0
Operating (loss)/profit
5
(2,998,586)
1,663,443
Interest receivable and similar income
7
507
409
Interest payable and similar expenses
8
(29,241)
-
0
(Loss)/profit before taxation
(3,027,320)
1,663,852
Tax on (loss)/profit
9
-
0
(388,285)
(Loss)/profit for the financial year
(3,027,320)
1,275,567

The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.

Stink Digital Limited
Balance Sheet
As at 31 December 2024
Page 9
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
33,217
48,009
Investments
11
100
340,100
33,317
388,109
Current assets
Debtors
13
3,012,808
7,555,569
Cash at bank and in hand
622,740
1,795,826
3,635,548
9,351,395
Creditors: amounts falling due within one year
14
(1,995,786)
(7,055,105)
Net current assets
1,639,762
2,296,290
Net assets
1,673,079
2,684,399
Capital and reserves
Called up share capital
16
420
100
Share premium account
2,015,680
-
0
Profit and loss reserves
(343,021)
2,684,299
Total equity
1,673,079
2,684,399
The financial statements were approved and signed by the director and authorised for issue on 8 April 2026
D Bergmann
Director
Company Registration No. 07141790
Stink Digital Limited
Statement of Changes in Equity
For the year ended 31 December 2024
Page 10
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
100
-
0
1,408,732
1,408,832
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
1,275,567
1,275,567
Balance at 31 December 2023
100
-
0
2,684,299
2,684,399
Year ended 31 December 2024:
Loss and total comprehensive income for the year
-
-
(3,027,320)
(3,027,320)
Issue of share capital
16
320
2,015,680
-
2,016,000
Balance at 31 December 2024
420
2,015,680
(343,021)
1,673,079
Stink Digital Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 11
1
Accounting policies
Company information

Stink Digital Limited is a private company limited by shares incorporated in England and Wales. The registered office is 64-66 Redchurch Street, London, England, E2 7DP.

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;

- 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 financial statements of the company are consolidated in the financial statements of Stink Holdings Limited. These consolidated financial statements are available from its registered office, 4th Floor, St Paul’s Gate, 22-24 New Street, St Helier, Jersey, JE1 4TR

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 to trade in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true

Stink Digital Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 12
1.3
Turnover

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.

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.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recover ed.

Amounts invoiced in excess of income are included within deferred income. Income recognised in excess of amounts invoiced is included within accrued income.

1.4
Research and development expenditure

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.

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:

Fixtures and fittings
2 - 6 years straight line
Computers
2 - 6 years striaght line

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
Fixed asset investments

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

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

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

Stink Digital Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 13

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

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 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.

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.

1.8
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. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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

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.

Stink Digital Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 14
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.

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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial 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 paymen ts 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. A m ounts 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.

Stink Digital Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 15
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.

1.10
Equity instruments

Equity instruments issued by the company 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 company.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

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.

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.

Stink Digital Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 16
1.14
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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and 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.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
TV production
6,725,024
17,763,187
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
2,091,964
1,999,308
Europe
1,728,090
6,277,170
Rest of the World
2,904,970
9,486,709
6,725,024
17,763,187
2024
2023
£
£
Other significant revenue
Interest income
507
409
Stink Digital Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 17
4
Exceptional items
2024
2023
£
£
Expenditure
Intercompany provision
2,632,239
-
Investment impairment
340,000
-
2,972,239
-

During the the year the company has provided against the net amount due from Stink Digital USA LLC, a 100% subsidiary of Stink Digital Limited. During the year, the company has also impaired the investment in Stink Studios Shanghai Co, Ltd, a 100% subsidiary of Stink Digital Limited.

5
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(26,582)
157,733
Fees payable to the company's auditor for the audit of the company's financial statements
28,955
30,082
Depreciation of owned tangible fixed assets
18,625
17,575
Profit on disposal of tangible fixed assets
-
(1,159)
Operating lease charges
218,684
218,340
6
Employees

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

2024
2023
Number
Number
Management
1
1
Sales
1
1
Production
11
12
Creative
14
13
Admin
2
1
Total
29
28
Stink Digital Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
6
Employees
(Continued)
Page 18

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,032,076
2,374,586
Social security costs
283,468
315,138
Pension costs
124,859
99,950
2,440,403
2,789,674
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
507
409
8
Interest payable and similar expenses
2024
2023
£
£
Other interest
29,241
-
0
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
388,285
Stink Digital Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
9
Taxation
(Continued)
Page 19

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

2024
2023
£
£
(Loss)/profit before taxation
(3,027,320)
1,663,852
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
(756,830)
391,347
Tax effect of expenses that are not deductible in determining taxable profit
719,155
(1,068)
Unutilised tax losses carried forward
33,977
-
0
Depreciation on assets not qualifying for tax allowances
3,698
(1,994)
Taxation charge for the year
-
388,285
10
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2024
12,120
38,532
253,751
304,403
Additions
-
0
-
0
3,833
3,833
At 31 December 2024
12,120
38,532
257,584
308,236
Depreciation and impairment
At 1 January 2024
12,120
38,532
205,742
256,394
Depreciation charged in the year
-
0
-
0
18,625
18,625
At 31 December 2024
12,120
38,532
224,367
275,019
Carrying amount
At 31 December 2024
-
0
-
0
33,217
33,217
At 31 December 2023
-
0
-
0
48,009
48,009
11
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
12
100
340,100
Stink Digital Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
11
Fixed asset investments
(Continued)
Page 20
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024 & 31 December 2024
340,100
Impairment
At 1 January 2024
-
Impairment losses
340,000
At 31 December 2024
340,000
Carrying amount
At 31 December 2024
100
At 31 December 2023
340,100
Stink Digital Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 21
12
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Stink Digital USA LLC
160 Van Brunt Street, 3rd Floor, Brooklyn 11231-1317
Ordinary Shares
100
-
Stink Studios Shanghai Co. Ltd
NO. 1003, Wuding Road, Jingan District, Shanghai, China
Ordinary Shares
100
-
Front Productions, LLC
1 Dock 72 Way, Brookly, NY 11205, USA
Ordinary Shares
0
100
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
850,207
2,249,444
Corporation tax recoverable
7,464
-
0
Amounts owed by group undertakings
1,309,838
4,407,540
Other debtors
387,220
600,897
Prepayments and accrued income
458,079
297,688
3,012,808
7,555,569
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
131,941
406,403
Amounts owed to group undertakings
599,117
1,850,542
Corporation tax
-
0
473,544
Other taxation and social security
83,610
97,690
Other creditors
2,362
2,890
Accruals and deferred income
1,178,756
4,224,036
1,995,786
7,055,105

At the year end there were fixed and floating charges over the assets of the company held by Coutts & Company.

Stink Digital Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 22
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
124,859
99,950

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.

16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
420
100
420
100
17
Related party transactions

Stink Digital Limited has taken the exemption from disclosure of related party transactions under the same 100% control in accordance with FRS102 - Section 33 "Related Party Disclosures".

During the year, Stink Digital Limited incurred management fees of £275,058 (2023: £125,000) and incurred rental costs of £218,684 (2023: £218,340) from fellow group undertakings. At the year end, the company was owed £1,207,949 (2023: £2,361,023) from fellow group undertakings and owed £497,129 (2023: £1,796,672) to fellow group undertakings.

There were no balances written off during the year in respect of any of the above balances.

18
Ultimate controlling party

The immediate parent company of Stink Digital Limited is Stink Limited, a company incorporated in England whose registered office is 64-66 Redchurch Street, London, E2 7DP.

The ultimate parent company of Stink Digital Limited is 2020 Group Limited, a company incorporated in Jersey, whose registered office is 4th Floor St Paul's Gate, 22-44 New Street, St Helier, Jersey, JE1 4TR.

2024-12-31 2024-01-01 false false false CCH Software CCH Accounts Production 2025.300 D Bergmann E Lotter 07141790 2024-01-01 2024-12-31 07141790 bus:Director1 2024-01-01 2024-12-31 07141790 bus:CompanySecretary1 2024-01-01 2024-12-31 07141790 bus:RegisteredOffice 2024-01-01 2024-12-31 07141790 2024-12-31 07141790 2023-01-01 2023-12-31 07141790 1 2023-01-01 2023-12-31 07141790 core:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 07141790 core:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 07141790 2023-12-31 07141790 core:LandBuildings core:OwnedOrFreeholdAssets 2024-12-31 07141790 core:FurnitureFittings 2024-12-31 07141790 core:ComputerEquipment 2024-12-31 07141790 core:LandBuildings core:OwnedOrFreeholdAssets 2023-12-31 07141790 core:FurnitureFittings 2023-12-31 07141790 core:ComputerEquipment 2023-12-31 07141790 core:CurrentFinancialInstruments core:WithinOneYear 2024-12-31 07141790 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 07141790 core:CurrentFinancialInstruments 2024-12-31 07141790 core:CurrentFinancialInstruments 2023-12-31 07141790 core:ShareCapital 2024-12-31 07141790 core:ShareCapital 2023-12-31 07141790 core:SharePremium 2024-12-31 07141790 core:SharePremium 2023-12-31 07141790 core:RetainedEarningsAccumulatedLosses 2024-12-31 07141790 core:RetainedEarningsAccumulatedLosses 2023-12-31 07141790 core:ShareCapital 2022-12-31 07141790 core:SharePremium 2022-12-31 07141790 core:RetainedEarningsAccumulatedLosses 2022-12-31 07141790 core:ShareCapitalOrdinaryShareClass1 2024-12-31 07141790 core:ShareCapitalOrdinaryShareClass1 2023-12-31 07141790 core:ShareCapital 2024-01-01 2024-12-31 07141790 core:SharePremium 2024-01-01 2024-12-31 07141790 core:FurnitureFittings 2024-01-01 2024-12-31 07141790 core:ComputerEquipment 2024-01-01 2024-12-31 07141790 1 2024-01-01 2024-12-31 07141790 core:UKTax 2024-01-01 2024-12-31 07141790 core:UKTax 2023-01-01 2023-12-31 07141790 core:LandBuildings core:OwnedOrFreeholdAssets 2023-12-31 07141790 core:FurnitureFittings 2023-12-31 07141790 core:ComputerEquipment 2023-12-31 07141790 2023-12-31 07141790 core:LandBuildings core:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 07141790 core:Non-currentFinancialInstruments 2024-12-31 07141790 core:Non-currentFinancialInstruments 2023-12-31 07141790 core:Subsidiary1 2024-01-01 2024-12-31 07141790 core:Subsidiary2 2024-01-01 2024-12-31 07141790 core:Subsidiary3 2024-01-01 2024-12-31 07141790 core:Subsidiary1 1 2024-01-01 2024-12-31 07141790 core:Subsidiary2 2 2024-01-01 2024-12-31 07141790 core:Subsidiary3 3 2024-01-01 2024-12-31 07141790 bus:OrdinaryShareClass1 2024-01-01 2024-12-31 07141790 bus:OrdinaryShareClass1 2024-12-31 07141790 bus:OrdinaryShareClass1 2023-12-31 07141790 bus:PrivateLimitedCompanyLtd 2024-01-01 2024-12-31 07141790 bus:FRS102 2024-01-01 2024-12-31 07141790 bus:Audited 2024-01-01 2024-12-31 07141790 bus:FullAccounts 2024-01-01 2024-12-31 xbrli:pure xbrli:shares iso4217:GBP