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Company registration number: 05360199
| ANNUAL REPORT AND FINANCIAL STATEMENTS
| FOR THE YEAR ENDED 28 FEBRUARY 2025
| ENVY POST PRODUCTION LIMITED
ENVY POST PRODUCTION LIMITED |  |
COMPANY INFORMATION
Directors | D Cadle
| D Reynolds
| N Cadle
| D Sassen
| R Taylor
Company secretary | A K Skinner
Registered number | 05360199
Registered office | 1 Stephen Street
| London
| W1T 1AT
Independent auditor | Menzies LLP
| Chartered Accountants & Statutory Auditor
| Victoria House
| 50-58 Victoria Road
| Farnborough
| Hampshire
| GU14 7PG
Bankers | Bank of Scotland
| 33 Old Broad Street
| London
| EC2N 5BL
ENVY POST PRODUCTION LIMITED |  |
CONTENTS
| Page
Group Strategic Report | 1 - 4
Directors' Report | 5 - 6
Independent Auditor's Report | 7 - 10
Consolidated Statement of Comprehensive Income | 11
Consolidated Statement of Financial Position | 12
Company Statement of Financial Position | 13
Consolidated Statement of Changes in Equity | 14
Company Statement of Changes in Equity | 15
Consolidated Statement of Cash Flows | 16 - 17
Consolidated Analysis of Net Debt | 18
Notes to the Financial Statements | 19 - 42
ENVY POST PRODUCTION LIMITED |  |
GROUP STRATEGIC REPORT FOR THE YEAR ENDED 28 FEBRUARY 2025
Principal activity
The principal activity of the company is the provision of TV and Film post production and production services to the broadcast and advertising markets. The Envy Group comprises the trading companies Envy, Absolute Post and Blind Pig, which together deliver a full-service creative post production offering.
Business review
Turnover for the year was £27,307,427 compared to £26,212,624 in 2024, representing growth of 4%. The loss after tax for the year was £2,735,787 (2024: £1,766,424 loss), reflecting continued cost pressures across the industry. The wider post production sector continues to experience fluctuating demand and budgetary constraints and these conditions remained evident throughout the year. Turnover increased however, demonstrating the group’s resilience and strong presence in an extremely competitive marketplace. While market conditions remain challenging post year-end, the Board is focused on maintaining market share, improving operational efficiency and delivering a sustainable return to profitability. Careful cost management, alongside targeted investment in facilities and technology, will remain central to improving margins over the medium term. Encouragingly, there are some positive signs on which to build on with stabilisation in certain areas of demand, providing a platform for cautious optimism. In late 2024, the Group undertook a significant relocation project following the redevelopment of its long-standing Rathbone Place site, it’s home for nearly 20 years. The move to Stephen Street, completed in August 2025, involved the creation of more than 25,000 sq ft of brand-new facilities, including the design and build of new offline suites, online and grading rooms, sound studios and supporting infrastructure. The project required the redevelopment of a complete operational infrastructure from the ground up, incorporating specialist technology, connectivity, workflows and support systems to ensure the new facility could operate seamlessly at scale. Delivery was carefully phased to maintain continuity of client services while facilities were commissioned and existing equipment transferred,upgraded and integrated into the new environment. The new facility provides a modern, efficient and scalable working environment that has been well received by both clients and staff. It also establishes a more sustainable cost base and positions the business strongly for future growth. Other operating income includes compensation received in relation to the relocation. Correspondingly, overheads include one off costs associated with the transition. In August 2025, Envy acquired 100% of the share capital of Mojo Bridge Ltd, the company trading under the Halo Post and Evolutions Post brands, funded by the issue of Envy shares. The transaction was undertaken with the intention of strengthening the Group’s market position and realising operational synergies. Following an intensive review of Mojo Bridge’s operations and financial position and despite efforts to identify a viable path forward, the business was placed into administration in December 2025. While this outcome is disappointing, the Board acted decisively to contain financial exposure and maintain focus on the core business. To provide the Group with the necessary resources required moving forward, a cash investment of £2.2m was secured in May 2026 from Random Fin Limited in exchange for Envy shares. We are excited to work alongside our investment partners to develop avenues to drive the business forward. The Group continues to deliver high quality work in the broadcast sector, maintaining its reputation for creative excellence. The Group continues to integrate emerging technologies, including Artificial Intelligence, into its workflows where appropriate, both to enhance creative output and improve efficiency, while maintaining a responsible, secure and controlled approach to adoption. Projects supported by the Group have continued to achieve critical recognition and audience success, including multiple award-winning productions such as The Traitors, Tsunami: The Race Against Time and The Truth vs Alex Jones the popular comedy drama Big Boys. The Capture division has delivered strong performance, contributing to major productions including CPL’s Love Is Blind, Banijay UK’s Building The Band and Studio Lambert/The Garden’s Squid Game The Challenge, one of the largest scale reality productions to date, reflecting continued demand for large scale reality and entertainment formats. Page 1
ENVY POST PRODUCTION LIMITED |  |
GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2025 Absolute moved into its new home at the start of the trading year, enabling them to combine sound studios to create a full service studio under one roof. Notable commercial brands worked on included Range Rover, Amazon Web Services, Covergirl, Shell, Disney, Dove and Ford. Blind Pig was shortlisted for Best 2D Animation at the Arrows for ‘Ford Mustang – One Day’ and won a Silver Post Production award at the Creativepool Awards for ‘Gardaland’. Both companies have adopted Artificial Intelligence into their creative workflows as demand for this increases. Absolute’s Film & TV division also completed some high profile work during the year. They worked on the much acclaimed ‘Adolescence’ for Netflix which has since won and been nominated for numerous awards, including Primetime Emmy and Golden Globe wins for Best Limited Series. Work was also carried out on ‘Mobland’ which earned a nomination for Best New Drama at the National Television Awards. Despite these successes and a reputation for creative excellence, the commercials sector has continued to be a particularly challenging market, which has negatively affected the trading results of Absolute and Blind Pig. Rising costs, tightening production budgets and shifts in client demand have placed a significant amount of strain on both companies, which did not improve after the year end. In the year under review, the companies generated turnover of £10.2m and made a loss of £0.36m. This has since worsened, with net liabilities on 30th April 2026 being £1.2m. With growing uncertainty around the stability of future revenues and further losses accumulating, the unfortunate decision was made to cease operation of the two businesses in May 2026, which are now both in administration. As a result, impairment adjustments have been made in these accounts against goodwill, intangible assets, investments and intercompany balances to reflect the reduction in values. This marks a difficult time for everyone connected to the companies, and the wider industry. We would like to express thanks to the talented team who worked tirelessly under mounting pressure to deliver great output for their clients. The Group’s performance is underpinned by the talent, commitment and creativity of its people who consistently produce work of the highest standard that keeps our clients returning and ensuring that we can keep attracting new work. We are proud of the team of people who constantly deliver excellence across the board and the efforts they make to deliver their finest work. The Directors would like to thank all employees for their continued professionalism, resilience and contribution during a period of change. Investment in future talent remains a priority and the Envy Academy continues to play an important role in attracting and developing new entrants to the industry. We regularly offer opportunities for them to do work experience or join the company as their first step into post production, whilst also offering structured training and career development opportunities to support long-term capability within the business.
Key Performance Indicators
The Directors use a series of key performance indicators (KPIs) to assess performance of the business and these are monitored and reviewed continually throughout the year. The KPIs for the year are:
| 2025 | 2024
Turnover | £27.307m | £26.212m
(Loss)/Profit before Tax | (£2.736m) | (£2.315m)
EBITDA | (£0.174m) | (£0.425m)
Net decrease in cash for the period | (£0.75m) | (£3.35m)
Average utilisation of suites | 67% | 61%
Page 2
ENVY POST PRODUCTION LIMITED |  |
GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2025
Principal risks and uncertainties
The risks affecting the company are reviewed by the Directors to ensure they are properly identified and managed. The principal risks and uncertainties that could have an impact on the company are detailed below. Interest rate risk Exposure to interest rate movements on the company’s borrowings is managed by maintaining a mixture of fixed and variable rate financing. The company’s exposure to interest rate risk applies to interest received on cash deposits and interest paid on loans. Credit risk Credit risk exposure arises from amounts shown as due in the balance sheet. The company does not have significant concentrations of credit risk from our clients. The company considers that its current policies of credit control and regular credit checks ensures that this risk is properly managed. Liquidity risk The company monitors liquidity risk through ongoing review of cash flow forecasts to ensure that sufficient cash reserves are maintained to meet its ongoing obligations, in both the short and long-term. Working capital is closely managed to navigate any shortfalls and where this is anticipated, external financing from financial institutions or other sources is sought where appropriate to meet any resulting funding requirements. Price risk The industry is highly competitive, with constant pressure to lower quoted prices to meet clients’ budgets and win work. We offer a high end service to our clients but management also recognise the need to offer attractive prices without impacting on quality or profitability, which we are well placed to do. Rates are set within a predetermined range and the prices charged for services performed are agreed with clients in advance of work commencing. Any variations during each project are communicated to the client at the time and then costed, discussed and charged as appropriate. We review average hourly rates monthly, ensuring that pricing variations can be quickly identified. Foreign currency risk Foreign currency exposures arise from trading with overseas clients and suppliers. Where possible, rates are fixed in sterling. Technology risk Technology is at the core of our ability to offer the most up-to-date services to our clients. Technological advances increase the density of data and complexity of workflows, meaning that continual investment in equipment, software and technical expertise is required to deliver our services. Artificial Intelligence (AI) is rapidly developing and the group recognises the potential impact on services provided. Where appropriate, AI tools are utilised, either in collaboration with clients or to improve the efficiency of services generally and this is responsibly managed and controlled. Capital investment is carefully considered and by establishing close relationships with suppliers we can ensure that any spend we commit to is well planned, has longevity and makes commercial sense. Market risk The industry is influenced by creative and commercial decisions made by both broadcasters on programming and by companies advertising their products and services, which are outside of the company’s control. We mitigate market fluctuations by having a varied mix of clients and by working on different genres across the Broadcast and Advertising markets. Maintaining strong relationships with our clients and industry contacts enables the company to stay informed about upcoming developments and potential shifts in the market. Page 3
ENVY POST PRODUCTION LIMITED |  |
GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2025 This report was approved by the board and signed on its behalf.
................................................ D Cadle Director
Date: 22 July 2026
Page 4
ENVY POST PRODUCTION LIMITED |  |
DIRECTORS' REPORT FOR THE YEAR ENDED 28 FEBRUARY 2025 The directors present their report and the financial statements for the year ended 28 February 2025.
Directors' responsibilities statement
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the directors are required to: ∙select suitable accounting policies for the Group's financial statements and then apply them consistently; ∙make judgments and accounting estimates that are reasonable and prudent; ∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Results and dividends
The loss for the year, after taxation, amounted to £2,735,787 (2024 - loss £1,766,424). No dividend has been recommended to be paid.
Engagement with employees
The Group recognises that effective employee engagement is fundamental to delivering its strategic objectives and long term sustainable performance. The Board and senior management are committed to maintaining open channels of communication with employees across the business and encouraging discussion on matters affecting employees and the wider company. Employees are kept informed of business developments, operational performance and key strategic priorities through regular management communications and internal updates. The company also seeks to foster a collaborative working environment in which employees are encouraged to provide feedback and share ideas. The Company is committed to supporting employee wellbeing, professional development and equal opportunity, recognising that employee engagement and retention are important contributors to operational success. As the business continues to evolve, management will continue to review and enhance employee engagement initiatives to strengthen communication, participation and alignment across the company. There is no employee share scheme at present.
Directors
The directors who served during the year were:
D Cadle
W Bottriell (resigned 1 October 2025)
D Reynolds
N Cadle
Page 5
ENVY POST PRODUCTION LIMITED |  |
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2025
D Sassen
W Hllier (appointed 27 August 2025, resigned 11 December 2025) A Jones (appointed 27 August 2025, resigned 17 April 2026) J Rogerson (appointed 27 August 2025, resigned 17 April 2026) R Taylor (appointed 27 August 2025) K Duckett (resigned 21 August 2025) J Martin (resigned 26 August 2025) D Bocarro (resigned 26 August 2025)
Matters covered in the Group Strategic Report
The company has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out within the company's Strategic Report the Company's Strategic Report Information required by schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties.
Disclosure of information to auditor
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.
Auditor
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier. This report was approved by the board and signed on its behalf.
................................................ D Cadle Director
Date: 22 July 2026
Page 6
ENVY POST PRODUCTION LIMITED |  |
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ENVY POST PRODUCTION LIMITED
Opinion
We have audited the financial statements of Envy Post Production Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 28 February 2025, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: ∙give a true and fair view of the state of the Group's and of the parent Company's affairs as at 28 February 2025 and of the Group's 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Page 7
ENVY POST PRODUCTION LIMITED |  |
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ENVY POST PRODUCTION LIMITED (CONTINUED)
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit: ∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or ∙the parent Company financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of directors' remuneration specified by law are not made; or ∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so. Page 8
ENVY POST PRODUCTION LIMITED |  |
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ENVY POST PRODUCTION LIMITED (CONTINUED)
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 Group financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: ∙The Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including UK Companies Act, employment law and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. ∙We understood how the Group is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures and the company secretary. The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area. ∙We assessed the susceptibility of the Group's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: °Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud; °Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; and °Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations. ∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: °Incorrect revenue recognition; °Posting of unusual journals and complex transactions; and °Misappropriation of assets. 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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. Page 9
ENVY POST PRODUCTION LIMITED |  |
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ENVY POST PRODUCTION LIMITED (CONTINUED) A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
Use of our report
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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. Roberto Lobue FCA (Senior Statutory Auditor) for and on behalf of Menzies LLP Chartered Accountants Statutory Auditor Victoria House 50-58 Victoria Road Farnborough Hampshire GU14 7PG 22 July 2026 Page 10
ENVY POST PRODUCTION LIMITED |  |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 FEBRUARY 2025
| 2025 | 2024
Note | £ | £
Turnover | 4 | 27,307,427 | 26,212,624
Cost of sales |  | (20,184,108) | (18,086,457)
Gross profit |  | 7,123,319 | 8,126,167
Administrative expenses |  | (9,582,360) | (10,546,087)
Other operating income | 5 | 1,126,279 | 159,583
Operating loss | 6 | (1,332,762) | (2,260,337)
Goodwill impairment | 10 | (1,242,971) | -
Interest receivable and similar income | 11 | 62,464 | 91,402
Interest payable and similar expenses | 12 | (222,518) | (146,277)
Loss before tax |  | (2,735,787) | (2,315,212)
Tax on loss | 13 | - | 548,788
Loss for the financial year |  | (2,735,787) | (1,766,424)
There was no other comprehensive income for 2025 (2024 : £NIL).
The notes on pages 19 to 42 form part of these financial statements.
Page 11
ENVY POST PRODUCTION LIMITED REGISTERED NUMBER:05360199 |  |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 28 FEBRUARY 2025
|  | 28 February |  | 29 February
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 15 |  | 103,382 |  | 1,684,352
Tangible assets | 16 |  | 5,717,345 |  | 5,376,644
Investments | 17 |  | 250,000 |  | 250,000
|  |  | 6,070,727 |  | 7,310,996
Current assets |  |  |  |  |
Stocks |  | 628 |  | 754 |
Debtors | 18 | 6,707,376 |  | 5,905,586 |
Cash at bank and in hand |  | 3,620,699 |  | 4,372,071 |
|  | 10,328,703 |  | 10,278,411 |
Creditors: amounts falling due within one year | 19 | (6,423,013) |  | (4,837,728) |
Net current assets |  |  | 3,905,690 |  | 5,440,683
Total assets less current liabilities |  |  | 9,976,417 |  | 12,751,679
Creditors: amounts falling due after more than one year | 20 |  | (1,797,212) |  | (1,972,307)
Provisions for liabilities |  |  |  |  |
Other provisions | 24 | (1,133,408) |  | (994,039) |
|  |  | (1,133,408) |  | (994,039)
Net assets |  |  | 7,045,797 |  | 9,785,333
Capital and reserves |  |  |  |  |
Called up share capital | 25 |  | 860,020 |  | 860,393
Share premium account | 26 |  | 1,387,703 |  | 1,387,703
Capital redemption reserve | 26 |  | 58,115 |  | 57,742
Profit and loss account | 26 |  | 4,739,959 |  | 7,479,495
Equity attributable to owners of the parent Company |  |  | 7,045,797 |  | 9,785,333
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
................................................ D Cadle
Director
Date: 22 July 2026
The notes on pages 19 to 42 form part of these financial statements. Page 12
ENVY POST PRODUCTION LIMITED REGISTERED NUMBER:05360199 |  |
COMPANY STATEMENT OF FINANCIAL POSITION AS AT 28 FEBRUARY 2025
|  | 28 February |  | 29 February
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 15 |  | 103,382 |  | 112,641
Tangible assets | 16 |  | 5,506,713 |  | 5,119,685
Investments | 17 |  | 250,000 |  | 2,810,835
|  |  | 5,860,095 |  | 8,043,161
Current assets |  |  |  |  |
Stocks |  | 628 |  | 754 |
Debtors | 18 | 5,084,894 |  | 4,654,667 |
Cash at bank and in hand |  | 3,573,607 |  | 4,069,518 |
|  | 8,659,129 |  | 8,724,939 |
Creditors: amounts falling due within one year | 19 | (5,156,653) |  | (3,501,673) |
Net current assets |  |  | 3,502,476 |  | 5,223,266
Total assets less current liabilities |  |  | 9,362,571 |  | 13,266,427
Creditors: amounts falling due after more than one year | 20 |  | (1,797,212) |  | (1,972,307)
Provisions for liabilities |  |  |  |  |
Deferred taxation | 23 | - |  | (63,872) |
Other provisions | 24 | (1,027,755) |  | (888,386) |
|  |  | (1,027,755) |  | (952,258)
Net assets |  |  | 6,537,604 |  | 10,341,862
Capital and reserves |  |  |  |  |
Called up share capital | 25 |  | 860,020 |  | 860,393
Share premium account | 26 |  | 1,387,703 |  | 1,387,703
Capital redemption reserve | 26 |  | 58,115 |  | 57,742
Profit and loss account | 26 |  | 4,231,766 |  | 8,036,024
|  |  | 6,537,604 |  | 10,341,862
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
................................................ D Cadle
Director
Date: 22 July 2026
The notes on pages 19 to 42 form part of these financial statements. Page 13
ENVY POST PRODUCTION LIMITED |  |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 28 FEBRUARY 2025
| Called up share capital | Share premium account | Capital redemption reserve | Profit and loss account | Total equity
| £ | £ | £ | £ | £
At 1 March 2023 | 863,473 | 1,387,703 | 54,662 | 9,346,188 | 11,652,026
Comprehensive income for the year |  |  |  |  |
Loss for the year | - | - | - | (1,766,424) | (1,766,424)
Other comprehensive income for the year | - | - | - | - | -
Total comprehensive income for the year | - | - | - | (1,766,424) | (1,766,424)
Contributions by and distributions to owners |  |  |  |  |
Dividends: Equity capital | - | - | - | (50,000) | (50,000)
Purchase of own shares | (3,080) | - | 3,080 | (50,269) | (50,269)
Total transactions with owners | (3,080) | - | 3,080 | (100,269) | (100,269)
At 1 March 2024 | 860,393 | 1,387,703 | 57,742 | 7,479,495 | 9,785,333
Comprehensive income for the year |  |  |  |  |
Loss for the year | - | - | - | (2,735,787) | (2,735,787)
Other comprehensive income for the year | - | - | - | - | -
Total comprehensive income for the year | - | - | - | (2,735,787) | (2,735,787)
Contributions by and distributions to owners |  |  |  |  |
Purchase of own shares | (373) | - | 373 | (3,749) | (3,749)
Total transactions with owners | (373) | - | 373 | (3,749) | (3,749)
At 28 February 2025 | 860,020 | 1,387,703 | 58,115 | 4,739,959 | 7,045,797
| The notes on pages 19 to 42 form part of these financial statements.
Page 14
ENVY POST PRODUCTION LIMITED |  |
COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 28 FEBRUARY 2025
| Called up share capital | Share premium account | Capital redemption reserve | Profit and loss account | Total equity
| £ | £ | £ | £ | £
At 1 March 2023 | 863,473 | 1,387,703 | 54,662 | 9,596,947 | 11,902,785
Comprehensive income for the year |  |  |  |  |
Loss for the year | - | - | - | (1,460,654) | (1,460,654)
Total comprehensive income for the year | - | - | - | (1,460,654) | (1,460,654)
Contributions by and distributions to owners |  |  |  |  |
Dividends: Equity capital | - | - | - | (50,000) | (50,000)
Purchase of own shares | (3,080) | - | 3,080 | (50,269) | (50,269)
Total transactions with owners | (3,080) | - | 3,080 | (100,269) | (100,269)
At 1 March 2024 | 860,393 | 1,387,703 | 57,742 | 8,036,024 | 10,341,862
Comprehensive income for the year |  |  |  |  |
Loss for the year | - | - | - | (3,800,509) | (3,800,509)
Total comprehensive income for the year | - | - | - | (3,800,509) | (3,800,509)
Contributions by and distributions to owners |  |  |  |  |
Purchase of own shares | (373) | - | 373 | (3,749) | (3,749)
Total transactions with owners | (373) | - | 373 | (3,749) | (3,749)
At 28 February 2025 | 860,020 | 1,387,703 | 58,115 | 4,231,766 | 6,537,604
| The notes on pages 19 to 42 form part of these financial statements.
Page 15
ENVY POST PRODUCTION LIMITED |  |
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 28 FEBRUARY 2025
|  |  | 28 February | 29 February
|  |  | 2025 | 2024
|  |  | £ | £
Cash flows from operating activities |  |
Loss for the financial year | (2,735,787) | (1,766,424)
Adjustments for: |  |
Impairment of development expenditure | 214,721 | -
Amortisation of intangible assets | 282,217 | 247,028
Depreciation of tangible assets | 1,766,787 | 1,588,202
Impairments of goodwill | 1,242,971 | -
(Profit)/loss on disposal of tangible assets | (3,423) | 46,473
Interest paid | 222,518 | 146,277
Interest received | (62,464) | (91,402)
Taxation charge | - | (548,788)
(Increase)/decrease in stocks | (126) | 44
(Increase)/decrease in debtors | (817,465) | 778,764
Increase/(decrease) in creditors | 2,038,217 | (1,626,754)
Increase in provisions | 139,369 | 228,548
Corporation tax received/(paid) | - | (189,882)
Net cash generated from/(used in) operating activities | 2,287,535 | (1,187,914)
Page 16
ENVY POST PRODUCTION LIMITED |  |
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2025
|  | 28 February | 29 February
|  | 2025 | 2024
|  | £ | £
Cash flows from investing activities |  |
Purchase of intangible fixed assets | (138,489) | (168,878)
Purchase of tangible fixed assets | (1,810,429) | (1,147,323)
Sale of tangible fixed assets | 7,138 | -
Interest received | 62,464 | 91,402
Net cash from investing activities | (1,879,316) | (1,224,799)
Cash flows from financing activities |  |
Repayment of loans | (366,667) | (433,333)
Repayment of finance leases | (566,657) | (257,639)
Dividends paid | - | (50,000)
Interest paid | (222,518) | (146,277)
Shares bought back in the year | (3,749) | (50,269)
Net cash used in financing activities | (1,159,591) | (937,518)
Net (decrease) in cash and cash equivalents | (751,372) | (3,350,231)
Cash and cash equivalents at beginning of year | 4,372,071 | 7,722,302
Cash and cash equivalents at the end of year | 3,620,699 | 4,372,071
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 3,620,699 | 4,372,071
| 3,620,699 | 4,372,071
The notes on pages 19 to 42 form part of these financial statements.
Page 17
ENVY POST PRODUCTION LIMITED |  |
CONSOLIDATED ANALYSIS OF NET DEBT FOR THE YEAR ENDED 28 FEBRUARY 2025
| At 1 March 2024 | Cash flows | New finance leases | At 28 February 2025
| £ | £ | £ | £
Cash at bank and in hand | 4,372,071 | (751,372) | - | 3,620,699
Debt due after 1 year | (766,667) | 400,000 | - | (366,667)
Debt due within 1 year | (407,091) | (33,333) | - | (440,424)
Finance leases | (1,255,891) | 566,656 | (305,295) | (994,530)
| 1,942,422 | 181,951 | (305,295) | 1,819,078
The notes on pages 19 to 42 form part of these financial statements.
Page 18
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025
1. | General information
Envy Post Production Limited (05360199) is a private company limited by shares, and it is incorporated and domiciled in England and Wales. Details of the company's registered office can be found on the company information page. The Group consists of Envy Post Production Limited ("the Company") and all of its subsidiaries. The Group's principal activity during the year was post production services. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3). The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
| 2.2 | Basis of consolidation
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. Page 19
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025 2.Accounting policies (continued)
| 2.3 | Going concern
The group made a loss for the year of £2,735,787 and had net assets of £7,045,797 and cash reserves of £3,620,699 at the balance sheet date. After the financial year the company secured a bank loan of £2,000,000 to fund working capital and to provide financial assistance with the move to new premises. This loan was fully drawn down in August 2025 (see note 31). The company also received a cash investment of £2,200,000 in the first quarter of 2026 for the issue of new shares (see note 31). In May 2026 the subsidiaries Absolute Post Limited and Blind Pig Limited were placed into administration following a continuing period of generating trading losses (see note 31). The financial statements have been prepared on the going concern basis which the directors consider to be appropriate, taking account of the above events occurring after the balance sheet date. The directors have considered the previous and current loss position of the company, the recent injection of cash and the action taken to eliminate exposure to further significant subsidiary losses. Forecasts and cashflows for a period of 12 months following the signing of these financial statements have been prepared. As a result of an assessment of these forecasts together with a review of cash in hand and available cash funding and credit facilities, the directors believe that the company will continue to operate successfully for the foreseeable future and be able to meet its liabilities as and when they fall due.
| 2.4 | Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.
| 2.5 | Income Tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. Page 20
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025 2.Accounting policies (continued)
| 2.6 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is GBP. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.
| 2.7 | Operating leases
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
| 2.8 | Research and development
Research expenditure is written off in the period in which it is incurred. Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met: - It is technically feasible to complete the intangible asset so that it will be available for use or sale; - There is the intention to complete the intangible asset and use or sell it; - There is the ability to use or sell the intangible asset; - The use or sale of the intangible asset will generate probable future economic benefits; - There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and - The expenditure attributable to the intangible asset during its development can be measured reliably. Expenditure that does not meet the above criteria is expensed as incurred. Page 21
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025 2.Accounting policies (continued)
| 2.9 | Intangible assets
Goodwill Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over ten years. Other intangible assets Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. Amortisation is provided on the following bases:
|  |  |  | Development costs | - |  | 20 - 25% straight line basis
|  |  |  | Computer software | - |  | 20% straight line basis
| 2.10 | Tangible assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
|  |  |  | Leasehold Improvements | - | Over the term of the lease
|  |  |  | Plant and machinery | - | 15% - 33% straight line
|  |  |  | Fixtures and fittings | - | 10% - 20% straight line
|  |  |  | Assets under Construction | - | Depreciation will only commence once completed and available for use
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss. Page 22
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025 2.Accounting policies (continued)
| 2.11 | Impairment of fixed assets and goodwill
Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
| 2.12 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment.
| 2.13 | Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
| 2.14 | Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
| 2.15 | Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
| 2.16 | Financial instruments
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares. Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or Page 23
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025 2.Accounting policies (continued)
| 2.16 | Financial instruments (continued)
receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
| 2.17 | Pensions
Defined contribution pension plan The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.
3. | Judgements in applying accounting policies and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: Dilapidation and reinstatement provision: The Directors assess each property individually under the terms of the lease. The judgements, estimates and associated assumptions necessary to calculate the provisions are based on historical experience and other reasonable factors. Impairment assessments on investments and intangible assets: The Directors assess the carrying value of investments and intangible assets for indicators of impairment at each reporting date. The judgements, estimates and associated assumptions necessary to determine whether any impairment is required are based on management forecasts, expected future trading performance, historical experience and other reasonable factors. Page 24
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Rendering of services | 27,307,427 | 26,212,624
|  | 27,307,427 | 26,212,624
Analysis of turnover by country of destination:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| United Kingdom | 26,187,486 | 25,522,328
| Rest of Europe | 224,787 | 56,967
| Rest of the world | 895,154 | 633,329
|  | 27,307,427 | 26,212,624
5. | Other operating income
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Rental income | - | 140,999
| Other income | 6,279 | 18,584
| Compensation received from landlord for vacation of premises | 1,120,000 | -
|  | 1,126,279 | 159,583
| Other operating income includes £1,120,000 paid to the company as a compensation obligation by the landlord for exercising an early break clause under a leased building the company vacated.
Page 25
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025
6. | Operating loss
| The operating loss is stated after charging:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Impairment of goodwill | 1,242,971 | -
| Exchange differences | 5,596 | 12,803
| Depreciation of tangible fixed assets | 1,766,787 | 1,588,203
| Amortisation of intangible assets, including goodwill | 282,217 | 247,028
| Impairment of development costs | 214,721 | -
| (Profit)/loss on disposal of tangible assets | (3,423) | 46,473
| Other operating lease rentals | 3,176,006 | 3,111,162
| Staff pension contributions | 426,762 | 392,367
7. | Auditor's remuneration
| During the year, the Group obtained the following services from the Company's auditor:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Fees payable to the Group's auditors for the audit of the Group's annual financial statements | 61,500 | 56,000
Page 26
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025
8. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  | Group 28 February | Group 29 February | Company 28 February | Company 29 February
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Wages and salaries | 12,788,310 | 12,969,680 | 7,409,571 | 7,427,363
| Social security costs | 1,451,184 | 1,469,039 | 853,661 | 854,082
| Cost of defined contribution scheme | 416,762 | 392,367 | 275,687 | 242,846
|  | 14,656,256 | 14,831,086 | 8,538,919 | 8,524,291
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2025 | 2024
|  |  | No. | No.
|  | Production staff | 211 | 217
|  | Administrative staff | 31 | 41
|  | Management staff | 8 | 8
|  |  | 250 | 266
9. | Directors' remuneration
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Directors' emoluments | 859,439 | 852,440
| Group contributions to defined contribution pension schemes | 106,529 | 102,810
|  | 965,968 | 955,250
| During the year retirement benefits were accruing to 6 directors (2024 - 6) in respect of defined contribution pension schemes.
| The highest paid director received remuneration of £262,185 (2024 - £264,428).
| The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £25,500 (2024 - £25,500).
10. | Goodwill impairment
Since the year end Absolute Post Limited and Blind Pig Limited were placed into administration (see note 31). Goodwill was subject to an impairment test at the year end where it was assessed that the recoverable amount of the investment was £nil. The balance was impaired in full at the balance sheet date. Page 27
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025
11. | Interest receivable
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Other interest receivable | 62,464 | 91,402
|  | 62,464 | 91,402
12. | Interest payable and similar expenses
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank interest payable | 72,530 | 108,350
| Finance leases and hire purchase contracts | 149,988 | 37,927
|  | 222,518 | 146,277
13. | Taxation
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | - | (127,484)
| Adjustments in respect of previous periods | - | (40,547)
|  | - | (168,031)
| Total current tax | - | (168,031)
| Deferred tax |  |
| Origination and reversal of timing differences | - | (373,766)
| Changes to tax rates | - | (6,991)
| Total deferred tax | - | (380,757)
|  | - | (548,788)
Page 28
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025 13.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is higher than (2024 - higher than) the standard rate of corporation tax in the UK of 25% (2024 - 24.49%). The differences are explained below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Loss on ordinary activities before tax | (2,735,787) | (2,315,212)
| Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 24.49%) | (683,947) | (566,995)
| Effects of: |  |
| Fixed asset differences | 15,483 | (18,560)
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 98,659 | 48,122
| Capital allowances for year in excess of depreciation | - | (519)
| Different rates on loss carry-back | - | 36,836
| Goodwill amortisation | 41,548 | 40,272
| Adjustments to tax charge in respect of prior periods | - | 722
| Re-measurement of deferred tax - change in the UK tax rate | - | (6,991)
| Other timing differences | - | (3,559)
| Goodwill impairment | 310,743 | -
| Research and Development tax relief | - | (41,269)
| Deferred tax not recognised | 217,514 | (36,847)
| Total tax charge for the year | - | (548,788)
14. | Dividends
|  |  |  |  | 28 February | 29 February
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Equity dividends on ordinary shares | - | 50,000
|  | - | 50,000
The directors have not proposed a dividend to be paid after the year end (2024: none). Page 29
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025
15. | Intangible assets
| Group
|  | Development expenditure | Computer software | Goodwill | Total
|  | £ | £ | £ | £
| Cost |  |  |  |
| At 1 March 2024 | 495,867 | 26,775 | 1,616,905 | 2,139,547
| Additions | 158,939 | - | - | 158,939
| At 28 February 2025 | 654,806 | 26,775 | 1,616,905 | 2,298,486
| Amortisation |  |  |  |
| At 1 March 2024 | 233,001 | 14,453 | 207,741 | 455,195
| Charge for the year on owned assets | 112,701 | 3,323 | 166,193 | 282,217
| Impairment charge | 214,721 | - | 1,242,971 | 1,457,692
| At 28 February 2025 | 560,423 | 17,776 | 1,616,905 | 2,195,104
| Net book value |  |  |  |
| At 28 February 2025 | 94,383 | 8,999 | - | 103,382
| At 29 February 2024 | 262,866 | 12,322 | 1,409,164 | 1,684,352
| Development Intangible assets includes development expenditure for Absolute Post Limited. The costs incurred relate to the development of workflows which benefit from future revenue streams over the period that the costs are amortised. The company has since been placed into administration which is indicative of an impairment existing at the balance sheet date therefore the balance of £214,721 has been impaired in full. Goodwill Since the year end Absolute Post Limited and Blind Pig Limited were placed into administration. Goodwill was subject to an impairment test at the year end where it was assessed that the recoverable amount was £nil. The balance of £1,242,971 was impaired in full at the balance sheet date.
Page 30
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025 15.Intangible assets (continued)
| Company
|  | Development expenditure | Computer software | Total
|  | £ | £ | £
| Cost |  |  |
| At 1 March 2024 | 296,772 | 26,775 | 323,547
| Additions | 41,024 | - | 41,024
| At 28 February 2025 | 337,796 | 26,775 | 364,571
| Amortisation |  |  |
| At 1 March 2024 | 196,453 | 14,453 | 210,906
| Charge for the year on owned assets | 46,960 | 3,323 | 50,283
| At 28 February 2025 | 243,413 | 17,776 | 261,189
| Net book value |  |  |
| At 28 February 2025 | 94,383 | 8,999 | 103,382
| At 29 February 2024 | 100,319 | 12,322 | 112,641
Page 31
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025
16. | Tangible fixed assets
| Group
|  | Land & Buildings | Plant and machinery | Fixtures and fittings | Assets under construction | Total
|  | £ | £ | £ | £ | £
| Cost |  |  |  |  |
| At 1 March 2024 | 5,103,994 | 11,426,958 | 4,088,048 | - | 20,619,000
| Additions | 204,565 | 556,276 | 70,825 | 1,283,608 | 2,115,274
| Disposals | (43,682) | (674,654) | (152,606) | - | (870,942)
| At 28 February 2025 | 5,264,877 | 11,308,580 | 4,006,267 | 1,283,608 | 21,863,332
| Depreciation |  |  |  |  |
| At 1 March 2024 | 3,965,513 | 7,595,306 | 3,681,537 | - | 15,242,356
| Charge for the year on owned assets | 356,245 | 1,236,130 | 174,412 | - | 1,766,787
| Disposals | (43,682) | (666,868) | (152,606) | - | (863,156)
| At 28 February 2025 | 4,278,076 | 8,164,568 | 3,703,343 | - | 16,145,987
| Net book value |  |  |  |  |
| At 28 February 2025 | 986,801 | 3,144,012 | 302,924 | 1,283,608 | 5,717,345
| At 29 February 2024 | 1,138,481 | 3,831,652 | 406,511 | - | 5,376,644
| The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
|  |  |  |  | 28 February | 29 February
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Plant and machinery | 1,375,755 | 1,371,248
|  | 1,375,755 | 1,371,248
Page 32
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025 16.Tangible fixed assets (continued)
| Company
|  | Land & Buildings | Plant and machinery | Fixtures and fittings | Assets under construction | Total
|  | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |
| At 1 March 2024 | 5,103,994 | 10,851,891 | 4,088,048 | - | 20,043,933
| Additions | 204,565 | 489,938 | 70,825 | 1,283,608 | 2,048,936
| Disposals | (43,682) | (562,910) | (152,606) | - | (759,198)
| At 28 February 2025 | 5,264,877 | 10,778,919 | 4,006,267 | 1,283,608 | 21,333,671
| Depreciation |  |  |  |  |
| At 1 March 2024 | 3,965,513 | 7,277,198 | 3,681,537 | - | 14,924,248
| Charge for the year on owned assets | 356,245 | 1,127,736 | 174,412 | - | 1,658,393
| Disposals | (43,682) | (559,395) | (152,606) | - | (755,683)
| At 28 February 2025 | 4,278,076 | 7,845,539 | 3,703,343 | - | 15,826,958
| Net book value |  |  |  |  |
| At 28 February 2025 | 986,801 | 2,933,380 | 302,924 | 1,283,608 | 5,506,713
| At 29 February 2024 | 1,138,481 | 3,574,693 | 406,511 | - | 5,119,685
| The net book value of assets held under finance leases or hire purchase contracts for the company is the same as disclosed for the group above. Assets under construction is in relation to a substantial refurbishment and fit-out project at new premises, this has been explained further in note 28.
Page 33
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025
17. | Fixed asset investments
| Group
|  | Unlisted investments
|  | £
| Cost or valuation |
| At 1 March 2024 | 250,000
| At 28 February 2025 | 250,000
| Net book value |
| At 28 February 2025 | 250,000
| At 29 February 2024 | 250,000
Page 34
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025
| Company
|  | Investments in subsidiary companies | Unlisted investments | Total
|  | £ | £ | £
| Cost or valuation |  |  |
| At 1 March 2024 | 2,560,835 | 250,000 | 2,810,835
| At 28 February 2025 | 2,560,835 | 250,000 | 2,810,835
| Impairment |  |  |
| Charge for the period | 2,560,835 | - | 2,560,835
| At 28 February 2025 | 2,560,835 | - | 2,560,835
| Net book value |  |  |
| At 28 February 2025 | - | 250,000 | 250,000
| At 29 February 2024 | 2,560,835 | 250,000 | 2,810,835
| Direct subsidiary undertaking The following was a direct subsidiary undertaking of the Company: Absolute Investments Limited - Intermediate holding company - 100% ordinary shares I ndirect subsidiary undertaking The following were indirect subsidiary undertakings of the Company: Absolute Post Limited - Post Production - 100% ordinary shares Blind Pig Limited - Post Production - 100% ordinary shares Absolute Colour Limited - Ceased trading - 100% ordinary shares Absolute Film & TV Limited - Dormant - 100% ordinary shares The registered office for Absolute Post Limited and Blind Pig Limited are 19-21 Mortimer Street, London, W1T 3JE. The registered office for Absolute Investments Limited, Absolute Colour Limited and Absolute Film & TV Limited are 1 Stephen Street, London, England, W1T 1AT. I mpairment Since the year end Absolute Post Limited and Blind Pig Limited were placed into administration. The investment in their intermediate holding company, Absolute Investments Limited, was subject to an impairment test at the year end where it was assessed that the recoverable amount was £nil. The balance of £2,560,835 was impaired in full at the balance sheet date.
Page 35
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025
18. | Debtors
|  | Group 28 February | Group 29 February | Company 28 February | Company 29 February
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Due after more than one year |  |  |  |
| Other debtors | 779,466 | 567,710 | 779,466 | 567,710
|  | 779,466 | 567,710 | 779,466 | 567,710
| Due within one year |  |  |  |
| Trade debtors | 2,371,796 | 2,789,513 | 1,421,403 | 1,727,683
| Amounts owed by group undertakings | - | - | - | 367,736
| Other debtors | 995,863 | 498,994 | 808,797 | 369,880
| Prepayments and accrued income | 2,560,251 | 2,049,369 | 2,075,228 | 1,621,658
|  | 6,707,376 | 5,905,586 | 5,084,894 | 4,654,667
19. | Creditors: Amounts falling due within one year
|  | Group 28 February | Group 29 February | Company 28 February | Company 29 February
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Bank loans | 433,333 | 400,000 | 433,333 | 400,000
| Trade creditors | 1,549,870 | 1,189,442 | 1,279,611 | 792,847
| Corporation tax | 122 | 122 | - | -
| Other taxation and social security | 1,233,763 | 840,532 | 730,243 | 377,406
| Obligations under finance lease and hire purchase contracts | 516,502 | 486,221 | 516,502 | 486,221
| Other creditors | 437,925 | 325,376 | 337,653 | 232,522
| Accruals and deferred income | 2,251,498 | 1,596,035 | 1,859,311 | 1,212,677
|  | 6,423,013 | 4,837,728 | 5,156,653 | 3,501,673
| Finance lease and hire purchase agreements are secured on the fixed assets to which they relate.
Page 36
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025
20. | Creditors: Amounts falling due after more than one year
|  | Group 28 February | Group 29 February | Company 28 February | Company 29 February
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Bank loans | 366,667 | 766,667 | 366,667 | 766,667
| Net obligations under finance leases and hire purchase contracts | 478,028 | 769,670 | 478,028 | 769,670
| Accruals and deferred income | 952,517 | 435,970 | 952,517 | 435,970
|  | 1,797,212 | 1,972,307 | 1,797,212 | 1,972,307
Finance lease and hire purchase agreements are secured on the fixed assets to which they relate.
21. | Loans
|  | Group 28 February | Group 29 February | Company 28 February | Company 29 February
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Analysis of the maturity of loans is given below: |  |  |  |
| Amounts falling due within one year | 433,333 | 400,000 | 433,333 | 400,000
| Amounts falling due 1-2 years | 366,667 | 400,000 | 366,667 | 400,000
| Amounts falling due 2-5 years | - | 366,667 | - | 366,667
|  | 800,000 | 1,166,667 | 800,000 | 1,166,667
| The bank loan is guaranteed under the Coronavirus Business Interruption Loan Scheme (CBILS) by the UK Government. Interest is charged on the loan at the Bank of England (BOE) base rate plus 2.31% and payable over the life of the loan. The bank loan has a covenant based on net assets which is tested annually. A new bank loan was taken out after the year end which also has a net asset covenant. Where covenant requirements are not met, the bank has indicated its ongoing support for the company.
22. | Hire purchase and finance leases
| Minimum lease payments under hire purchase fall due as follows:
|  | Group 28 February | Group 29 February | Company 28 February | Company 29 February
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Within one year | 516,502 | 486,221 | 516,502 | 486,221
| Between 1-5 years | 478,028 | 769,670 | 478,028 | 769,670
|  | 994,530 | 1,255,891 | 994,530 | 1,255,891
Page 37
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025
23. | Deferred taxation
| Group
|  | 2025 | 2024
|  | £ | £
| At beginning of year | - | (380,757)
| Charged to profit or loss | - | 380,757
| At end of year | - | -
| Company
|  | 2025 | 2024
|  | £ | £
| At beginning of year | (63,872) | (380,757)
| Charged to profit or loss | 63,872 | 316,885
| At end of year | - | (63,872)
|  | Group 28 February | Group 29 February | Company 28 February | Company 29 February
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Accelerated capital allowances | (708,896) | (701,480) | (616,450) | (613,023)
| Short term timing differences | 44,895 | 4,628 | 22,971 | 2,388
| Losses and other deductions | 664,001 | 696,852 | 593,479 | 546,763
|  | - | - | - | (63,872)
| The deferred tax on the unaccounted tax losses in excess of other timing differences in the group at the year-end was £228,762 (2024: £15,047). The deferred tax on the unaccounted tax losses in excess of other timing differences in the company at the year-end was £92,828 (2024: Nil).
Page 38
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025
24. | Provisions
| Group
|  | Dilapidation provision | Deferred consideration | Total
|  | £ | £ | £
| At 1 March 2024 | 536,208 | 457,831 | 994,039
| Unwind of discount | - | 24,311 | 24,311
| Change in estimate | 115,058 | - | 115,058
| At 28 February 2025 | 651,266 | 482,142 | 1,133,408
| The above dilapidation provision relates to the Group's present obligation to restore the properties to a specified condition. The timing of these payments is therefore uncertain as they may only occur upon the termination of the leases. The deferred consideration is due to the vendors of Absolute Investments Limited and its subsidiaries (“the Absolute Group”) that were acquired by Envy Post Production Limited in November 2022. At the balance sheet date there is uncertainty as to when the liability will fall due as it is dependent upon factors outside the control of thecompany. Post balance sheet date, an agreement has been reached to settle the liability by October 2027. Please see Note 31.
Page 39
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025 24.Provisions (continued)
| Company
|  | Dilapidation provision | Deferred consideration | Total
|  | £ | £ | £
| At 1 March 2024 (as restated) | 430,555 | 457,831 | 888,386
| Unwind of discount | - | 24,311 | 24,311
| Change in estimate | 115,058 | - | 115,058
| At 28 February 2025 | 545,613 | 482,142 | 1,027,755
| The above dilapidation provision relates to the Company's present obligation to restore the properties to a specified condition. The timing of these payments is therefore uncertain as they may only occur upon the termination of the leases. The deferred consideration is due to the vendors of Absolute Investments Limited and its subsidiaries (“the Absolute Group”) that were acquired by Envy Post Production Limited in November 2022. At the balance sheet date there is uncertainty as to when the liability will fall due as it is dependent upon factors outside the control of the company. Post balance sheet date, an agreement has been reached to settle the liability by October 2027. Please see Note 31.
25. | Share capital
|  |  |  |  | 28 February | 29 February
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
|  | Authorised |  |
|  | 2,000,000 (2024 - 2,000,000) Ordinary Shares of £1.00 each | 2,000,000 | 2,000,000
|  | Allotted, called up and fully paid |  |
|  | 778,497 (2024 - 778,870) Ordinary Shares of £1.00 each | 778,497 | 778,870
|  | Allotted, called up and partly paid |  |
|  | 111,675 (2024 - 111,675) Ordinary Shares of £1.00 each | 81,523 | 81,523
| The company has one class of ordinary shares which carry no right to fixed income. During the year the company bought back 373 ordinary shares of £1.00 each for a total consideration of £3,749.
Page 40
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025
26. | Reserves
Share premium account This reserve records the amount above the nominal value received for shares sold, less transaction costs. Capital redemption reserve This is a statutory, non-distributable reserve which arose following the purchase of the company's own shares out of distributable profits. Profit and loss account The profit and loss account represents the retention of historical profits less dividends paid and purchase of own shares.
27. | Contingent liabilities
As previously disclosed, Envy Post Production acquired Absolute Investments Limited and its subsidiaries (‘the Absolute Group’) in November 2022. It has been identified that prior to acquisition by the group, VAT was incorrectly not charged on management charges raised between certain of the Absolute Group entities, not covered by a group VAT registration. The group has corresponded with HMRC and has corrected the matter, with a VAT neutral position across the entities. Penalties and interest may arise once VAT outstanding is settled in full, however the group is currently unable to assess whether this will be the case or potential quantum thereof.
28. | Capital commitments
| At 28 February 2025 the Group and Company had capital commitments as follows:
|  | Group 28 February | Group 29 February | Company 28 February | Company 29 February
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Contracted for but not provided in these financial statements | 3,596,781 | 182,163 | 3,596,781 | 182,163
|  | 3,596,781 | 182,163 | 3,596,781 | 182,163
| Capital commitments have increased significantly from £182,163 in the prior year to £3,596,781 in the current year. This increase is primarily due to the entity entering into a lease agreement for a new property during the financial year. As part of this lease, the entity has commenced a substantial refurbishment and fit-out project at the new premises, with works beginning shortly before the year end. The capital commitment reflects the contracted costs associated with these ongoing build and fit-out activities.
29. | Pension commitments
The amount recognised in profit and loss as an expense in relation to defined contribution plans was £426,762 (2024: £392,367). Contributions totalling £112,255 (2024: £54,031) were payable to the fund at 28 February 2025 and are included in creditors. Page 41
ENVY POST PRODUCTION LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025
30. | Commitments under operating leases
| At 28 February 2025 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  | Group 28 February | Group 29 February | Company 28 February | Company 29 February
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Not later than 1 year | 2,728,612 | 3,264,246 | 2,728,612 | 3,264,246
| Later than 1 year and not later than 5 years | 10,595,887 | 5,769,106 | 10,595,887 | 5,769,106
| Later than 5 years | 14,109,045 | - | 14,109,045 | -
|  | 27,433,544 | 9,033,352 | 27,433,544 | 9,033,352
31. | Non adjusting post balance sheet events
Following the year end, the company secured a £2,000,000 term loan from the company’s bankers. This was drawn down in full in August 2025. In August 2025, Envy acquired 100% of the share capital of Mojo Bridge Ltd, the company trading under the Halo Post and Evolutions Post brands, funded by the issue of Envy shares. At the same time a £2,000,000 injection of cash was made into the group to assist with the acquired working capital position. There was an intense period of review of the Mojo Bridge operations and during that time pre-existing trading difficulties did not improve. This resulted in available cash reserves expiring and the company’s obligations were not being met. Mojo Bridge was therefore placed into a company administration in December 2025. In May 2026 the trading subsidiaries, Absolute Post Limited and Blind Pig Limited, were placed into administration following a continuing period of generating trading losses since the balance sheet date. The directors are currently working with the appointed administrators in relation to those entities finances and the preparation of statements of affairs however, these subsidiaries recorded turnover for the year ended 28 February 2025 of £10.2m and a loss before tax for that period of £0.36m and management information identifies that at 30 April 2026, the companies had net liabilities of £1.1m. Included within the net liabilities were £1.2m owed to Envy Post Production Limited of which £0.56m was owed at 28 February 2025 and was fully provided for at that date. Any liabilities that may arise from the VAT matter disclosed in note 27 will fall under the company administration and will be discharged by the administrator as part of this process. Since the balance sheet date matters affecting the timing of deferred consideration (note 24) have been resolved. A schedule of future payments to discharge the deferred consideration liability was agreed in April 2026 and the liability is expected to be settled by October 2027. Since the year end, the company issued 398,044 ordinary shares to Random Fin Limited in exchange for a £2.2m cash investment.
32. | Controlling party
The directors are of the opinion that at year end there is no ultimate controlling party.
Page 42