Company registration number: 05360199
COMPANY INFORMATION
CONTENTS
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2025
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.
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.
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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.
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:
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
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.
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.
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.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
This report was approved by the board and signed on its behalf.
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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.
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.
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.
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.
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.
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.
The directors who served during the year were:
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
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)
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)
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.
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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ENVY POST PRODUCTION LIMITED
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 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.
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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ENVY POST PRODUCTION LIMITED (CONTINUED)
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.
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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ENVY POST PRODUCTION LIMITED (CONTINUED)
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.
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.
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:
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;
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
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:
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.
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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.
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.
for and on behalf of
Chartered Accountants
Statutory Auditor
Victoria House
50-58 Victoria Road
Hampshire
GU14 7PG
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2025
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 28 FEBRUARY 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 42 form part of these financial statements.
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COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 28 FEBRUARY 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 42 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2025
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2025
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2025
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CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025
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CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 28 FEBRUARY 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
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.
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
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.
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.
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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
2.Accounting policies (continued)
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.
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.
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.
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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
2.Accounting policies (continued)
Goodwill
Other intangible assets
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:
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:
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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
2.Accounting policies (continued)
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.
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.
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.
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.
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
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
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
2.Accounting policies (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.
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:
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
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
Analysis of turnover by country of destination:
Page 25
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
Page 26
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
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
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
Page 28
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
13.Taxation (continued)
The directors have not proposed a dividend to be paid after the year end (2024: none).
Page 29
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
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Page 30
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
15.Intangible assets (continued)
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Page 31
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
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Page 32
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
16.Tangible fixed assets (continued)
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Page 33
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
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Page 34
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
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Page 35
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
Page 36
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
Finance lease and hire purchase agreements are secured on the fixed assets to which they relate.
Page 37
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
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Page 38
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
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Page 39
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
24.Provisions (continued)
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Page 40
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
Share premium account
Capital redemption reserve
Profit and loss account
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.
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.
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
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
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.
The directors are of the opinion that at year end there is no ultimate controlling party.
Page 42