Dovetail Games (Scotland) Limited SC451539 false 2025-04-01 2026-03-31 2026-03-31 The principal activity of the company is that of video games development. Digita Accounts Production Advanced 6.30.9574.0 true true true false true SC451539 2025-04-01 2026-03-31 SC451539 2026-03-31 SC451539 bus:Director4 2026-03-31 SC451539 bus:OrdinaryShareClass1 bus:CumulativeShares 2026-03-31 SC451539 core:RetainedEarningsAccumulatedLosses 2026-03-31 SC451539 core:ShareCapital 2026-03-31 SC451539 core:CurrentFinancialInstruments 2026-03-31 SC451539 core:CurrentFinancialInstruments core:WithinOneYear 2026-03-31 SC451539 bus:FRS102 2025-04-01 2026-03-31 SC451539 bus:Audited 2025-04-01 2026-03-31 SC451539 bus:FullAccounts 2025-04-01 2026-03-31 SC451539 bus:RegisteredOffice 2025-04-01 2026-03-31 SC451539 bus:Director1 2025-04-01 2026-03-31 SC451539 bus:Director2 2025-04-01 2026-03-31 SC451539 bus:Director3 2025-04-01 2026-03-31 SC451539 bus:Director4 2025-04-01 2026-03-31 SC451539 bus:OrdinaryShareClass1 bus:CumulativeShares 2025-04-01 2026-03-31 SC451539 bus:PrivateLimitedCompanyLtd 2025-04-01 2026-03-31 SC451539 bus:Agent1 2025-04-01 2026-03-31 SC451539 1 2025-04-01 2026-03-31 SC451539 core:RetainedEarningsAccumulatedLosses 2025-04-01 2026-03-31 SC451539 core:ShareCapital 2025-04-01 2026-03-31 SC451539 core:UKTax 2025-04-01 2026-03-31 SC451539 1 2025-04-01 2026-03-31 SC451539 countries:Scotland 2025-04-01 2026-03-31 SC451539 2025-03-31 SC451539 core:RetainedEarningsAccumulatedLosses 2025-03-31 SC451539 core:ShareCapital 2025-03-31 SC451539 2024-04-01 2025-03-31 SC451539 2025-03-31 SC451539 bus:OrdinaryShareClass1 bus:CumulativeShares 2025-03-31 SC451539 core:CurrentFinancialInstruments 2025-03-31 SC451539 core:CurrentFinancialInstruments core:WithinOneYear 2025-03-31 SC451539 1 2024-04-01 2025-03-31 SC451539 core:RetainedEarningsAccumulatedLosses 2024-04-01 2025-03-31 SC451539 core:ShareCapital 2024-04-01 2025-03-31 SC451539 core:UKTax 2024-04-01 2025-03-31 SC451539 2024-03-31 SC451539 core:RetainedEarningsAccumulatedLosses 2024-03-31 SC451539 core:ShareCapital 2024-03-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: SC451539

Dovetail Games (Scotland) Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2026

 

Dovetail Games (Scotland) Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 5

Independent Auditor's Report

6 to 9

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 20

 

Dovetail Games (Scotland) Limited

Company Information

Directors

G L Brown

R C O'Farrell

M D Ollard

Registered office

Suite 2, Ground Floor
Orchard Brae House
30 Queensferry Road
Edinburgh
EH4 2HS

Auditors

Constantin
Statutory Auditor200 Aldersgate Street
London
EC1A 4HD

 

Dovetail Games (Scotland) Limited

Strategic Report for the Year Ended 31 March 2026

The Directors present their strategic report of Dovetail Games (Scotland) Limited (“the Company”), and the audited financial statements for the year ended 31 March 2026.

The Company is a wholly owned subsidiary of its immediate parent company, Railsimulator.com Limited, which prepares consolidated financial statements.

Strategy and business model

Dovetail Games (Scotland) Limited is a video games developer.

The principal products developed by the Company include several iterations of Train Sim World. The Unreal engine from Epic is used and incorporated into a number of products.

The strategy of the Company is to continue to develop highly authentic experiences.

Fair review of the business

During the year, the Company successfully completed development on the core games of Train Sim World 6 which released on the 30th September 2025 and Thomas & Friends™: Wonders of Sodor which released on the 17th March 2026.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2026

2025

Revenue

£'000

21,797

19,771

Principal risks and uncertainties

The principal risks and uncertainties affecting the Company are in the opinion of the directors:

Global macroeconomic performance and its effect on consumer spending are uncertainties to which the Company is exposed as a participant in the computer games market. At present macroeconomic uncertainty is elevated due to the economic effects of ongoing conflicts and other factors.

The continued ability to attract, retain, and motivate the talented team members necessary to deliver high quality products is important to the Company's ongoing success. To maintain its position in the labour market the Company invests to develop a distinctive culture and a strong employee value proposition.

The Company makes purchases from suppliers who invoices are denominated in other currencies other than Sterling. Other currencies more frequently used are the Euro and US Dollar. The Company has Euro and USD currency accounts.

The Company is inherently exposed to cybersecurity risks due to the digital nature of its business. Measures are in place to mitigate these risks including internal security procedures, regular external penetration testing, and relevant insurance.

The Company is exposed to the effects of general price and wage inflation on the operating costs incurred in the course of its business. The Company reviews its own pricing.

Approved and authorised by the Board on 10 August 2026 and signed on its behalf by:
 

.........................................
R C O'Farrell
Director

 

Dovetail Games (Scotland) Limited

Directors' Report for the Year Ended 31 March 2026

The Directors present their report and the financial statements for the year ended 31 March 2026.

Directors of the company

The Directors who held office during the year were as follows:

G L Brown

R C O'Farrell

M D Ollard

J L Rissik (Resigned 7 April 2025)

Dividends

No dividend was paid during the year.

Directors' Indemnities

The Directors have benefited from qualifying third party indemnity insurance in place during the financial year in respect of this entity, the terms of which are in accordance with the Companies Act 2006.

Statement of Directors' Responsibilities

The Directors acknowledge their responsibilities for preparing the Annual Report and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Dovetail Games (Scotland) Limited

Directors' Report for the Year Ended 31 March 2026 (continued)

Financial instruments

Financial risk management objectives and policies

The Company makes use of financial instruments comprising cash and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to finance the Company's operations.

The main risks arising from the Company's financial instruments are currency risk, credit risk, and liquidity risk. The Company has no interest in the trade of financial instruments or derivatives.

Price risk, credit risk, liquidity risk and cash flow risk

Currency Risk

The Company maintains bank balances in Pounds Sterling, United States Dollars, and Euros. It makes supplier payments in the same currencies. The Company maintains flexibility in its operating model to adjust to changing FX rates.

Credit Risk

The Company is exposed to credit risk through trade debtors due from its customers. The Company operates customer acceptance and credit control processes in order to manage this risk.

Liquidity Risk

The Company seeks to manage liquidity risk by ensuring that sufficient liquid funds are available to meet its expected cash needs.

Interest Rate Risk

The loans from Group companies are under long-term agreements with an agreed interest rate which subsequently mitigates the Group’s exposure to interest rate risk.

Future developments

The Directors expect the Company to grow and develop by continuing its development of Video Games. The Directors further expect the Company to continue to benefit from tax incentives in relation to video game development provided by the UK Government.

Subsequent events

There have been no material subsequent events requiring adjustment to or disclosure in the financial statements.

Going concern

The Board of Directors have assessed a period of not less than 12 months from the date of these financial statements. The Board are of the view that the Company will continue to meet its liabilities as they fall due and therefore that the going concern basis of preparation is appropriate. For further details see note 2 within accounting policies.

Disclosure of information to the auditors

Each Director has taken steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The Directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

 

Dovetail Games (Scotland) Limited

Directors' Report for the Year Ended 31 March 2026 (continued)

Approved and authorised by the Board on 10 August 2026 and signed on its behalf by:
 


R C O'Farrell
Director

 

Dovetail Games (Scotland) Limited

Independent Auditor's Report to the Members of Dovetail Games (Scotland) Limited

Report on the audit of the financial statements

Opinion

In our opinion the financial statements of Dovetail Games (Scotland) Limited (the ‘Company’):

give a true and fair view of the state of the company's affairs as at 31 March 2026 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and

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

We have audited the financial statements which comprise:

the statement of comprehensive income;

the statement of financial position

the statement of changes in equity;

the statement of cash flows;

statement of accounting policies; and

the related notes 1 to 15.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the[financial statements section of our report.

We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

 

Dovetail Games (Scotland) Limited

Independent Auditor's Report to the Members of Dovetail Games (Scotland) Limited (continued)

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 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.

Responsibilities of Directors

As explained more fully in the Directors’ responsibilities statement, 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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditor Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

Dovetail Games (Scotland) Limited

Independent Auditor's Report to the Members of Dovetail Games (Scotland) Limited (continued)

Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, 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.

We considered the nature of the Company’s industry and its control environment, and reviewed the Company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and the Directors about their own identification and assessment of the risks of irregularities, including those that are specific to the Company’s business sector.

We obtained an understanding of the legal and regulatory framework that the Company operates in, and identified the key laws and regulations that:

had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act, pensions legislation, tax legislation; and

do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
 

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

enquiring of management and external legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

Report on other legal and regulatory requirements

Opinion on other matter 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 strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.

 

Dovetail Games (Scotland) Limited

Independent Auditor's Report to the Members of Dovetail Games (Scotland) Limited (continued)

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any material misstatements in the strategic report and the directors’ report.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:

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

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

certain disclosures of Directors' remuneration specified by law are not made; or

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

We have nothing to report in respect of these matters.

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.

......................................
Mark Bathgate (Senior Statutory Auditor)
For and on behalf of Constantin
Chartered Accountants and Statutory Auditor
 200 Aldersgate Street
London
EC1A 4HD

10 August 2026

 

Dovetail Games (Scotland) Limited

Statement of Comprehensive Income for the Year Ended 31 March 2026

Note

2026
£

2025
£

Turnover

3

21,796,904

19,771,421

Gross profit

 

21,796,904

19,771,421

Administrative expenses

 

(21,833,074)

(19,776,144)

Other operating income

4

4,745,373

3,645,524

Operating profit

5

4,709,203

3,640,801

Other interest receivable and similar income

6

4,329

-

Profit before tax

 

4,713,532

3,640,801

Tax on profit

8

(476,632)

-

Profit for the financial year

 

4,236,900

3,640,801

The above results were derived from continuing operations.

The Company has no recognised gains or losses for the year other than the results above. The comprehensive income is therefore equal to the profit for the financial year.

 

Dovetail Games (Scotland) Limited

(Registration number: SC451539)
Statement of Financial Position as at 31 March 2026

Note

2026
£

2025
£

Current assets

 

Debtors

9

11,255,994

12,277,655

Cash at bank and in hand

10

3,130,115

1,763,504

 

14,386,109

14,041,159

Creditors: Amounts falling due within one year

11

(2,675,430)

(6,567,380)

Net assets

 

11,710,679

7,473,779

Capital and reserves

 

Called up share capital

12

1

1

Profit and loss account

13

11,710,678

7,473,778

Shareholders' funds

 

11,710,679

7,473,779

Approved and authorised by the Board on 10 August 2026 and signed on its behalf by:
 

.........................................
R C O'Farrell
Director

.........................................
M D Ollard
Director

 
     
 

Dovetail Games (Scotland) Limited

Statement of Changes in Equity for the Year Ended 31 March 2026

Share capital
£

Profit and loss account
£

Total
£

At 1 April 2025

1

7,473,778

7,473,779

Profit for the year

-

4,236,900

4,236,900

At 31 March 2026

1

11,710,678

11,710,679

Share capital
£

Profit and loss account
£

Total
£

At 1 April 2024

1

3,832,977

3,832,978

Profit for the year

-

3,640,801

3,640,801

At 31 March 2025

1

7,473,778

7,473,779

 

Dovetail Games (Scotland) Limited

Statement of Cash Flows for the Year Ended 31 March 2026

Note

2026
£

2025
£

Cash flows from operating activities

Profit for the year

 

4,236,900

3,640,801

Adjustments to cash flows from non-cash items

 

Finance income

6

(4,329)

-

Income tax expense

8

476,632

-

Tax credit shown within other operating income

4

(4,745,373)

(3,645,524)

 

(36,170)

(4,723)

Working capital adjustments

 

Decrease/(increase) in debtors

9

1,646,981

(5,951,995)

(Decrease)/increase in creditors

11

(3,891,950)

4,972,797

Cash generated from operations

 

(2,281,139)

(983,921)

Income taxes received

8

3,643,421

2,166,660

Net cash flow from operating activities

 

1,362,282

1,182,739

Cash flows from investing activities

 

Interest received

6

4,329

-

Net increase in cash and cash equivalents

 

1,366,611

1,182,739

Cash and cash equivalents at 1 April

 

1,763,504

580,765

Cash and cash equivalents at 31 March

10

3,130,115

1,763,504

 

Dovetail Games (Scotland) Limited

Notes to the Financial Statements for the Year Ended 31 March 2026

1

General information

The Company is a private company limited by share capital, incorporated in Scotland.

The address of its registered office is:
Suite 2, Ground Floor
Orchard Brae House
30 Queensferry Road
Edinburgh
EH4 2HS
Scotland

Principal activity

The principal activity of the Company is that of video games development.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

The financial statements are prepared in sterling which is the functional currency of the entity. All amounts in the financial statements have been rounded to the nearest £1.

Going concern

The Board of Directors have assessed a period of not less than 12 months from the date of these financial statements. Taking the actual and expected financial performance, financial position, liquidity, and maturity of debt facilities of the Group into account, the Board of Directors are of the view that the Group will continue to meet its liabilities as they fall due and therefore that the going concern basis of preparation is appropriate.

In forming this view, the Group has prepared forecasts of future revenues, profits, cashflows, and net assets that take into account a range of factors including conditions in the computer games market, the performance of the Group’s games franchises, and macroeconomic conditions, in particular expected general cost and wage inflation.

 

Dovetail Games (Scotland) Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

2

Accounting policies (continued)

The Board of Directors have also considered possible cashflow impacts of changes in the release dates of key products, significant variances in revenue performance and timing of other key cash events, such as the timing of tax credits. The Board is comfortable that the ultimate parent company is aware of these items and that they are covered by the letter of support which is in place with the ultimate parent Company, PulluP Entertainment S.A.

Judgements

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.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.

Key sources of estimation uncertainty

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Estimates include:.

Video Games Tax Relief credit
The Company claims Video Games Tax Relief ('VGTR') in its Corporation Tax returns. External advisors are used to assist with preparing the claims. The claims for the year are included in these financial statements, however, this is subject to review and approval by HM Revenue & Customs. It is recognised on the Directors' belief that a tax credit will be recoverable.

VGTR is included within other operating income within the income statement.

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue relates to video games development. Revenue is recognised on a times and material basis based on the hours incurred in accordance with the contracts in place.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

Video games tax relief credits ('VGTR') are only recognised where it is the Directors' belief that a tax credit will be recoverable. This is based upon the Company's experience at obtaining the required certification to facilitate its titles in development to qualify for VGTR and success at previous claims. VGTR is recognised in other operating income in the Statement of Comprehensive Income.

 

Dovetail Games (Scotland) Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

2

Accounting policies (continued)

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates taxable income.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are
measured initially at fair value, net of transaction costs, and are measured subsequently at amortised
cost using the effective interest method, less any impairment.

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Financial instruments


The Company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors.
 
Debt instruments (other than those wholly repayable or receivable within one year), including 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 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, 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 at amortised cost.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 

Dovetail Games (Scotland) Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

3

Turnover

The analysis of the Company's turnover for the year from continuing operations is as follows:

2026
£

2025
£

Sales, UK

21,796,904

19,771,421

4

Other operating income

The analysis of the Company's other operating income for the year is as follows:

2026
£

2025
£

Video Games Tax Relief credit

4,745,373

3,645,524

5

Operating profit

Arrived at after charging/(crediting)

2026
£

2025
£

Research and development cost

3,112,391

2,962,261

Foreign exchange (gains)/losses

(2,964)

191

Audit of the financial statements

16,200

15,000

6

Other interest receivable and similar income

2026
£

2025
£

Other finance income

4,329

-

7

Staff costs

The average number of persons employed by the Company (including Directors) during the year, was 3 (2025 - 4).

The Company has no direct employees, other than the Directors, who did not receive any remuneration during the period. The Company has lending and assignment agreements in place.
 

 

Dovetail Games (Scotland) Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

8

Taxation

Tax charged/(credited) in the statement of comprehensive income

2026
£

2025
£

Current taxation

UK corporation tax

476,632

-

Video Games Tax Relief credits repayable

(4,745,373)

(3,645,524)

Video Games Tax Relief credits classified as other operating income

4,745,373

3,645,524

476,632

-

The Company has unused corporation tax losses carried forward at the year-end of £12,405 (2025: £96,764). Deferred tax not recognised on these losses as at 31 March 2026 is £3,101 (2025: £24,191).

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2025 - the same as the standard rate of corporation tax in the UK) of 25% (2025 - 25%).

The differences are reconciled below:

2026
£

2025
£

Profit before tax

4,713,532

3,640,801

Corporation tax at standard rate

1,178,383

910,200

Deferred tax not recognised

(21,090)

1,181

Adjustment to tax charge in respect of previous periods

-

(2,104)

Video game development tax profit adjustment

(2,960,854)

(3,643,420)

Non-taxable income

(680,661)

(911,381)

Reclassification of video games tax credit to other operating income

2,960,854

3,645,524

Total tax charge

476,632

-

Future tax rate changes

The main rate of corporation tax in the UK is 25%.

 

Dovetail Games (Scotland) Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

9

Debtors

Current

Note

2026
£

2025
£

Amounts owed by Group undertakings

14

6,890,877

8,496,455

Other debtors

 

4,365,117

3,781,200

   

11,255,994

12,277,655

Within other debtors is an amount of £4,268,741 (2025: £3,643,421) which represents corporation tax due to the Company. The Company claims Video Games Tax Relief.

Amounts owed by Group related parties relate to invoices which are paid in accordance with the terms of the agreements and interest is not due.

10

Cash and cash equivalents

2026
£

2025
£

Cash at bank

3,130,115

1,763,504

11

Creditors

Note

2026
£

2025
£

Due within one year

 

Trade creditors

 

205,117

225,980

Amounts owed to Group undertakings

14

2,165,028

6,089,064

Accruals

 

305,285

252,336

 

2,675,430

6,567,380

The amounts owed to Group undertakings relate to invoices which are paid in accordance with the terms of the agreements and interest is not due.

12

Share capital

Allotted, called up and fully paid shares

2026

2025

No.

£

No.

£

Ordinary shares of £1 each

1

1

1

1

       
 

Dovetail Games (Scotland) Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

13

Reserves

Profit and loss account

This reserve records retained earnings and accumulated losses.

14

Related party transactions

The Company has taken advantage of the exemption in FRS 102 paragraph 33.1A from the disclosure of transactions with entities that are part of the group of companies headed by Railsimulator.com Limited, on the grounds that it is a wholly owned subsidiary, and the consolidated financial statements are publicly available.

15

Parent and ultimate parent undertaking

The company's immediate parent is Railsimulator.com Limited, incorporated in England and Wales. The address of the company is 3rd Floor North, Fitted Rigging House, Anchor Wharf, The Historic Dockyard, Chatham, Kent, ME4 4TZ.

 The ultimate parent is PulluP Entertainment S.A. , incorporated in France. The address of the Company is Parc de Flandre, "Le Beauvaisis" Building 28, 11 rue de Cambrai, 75019 Paris.

 The most senior parent entity producing publicly available financial statements is PulluP Entertainment S.A.. These financial statements are available upon request from https://www.infogreffe.fr/entreprise.