As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Tangible fixed assets, other than investment properties, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual lives are assessed annually and may vary depending on the number of factors. In re-assessing assets lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Investment properties are valued annually using a yield methodology. This uses market rental values capitalised at a market capitalisation rate adjusted to take account of an allowance for costs likely to be deducted by any potential buyer but there is an evitable degree of judgement involved in that each property is unique and value can only ultimately be reliably tested in the market itself.
The Directors have included provisions against amounts owed by group undertakings based on estimates of the recoverable amounts.
Majesty House Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 3 Warners Mill, Silks Way, Braintree, CM7 3GB.
The group consists of Majesty House Limited and all of its subsidiaries, Laughing Jackal Limited, Ghostlight Limited and Midas Interactive Entertainment Limited. Midas Interactive Entertainment Limited was dissolved on 13th February 2024.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 judgement in applying the group's accounting policies (see note 2).
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention.
The principal accounting policies adopted are set out below.
The consolidated financial statements present the results of the company and its own subsidiaries 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 and 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.
All financial statements are made up to 31 December 2025.
These financial statement have been prepared on a going concern basis.
The Directors have reviewed the forecasts of the group, prepared for a period of twelve months from the date of approval of these financial statements. The directors consider, having assessed the principal risks and overhead expenses, that they have sufficient funds to meet the company's liabilities as they fall due given the level of cash in hand.
The company does have net liabilities of £1,031,259 (2024: £1,226,308) at the year end. This primarily influenced by a loan from a group company. The loan balance of £4,725,000 ( £4,875,000, at year end) has been renewed post year end and is repayable by 1 October 2027.
The directors have therefore concluded that it is appropriate to prepare the financial statements on a going concern basis.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group 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.
Where game development is undertaken in accordance with a development contract, the revenue arising is recognised as milestones, set out within each individual contract, as they are achieved.
The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
The group has transferred the significant risks and rewards of ownership to the buyer;
The group retain neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Downloads
Revenue from sales of software licences is recognised upon download by a customer when there are no significant vendor obligations remaining and the collection of the resulting receivable is considered reasonably assured.
Rental and service charge income
Rental and service charge income is recognised in the period which it is earned. Amounts invoiced in excess of the amount earned during the period are recognised as deferred income in creditors.
Benefits provided as an incentive to sign an operating lease are recognised on a straight line basis over the term of the lease.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Investments in subsidiaries are measured at cost less accumulated impairment.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The 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 the consolidated statement of comprehensive income 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.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Game acquisition costs
Costs incurred in acquiring and developing games are released to the consolidated statement of comprehensive income so as to be matched against the games' revenue. If a game is projected to make a loss, the acquisition costs are written down to an appropriate amount.
The whole of the turnover is attributable to the principal activity of the group.
The average monthly number of persons (including directors) employed by the group and company during the year was:
The 2025 valuations were made by the Directors, on an open market value for existing use basis.
The historic cost of this property is £5,053,257.
Details of the company's subsidiaries at 31 December 2025 are as follows:
The registered address of each subsidiary undertaking is the same as the parent.
The loan is security free, it is not secured on any asset.
0% interest rate.
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.
Post year end, the loan with Ray Trading Investments Ltd regarding the Principal sum £4,875,000, was renewed.
At 31 December 2025, the company had an outstanding loan with Ray Trading Inc. of £4,875,000 (2024 - £4,980,065), a company under common control from Mr O R Lababedi.
During the year the company received income from Westgate Investments UK, a company under control from Mr O R Lababedi, of £12,940 (2024 - £11,940) as a recharge in relation to the accounts work prepared for them by the company.
Key management personnel include all Directors across the group who together have authority and responsibility for planning, directing and controlling the activities of the group. The total compensation paid to key management personnel for services provided to the group was £65,593 (2024 - £65,427).