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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2018 |
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EPIC GAMES UK LTD |
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REGISTERED NUMBER:
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2018 |
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FOR |
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EPIC GAMES UK LTD |
EPIC GAMES UK LTD (REGISTERED NUMBER: 02865912) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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EPIC GAMES UK LTD |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants |
Statutory Auditor |
2-4 Packhorse Road |
Gerrards Cross |
Buckinghamshire |
SL9 7QE |
EPIC GAMES UK LTD (REGISTERED NUMBER: 02865912) |
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BALANCE SHEET |
31 DECEMBER 2018 |
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2018 | 2017 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
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Tangible assets | 5 |
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Investments | 6 |
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CURRENT ASSETS |
Debtors | 7 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 8 |
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NET CURRENT ASSETS/(LIABILITIES) |
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TOTAL ASSETS LESS CURRENT LIABILITIES |
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CREDITORS |
Amounts falling due after more than one year | 9 | ( |
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PROVISIONS FOR LIABILITIES | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 10 |
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Retained earnings | 11 | (1,187,834 | ) | 814,775 |
SHAREHOLDERS' FUNDS |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors on
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EPIC GAMES UK LTD (REGISTERED NUMBER: 02865912) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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1. | STATUTORY INFORMATION |
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Epic Games UK Ltd is a private company, limited by shares, registered in England & Wales. The company's registered |
number and registered office address can be found on the Company Information page. The company's place of business |
is Westbury House, Bury Street, Guildford, GU2 4YZ. |
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The financial statements are presented in sterling which is the functional currency of the company and rounded to the |
nearest £. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Going concern |
The annual financial statements have been prepared on the going concern basis due to the continued support of the |
ultimate parent company and parent company. |
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On a day to day basis the company meets its working capital requirements through cash funding from the ultimate parent |
company. The company has no overdraft facility in place. |
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Preparation of consolidated financial statements |
The financial statements contain information about Epic Games UK Limited as an individual company and do not contain |
consolidated financial information as the parent of a group. The company is exempt under Section 399 (2A) of the |
Companies Act 2006 from the requirements to prepare consolidated financial statements as it is a small sized group. |
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Turnover |
Turnover represents amounts receivable for services relating to services provided in respect of computer software, |
excluding value added tax. |
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Tangible fixed assets |
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Improvements to property | - |
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Fixtures and fittings | - |
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Computer equipment | - |
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Government grants |
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance |
that the company will comply with conditions attaching to them and the grants will be received using the accrual model. |
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Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less accumulated impairment. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent |
that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively |
enacted by the balance sheet date. |
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EPIC GAMES UK LTD (REGISTERED NUMBER: 02865912) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet |
date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in |
which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been |
enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be |
recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet |
date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. |
Exchange differences are taken into account in arriving at the operating result. |
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Leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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The aggregate of lease incentives is recognised as a reduction to the expense recognised over the term of the lease on a |
straight line basis. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme |
are charged to profit or loss in the period to which they relate. |
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Equity-settled share based payments |
The company's ultimate parent undertaking, Epic Games, Inc., maintains a Stock Incentive Plan which issues |
equity-settled share-based payments to key employees and directors. Equity-settled share-based payments are measured |
at fair value at the date of grant using the valuation commissioned from an independent external consultant. The fair value |
determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the |
vesting period, based on the company's estimate of the shares that will eventually vest, with a corresponding entry to |
retained earnings. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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4. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
Impairments | ( |
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Reclassification/transfer |
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At 31 December 2018 |
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NET BOOK VALUE |
At 31 December 2018 |
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Goodwill relates to the acquisition of Cloudgine Limited in 2017. The cost is the excess of the purchase price over the net |
assets acquired. Cloudgine has not carried out any trade during the year and, since the hive up of its business in May |
2018, does not have any net assets. The goodwill has therefore been impaired to £nil. |
EPIC GAMES UK LTD (REGISTERED NUMBER: 02865912) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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5. | TANGIBLE FIXED ASSETS |
Fixtures |
Improvements | and | Computer |
to property | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2018 |
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Additions |
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Transfer to ownership |
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21,263 |
At 31 December 2018 |
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DEPRECIATION |
At 1 January 2018 |
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Charge for year |
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At 31 December 2018 |
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NET BOOK VALUE |
At 31 December 2018 |
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At 31 December 2017 |
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6. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
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COST |
At 1 January 2018 |
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Additions |
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Impairments | ( |
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Reclassification/transfer | ( |
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At 31 December 2018 |
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NET BOOK VALUE |
At 31 December 2018 |
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At 31 December 2017 |
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7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2018 | 2017 |
£ | £ |
Amounts owed by group undertakings |
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Other debtors |
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EPIC GAMES UK LTD (REGISTERED NUMBER: 02865912) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2018 | 2017 |
£ | £ |
Trade creditors |
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Amounts owed to group undertakings |
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Taxation and social security |
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Other creditors |
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9. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2018 | 2017 |
£ | £ |
Other creditors |
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10. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2018 | 2017 |
value: | £ | £ |
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Ordinary | £1 | 2,913,897 | 2,225,002 |
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688,895 Ordinary shares of £1 were issued at par during the year in part settlement of funding provided to the company by |
group entities.. |
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11. | RESERVES |
Retained |
earnings |
£ |
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At 1 January 2018 |
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Deficit for the year | ( |
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Fair value adjustment for |
options in group company | 343,246 |
At 31 December 2018 | ( |
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12. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified. |
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for and on behalf of
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13. | OTHER FINANCIAL COMMITMENTS |
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At 31 December 2018, the company had total commitments under non-cancellable operating leases of £1,700,028 (2017 - |
£867,806) |
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14. | RELATED PARTY DISCLOSURES |
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The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial |
Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly |
owned subsidiaries within the group. |
EPIC GAMES UK LTD (REGISTERED NUMBER: 02865912) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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15. | PARENT AND ULTIMATE CONTROLLING PARTY |
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The immediate parent company is Epic Games International S.a.r.l, a company incorporated in Luxembourg, registered |
office : 33 rue de Puits Romain, L-8070 Bertrange, Luxembourg. |
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The ultimate parent company and controlling party is Epic Games Inc, a company incorporated in the United States of |
America. |
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16. | SHARE-BASED PAYMENT TRANSACTIONS |
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The company's ultimate US parent undertaking, Epic Games Inc., maintains a Stock Incentive Plan (the Plan), which |
authorises the granting of incentive stock options to key employees and directors. |
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Under the plan, the exercise price of each incentive stock option equals the fair market value of each share in Epic Games |
Inc. on the grant date. Options remain exercisable from the vesting date up until employment termination. Options are fully |
exercisable subject to conditions as established by the Stock Incentive Plan. |
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The fair value of options granted on the date of grant, was estimated using the Black-Scholes option pricing model with |
weighted average assumptions applied at the group Stock Incentive Plan level. The fair value calculated is charged to the |
income statement on a straight line basis over the vesting period. The Black-Scholes option pricing model was selected as |
the method appropriate to use when the range of possible future outcomes is difficult to predict as it is a widely recognised |
method in these circumstances. |
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The fair value adjustment of options granted under the group Stock Incentive Plan is determined to be £343,246 (2017: |
£nil) based on options granted to the company's employees. The total cost of these options is spread evenly over the |
vesting period from the date of grant. In the case of options granted in 2017, the grant date was sufficiently close to the |
year end to mean that any charge attributable to the year is negligible. |
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There are 9 employees of Epic Games UK Ltd that benefit from the plan (2017- 9). |
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A summary of the options activity during the year is shown below: |
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Weighted
average exercise price |
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Brought forward as at 1 January 2018 | 105,251 | $23.62 |
Granted | - | - |
Exercised | (2,592 | ) | $14.30 |
Forfeited, cancelled or expired | - | - |
Outstanding as at 31 December 2018 | 102,659 | $23.85 |
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Exercisable as at 31 December 2018 | 24,658 | $22.26 |
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