Company Registration No. 06574738 (England and Wales)
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Annual report and financial statements
for the period ended 31 March 2021
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Company information
Directors
Daniel P Emerson
(Appointed 1 October 2020)
Rowan MS Hajaj
(Appointed 1 October 2020)
Secretary
Hal Management Limited
Company number
06574738
Registered office
7 Savoy Court
London
WC2R 0EX
Auditor
Henderson Loggie LLP
Ground Floor
11-15 Thistle Street
Edinburgh
EH2 1DF
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Contents
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 22
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Strategic report
for the period ended 31 March 2021
- 1 -
The directors present the strategic report
and financial statements
for the period ended 31 March 2021.
Fair review of the business
The directors are pleased to report another positive set of results for the period to 31 March 2021 despite the economy continuing to face various challenges including that of the COVID-19 pandemic.
The eleven month period to 31 March 2021 generated turnover of £2,117,169 against the year to 30 April 2020 of £3,191,555 (as restated). This resulted in a profit before tax of £611,727 (2020 as restated - £1,155,136).
On 1 October 2020, the shares of the company were acquired by Take-Two Interactive Software Inc, a
company registered in Delaware, USA.
On 6 October 2020, the company name was changed from Ruffian Games Limited to Rockstar Dundee
Limited.
From 1 January 2021, the employees and assets of the company were transferred into the wider group resulting in much reduced activity for this part of the period.
Key performance indicators
The directors consider turnover, profit before tax and net assets to to be key indicators of the company’s ongoing performance. These elements are monitored by the directors on a regular basis, with issues being addressed as and when they arise.
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Period ended 31 March 2021
£
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Year ended
30 April 2020
as restated
£
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COVID-19
Since the outbreak of the COVID-19 pandemic, our focus has been on the health and safety of our employees. We were able to implement remote working, in line with the UK government guidance, quickly and effectively across all our operations; maintaining the highest standards of performance whilst adapting to new working practices. It is not anticipated that COVID-19 will have any future impact on the business relating to its ability to deliver new interactive software products. Rockstar Dundee Limited is fortunate to be in an industry that has been largely unaffected by the pandemic.
Daniel P Emerson
Director
14 March 2022
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Directors' report
for the period ended 31 March 2021
- 2 -
The directors present their annual report and financial statements for the period ended 31 March 2021.
Principal activities
The principal activity of the company continued to be that of the development of computer games.
Results and dividends
The results for the period are set out on page 7.
Ordinary dividends were paid amounting to £252,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Gary Liddon
(Resigned 1 October 2020)
William Thomson
(Resigned 1 October 2020)
Daniel P Emerson
(Appointed 1 October 2020)
Rowan MS Hajaj
(Appointed 1 October 2020)
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
On behalf of the board
Daniel P Emerson
Director
14 March 2022
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Directors' responsibilities statement
for the period ended 31 March 2021
- 3 -
The directors are responsible 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 period. 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)
, including FRS
102 - the Financial Reporting Standard applicable in the UK and Republic of Ireland
. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 then apply them consistently;
-
make judgements 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 company will continue in business;
-
state whether applicable UK Accounting Standards have been followed, subject to any material
departures disclosed and explained in the financial statements
.
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.
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Independent auditor's report
to the member of Rockstar Dundee Limited
- 4 -
Opinion
We have audited the financial statements of Rockstar Dundee Limited (the 'company') for the period ended 31 March 2021 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 March 2021 and of its profit for the period then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
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 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.
Comparative information in the financial statements is derived from the company's prior
year
financial statements which were not audited.
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.
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.
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Independent auditor's report (continued)
to the member of Rockstar Dundee Limited
- 5 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial period 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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you 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
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
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
.
-
In
quiries with management about any known or suspected instances of non-compliance with laws and regulations and fraud;
-
Reviewing key contracts with customers to ensure the terms and conditions, including confidentiality, have been adhered to;
-
Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to the
carrying value of tangible
fixed
assets
, the recoverability of debtors, and the application of accruals
; and
-
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Independent auditor's report (continued)
to the member of Rockstar Dundee Limited
- 6 -
As a result of
the field in which the company operates, we identified the following areas as those most likely to have a material impact on the financial statements:
terms and conditions included within customer contracts; h
ealth and
s
afety; employment law (including the
HMRC and pension requirements
); anti-bribery and corruption;
Data Protection Act 2018;
and compliance with the UK Companies Act.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's member 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 member 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 member for our audit work, for this report, or for the opinions we have formed.
For and on behalf of Diana Penny (Partner)
15 March 2022
Chartered Accountants
Statutory Auditor
Ground Floor
11-15 Thistle Street
Edinburgh
EH2 1DF
Rockstar Dundee Limited
(Formerly Known As Ruffian Games Limited)
Statement of comprehensive income
for the period ended 31 March 2021
- 7 -
Period
Year
ended
ended
31 March
30 April
2021
2020
as restated
Notes
£
£
Turnover
3
2,117,169
3,191,555
Cost of sales
(117,540)
(214,769)
Gross profit
1,999,629
2,976,786
Administrative expenses
(1,251,274)
(1,552,945)
Other operating income
352
2,495
Operating profit
4
748,707
1,426,336
Interest receivable and similar income
6
13
71
Profit before taxation
748,720
1,426,407
Tax on profit
7
(137,333)
(271,271)
Profit for the financial period
611,387
1,155,136
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Balance sheet
as at 31 March 2021
- 8 -
2021
30 April 2020
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
9
50,431
Current assets
Debtors
10
244,976
894,453
Cash at bank and in hand
1,914,749
1,189,794
2,159,725
2,084,247
Creditors: amounts falling due within one year
11
(174,708)
(499,478)
Net current assets
1,985,017
1,584,769
Total assets less current liabilities
1,985,017
1,635,200
Provisions for liabilities
Deferred tax liability
12
-
(9,570)
-
(9,570)
Net assets
1,985,017
1,625,630
Capital and reserves
Called up share capital
14
147
147
Profit and loss reserves
15
1,984,870
1,625,483
Total equity
1,985,017
1,625,630
The financial statements were approved by the board of directors and authorised for issue on 14 March 2022 and are signed on its behalf by:
Daniel P Emerson
Director
Company Registration No. 06574738
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Statement of changes in equity
for the period ended 31 March 2021
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 30 April 2020:
Balance at 1 May 2019
147
999,347
999,494
Year ended 30 April 2020:
Profit and total comprehensive income for the year
-
1,155,136
1,155,136
Dividends
8
-
(529,000)
(529,000)
Balance at 30 April 2020
147
1,625,483
1,625,630
Period ended 31 March 2021:
Profit and total comprehensive income for the period
-
611,387
611,387
Dividends
8
-
(252,000)
(252,000)
Balance at 31 March 2021
147
1,984,870
1,985,017
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Notes to the financial statements
for the period ended 31 March 2021
- 10 -
1
Accounting policies
Company information
Rockstar Dundee Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
7 Savoy Court, London, WC2R 0EX.
1.1
Accounting convention
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.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
and
-
Section 33 ‘Related Party Disclosures’
:
Disclose of related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.
The financial statements of the company are consolidated in the financial statements of
Take-Two Interactive Software Inc
. These consolidated financial statements are available from https://ir.take2games.com
.
Comparative information in the financial statements is derived from the company's prior
year
financial statements which were not audited.
The comparative figures have been restated for a prior period adjustment, see note 19.
1.2
Going concern
The company meets its day-to-day working capital requirements from the cash flows generated by its trading activities and its available cash resources, and seeks financial support from the wider group, of which the company is a member, when required.
true
Having regard for the above information, the
financial statements have been prepared on a going concern basis. The directors have considered relevant information, including the
review of the future activities and plans for the business
, future cash flows
, potential support from group undertakings
and the impact of subsequent events in making their assessment.
This includes consideration into the
impact of COVID-19
. T
his analysis also considers the effectiveness of available measures to assist in mitigating the impact
of the pandemic, although based on the impact on the business thus far this is not expected to be significant
.
Based on these assessments
and
the support of Take-Two Interactive Software, Inc., the company's ultimate parent company via a letter of parental support for at least 12 months from the date of the approval of financial statements,
the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements
.
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Notes to the financial statements (continued)
for the period ended 31 March 2021
1
Accounting policies (continued)
- 11 -
1.3
Reporting period
The current accounting period runs from
1st May 2020
to 3
1 March
202
1
to bring the period end into alignment with
the rest of the group.
1.4
Turnover
Turnover is recognised
to the extent that the company obtains the right to consideration in exchange for its performance and
at
the fair value of the consideration received or receivable for services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures & fittings
25% straight line
Office equipment & software
25% straight line
Bicycles
100% straight line
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 credited or charged to profit or loss
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand,
and
deposits held at call with
banks.
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Notes to the financial statements (continued)
for the period ended 31 March 2021
1
Accounting policies (continued)
- 12 -
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally 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.
Basic financial assets
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.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
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 company after deducting all of its liabilities.
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Notes to the financial statements (continued)
for the period ended 31 March 2021
1
Accounting policies (continued)
- 13 -
Basic financial liabilities
Basic financial liabilities, including
creditors
, 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
paymen
ts 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. A
m
ounts 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company 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 company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current 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
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
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.
Deferred
tax assets
are
measured on an undiscounted basis and are
reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Notes to the financial statements (continued)
for the period ended 31 March 2021
1
Accounting policies (continued)
- 14 -
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.14
Foreign exchange
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.
1.15
Research expenditure is written off to the profit and loss account in the year in which it is incurred.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Notes to the financial statements (continued)
for the period ended 31 March 2021
2
Judgements and key sources of estimation uncertainty (continued)
- 15 -
Key sources of estimation uncertainty
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.
Useful life of tangible fixed assets
Tangible fixed assets are depreciated over a period to reflect their estimated useful lives. The applicability of the assumed lives is reviewed annually, taking into account factors such as physical condition, maintenance and obsolescence. Fixed assets are also assessed as to whether there are indicators of impairment.
Trade debtor recovery
Credit control is an important function which requires assessment, on an ongoing basis, of the recoverability of amounts due from debtors. Where recovery is in doubt, the directors will adequately provide against this specific debt and will arrive at such conclusions based on the knowledge of the debtor and their “ability to pay”. The directors adopt a prudent approach to credit control.
Accruals
Directors estimate the requirements for accruals using post year end information and information available from detailed budgets. This identifies costs that are expected to be incurred for services provided by other parties. Accruals are only released when there is a reasonable expectation that these costs will not be invoiced in the future.
Taxation
The company establishes provisions based on reasonable estimates, for possible consequences of
audits by the tax authorities of the respective countries in
which it operates. The amount of such
provisions is based on various factors, such as experience with previous tax audits and differing
interpretations of tax regulations by the taxable entity and the responsible tax authority.
Management estimation is required to determine the amount of deferred tax assets that can be
recognised, based upon likely timing and level of future taxable profits together with an assessment of
the effect of future tax planning strategies.
3
Turnover and other revenue
2021
2020
as restated
£
£
Turnover analysed by class of business
Sale of game development services
2,117,169
3,191,555
2021
2020
£
£
Other significant revenue
Interest income
13
71
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Notes to the financial statements (continued)
for the period ended 31 March 2021
3
Turnover and other revenue (continued)
- 16 -
2021
2020
as restated
£
£
Turnover analysed by geographical market
United Kingdom
2,081,317
2,081,955
Rest of the world
35,852
1,109,600
2,117,169
3,191,555
4
Operating profit
2021
2020
Operating profit for the period is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
7,000
Depreciation of owned tangible fixed assets
17,306
24,386
Operating lease charges
33,902
39,640
5
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2021
2020
Number
Number
29
29
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
952,931
1,114,509
Social security costs
105,658
112,549
Pension costs
30,584
36,777
1,089,173
1,263,835
6
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
13
71
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Notes to the financial statements (continued)
for the period ended 31 March 2021
- 17 -
7
Taxation
2021
2020
as restated
£
£
Current tax
UK corporation tax on profits for the current period
146,903
273,533
Deferred tax
Origination and reversal of timing differences
(9,582)
(2,262)
Adjustment in respect of prior periods
12
Total deferred tax
(9,570)
(2,262)
Total tax charge
137,333
271,271
The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
2021
2020
as restated
£
£
Profit before taxation
748,720
1,426,407
Expected tax charge based on the standard rate of corporation tax in the UK of 19% (2020: 19%)
142,257
271,017
Tax effect of expenses that are not deductible in determining taxable profit
1,550
258
Deferred tax adjustments in respect of prior years
12
Transfer of assets to fellow group entities
(6,484)
Brought forward losses utilised
(2)
(4)
Taxation charge for the period
137,333
271,271
8
Dividends
2021
2020
£
£
Final paid
252,000
529,000
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Notes to the financial statements (continued)
for the period ended 31 March 2021
- 18 -
9
Tangible fixed assets
Fixtures & fittings
Office equipment & software
Bicycles
Total
£
£
£
£
Cost
At 1 May 2020
80,896
325,190
5,302
411,388
Additions
46
4,508
3,474
8,028
Disposals
(80,942)
(329,698)
(8,776)
(419,416)
At 31 March 2021
Depreciation and impairment
At 1 May 2020
79,148
276,507
5,302
360,957
Depreciation charged in the period
329
16,687
290
17,306
Eliminated in respect of disposals
(79,477)
(293,194)
(5,592)
(378,263)
At 31 March 2021
Carrying amount
At 31 March 2021
At 30 April 2020
1,748
48,683
50,431
10
Debtors
2021
2020
as restated
Amounts falling due within one year:
£
£
Corporation tax recoverable
16,472
16,472
Amounts owed by group undertakings
228,504
Other debtors
544,617
Prepayments and accrued income
333,364
244,976
894,453
11
Creditors: amounts falling due within one year
2021
2020
as restated
£
£
Trade creditors
840
26,472
Corporation tax
151,400
220,231
Other taxation and social security
1,666
193,942
Other creditors
379
1,140
Accruals and deferred income
20,423
57,693
174,708
499,478
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Notes to the financial statements (continued)
for the period ended 31 March 2021
- 19 -
12
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2021
2020
Balances:
£
£
Accelerated capital allowances
-
9,570
2021
Movements in the period:
£
Liability at 1 May 2020
9,570
Credit to profit or loss
(9,570)
Liability at 31 March 2021
-
13
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
30,584
36,777
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
14
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 0.01p each
1,450,000
1,450,000
145
145
A Ordinary of £1 each
2
2
2
2
1,450,002
1,450,002
147
147
Ordinary shares are equal to other ordinary shares in both entitlement to share in profits and voting rights.
A Ordinary shares have no voting rights and no rights to participate in the return of assets on liquidation.
15
Profit and loss reserves
Profit and loss reserves include all current and prior years retained profit and losses.
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Notes to the financial statements (continued)
for the period ended 31 March 2021
- 20 -
16
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2021
2020
£
£
Within one year
36,984
Between two and five years
70,886
107,870
In the financial period ending 31 March 2021 the lease for Rockstar Dundee Limited was transferred to Rockstar North Limited
.
17
Directors' transactions
During the period the company made a loan to a director of the company for £Nil (2020 - £250,155). The balance outstanding at the period end was £
Nil
(2020 - £280,837).
During the period the company made a loan to a second director of the company for £Nil (2020 - £308,856). The balance outstanding at the period end was £Nil (2020 - £258,407).
During the period dividends were paid to directors amounting to £252,000 (2020 - 529,000).
During the period remuneration was paid to directors amounting to £4,767 (2020 - £11,441).
18
Ultimate controlling party
The parent company of Rockstar Dundee Limited is Take-Two Interactive Software Inc, and its registered office is
110 West 44th Street, New York, NY 10036, United States of America.
19
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 30 Apr 2020
£
£
£
Current assets
Debtors due within one year
590,253
304,200
894,453
Creditors due within one year
Taxation
(356,375)
(57,798)
(414,173)
Net assets
1,379,228
246,402
1,625,630
Capital and reserves
Profit and loss reserves
1,379,081
246,402
1,625,483
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Notes to the financial statements (continued)
for the period ended 31 March 2021
19
Prior period adjustment (continued)
- 21 -
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 30 April 2020
£
£
£
Turnover
2,887,355
304,200
3,191,555
Taxation
(213,473)
(57,798)
(271,271)
Profit for the financial period
908,734
246,402
1,155,136
Reconciliation of changes in equity
1 May
30 April
2019
2020
Notes
£
£
Adjustments to prior period
Adjustment to accrued income
1
-
304,200
Subsequent adjustment to corporation tax
2
-
(57,798)
Total adjustments
-
246,402
Equity as previously reported
999,494
1,379,228
Equity as adjusted
999,494
1,625,630
Analysis of the effect upon equity
Profit and loss reserves
-
246,402
Reconciliation of changes in profit for the previous financial period
2020
Notes
£
Adjustments to prior period
Adjustment to accrued income
1
304,200
Subsequent adjustment to corporation tax
2
(57,798)
Total adjustments
246,402
Profit as previously reported
908,734
Profit as adjusted
1,155,136
Notes to reconciliation
Adjustment to accrued income
It was identified during the period that a sales invoice dated in May 2020 related to services rendered in April 2020 and as such should have been recognised as accrued income in the prior year. This has subsequently been corrected as a prior period adjustment.
Rockstar Dundee Limited
(formerly known as Ruffian Games Limited)
Notes to the financial statements (continued)
for the period ended 31 March 2021
19
Prior period adjustment (continued)
- 22 -
Subsequent adjustment to corporation tax
As a result of the adjustment made as per note 1 above, the corporation tax charge was also adjusted to account for the increased profit before tax for the year to 30 April 2021. This has been applied at the corporation tax rate applicable for the period at 19%.
2021-03-31
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