Company registration number SC695616 (England and Wales)
MEDIAWORKS SCOTLAND LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
MEDIAWORKS SCOTLAND LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
MEDIAWORKS SCOTLAND LTD
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
106,810
1,429
Current assets
Debtors
5
305,106
187,690
Cash at bank and in hand
52,322
140,763
357,428
328,453
Creditors: amounts falling due within one year
6
(509,844)
(385,880)
Net current liabilities
(152,416)
(57,427)
Total assets less current liabilities
(45,606)
(55,998)
Provisions for liabilities
(11,496)
Net liabilities
(57,102)
(55,998)
Capital and reserves
Called up share capital
7
88
75
Profit and loss reserves
(57,190)
(56,073)
Total equity
(57,102)
(55,998)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 29 September 2023 and are signed on its behalf by:
B C Jacobson
Director
Company registration number SC695616 (England and Wales)
MEDIAWORKS SCOTLAND LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information
Mediaworks Scotland Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 1st Floor, 39 George Street, Edinburgh, EH2 2HN.
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 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 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.
1.2
Going concern
The financial statements have been prepared on the going concern basis. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, aided by the continued support of the group headed by Mediaworks Holdings Ltd.true
The group financial statements have been prepared on the going concern basis. The group's forecasts and projections for the next twelve months show that the group should have sufficient headroom from these facilities to be able to continue in operation existence for that period, taking into account reasonable possible changes in trading performance and the potential impact on the business of possible future scenarios arising from the increases in inflation and the impact of these increases on the wider economy.
Although the forecast prepared, taking account of the matters above, supports the ability of the group to remain a going concern and to be able to trade and meet it debts as they fall due, the full impact of increasing inflation and interest rates on the wider community and the underlying trading assumptions used in forecasting are extremely judgmental and difficult to predict and could be subject to significant variation.
However, based on the factors set out above, the directors believe that there is no material uncertainty in relation to going concern and that the group has adequate financial resources to continue on a going concern basis.
The directors of Mediaworks Holdings Ltd have confirmed that it will provide the support to allow the company to continue as a going concern for at least twelve months from date of approval of these financial statements. As such the financial statements have been prepared on a going concern basis.
1.3
Turnover
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
Project based revenue is recognised in the period in which the services are provided in accordance with the stage of completion of the contract.
Recurring revenue is recognised each month over the period of the contract.
The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company’s activities.
MEDIAWORKS SCOTLAND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
1.4
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:
Property improvements
10 years
Fixtures and fittings
8 years
Computers
4 years
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.
1.5
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).
1.6
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.
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.
MEDIAWORKS SCOTLAND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
Basic financial 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.
1.7
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.
1.8
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.
The carrying amount of deferred tax assets is 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.
1.9
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, if considered material to the financial statements.
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.
MEDIAWORKS SCOTLAND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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 leases asset are consumed.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
7
5
3
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
11,496
4
Tangible fixed assets
Property improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 April 2022
1,857
1,857
Additions
96,531
14,546
6,605
117,682
Transfers
(1,857)
1,857
At 31 March 2023
96,531
14,546
8,462
119,539
Depreciation and impairment
At 1 April 2022
428
428
Depreciation charged in the year
9,000
1,364
1,937
12,301
Transfers
(428)
428
At 31 March 2023
9,000
1,364
2,365
12,729
Carrying amount
At 31 March 2023
87,531
13,182
6,097
106,810
At 31 March 2022
1,429
1,429
MEDIAWORKS SCOTLAND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
201,631
174,329
Amounts owed by group undertakings
87,109
7,636
Other debtors
16,366
5,725
305,106
187,690
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
21,578
2,433
Amounts owed to group undertakings
347,245
272,671
Taxation and social security
52,322
43,704
Other creditors
88,699
67,072
509,844
385,880
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
8,750
7,500
88
75
8
Financial commitments, guarantees and contingent liabilities
Yorkshire Bank hold a fixed and floating charge over the assets of the company along with a cross guarantee with Mediaworks Holdings and group companies, securing the group's borrowings.
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Within one year
55,188
Between two and five years
55,188
110,376
MEDIAWORKS SCOTLAND LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
10
Related party transactions
The company is a wholly owned subsidiary and has taken advantage of the exemption permitted by Section 33 Related Party Disclosures not to provide disclosures of transactions entered into with other wholly owned members of the group.
11
Parent company
The company's ultimate parent undertaking is Mediaworks Holdings Limited, a company incorporated in England & Wales and its registered office is Floor 2 Honeycomb, The Watermark, Gateshead, England, NE11 9SZ.
B C Jacobson is the controlling party by virtue of his interest in the issued share capital of the parent company.
12
Audit report information
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:
The auditor's report was unqualified.
Senior Statutory Auditor:
Paul Gainford
Statutory Auditor:
Sumer Auditco Limited