Company registration number 05265119 (England and Wales)
WINKONTENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
WINKONTENT LIMITED
COMPANY INFORMATION
Directors
Winkontent AG
J T Brule
R Atkinson
Company number
05265119
Registered office
Midori House
1 Dorset Street
London
W1U 4EG
Auditor
UHY Hacker Young
Quadrant House
4 Thomas More Square
London
E1W 1YW
WINKONTENT LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 26
WINKONTENT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present the strategic report for the year ended 31 December 2022.

Review of the business

During the 2022 saw another year impacted by the Covid-19 pandemic, with continued negative effects in the parts of the business dependent on physical retailing and hospitality. However, other important parts of the business bounced back to pre-pandemic levels, and some surpassed 2019.

 

 

Key performance indicators

In the 2022, advertising and sponsorship revenues were +1.5 million GBP vs 2021 and +3.4 million GBP vs 2020. Newsstand revenues grew by 260 thousand GBP, as volumes continue to catch up with pre-pandemic levels although they still didn’t quite reach the 2019 levels. Variable costs increased due to an increase in paper and distribution/ logistics prices as well as increased editorial and advertorial output. During all of 2022 it was possible to travel to most countries in the world which also led to increased spend compared to 2021 when travel was more restricted during half of the year. Wage inflation and increase in headcount drove salary costs up by 1 million GBP. All in all, the net income for the year is a small profit of 121 thousand GBP.

 

Principal risks, uncertainties and future prospects

The momentum in revenue growth through advertising and to some extent retail and subscriptions is expected to continue into 2023. The company started 2023 with some significant wins of year-long contracts with blue-chip customers in the advertising and Monocle Radio sponsorships, in addition to continued interest in Monocle’s new formats and increased footfalls in our cafes and physical shops.

 

Online revenues (advertising, digital subscriptions, e-commerce) may retract, and any such revenue loss should be recovered by an increase in print advertising, expansion of new formats, higher newsstand sales and increased sales in our physical shops and cafés.

 

Controlled spending will be key in 2023 as the increases in paper cost and logistics costs that started in 2021 are expected to stay at high levels. Inflation in travel costs have continued to increase in 2023. However, with a profitable 2022 behind us we expect to again be able to repeat the modest profitability from the past two years. 

On behalf of the board

J T Brule
Director
23 December 2023
WINKONTENT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activities of the company was that of producing a magazines, producing and broadcasting 24 hour radio programmes and podcasts and operating a retail network

 

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Winkontent AG
J T Brule
R Atkinson
Auditor

The auditor, UHY Hacker Young, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

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 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:

 

 

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.

WINKONTENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
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.

Going concern

As at the balance sheet date, the company has net liabilities which indicates that there is a material uncertainty regarding the company's ability to continue as a going concern. This is discussed further in note 1.2 to these financial statements.

On behalf of the board
J T Brule
Director
23 December 2023
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WINKONTENT LIMITED
- 4 -
Opinion

We have audited the financial statements of Winkontent Limited (the 'company') for the year ended 31 December 2022 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows 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 Financial Reporting Standard 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:

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 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.

Material uncertainty related to going concern

We draw attention to note 1.2 in the financial statements, which indicates that although the company has generated modest profits in the last two years , overall its shows a net liability position on its balance sheet. As stated in note 1.2, these events or conditions, along with the other matters as set forth in note 1.2, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

 

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.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WINKONTENT LIMITED
- 5 -

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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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 identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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.

INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WINKONTENT LIMITED
- 6 -
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.

Based on our understanding of the company and the magazine, radio, and retail industries in which it operates; we identified that the principal risks of non-compliance with laws and regulations related to the acts by the company, which were contrary to applicable laws and regulations including to tax legislation, pensions legislation, employment and health and safety regulation, anti-bribery, corruption and fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to revenue recognition and management override of controls.

 

Audit procedures performed included:

 

 

 

 

 

INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WINKONTENT LIMITED
- 7 -

 

 

 

 

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.

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.

Matthew Granger
Senior Statutory Auditor
For and on behalf of UHY Hacker Young
24 December 2023
Chartered Accountants
Statutory Auditor
WINKONTENT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
2022
2021
Notes
£
£
Turnover
2
19,927,926
18,052,355
Cost of sales
(10,459,548)
(9,531,341)
Gross profit
9,468,378
8,521,014
Distribution costs
(160,630)
(76,290)
Administrative expenses
(9,077,392)
(8,085,472)
Other operating income
4,288
104,067
Operating profit
3
234,644
463,319
Interest receivable and similar income
7
-
0
66
Interest payable and similar expenses
8
(113,332)
(347,318)
Profit before taxation
121,312
116,067
Tax on profit
9
-
0
-
0
Profit for the financial year
121,312
116,067

The profit and loss account has been prepared on the basis that all operations are continuing operations.

WINKONTENT LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 9 -
2022
2021
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
10
62,466
99,303
Tangible assets
11
69,677
76,774
132,143
176,077
Current assets
Stocks
12
1,150,908
1,163,006
Debtors
13
6,375,097
4,469,209
Cash at bank and in hand
762,918
1,195,437
8,288,923
6,827,652
Creditors: amounts falling due within one year
14
(9,140,202)
(7,815,528)
Net current liabilities
(851,279)
(987,876)
Total assets less current liabilities
(719,136)
(811,799)
Creditors: amounts falling due after more than one year
15
(6,204,136)
(6,232,785)
Net liabilities
(6,923,272)
(7,044,584)
Capital and reserves
Called up share capital
18
800,000
800,000
Profit and loss reserves
(7,723,272)
(7,844,584)
Total equity
(6,923,272)
(7,044,584)
The financial statements were approved by the board of directors and authorised for issue on 23 December 2023 and are signed on its behalf by:
J T Brule
Director
Company registration number 05265119 (England and Wales)
WINKONTENT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 December 2021:
Balance at 1 January 2021
800,000
(7,960,651)
(7,160,651)
Year ended 31 December 2021:
Profit and total comprehensive income
-
116,067
116,067
Balance at 31 December 2021
800,000
(7,844,584)
(7,044,584)
Year ended 31 December 2022:
Profit and total comprehensive income
-
121,312
121,312
Balance at 31 December 2022
800,000
(7,723,272)
(6,923,272)
WINKONTENT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
2022
2021
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
23
(137,684)
766,603
Interest paid
(113,332)
(347,318)
Income taxes paid
(31,171)
-
0
Net cash (outflow)/inflow from operating activities
(282,187)
419,285
Investing activities
Purchase of intangible assets
-
0
(7,807)
Purchase of tangible fixed assets
(41,714)
(49,766)
Repayment of loans
23,962
(88,298)
Interest received
-
0
66
Net cash used in investing activities
(17,752)
(145,805)
Financing activities
Repayment of borrowings
(28,649)
(4,675)
(Repayment of) / proceeds from bank loans
(102,473)
258,514
Net cash (used in)/generated from financing activities
(131,122)
253,839
Net (decrease)/increase in cash and cash equivalents
(431,061)
527,319
Cash and cash equivalents at beginning of year
1,193,897
666,578
Cash and cash equivalents at end of year
762,836
1,193,897
Relating to:
Cash at bank and in hand
762,918
1,195,437
Bank overdrafts included in creditors payable within one year
(82)
(1,540)
WINKONTENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
1
Accounting policies
Company information

Winkontent Limited is a private company limited by shares incorporated in England and Wales. The registered office is Midori House, 1 Dorset Street, London, W1U 4EG.

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 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

In both the current and the prior year the company has generated modest profits and at the balance sheet date the company has net liabilities which indicate that there is a material uncertainty regarding the company's ability to continue as a going concern. true

 

The company's net liabilities include an intercompany loan and accrued interest due to the parent company of £6,204,136 (2021: £6,232,785 ). Excluding this liability, the company still shows net liabilities of £719,136 (2021: £811,799). The directors of the parent company have provided a letter of support indicating their willingness to continue to provide financial support to the company.

 

In conjunction with the above, the directors have also reviewed forecasts and budgets to 31 December 2024 and based on these and arrangements made for further financing in the post balance period the directors consider it appropriate to prepare the financial statements on a going concern basis.

1.3
Turnover

Turnover is recognised at the value of the consideration received for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Revenue from royalties is recognised in the period to which is relates to the service provided to fellow subsidiaries.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation 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:

Software & Website Development
20% - 30% straight line
WINKONTENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
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 & equipment
20% - 33% 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 and intangible 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

WINKONTENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
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.

WINKONTENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -
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.

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
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.

1.11
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.

WINKONTENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -
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 leases asset are consumed.

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

1.15
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.

2
Turnover and other revenue

An analysis of the company's turnover is as follows:

2022
2021
£
£
Turnover analysed by class of business
Sales of goods
2,934,812
3,241,259
Sale of services
16,836,748
14,693,583
Royalties income
156,366
117,513
19,927,926
18,052,355
2022
2021
£
£
Turnover analysed by geographical market
United Kingdom
2,853,478
2,587,438
Rest of the world
17,074,448
15,464,917
19,927,926
18,052,355
WINKONTENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
2
Turnover and other revenue
(Continued)
- 17 -
2022
2021
£
£
Other revenue
Interest income
-
66
Grants received
4,288
104,067
3
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(43,749)
57,375
Government grants
(4,288)
(104,067)
Depreciation of owned tangible fixed assets
48,811
42,256
Amortisation of intangible assets
36,837
60,308
Operating lease charges
630,611
605,674
4
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
25,000
25,000
WINKONTENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2022
2021
Number
Number
Finance
7
6
Facilities
5
6
Radio
20
19
Directors
2
2
Cafe
18
15
Kiosk
1
3
Magazine
29
23
Books
4
3
Digital
5
5
Film
1
1
Advertising
6
6
Circulation
1
1
Retail HQ
5
5
Retail shop
3
3
Design
1
2
Interns
3
2
Total
111
102

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
5,505,118
4,666,687
Social security costs
512,015
451,738
Pension costs
108,872
94,831
6,126,005
5,213,256
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
-
0
6,000
WINKONTENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
6
Directors' remuneration
(Continued)
- 19 -

No one other than the directors is considered to be key management    

7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
-
0
66
2022
2021
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
-
0
66
8
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,871
131,006
Interest payable to group undertakings
111,461
216,312
113,332
347,318
WINKONTENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
9
Taxation

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Profit before taxation
121,312
116,067
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
23,049
22,053
Tax effect of expenses that are not deductible in determining taxable profit
23,246
6,650
Losses eliminated
123
-
0
Remeasurement of deferred tax for changes in rates
13,946
(400,518)
Movement in deferred tax not recognised
(63,962)
378,465
Group relief
123
-
0
Deferred tax adjustments in respect of prior years
5,853
(6,650)
Fixed asset differences
(2,378)
-
0
Taxation charge for the year
-
-

The company has estimated tax losses of £6,403,946 (2021: £6,600,000) available to be carried forwards.

10
Intangible fixed assets
Software & Website Development
£
Cost
At 1 January 2022 and 31 December 2022
827,142
Amortisation and impairment
At 1 January 2022
727,839
Amortisation charged for the year
36,837
At 31 December 2022
764,676
Carrying amount
At 31 December 2022
62,466
At 31 December 2021
99,303
WINKONTENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
11
Tangible fixed assets
Fixtures, fittings & equipment
£
Cost
At 1 January 2022
1,241,805
Additions
41,714
At 31 December 2022
1,283,519
Depreciation and impairment
At 1 January 2022
1,165,031
Depreciation charged in the year
48,811
At 31 December 2022
1,213,842
Carrying amount
At 31 December 2022
69,677
At 31 December 2021
76,774
12
Stocks
2022
2021
£
£
Raw materials and consumables
133,098
159,481
Finished goods and goods for resale
1,017,810
1,003,525
1,150,908
1,163,006
13
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
3,754,780
2,703,671
Corporation tax recoverable
31,171
-
0
Other debtors
2,042,201
1,085,242
Prepayments and accrued income
546,945
680,296
6,375,097
4,469,209

Other debtors includes £40,200 (2021: £14,000) rent deposit which is subject to a charge by the landlord.

WINKONTENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 22 -
14
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans and overdrafts
16
819,931
923,862
Trade creditors
1,612,877
1,268,907
Taxation and social security
133,280
125,615
Other creditors
2,042,555
899,261
Accruals and deferred income
4,531,559
4,597,883
9,140,202
7,815,528

Bank loans and overdrafts relate to a debt factoring facility. This has been in place for the duration of this year and continues to be in place post year-end.

15
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Other borrowings
16
6,204,136
6,232,785

Other borrowings comprise a loan from the immediate and ultimate parent company, Winkontent AG and Winkorp AG. Interest is charged on the loan at the Swiss government rate for loans to overseas entities.

16
Loans and overdrafts
2022
2021
£
£
Bank loans
819,849
922,322
Bank overdrafts
82
1,540
Other loans
6,204,136
6,232,785
7,024,067
7,156,647
Payable within one year
819,931
923,862
Payable after one year
6,204,136
6,232,785
WINKONTENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 23 -
17
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
108,872
94,831

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.

18
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
800,000
800,000
800,000
800,000
19
Operating lease commitments
Lessee

The company rents various offices and shops which it holds under operating leases. The lease agreements have expiry periods ranging from one to five years from the balance sheet date.

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:

2022
2021
£
£
Within one year
49,017
129,164
Between two and five years
19,116
56,719
68,133
185,883
WINKONTENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 24 -
20
Related party transactions

Included within other debtors as at 31 December 2022 is £1,445,746 (2021: £699,433) due from Monocle AG, Winkontent Hong Kong, Winkontent Tokyo, Winkreative Ltd, Winkreative AG and Winkreative Toronto.

 

Included within other creditors as at 31 December 2021 is £1,966,007 (2021: £774,201) owed to Monocle AG, Winkontent AG, Winkreative Limited, Winkreative AG, Winkontent Tokyo and Winkreative Toronto Inc.

 

During the year the company recharged expenses of £469,339 (2021: £1,066,833) to Monocle AG, Winkreative Limited, Winkreative Toronto, Winkreative AG, Winkontent Toronto Inc., Winkontent Hong Kong and Winkontent Tokyo.

 

During the year the company was recharged expenses totalling £2,560,547 (2021: £2,264,437) from Monocle AG, Winkreative Limited, Winkorp AG, Winkontent AG, Winkreative AG, Winkontent Tokyo, Winkontent Hong Kong and Winkreative Toronto Inc.

 

As at 31 December 2022 the company had a long term loan from Winkontent AG, the immediate parent company and Winkorp AG of £7,591,416 (2021: £7,399,548) on which total interest of £111,305 (2021: £102,592) was charged in the year. The total accrued interest on the outstanding loan as at 31 December 2022 is £1,498,586 (2021: £1,170,968).

 

Monocle AG, Winkorp AG, Winkreative Limited, Winkreative AG, Winkreative Toronto Inc., Winkontent Hong Kong, and Winkontent Tokyo are all members of the Winkorp group of companies.

 

As at the balance sheet date the company was owed £87,336 (2021: £88,298) by Mr J Brule, a director of the company.

 

During the year the company made sales to Trunk Clothiers Limited of £4,123 (2021: £10,656).Trunk Clothiers Limited has common control with Winkontent Limited. Included within other debtors as at 31 December 2022 is £7,223 (2021: £3,075) owed from Trunk Clothiers Limited.

21
Events after the reporting date

In the period since the year end the company entered into arrangements to extend the term of three leases for a duration spanning January 2023 to January 2033.These new lease contracts have given rise to operating lease commitments totalling £800,250.

22
Ultimate controlling party

The immediate parent company is Winkontent AG and the ultimate parent company is Winkorp AG, both companies are registered in Switzerland.

The ultimate controlling party is J T Brule.

WINKONTENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 25 -
23
Cash (absorbed by)/generated from operations
2022
2021
£
£
Profit for the year after tax
121,312
116,067
Adjustments for:
Finance costs
113,332
347,318
Investment income
-
0
(66)
Amortisation and impairment of intangible assets
36,837
60,308
Depreciation and impairment of tangible fixed assets
48,811
42,256
Movements in working capital:
Decrease/(increase) in stocks
12,098
(145,745)
(Increase)/decrease in debtors
(1,898,679)
106,369
Increase in creditors
1,428,605
240,096
Cash (absorbed by)/generated from operations
(137,684)
766,603
24
Analysis of changes in net debt
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
1,195,437
(432,519)
762,918
Bank overdrafts
(1,540)
1,458
(82)
1,193,897
(431,061)
762,836
Borrowings excluding overdrafts
(7,155,107)
131,122
(7,023,985)
(5,961,210)
(299,939)
(6,261,149)
WINKONTENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 26 -
25
Prior period adjustment
Reconciliation of changes in equity
1 January
31 December
2021
2021
£
£
Adjustments to prior year
Accruals
-
(1,166,763)
other long term burrowing
-
1,166,763
Total adjustments
-
-
Equity as previously reported
(7,160,651)
(7,044,584)
Equity as adjusted
(7,160,651)
(7,044,584)
Notes to reconciliation

It was identified that in the prior year accrued expenses were included in long-term loans and so a reclassification was posted in the comparatives. This has had no effect on the results for the year.

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