Media Concierge (Holdings) Limited
Annual Report and Financial Statements
For the year ended 30 September 2022
Company Registration No. 02972740 (England and Wales)
Media Concierge (Holdings) Limited
Company Information
Directors
M. C. Denmark
R. W. Whitehair
R. E. Elliot
C. N. C. Denmark
(Appointed 10 May 2022)
Secretary
R. W. Whitehair
Company number
02972740
Registered office
47 Great Marlborough Street
London
W1F 7JP
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Bankers
Barclays Bank plc
City Service Centre
54 Lombard Street
London
EC3V 9EX
Media Concierge (Holdings) Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Group profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12 - 13
Company balance sheet
14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 37
Media Concierge (Holdings) Limited
Strategic Report
For the year ended 30 September 2022
Page 1

The directors present the strategic report for the year ended 30 September 2022.

Fair review of the business

The group's principal activity is that of media representation and direct marketing in the UK as well as the publishing of newspapers and newspaper websites in Ireland. There have been no significant changes in these activities during the year ending 30 September 2022.

 

Results and performance

Group turnover for the 12 months ending 30 September 2022 was £123.9m (2021: £118.0m). Gross profit margin was 20.4% (2021: 18.2%).

 

In 2022 the business has continued to recover from the impact of covid with operating profit improving. 2022 is also the first year that includes a fully year results from the investment in National World PLC. As a result the profit before tax was £7.7m.

 

Business environment

The Group will continue to consolidate its position and concentrate its efforts on achieving maximum growth in its existing market segments. We aim to improve efficiency in all areas of our operations through cost reduction; more disciplined planning and more effective customer representation. Customer service remains a top priority.

 

Key performance indicators (KPIs)

The Group uses turnover and gross margin as its key performance indicators which are both noted above. It does not use non-financial key performance indicators.

 

Future developments

The directors will continue to focus efforts to enhance the customer offering and to maintain margins. There will also be ongoing efforts to ensure strong cash generation and to manage working capital. With these objectives, the directors are confident of ongoing good financial performance despite the prevailing economic backdrop.

Principal Risks and Uncertainties

The Group's principal risk relates to credit risk and movements in foreign currency exchange rates. The Group invoices customers in their local currency and pays expenses in local currency. However, that leaves it exposed to exchange differences arising from the translation of subsidiaries' financial statements to our reporting currency of £ sterling. The Group does not make any use of derivatives, currency or other financial instruments.

 

The Group had cash at 30 September 2022 of £7.6m (2021: £6.3m) for working capital.

 

Group credit risk is principally attributable to trade debtors. In order to manage credit risk, we establish limits with customers based on a combination of payment history and third party credit references. Credit limits are reviewed by Group management in conjunction with debt ageing and collection history.

Media Concierge (Holdings) Limited
Strategic Report (Continued)
For the year ended 30 September 2022
Page 2
Statement by the directors relating to their statutory duties under section 172(1) of the Companies Act 2006

The directors, in line with their duties under s172 of the Companies Act 2006, act individually and collectively in the way they consider, in good faith, would be most likely to promote the success of the group for the benefit of its members, and in doing so have regard, amongst other matters, to the:

 

 

Stakeholders

The directors understand the importance of engagement with all of their stakeholders and give appropriate weighting to the outcome of their decisions for the relevant stakeholder in weighing up how best to promote the success of the group. The directors regularly discuss issues concerning customers, suppliers, employees, community and environment and their shareholders, which it takes into account in its discussions and in its decision-making process. In addition to this, the directors seek to understand the interests and views of the group's stakeholders by engaging with them directly when required. The below summarises the key stakeholders and the engagement with each:

 

Customers

The directors are in regular contact with their customers, including to obtain feedback on matters such as quality of customer service. The group works closely with its customers to achieve long term client satisfaction through bespoke service delivery.

 

Suppliers

The group works with a range of suppliers and remains committed to being fair and transparent in dealings with all suppliers. The group has, where relevant, procedures in place requiring due diligence of suppliers as to their internal governance, including for example, their anti-bribery and corruption practices, data protection policies and modern slavery matters. The group has systems and processes in place to ensure suppliers are paid in a timely manner.

Other performance indicators

Employees

The group has a well-established management reporting structure which encourages employee engagement in an open working environment. The directors are responsible for ensuring that this structure enables effective communication and feedback between employees and management.

 

Community and environment

The directors are aware of the impact its activities can have on the environment, and is committed to minimising the group's environmental footprint.

 

Shareholders

The directors also seek to behave in a responsible manner towards its shareholders. The directors communicate information relevant to its shareholders, such as its financial reporting information, in the form and frequency agreed between the parties.

Streamlined Energy and Carbon Reporting

The group and company are exempt from disclosing information relating to energy and carbon reporting on the basis that no individual subsidiary qualifies as large and the parent company has emissions under 40,000 kWh per year.

Media Concierge (Holdings) Limited
Strategic Report (Continued)
For the year ended 30 September 2022
Page 3

On behalf of the board

R. E. Elliot
Director
8 March 2024
Media Concierge (Holdings) Limited
Directors' Report
For the year ended 30 September 2022
Page 4

The directors present their annual report and financial statements for the year ended 30 September 2022.

 

In accordance with s414c(11) of the Companies Act 2006, the information relating to future developments and financial risk management are included in the Strategic Report.

Directors

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

M. C. Denmark
R. W. Whitehair
R. E. Elliot
C. N. C. Denmark
(Appointed 10 May 2022)
Results and dividends

The results for the year are set out on page 10.

 

Ordinary dividends were paid amounting to £3,000,000 (2021: £nil).

Auditor

The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
R. E. Elliot
Director
8 March 2024
Media Concierge (Holdings) Limited
Directors' Responsibilities Statement
For the year ended 30 September 2022
Page 5

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Media Concierge (Holdings) Limited
Independent Auditor's Report
To the Members of Media Concierge (Holdings) Limited
Page 6
Opinion

We have audited the financial statements of Media Concierge (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2022 which comprise the Group Profit And Loss Account, the Group Statement of Comprehensive Income, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group 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 group and parent 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.

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 group's and parent 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.

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.

Media Concierge (Holdings) Limited
Independent Auditor's Report (Continued)
To the Members of Media Concierge (Holdings) Limited
Page 7

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 group and the parent company and their 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 group's and parent 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 group or parent company or to cease operations, or have no realistic alternative but to do so.

Media Concierge (Holdings) Limited
Independent Auditor's Report (Continued)
To the Members of Media Concierge (Holdings) Limited
Page 8
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.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

Media Concierge (Holdings) Limited
Independent Auditor's Report (Continued)
To the Members of Media Concierge (Holdings) Limited
Page 9

Explanation as to what extent the audit was considered capable of detecting irregularities, including

fraud

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.

 

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

 

Our approach was as follows:

Ÿ

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 for no purpose other than to draw to the attention of the company’s members those matters we are required to include in an auditor's report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party 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.

Colin Turnbull (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
8 March 2024
Chartered Accountants
Statutory Auditor
6th Floor
9 Appold Street
London
EC2A 2AP
Media Concierge (Holdings) Limited
Group Profit and Loss Account
For the year ended 30 September 2022
Page 10
2022
2021
Notes
£
£
Turnover
3
123,940,369
117,957,841
Cost of sales
(98,656,467)
(96,527,443)
Gross profit
25,283,902
21,430,398
Administrative expenses
(18,845,250)
(22,882,274)
Other operating income
18,000
1,936,682
Operating profit
4
6,456,652
484,806
Share of profits of associates
1,246,685
507,222
Interest receivable and similar income
8
-
0
208,767
Profit before taxation
7,703,337
1,200,795
Tax on profit
9
(1,202,676)
(340,452)
Profit for the financial year
6,500,661
860,343
Profit for the financial year is attributable to:
- Owners of the parent company
6,495,455
855,843
- Non-controlling interests
5,206
4,500
6,500,661
860,343

 

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

Media Concierge (Holdings) Limited
Group Statement of Comprehensive Income
For the year ended 30 September 2022
Page 11
2022
2021
£
£
Profit for the year
6,500,661
860,343
Other comprehensive income
Currency translation gain/(loss) taken to retained earnings
111,123
(526,859)
Total comprehensive income for the year
6,611,784
333,484
Total comprehensive income for the year is attributable to:
- Owners of the parent company
6,606,578
328,984
- Non-controlling interests
5,206
4,500
6,611,784
333,484
Media Concierge (Holdings) Limited
Group Balance Sheet
As at 30 September 2022
Page 12
2022
2021
Notes
£
£
£
£
Fixed assets
Goodwill
11
235,535
298,344
Other intangible assets
11
2,696,521
3,603,584
Total intangible assets
2,932,056
3,901,928
Tangible assets
12
4,125,022
3,891,389
Investments
13
8,302,479
6,715,989
15,359,557
14,509,306
Current assets
Debtors
16
20,990,558
21,603,991
Cash at bank and in hand
7,583,370
6,268,166
28,573,928
27,872,157
Creditors: amounts falling due within one year
17
(35,428,747)
(37,274,384)
Net current liabilities
(6,854,819)
(9,402,227)
Total assets less current liabilities
8,504,738
5,107,079
Provisions for liabilities
Provisions
19
(218,654)
(432,779)
(218,654)
(432,779)
Net assets
8,286,084
4,674,300
Capital and reserves
Called up share capital
21
153,912
153,912
Capital redemption reserve
53,897
53,897
Profit and loss reserves
8,034,473
4,427,895
Equity attributable to owners of the parent company
8,242,282
4,635,704
Non-controlling interests
43,802
38,596
8,286,084
4,674,300
Media Concierge (Holdings) Limited
Group Balance Sheet (Continued)
As at 30 September 2022
Page 13
The financial statements were approved by the board of directors and authorised for issue on 8 March 2024 and are signed on its behalf by:
08 March 2024
M. C. Denmark
Director
Media Concierge (Holdings) Limited
Company Balance Sheet
As at 30 September 2022
30 September 2022
Page 14
2022
2021
as restated
Notes
£
£
£
£
Fixed assets
Investments
13
9,915,121
9,724,123
Current assets
Debtors
16
13,717,647
15,832,069
Cash at bank and in hand
480,743
-
0
14,198,390
15,832,069
Creditors: amounts falling due within one year
17
(23,807,752)
(22,394,535)
Net current liabilities
(9,609,362)
(6,562,466)
Net assets
305,759
3,161,657
Capital and reserves
Called up share capital
21
153,912
153,912
Capital redemption reserve
53,897
53,897
Profit and loss reserves
97,950
2,953,848
Total equity
305,759
3,161,657

As permitted by s408 Companies Act 2006, the Company has not presented its own profit and loss account and related notes. The Company’s profit for the year was £144,102 (2021 - £210,737 profit).

 

The financial statements were approved by the board of directors and authorised for issue on 8 March 2024 and are signed on its behalf by:
08 March 2024
M. C. Denmark
Director
Company Registration No. 02972740 (England and Wales)
Media Concierge (Holdings) Limited
Group Statement of Changes in Equity
For the year ended 30 September 2022
Page 15
Share capital
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 October 2020
153,912
53,897
4,098,911
4,306,720
34,096
4,340,816
Period ended 30 September 2021:
Profit for the period
-
-
855,843
855,843
4,500
860,343
Other comprehensive income:
Currency translation differences
-
-
(526,859)
(526,859)
-
(526,859)
Total comprehensive income for the period
-
-
328,984
328,984
4,500
333,484
Balance at 30 September 2021
153,912
53,897
4,427,895
4,635,704
38,596
4,674,300
Year ended 30 September 2022:
Profit for the year
-
-
6,495,455
6,495,455
5,206
6,500,661
Other comprehensive income:
Currency translation differences
-
-
111,123
111,123
-
111,123
Total comprehensive income for the year
-
-
6,606,578
6,606,578
5,206
6,611,784
Dividends
10
-
-
(3,000,000)
(3,000,000)
-
(3,000,000)
Balance at 30 September 2022
153,912
53,897
8,034,473
8,242,282
43,802
8,286,084
Media Concierge (Holdings) Limited
Company Statement of Changes in Equity
For the year ended 30 September 2022
Page 16
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2020
153,912
53,897
2,743,111
2,950,920
Period ended 30 September 2021:
Profit and total comprehensive income for the period
-
-
210,737
210,737
Balance at 30 September 2021
153,912
53,897
2,953,848
3,161,657
Year ended 30 September 2022:
Profit and total comprehensive income for the year
-
-
144,102
144,102
Dividends
10
-
-
(3,000,000)
(3,000,000)
Balance at 30 September 2022
153,912
53,897
97,950
305,759
Media Concierge (Holdings) Limited
Group Statement of Cash Flows
For the year ended 30 September 2022
Page 17
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
6,143,216
6,052,244
Income taxes paid
(716,154)
(356,385)
Net cash inflow from operating activities
5,427,062
5,695,859
Investing activities
Purchase of business
-
(314,046)
Purchase of tangible fixed assets
(733,679)
(2,657,044)
Proceeds from disposal of tangible fixed assets
424,704
-
Investments and loans made to associate
-
(6,208,767)
Purchase of investments
(339,805)
-
Movement in directors' loans
(463,078)
-
Interest received
-
0
210,070
Net cash used in investing activities
(1,111,858)
(8,969,787)
Financing activities
Dividends paid to equity shareholders
(3,000,000)
-
0
Net cash used in financing activities
(3,000,000)
-
Net increase/(decrease) in cash and cash equivalents
1,315,204
(3,273,928)
Cash and cash equivalents at beginning of year
6,268,166
9,542,094
Cash and cash equivalents at end of year
7,583,370
6,268,166
Media Concierge (Holdings) Limited
Notes to the Financial Statements
For the year ended 30 September 2022
Page 18
1
Accounting policies
Company information

Media Concierge (Holdings) Limited (“the Company”) is a private company, limited by shares, domiciled and incorporated in England and Wales. The registered office is 47 Great Marlborough Street, London, W1F 7JP.

 

The Group consists of Media Concierge (Holdings) Limited and all of its subsidiaries.

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
Basis of consolidation

The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination, liabilities and contingent liabilities acquired is recognised as goodwill.

 

Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following acquisition date.

As permitted by s408 Companies Act 2006, the Company has not presented its profit and loss account and related notes. The Company’s profit for the period was £144,102 (2021 - £210,737)

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors of the ultimate parent company, Media Concierge (Holdings) Limited, have prepared a cash flow forecast for a period of 12 months from the date of approval of these financial statements which indicates that the group and company will have sufficient funds to meet liabilities as they fall due for that period. The cash flow forecast has assessed the impacts of other external factors and has concluded that there is no significant impact to the going concern status of the company.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable 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.

Media Concierge (Holdings) Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
1
Accounting policies
(Continued)
Page 19
1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years. Amortisation is recognised in administrative expenses in the consolidated profit and loss account.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
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.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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
straight line over 5 years
Publishing titles
straight line over 8 years
1.7
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:

Freehold property
straight line over 50 years
Leasehold land and buildings
straight line over the length of the lease
Fixtures & fittings
straight line over 8 years
Computer equipment
straight line over 5 years
Motor vehicles
straight line over 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 recognised in the profit and loss account.

Media Concierge (Holdings) Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
1
Accounting policies
(Continued)
Page 20
1.8
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

1.9
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.10
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.

Media Concierge (Holdings) Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
1
Accounting policies
(Continued)
Page 21
1.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Loans and other receivables

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

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 group 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.

Media Concierge (Holdings) Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
1
Accounting policies
(Continued)
Page 22
Classification of financial liabilities

Basic financial liabilities are initially measured at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Other financial liabilities classified as fair value through profit or loss are measured at fair value.

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 group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Media Concierge (Holdings) Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
1
Accounting policies
(Continued)
Page 23
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 if, and only if, there is 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.

1.14
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.15
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.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
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 leased asset are consumed.

Media Concierge (Holdings) Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
1
Accounting policies
(Continued)
Page 24
1.18
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
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

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.

Impairment of intangible assets

The annual amortisation charge for intangible assets is sensitive to changes in the estimated lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. Goodwill impairment reviews are also performed if there is an indication of impairment. These reviews require an estimation of the value in use of the cash generating units to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise for the cash generating unit and a suitable discount rate to calculate present value. See note 11 for the carrying amount of the intangible assets and the accounting policies for the useful economic lives for each class of asset.

Recognition of cost of sales

In the normal course of business, a number of group companies make an estimate of the amount and volume of media and direct marketing costs associated with each sale when the sale is ordered as well as any related rebates. These costs and rebates are reviewed annually and adjusted where necessary.

3
Turnover and other revenue

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

2022
2021
£
£
Turnover analysed by class of business
Marketing sales
123,940,369
117,957,841
Media Concierge (Holdings) Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
3
Turnover and other revenue
(Continued)
Page 25
2022
2021
£
£
Turnover analysed by geographical market
Sales - UK
109,675,969
105,670,451
Sales - Europe
14,264,400
12,287,390
123,940,369
117,957,841
2022
2021
£
£
Other significant revenue
Furlough Grants claimed
-
1,905,758
4
Operating profit
2022
2021
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(74,547)
(24,188)
Depreciation of owned tangible fixed assets
436,820
321,783
Depreciation of tangible fixed assets held under finance leases
-
26,214
Profit on disposal of tangible fixed assets
(279,082)
-
Amortisation of intangible assets
998,599
967,729
Operating lease charges
1,878,712
1,209,997
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
280,000
234,200
For other services
Tax compliance services
18,000
16,200
Other taxation services
9,000
8,100
Accountancy services
15,000
13,500
All other non-audit services
40,000
18,000
82,000
55,800
Media Concierge (Holdings) Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
Page 26
6
Employees

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

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Administration and support
32
22
-
-
Sales
97
89
-
-
Distribution
27
37
-
-
Other Departments
105
89
2
2
Total
261
237
2
2

Their aggregate remuneration comprised:

Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
11,670,597
16,776,542
580,000
475,000
Social security costs
1,169,090
708,954
-
65,550
Pension costs
287,151
232,973
-
0
-
0
13,126,838
17,718,469
580,000
540,550
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
632,247
555,712
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2022
2021
£
£
Remuneration for qualifying services
238,045
555,712
Media Concierge (Holdings) Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
Page 27
8
Interest receivable and similar income
2022
2021
£
£
Interest income
Other interest income
-
208,767
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
1,007,343
162,917
Foreign current tax on profits for the current period
195,333
177,535
Total current tax
1,202,676
340,452

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
7,703,337
1,200,795
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
1,463,634
228,151
Tax effect of expenses that are not deductible in determining taxable profit
125,151
16,249
Tax effect of income not taxable in determining taxable profit
(342,425)
(96,372)
Adjustments in respect of prior years
131,679
-
0
Permanent capital allowances in excess of depreciation
-
0
28,598
Other non-reversing timing differences
-
0
42,270
Effect of overseas tax rates
(195,964)
121,556
Under/(over) provided in prior years
387
-
0
Deferred tax adjustments in respect of prior years
25,951
-
0
Capital allowances
169,837
-
0
Deferred tax
(107,413)
-
0
Other tax adjustments, releifs and transfers
(68,161)
-
0
Taxation charge
1,202,676
340,452
10
Dividends
2022
2021
Recognised as distributions to equity holders:
£
£
Final paid
3,000,000
-
Media Concierge (Holdings) Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
Page 28
11
Intangible fixed assets
Group
Goodwill
Software
Publishing titles
Total
£
£
£
£
Cost
At 1 October 2021
6,426,487
454,367
7,343,961
14,224,815
Disposals
(292,100)
-
0
-
0
(292,100)
Exchange adjustments
-
0
2,756
71,130
73,886
At 30 September 2022
6,134,387
457,123
7,415,091
14,006,601
Amortisation and impairment
At 1 October 2021
6,128,143
449,211
3,745,533
10,322,887
Amortisation charged for the year
62,809
3,544
932,246
998,599
Amortisation eliminated on disposal
(292,100)
-
0
-
0
(292,100)
Exchange adjustments
-
0
4,368
40,791
45,159
At 30 September 2022
5,898,852
457,123
4,718,570
11,074,545
Carrying amount
At 30 September 2022
235,535
-
0
2,696,521
2,932,056
At 30 September 2021
298,344
5,156
3,598,428
3,901,928
The company had no intangible fixed assets at 30 September 2022 or 30 September 2021.
Media Concierge (Holdings) Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
Page 29
12
Tangible fixed assets
Group
Freehold property
Leasehold land and buildings
Fixtures & fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 October 2021
3,128,499
851,845
596,190
1,470,387
2,302,470
8,349,391
Additions
-
0
305,407
53,363
81,571
374,910
815,251
Disposals
(145,622)
-
0
-
0
-
0
(30,874)
(176,496)
Exchange adjustments
698
-
0
1,112
29
1,510
3,349
At 30 September 2022
2,983,575
1,157,252
650,665
1,551,987
2,648,016
8,991,495
Depreciation and impairment
At 1 October 2021
501,930
81,291
584,526
1,180,611
2,109,644
4,458,002
Depreciation charged in the year
7,442
115,725
48,259
106,601
158,793
436,820
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(30,874)
(30,874)
Exchange adjustments
-
0
-
0
1,649
29
847
2,525
At 30 September 2022
509,372
197,016
634,434
1,287,241
2,238,410
4,866,473
Carrying amount
At 30 September 2022
2,474,203
960,236
16,231
264,746
409,606
4,125,022
At 30 September 2021
2,626,569
770,554
11,664
289,776
192,826
3,891,389
The company had no tangible fixed assets at 30 September 2022 or 30 September 2021.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2022
2021
2022
2021
£
£
£
£
Motor vehicles
-
0
17,532
-
0
-
0
The depreciation charge in respect of assets held under finance leases or hire purchase contracts amounted to £17,532 (2021: £26,214)
Media Concierge (Holdings) Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
Page 30
13
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
3,366,549
3,515,356
Investments in associates
14
7,962,674
6,715,989
6,208,767
6,208,767
Unlisted investments
339,805
-
0
339,805
-
0
8,302,479
6,715,989
9,915,121
9,724,123
Movements in fixed asset investments
Group
Investment in associates
Other investments
Total
£
£
£
Cost or valuation
At 1 October 2021
6,715,989
-
6,715,989
Additions
-
339,805
339,805
Share of profit of associate
1,246,685
-
1,246,685
At 30 September 2022
7,962,674
339,805
8,302,479
Carrying amount
At 30 September 2022
7,962,674
339,805
8,302,479
At 30 September 2021
6,715,989
-
6,715,989
Media Concierge (Holdings) Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
13
Fixed asset investments
(Continued)
Page 31
Movements in fixed asset investments
Company
Investment in subsidiaries and associates
Other investments
Total
£
£
£
Cost or valuation
At 1 October 2021
9,724,123
-
9,724,123
Additions
-
339,805
339,805
At 30 September 2022
9,724,123
339,805
10,063,928
Impairment
At 1 October 2021
-
-
-
Impairment losses
148,807
-
148,807
At 30 September 2022
148,807
-
148,807
Carrying amount
At 30 September 2022
9,575,316
339,805
9,915,121
At 30 September 2021
9,724,123
-
9,724,123
14
Associates

Details of associates at 30 September 2022 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
National World Plc
No 1 Leeds 4th Floor, 26 Whitehall Road, Leeds, England, England, LS12 1BE
Ordinary
24

The investment in associate is accounted for in accordance with the equity model. The share of profit in the year was £1,246,685 and the carrying value of the investment in associate at 30 September 2022 was £7,962,764. The fair value of the investment in associate at the year end was £9,903,661.

Media Concierge (Holdings) Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
Page 32
15
Subsidiaries

Details of the company's subsidiaries at 30 September 2022 are as follows:

Name of undertaking and country of
Nature of business
% Held
incorporation or residency
Direct
Indirect
Anglia Targeted Media Limited
United Kingdom
Leaflet and newspaper distribution
100
0
Buildforce (London) Limited
United Kingdom
Construction
100
0
Formpress Publishing Limited
Republic of Ireland
Newspapers
0
100
Group M Services Limited
United Kingdom
Management services
100
0
Iconic Newspapers Limited
Republic of Ireland
Newspapers
100
0
Leaflet Co Limited
United Kingdom
Leaflet distribution
100
0
Mailbox Door Drop Limited
United Kingdom
Newspapers
100
0
Mediaforce (Ireland) Limited
Republic of Ireland
Media representation
100
0
Mediaforce (London) Limited
United Kingdom
Media representation
0
100
Mediaforce (Representation) Limited
United Kingdom
Media representation
0
100
Site to Site Logistics Limited
United Kingdom
Transport
100
0
Smart Media (UK) Limited
United Kingdom
Media space and airtime advertising
100
0
Streetwise Distribution Limited
United Kingdom
Leaflet distribution
100
0
The Distribution Business Limited
United Kingdom
Distribution of newspapers and leaflets
100
0
The Insert Company (London) Limited
United Kingdom
Leaflet distribution
100
0
The Public Sector Leaflet Company Limited
United Kingdom
Leaflet distribution
0
91
Tudor Distribution Services Limited
United Kingdom
Leaflet distribution
100
0
UK Letterbox Marketing Limited
United Kingdom
Lealet distribution
100
0
WJP Recruitment Advertising Limited
United Kingdom
Media space and airtime advertising
91
0
LocalEyes Digital Limited
United Kingdom
Technology
0
75
Derry Publications Limited
United Kingdom
Newspapers
0
100
Mediaforce (Representation) Digital Limited
United Kingdom
Holding company
100
0
Mediaforce Marketing UK Limited
United Kingdom
Media representation
100
0
Fusion Media (London) Limited
United Kingdom
Media representation
100
0
Designforce (London) Limited
United Kingdom
Interior design services
78
0
Taskforce (London) Limited
United Kingdom
Transport
100
0

Media Concierge (Holdings) Limited also has interests in other dormant companies. A complete list of group companies can be obtained from the Company Secretary at 47 Great Marlborough Street, London, W1F 7JP.

 

All classes of shareholding are ordinary.

Media Concierge (Holdings) Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
Page 33
16
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
13,308,979
12,264,533
-
0
-
0
Amounts owed by group undertakings
-
-
13,617,647
12,832,069
Other debtors
5,125,297
4,536,994
100,000
3,000,000
Prepayments and accrued income
2,385,292
4,738,887
-
0
-
0
20,819,568
21,540,414
13,717,647
15,832,069
Deferred tax asset (note 18)
170,990
63,577
-
0
-
0
20,990,558
21,603,991
13,717,647
15,832,069
17
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
as restated
£
£
£
£
Trade creditors
21,542,724
21,711,356
450,000
-
0
Amounts owed to group undertakings
-
0
-
0
23,243,950
22,394,535
Corporation tax payable
897,769
303,834
33,802
-
0
Other taxation and social security
1,075,587
4,155,916
-
-
Other creditors
440,270
259,339
-
0
-
0
Accruals and deferred income
11,472,397
10,843,939
80,000
-
0
35,428,747
37,274,384
23,807,752
22,394,535
18
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Assets
Assets
2022
2021
Group
£
£
ACAs
170,990
63,577
The company has no deferred tax assets or liabilities.
Media Concierge (Holdings) Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
18
Deferred taxation
(Continued)
Page 34
Group
Company
2022
2022
Movements in the year:
£
£
Asset at 1 October 2021
(63,577)
-
Credit to profit or loss
(107,413)
-
Asset at 30 September 2022
(170,990)
-

The deferred tax asset set out above is not expected to reverse in total within 12 months and relates to accelerated capital allowances that are expected to mature over several periods.

19
Provisions for liabilities
Group
Company
2022
2021
2022
2021
£
£
£
£
Dilapidations provision
218,654
432,779
-
-
Movements on provisions:
Dilapidations provision
Group
£
At 1 October 2021
432,779
Settlement of provision and additional provision
(214,125)
At 30 September 2022
218,654

The provisions relate to the obligation under operating leases to correct any damage caused on expiry of lease. This is expected to be utilised within 2 to 5 years.

20
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
287,151
232,973

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

 

Contributions totalling £51,298 (2020: £28,701) were payable to the scheme at year end and are included within other creditors.

Media Concierge (Holdings) Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
Page 35
21
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
153,912
153,912
153,912
153,912
22
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
1,062,904
1,096,017
-
-
Between two and five years
1,700,503
2,478,782
-
-
In over five years
-
198,539
-
-
2,763,407
3,773,338
-
-
Media Concierge (Holdings) Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
Page 36
23
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2022
2021
£
£
Aggregate compensation
1,560,271
6,068,806

Aggregate compensation includes £1,276,587 (2021: 5,402,601) remunerated to directors within the group and their relatives.

 

During the year the group made the following related party transactions:

 

During the year the group made sponsorship payments for promotional purposes totalling £99,000 (2021: £88,000) to a companies in which a Director had an interest.

 

At the balance sheet date the group was owed £3,549,858 (2021: £3,153,494) from the directors. The total amount paid in by the directors was £3,000,000 (2021: £2,517,500) with £3,396,364 (2021: £4,390,705) withdrawn. At the balance sheet date the company was owed £nil (2021: £3,000,000) from the directors. The total amount paid in by the directors was £3,000,000 (2021: £nil) with £nil (2021: £3,000,000) withdrawn.

 

At the balance sheet date, the group owed £29,918 to (2021: £211,137) companies in which one or more of the directors are also directors, for services rendered.

 

During the year the group and company was charged £580,000 (2021: £500,000) by a director of a subsidiary company for consultancy services.

 

During the year sales of £1,181,922 (2021: £1,306,725) were made to a company which the company of this entity holds a significant influence.

 

During the year costs of £497,115 (2021: £566,173) were incurred from a company which the ultimate parent company of this entity holds a significant influence.

 

Included in trade debtors is £481,547 (2021: £212,224) owed by a company which the ultimate parent company of this entity holds a significant influence.

 

Included in trade creditors is £960,825 (2021: £684,792) owed to a company which the ultimate parent company of this entity holds a significant influence.

 

 

24
Events after the reporting date

Following the year end the group acquired a 100% share holding in Mayo News Holdings Limited, a company incorporated in the Republic of Ireland.

Media Concierge (Holdings) Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2022
Page 37
25
Cash generated from group operations
2022
2021
£
£
Profit for the year after tax
6,500,661
860,343
Adjustments for:
Share of results of associates and joint ventures
(1,246,685)
(507,222)
Taxation charged
1,202,676
340,452
Investment income
-
0
(210,070)
Gain on disposal of tangible fixed assets
(279,082)
-
Amortisation and impairment of intangible assets
998,599
967,729
Depreciation and impairment of tangible fixed assets
436,820
347,997
Foreign exchange losses
(23,444)
(250,445)
Decrease in provisions
(214,125)
-
Movements in working capital:
Decrease in debtors
613,433
2,047,360
(Decrease)/increase in creditors
(1,845,637)
2,456,100
Cash generated from operations
6,143,216
6,052,244
26
Analysis of changes in net funds - group
1 October 2021
Cash flows
30 September 2022
£
£
£
Cash at bank and in hand
6,268,166
1,315,204
7,583,370
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