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Registered number: 02612480












THE BIG ISSUE COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

 

THE BIG ISSUE COMPANY LIMITED

CONTENTS



Page
Company information
 
1
Directors' report
 
2 - 3
Directors' responsibilities statement
 
4
Independent auditor's report
 
5 - 8
Profit and loss account
 
9
Balance sheet
 
10 - 11
Statement of changes in equity
 
12
Notes to the financial statements
 
13 - 30


 

THE BIG ISSUE COMPANY LIMITED
 
COMPANY INFORMATION


Directors
S F Shafiq 
J L Evans 
S F Todd 
P A Cheal 




Company secretary
S Stead



Registered number
02612480



Registered office
113 - 115 Fonthill Road

London

N4 3HH




Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH




Page 1

 

THE BIG ISSUE COMPANY LIMITED

DIRECTORS' REPORT
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

The directors present their report and the financial statements for the 52 week period ended 26 March 2023.

Principal activity

The Big Issue Company Limited is a self-help business, whose principal activity is the production of publications that give people affected by homelessness the chance of making an income.
The company's principal activity is the production and distribution of a publication for sale by the homeless.

Results and dividends

The profit for the 52 week period, after taxation, amounted to £421,358 (2022 - £213,282).

No dividend was paid during the period and the directors do not recommend payment of a dividend (2022 - £Nil).

Directors

The directors who served during the 52 week period were:

S F Shafiq 
J L Evans 
S F Todd 
P A Cheal 

Qualifying third party indemnity provisions

As permitted by the Articles of Association, the directors have the benefit of an indemnity which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial period and is currently in force. The company also purchased and maintained throughout the financial period director's and officer's liability insurance in respect of itself and its directors.

Disclosure of information to auditor

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 414B of the Companies Act 2006. 




 

Page 2

 

THE BIG ISSUE COMPANY LIMITED

DIRECTORS' REPORT (CONTINUED)
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

Auditor

The auditor, Blick Rothenberg Audit LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





P A Cheal
Director

Date: 28 March 2024

Page 3

 

THE BIG ISSUE COMPANY LIMITED
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

The directors are responsible for preparing the directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial period. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;


prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 4

 

THE BIG ISSUE COMPANY LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE BIG ISSUE COMPANY LIMITED
 FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

Opinion


We have audited the financial statements of The Big Issue Company Limited (the 'company') for the 52 week period ended 26 March 2023, which comprise the profit and loss account, the balance sheet, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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:


give a true and fair view of the state of the company's affairs as at 26 March 2023 and of its profit for the 52 week period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 United Kingdom, including the Financial Reporting Council'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 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.


Page 5

 

THE BIG ISSUE COMPANY LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE BIG ISSUE COMPANY LIMITED (CONTINUED)
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

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 reportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the directors' report for the financial 52 week period for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in 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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a strategic report.


Responsibilities of directors
 

As explained more fully in the directors' responsibilities statement set out on page 4, 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.


Page 6

 

THE BIG ISSUE COMPANY LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE BIG ISSUE COMPANY LIMITED (CONTINUED)
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

Auditor's responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company's sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, employment and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
 
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
 
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
 
To address the risk of fraud through management bias and override of controls, we:
 
performed analytical procedures to identify any unusual or unexpected relationships;
reviewed a sample of journal entries to identify unusual transactions; and
investigated the rationale behind significant or unusual transactions. 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
 
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance; and
enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
 
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Page 7

 

THE BIG ISSUE COMPANY LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE BIG ISSUE COMPANY LIMITED (CONTINUED)
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: 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 2006Our 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.





Darsh Shah (senior statutory auditor)
  
for and on behalf of
Blick Rothenberg Audit LLP
 
Chartered Accountants
Statutory Auditor
  
16 Great Queen Street
Covent Garden
London
WC2B 5AH

 
Date: 
28 March 2024
Page 8

 

THE BIG ISSUE COMPANY LIMITED
 
PROFIT AND LOSS ACCOUNT
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

52 week period ended
26 March
As restated 52 week period ended
27 March
2023
2022
Note
£
£

  

Turnover
 4 
6,192,619
5,958,112

Cost of sales
  
(1,590,233)
(1,447,289)

Gross profit
  
4,602,386
4,510,823

Administrative expenses
  
(4,657,440)
(4,256,974)

Operating (loss)/profit
 5 
(55,054)
253,849

Income from other fixed asset investments
 9 
470,450
-

Interest receivable and similar income
 10 
-
50

Interest payable and similar expenses
 11 
(4,869)
(15,769)

Profit before taxation
  
410,527
238,130

Tax on profit
 12 
10,831
(24,848)

Profit for the financial 52 week period
  
421,358
213,282

There are no items of other comprehensive income for either the period or the prior period other than the profit for the period. Accordingly, no statement of other comprehensive income has been presented.

Page 9


 
REGISTERED NUMBER:02612480
THE BIG ISSUE COMPANY LIMITED

BALANCE SHEET
AS AT 26 MARCH 2023

26 March 2023
As restated 27 March 2022
Note
£
£

Fixed assets
  

Intangible fixed assets
 13 
15,149
4,115

Tangible fixed assets
 14 
191,602
167,644

Investments
 15 
26
26

  
206,777
171,785

Current assets
  

Stocks
 16 
15,961
16,587

Debtors: amounts falling due within one year
 17 
1,207,417
1,101,556

Cash at bank and in hand
  
1,118,221
2,328,708

  
2,341,599
3,446,851

Creditors: amounts falling due within one year
 18 
(1,081,726)
(2,214,613)

Net current assets
  
 
 
1,259,873
 
 
1,232,238

Total assets less current liabilities
  
1,466,650
1,404,023

Creditors: amounts falling due after more than one year
 19 
-
(378,541)

Provisions for liabilities
  

Deferred tax
 20 
(18,387)
(12,959)

Dilapidation provision
 21 
(106,117)
(91,735)

  
 
 
(124,504)
 
 
(104,694)

Net assets
  
1,342,146
920,788


Capital and reserves
  

Called up share capital 
 22 
3
3

Profit and loss account
 23 
1,342,143
920,785

Total equity
  
1,342,146
920,788


Page 10


 
REGISTERED NUMBER:02612480
THE BIG ISSUE COMPANY LIMITED
    
BALANCE SHEET (CONTINUED)
AS AT 26 MARCH 2023



The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




P A Cheal
Director

Date: 28 March 2024

The notes on pages 13 to 30 form part of these financial statements.

Page 11

 

THE BIG ISSUE COMPANY LIMITED

STATEMENT OF CHANGES IN EQUITY
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 28 March 2021 - as restated (see note 24)
3
707,503
707,506


Comprehensive income for the financial period - as restated (see note 24)

Profit for the financial period - as restated (see note 24)
-
213,282
213,282



At 28 March 2022 and 29 March 2022 - as restated (see note 24)
3
920,785
920,788


Comprehensive income for the financial period

Profit for the financial period
-
421,358
421,358


At 26 March 2023
3
1,342,143
1,342,146


The notes on pages 13 to 30 form part of these financial statements.

Page 12

 

THE BIG ISSUE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

1.


General information

The Big Issue Company Limited is a private company limited by shares incorporated in England and Wales. The address of its registered office is 113-115 Fonthill Road, London, England, N4 3HH.
The financial statements are presented in Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see Note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of The Big Issue Group Limited as at 26 March 2023 and these financial statements may be obtained from 113-115 Fonthill Road, London, N4 3HH.

 
2.3

Exemption from preparing consolidated financial statements

The company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

 
2.4

Going concern

The directors have reviewed the current and projected financial position of the company making reasonable assumptions about the future performance. The key areas reviewed were forecast income and cash flows for the period of at least twelve months from approving these accounts and based on these days directors have a reasonable expectation that the company will continue in operational existence for at least twelve months from the date of approval of these financial statements. Accordingly, the financial statements are presented on a going concern basis. 

Page 13

 

THE BIG ISSUE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

2.Accounting policies (continued)

  
2.5

Revenue

Revenue represents amounts receivable in the ordinary course of business in respect of advertising turnover, the sale of publications, other complementary activities, excluding valued added tax and grant income.
Magazine and ancillary advertising income are invoiced and recognised in the month in which the service is delivered. Appropriate adjustments are made to revenue to account for the revenue in the period in which it relates.
All sales are normally made with credit terms, unless settled immediately in cash. The element of financing is deemed immaterial and disregarded in the measurement of revenue. 
Turnover is recognised in line with the time period in which the publication or service is delivered. 

  
2.6

Government and revenue grants

Revenue grants are credited to deferred grants upon receipt and released to the income statement when conditions of the grant funding have been met. 

 
2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements
-
10%
per annum
Fixtures and fittings
-
33%
per annum
Office equipment
-
33%
per annum
Computer equipment
-
33%
per annum

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.8

Investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 14

 

THE BIG ISSUE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

2.Accounting policies (continued)

 
2.9

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. 

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

  
2.10

Intangible assets

Website development costs are capitalised and amortised from completion over a 5 year period where the company expects to generate economic benefits from the development.

 
2.11

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.12

Cash at bank

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

  
2.13

Share capital

Ordinary shares are classified as equity.

Page 15

 

THE BIG ISSUE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

2.Accounting policies (continued)

  
2.14

Financial instruments

The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. 
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.
The company’s policies for its major classes of financial assets and financial liabilities are set out below. 
Financial assets
Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Financial liabilities
Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. 
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. 
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. 
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.
 
Page 16

 

THE BIG ISSUE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

2.Accounting policies (continued)


Derecognition of financial assets and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. 
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. 
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

 
2.15

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.16

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.17

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 17

 

THE BIG ISSUE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

2.Accounting policies (continued)

 
2.18

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimate 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. Revision to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the prior period of the revision and future periods where the revision affects both current and future periods.
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
Determine whether there are indicators of impairment of the Company's tangible and intangible assets. Factors taken into consideration in reaching such decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.
Dilapidations provision
The company has recognised dilapidations provisions in the balance sheet as the company has a liability to restore its leased premises to their original condition at the expiry of a number of leases. The board have used available data and their knowledge of historic adjustments made to the sites with reference to the terms of each lease, and have estimated that the cost of the restoration is expected to be £106,117 as at 26 March 2023; this will be kept under annual review.

Page 18

 

THE BIG ISSUE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


52 week period ended
26 March
52 week period ended
26 March
2023
2022
£
£

Magazine sales
3,407,897
2,927,967

Subscriptions and sponsorship
734,512
840,941

Custom publishing
416,824
293,083

App revenue
22,064
21,745

Other income
354,553
170,573

Funding - Not Grants
597,535
882,428

Grant income
28,011
86,085

Advertising revenue
500,892
547,473

Retail sales
95,920
149,377

Shop sales
34,411
38,440

6,192,619
5,958,112


All turnover arose within the United Kingdom.


5.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

52 week period ended
26 March
52 week period ended
26 March
2023
2022
£
£

Depreciation of tangible fixed assets
52,097
46,318

Amortisation of intangible fixed assets
5,966
3,700

Other operating lease rentals
261,812
209,783

Page 19

 

THE BIG ISSUE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

6.


Auditor's remuneration

During the 52 week period, the company obtained the following services from the company's auditor:


52 week period ended
26 March
52 week period ended
26 March
2023
2022
£
£

Fees payable to the company's auditor for the audit of the company's financial statements
25,000
25,000

Fees payable to the company's auditor in respect of:

All non-audit services not included above
10,000
6,700


7.


Employees

52 week period ended
26 March
52 week period ended
26 March
2023
2022
£
£

Wages and salaries
3,128,560
2,676,226

Social security costs
350,400
285,306

Cost of defined contribution scheme
107,347
72,892

3,586,307
3,034,424


Total remuneration paid to key management personnel (including directors) was £180,561 (2022: £272,315).

The average monthly number of employees, including the directors, during the 52 week period was as follows:


52 week period ended
       26 March
52 week period ended
        26 March
        2023
        2022
            No.
            No.







Employees
96
100



Directors
3
2

99
102

Page 20

 

THE BIG ISSUE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

8.


Directors' remuneration

52 week period ended
26 March
52 week period ended
26 March
2023
2022
£
£

Directors' emoluments
191,224
274,860

Company contributions to defined contribution pension schemes
1,881
3,281

193,105
278,141


During the 52 week period retirement benefits were accruing to no directors (2022 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £157,470 (2022 - £128,832).
The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,761 (2022 - £1,620).


9.


Income from investments

52 week period ended
26 March
52 week period ended
26 March
2023
2022
£
£





Dividends received
470,450
-



10.


Interest receivable and similar income

52 week period ended
26 March
52 week period ended
26 March
2023
2022
£
£


Other interest receivable
-
50

Page 21

 

THE BIG ISSUE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

11.


Interest payable and similar expenses

52 week period ended
26 March
52 week period ended
26 March
2023
2022
£
£


Other loan interest payable
4,869
15,769


12.


Taxation


52 week period ended
26 March
52 week period ended
26 March
2023
2022
£
£

Corporation tax


Prior period group taxation relief
(16,234)
11,889


Total current tax
(16,234)
11,889

Deferred tax


Origination and reversal of timing differences
5,403
12,959

Total deferred tax
5,403
12,959


Tax on profit
(10,831)
24,848
Page 22

 

THE BIG ISSUE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023
 
12.Taxation (continued)


Factors affecting tax charge for the 52 week period/period

The tax assessed for the 52 week period/period is the same as (2022 - the same as) the standard rate of corporation tax in the UK of 19% (2022 - 19%) as set out below:

52 week period ended
26 March
52 week period ended
26 March
2023
2022
£
£


Profit on ordinary activities before tax
410,527
238,130


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
78,000
45,245

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,266
1,484

Capital allowances for 52 week period in excess of depreciation
4,587
1,468

Adjustments to tax charge in respect of prior periods
(16,234)
-

Dividends from UK companies
(89,386)
-

Other differences leading to an decrease in the tax charge
5,533
-

Deferred tax
5,403
(23,349)

Total tax charge for the 52 week period
(10,831)
24,848


Factors that may affect future tax charges

The UK Government announced on 3 March 2021 its intention to increase the UK rate of corporation tax to 25% from 19% from 1 April 2023. As this rate was not substantively enacted at the year end, deferred tax has been calculated based on the prevailing rate of 19%. The estimated impact of the new 25% rate on the deferred tax assessment is immaterial. 

Page 23

 

THE BIG ISSUE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

13.


Intangible assets




Website development

£



Cost


At 27 March 2022
18,500


Additions
17,000



At 26 March 2023

35,500



Amortisation


At 27 March 2022
14,385


Charge for the period
5,966



At 26 March 2023

20,351



Net book value



At 26 March 2023
15,149



At 26 March 2022
4,115



Page 24

 

THE BIG ISSUE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

14.


Tangible fixed assets





Leasehold improvements
Fixtures, fittings and computer equipment
Total

£
£
£



Cost 


At 27 March 2022
330,951
145,589
476,540


Additions
10,800
58,599
69,399


Transfers intra group
6,435
221
6,656



At 26 March 2023

348,186
204,409
552,595



Depreciation


At 27 March 2022
181,028
127,868
308,896


Charge for the period
33,962
18,135
52,097



At 26 March 2023

214,990
146,003
360,993



Net book value



At 26 March 2023
133,196
58,406
191,602



At 26 March 2022
149,923
17,721
167,644


15.


Fixed asset investments





Shares in subsidiary undertakings

£



Cost


At 27 March 2022
26



At 26 March 2023
26




Page 25

 

THE BIG ISSUE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

Subsidiary undertakings


The following were subsidiary undertakings of the company:

Name

Registered office

Principal activity

Class of shares

Holding

The Big Issue in Scotland Limited
43 Bath Street, Glasgow, G2 1HW
Publishing
Ordinary
100%
The Big Issue Cymru (Wales) Limited
First Floor, Hastings House, Fitzalan Place, Cardiff, Wales, CF24 0BL
Publishing
Ordinary
 100%
The Social Brokers Foundation
113-115 Fonthill Road, London, England, N4 3HH
Dormant
Ordinary
100%


16.


Stocks

26 March 2023
27 March 2022
£
£

Paper stock
15,961
16,587


Stock recognised in cost of sales during the period as an expense was £267,128 (2022 - £169,406)


17.


Debtors

26 March 2023
27 March 2022
£
£


Trade debtors
513,109
566,121

Amounts owed by group undertakings
409,876
327,679

Other debtors
69,826
90,154

Prepayments and accrued income
214,606
117,602

1,207,417
1,101,556


Amounts owed by group undertakings are unsecured, interest free and are repayable on demand. 

Page 26

 

THE BIG ISSUE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

18.


Creditors: Amounts falling due within one year

26 March 2023
27 March 2022
£
£

Bank overdrafts
62
-

Other loans
-
2,365

Trade creditors
320,013
250,588

Amounts owed to group undertakings
13,246
474,237

Corporation tax
-
11,889

Other taxation and social security
92,175
78,269

Other creditors
113,712
691,346

Accruals and deferred income
542,518
705,919

1,081,726
2,214,613


Amounts owed to group undertakings are unsecured, interest free and are repayable on demand. 


19.


Creditors: Amounts falling due after more than one year

26 March 2023
27 March 2022
£
£

Bank loans
-
378,541


As at 27 March 2022 the company had a loan of £378,541. The loan balance was fully repaid during the financial period. Interest had commenced on the loan at the drawdown date and the loan had borne interest up to the first anniversary, at a fixed rate of 9% per annum and after the first anniversary, the loan had borne interest at a fixed rate of 6.5% per annum. 


20.


Deferred taxation




26 March 2023


£






At beginning of period
(12,959)


Charged to profit or loss
(5,428)



At end of period
(18,387)

Page 27

 

THE BIG ISSUE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023
 
20.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

26 March 2023
27 March 2022
£
£


Fixed asset timing differences
(19,911)
(12,959)

Short term timing differences
1,524
-

(18,387)
(12,959)


21.


Provisions




Dilapidation provision

£





At 27 March 2022 - as restated (see note 24)
91,735


Released in 52 week period
14,382



At 26 March 2023
106,117


22.


Share capital

26 March 2023
27 March 2022
£
£
Allotted, called up and fully paid



1 (2022 - 1) Ordinary A share share of £1.00
1
1
2 (2022 - 2) Ordinary B shares shares of £1.00 each
2
2

3

3



23.


Reserves

Share capital

Called up share capital reserve represents the nominal value of the shares issued.

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses. 

Page 28

 

THE BIG ISSUE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

24.


Prior period adjustment

A prior period adjustment has been recognised in relation to dilapidation provisions. After the finalisation of financial statements for the period ended 27 March 2022 the directors noted that a provision for office lease dilapidations had not been recognised in the financial statements. These amounts should have been included in the profit and loss account in 2021 and 2022 financial year ends. As a result, comparative amounts have been restated to recognise this cost and a dilapidation provision for both periods. There is no impact on the corporation tax charge recognised in the accounts for 2021 and 2022 as a result of this restatement.
The comparative amounts in the prior periods and the impact on retained earnings have been detailed below:



Administrative expenses
Provisions
Retained earnings
        £
        £
        £

As previously reported 28 March 2021

3,300,356

-

795,823
 
Adjustments to prior period (2021)

88,320

(88,320)

(88,320)
 
As restated 28 March 2021

3,388,676

(88,320)

707,503
 
As previously reported 28 March 2022

4,265,471

-

1,012,520
 
Adjustements to prior period (2022)

3,415

(3,415)

(3,415)
 
As restated 27 March 2022

4,268,886

(91,734)

920,786
 


25.


Pension commitments

The company operates a defined contributions scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £108,315 (2022 - £72,892). Contributions totalling £nil were payable to the fund at the reporting date and are included in creditors (2022 - £nil).


26.


Commitments under operating leases

At 26 March 2023 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

26 March 2023
27 March 2022
£
£


Not later than 1 year
324,308
226,780

Later than 1 year and not later than 5 years
475,453
683,699

Later than 5 years
122,040
315,315

921,801
1,225,794

Page 29

 

THE BIG ISSUE COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 26 MARCH 2023

27.


Related party transactions

The company has taken advantage of the exemption contained in FRS102 section 33 "Related Party Disclosures" from disclosing transactions with entities which are a wholly owned part of the group.
The group recharged expenses to a connected entity, The Big Issue Foundation, during the period of £323,980 (2022 - £352,721). Outstanding amount at the period end is £55,663 (2022 - £8,000). Further purchase transactions of £1,233 occured during the period with The Big Issue Foundation.
Total remuneration paid to key management personnel (including directors) was £180,561 (2022: £272,315).


28.


Controlling party

The ultimate party undertaking and controlling party is The Big Issue Group Limited, a company incorporated in England, and is the largest group of undertakings to consolidate these financial statements at 26 March 2023. The consolidated financial statements of The Big Issue Group Limited are available from The Big Issue Group, 113-115 Fonthill Road, London, N4 3HH.

 
Page 30