Company registration number 12274644 (England and Wales)
L10N Media (UK) Limited
Annual Report and Financial Statements
For the year ended 31 December 2023
L10N Media (UK) Limited
Contents
Page
Company information
1
Directors' report
2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Statement of financial position
7
Statement of cash flows
9
Notes to the financial statements
10 - 19
L10N Media (UK) Limited
Company Information
- 1 -
Directors
B Clark
S Jenkins
F Chelmsford
Secretary
B Clark
Company number
12274644
Registered office
18 Glasshouse Studios
Fryern Court Road
Burgate
Fordingbridge
Hampshire
SP6 1QX
Auditor
Gilberts Chartered Accountants
Pendragon House
65 London Road
St Albans
Hertfordshire
AL1 1LJ
L10N Media (UK) Limited
Directors' Report
For the year ended 31 December 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Directors

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

B Clark
S Jenkins
F Chelmsford
Auditor

The auditor, Gilberts Chartered Accountants, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRSs) and applicable law. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
S Jenkins
Director
4 April 2024
L10N Media (UK) Limited
Independent Auditor's Report
To the Member of L10N Media (UK) Limited
- 3 -
Opinion

We have audited the financial statements of L10N Media (UK) Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

L10N Media (UK) Limited
Independent Auditor's Report (Continued)
To the Member of L10N Media (UK) Limited
- 4 -
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:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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.

Explanations 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. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed in our approach below:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council and UK taxation legislation.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. There are inherent limitations in the audit procedures noted above, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance, miscellaneous receipts and payments testing, journal entry testing, analytical procedures and obtaining additional corroborative evidence as required. In doing so we evaluate whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
We recognise that 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.
L10N Media (UK) Limited
Independent Auditor's Report (Continued)
To the Member of L10N Media (UK) Limited
- 5 -
We communicated relevant key laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud and non-compliance with laws and regulations throughout the audit.
We did not identify any audit matters relating to irregularities, including fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

Luke Parker ACA
Senior Statutory Auditor
For and on behalf of Gilberts Chartered Accountants (Statutory Auditor)
Pendragon House
65 London Road
St Albans
Hertfordshire
AL1 1LJ
11 April 2024
L10N Media (UK) Limited
Statement of Comprehensive Income
For the year ended 31 December 2023
- 6 -
2023
2022
Notes
£
£
Revenue
2,256,429
2,194,190
Cost of sales
(1,447,651)
(1,705,653)
Gross profit
808,778
488,537
Administrative expenses
(581,235)
(501,819)
Operating profit/(loss)
3
227,543
(13,282)
Finance costs
7
(48,722)
(36,771)
Profit/(loss) before taxation
178,821
(50,053)
Tax on profit/(loss)
8
(34,309)
2,132
Profit/(loss) for the financial year
144,512
(47,921)
Other comprehensive income
-
-
Total comprehensive income for the year
144,512
(47,921)
L10N Media (UK) Limited
Statement of financial position
For the year ended 31 December 2023
- 7 -
2023
2022
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
9
12,155
24,374
Current assets
Trade and other receivables
10
357,125
255,210
Cash and cash equivalents
133,041
394,981
490,166
650,191
Current liabilities
11
(373,686)
(690,442)
Net current assets/(liabilities)
116,480
(40,251)
Net assets/(liabilities)
128,635
(15,877)
Equity
Called up share capital
12
1
1
Retained earnings
128,634
(15,878)
Total equity
128,635
(15,877)

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 4 April 2024 and are signed on its behalf by:
S Jenkins
Director
Company registration number 12274644 (England and Wales)
L10N Media (UK) Limited
Statement of Changes in Equity
For the year ended 31 December 2023
- 8 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2022
1
32,043
32,044
Year ended 31 December 2022:
Loss and total comprehensive income
-
(47,921)
(47,921)
Balance at 31 December 2022
1
(15,878)
(15,877)
Year ended 31 December 2023:
Profit and total comprehensive income
-
144,512
144,512
Balance at 31 December 2023
1
128,634
128,635
L10N Media (UK) Limited
Statement of Cash Flows
For the year ended 31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
17
(213,169)
79,737
Interest paid
(48,722)
(36,771)
Income taxes paid
-
0
(2,132)
Net cash (outflow)/inflow from operating activities
(261,891)
40,834
Investing activities
Purchase of property, plant and equipment
(726)
(15,381)
Net cash used in investing activities
(726)
(15,381)
Net (decrease)/increase in cash and cash equivalents
(262,617)
25,453
Cash and cash equivalents at beginning of year
394,325
368,872
Cash and cash equivalents at end of year
131,708
394,325
Relating to:
Cash at bank and in hand
133,041
394,981
Bank overdrafts included in creditors payable within one year
(1,333)
(656)
L10N Media (UK) Limited
Notes to the Financial Statements
For the year ended 31 December 2023
- 10 -
1
Accounting policies
Company information

L10N Media (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 18 Glasshouse Studios, Fryern Court Road, Burgate, Fordingbridge, Hampshire, SP6 1QX.

1.1
Accounting convention

These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of International Financial Reporting Standards for SMEs have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The going concern status of the company is contingent on the continuation of key contracts. The parent company and ultimate controlling party, L10N Media PTE. Ltd, has agreed to support the company for at least twelve months from the date of approval of the financial statements. The directors are therefore confident that the company will be able to meet its liabilities as they fall due, even if key contracts were to cease. true

 

Based on the above the directors have satisfied themselves that it is appropriate for the going concern basis to be used when preparing the financial statements.

1.3
Revenue

Contracts are typically for services, performing agreed-upon tasks for a customer and can be fixed price contracts, time-and-materials or milestone based. Most contracts are short term in duration (generally less than one month), however milestone-based contracts can be longer term and extend to several months (or in some cases over a year). Where there are multiple performance obligations outlined in a contract, each performance obligation is separately assessed, the transaction price is allocated to each obligation, and related revenues are recognised as services or assets are transferred to the customer. Performance obligations are typically satisfied over time.

 

Due to the nature of the services provided and the competitive nature of the market, contracts generally allocate specific transaction prices to separate performance obligations. Individual services or individual milestones generally involve extensive commercial negotiation to arrive at the specific agreed-upon tasks, and the related pricing outlined in the contract. Such negotiations extend further for milestone-based contracts to also include the criteria involved in the periodic and regular process of milestone acceptance by the customer. Such criteria may involve qualitative, as well as quantitative measures and judgements.

L10N Media (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 11 -

In measuring progress towards complete satisfaction of performance obligations, the input method is considered to be the most appropriate method to depict the underlying nature of the contracts with customers, the interactive way the service is delivered and projects are managed with the customer. For time-and-materials contracts, other than tracking and valuing time expended, significant judgement is not normally involved. For milestone based contracts, progress is generally measured based on the proportion of contract costs incurred at the balance sheet date, (e.g. worked hours) relative to the total estimated costs of the contract, involving estimates of the cost to completion etc.  Added to this significant judgement can be involved in measuring progress towards customer acceptance of the milestone. Significant judgement may also be involved where circumstances arise that may change the original estimates of revenues, costs or extent of progress towards complete satisfaction of the performance obligations. In such circumstances estimates are revised. These revisions may result in increases or decreases in revenue or costs and are reflected in income in the period in which the circumstances that give rise to the revision became known. This method has been agreed by management as the best estimate of the stage of completion of service contracts.

 

When the outcome of a contract cannot be measured reliably, contract revenue is recognised only to the extent that milestones have been accepted by the customer. Contract costs are recognised as incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised immediately.

 

Revenue recognised represents the consideration received or receivable, net of sales taxes, rebates discounts and after eliminating intercompany sales. Revenue is recognised only where it is probable that consideration will be received. Where consideration is received and the related revenue has not been recognised, the consideration received is recognised as a contract liability (Deferred Revenue), until either revenue is recognised or the consideration is refunded.

1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
20% reducing balance
Computers
33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of non-current assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

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 is estimated to be less than its carrying amount, the carrying amount of the asset 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.

L10N Media (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 12 -

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

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 and Section 12 of IFRS for SMEs to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price 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 fair value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

 

Basic financial liabilities

Basic financial liabilities, which include trade and other payables and bank loans, are initially measured at transaction price and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present fair value of the future receipts discounted at a market rate of interest.

1.8
Equity instruments

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

1.9
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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

L10N Media (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 13 -
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.

 

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 income statement. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
Retirement benefits

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

1.11
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 company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

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

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.

Accrued Income

Accrued income is an estimate of the value of work performed not yet invoiced. This is estimated as the sales to be invoiced on the first day of the following year, for work completed in the final month of the financial year. Management are satisfied all accrued income will be received.

3
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging:
£
£
Exchange losses
10,196
60,842
Depreciation of owned property, plant and equipment
12,945
12,420
L10N Media (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
- 14 -
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
15,750
13,000
5
Employees

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

2023
2022
Number
Number
Total
13
16
6
Directors' remuneration
2023
2022
£
£
Remuneration paid to directors
177,690
25,000

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 0).

7
Finance costs
2023
2022
£
£
Finance costs includes the following:
Interest payable to group undertakings
48,722
36,771
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
34,309
(2,132)
L10N Media (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
8
Taxation
(Continued)
- 15 -

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

2023
2022
£
£
Profit/(loss) before taxation
178,821
(50,053)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
42,059
(9,510)
Tax effect of expenses that are not deductible in determining taxable profit
732
9,401
Tax effect of utilisation of tax losses not previously recognised
(11,355)
-
0
Unutilised tax losses carried forward
-
0
1,778
Permanent capital allowances in excess of depreciation
2,873
(3,801)
Taxation charge/(credit) for the year
34,309
(2,132)
9
Property, plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 January 2023
2,792
46,731
49,523
Additions
205
521
726
At 31 December 2023
2,997
47,252
50,249
Depreciation and impairment
At 1 January 2023
1,208
23,941
25,149
Depreciation charged in the year
527
12,418
12,945
At 31 December 2023
1,735
36,359
38,094
Carrying amount
At 31 December 2023
1,262
10,893
12,155
At 31 December 2022
1,584
22,790
24,374
L10N Media (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
- 16 -
10
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Trade receivables
197,082
105,792
Corporation tax recoverable
-
0
2,132
Other receivables
160,043
147,286
357,125
255,210
11
Current liabilities
2023
2022
£
£
Bank loans and overdrafts
1,333
656
Trade payables
20,870
39,189
Amounts owed to group undertakings
190,327
524,860
Corporation tax
32,177
-
0
Other taxation and social security
87,108
86,824
Other payables
41,871
38,913
373,686
690,442
12
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
1
1
1
1
13
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Name of related party
Nature of relationship
Company A
Fellow subsidiary
Company B
Fellow subsidiary
Company C
Fellow subsidiary
Company D
Fellow subsidiary
Company E
Fellow subsidiary
Company F
Fellow subsidiary
Company G
Fellow subsidiary
Director A
Director
L10N Media (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
13
Related party transactions
(Continued)
- 17 -
Description of
Income
Payments
transaction
2023
2022
2023
2022
£
£
£
£
Company A
Group recharges
5,619
4,896
-
0
-
0
Company B
Group recharges
1,133
1,124
-
0
-
0
Company C
Group recharges
15,134
14,099
-
0
-
0
Company D
Group recharges
-
0
-
0
715,345
853,258
Company E
Group recharges
72,038
9,291
3,621
6,752
Company F
Group recharges
241,771
612,465
79,754
58,473
Company G
Group recharges
-
0
-
0
48,000
1,200
Balances with related parties
Amounts owed by
Amounts owed to
related parties
related parties
2023
2022
2023
2022
£
£
£
£
Company F
-
0
-
0
190,327
524,860
Director A
-
0
-
0
9,979
9,979
14
Parent company

The directors deem the immediate parent and ultimate controlling party to be L10N Media Pte Ltd, a company incorporated in Singapore and registered at 63 Market Street, #09-01 Bank of Singapore Centre, Singapore. The ultimate controlling party prepare consolidated financial statements which are publicly available.

15
Financial risk management objectives and procedures

The Company is exposed to financial risks arising from its operations and the use of financial

instruments. The key financial risks comprise credit,liquidity and foreign currency risk. The

directors review and agree policies and procedures for the management of these risks, although these are not documented in writing. It is, and has been throughout the current and previous financial year, the Company’s policy that no derivatives shall be undertaken. The Company does not apply hedge accounting. The Company does not have significant exposure to interest rate risk and market price risk.

 

The following sections provide details regarding the Company’s exposure to the above-mentioned financial risks and the objectives, policies and processes for the management of these risks.

L10N Media (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
15
Financial risk management objectives and procedures
(Continued)
- 18 -

a) Credit risk

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in a loss to the Company. The Company’s exposure to credit risk arises primarily from trade and other receivables. For other financial assets (including cash), the Company minimises credit risk by dealing exclusively with high credit rating counterparties.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period.

 

The Company has determined the default event on a financial asset to be when internal and/or external information indicates that the financial asset is unlikely to be received or there is significant difficulty of the counterparty. Regardless of the analysis above, a significant increase in credit risk is presumed if a debtor is more than 30 days past due in making contractual payment.

The Company determined that its financial assets are credit-impaired when:

- There is significant financial difficulty of the debtor;

- A breach of contract, such as a default or past due event;

- It is becoming probable that the debtor will enter bankruptcy or other financial reorganisation.

Financial assets are written off when there is evidence indicating that the debtor is in severe

financial difficulty and the debtor has no realistic prospect of recovery.

 

At the financial year end date, the Company’s maximum exposure to credit is represented by its trade and other receivables and cash.

 

b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting financial obligations due to shortage of funds. The Company’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company’s liquidity risk management policy is to maintain sufficient liquid financial assets from its operating activities in order to meet its financial liabilities.

 

c) Foreign currency risk

The Company has transactional currency exposure arising from sales and expenses that are

denominated in currencies other than the functional currency of the Company. The foreign currency in which the amounts are primarily denominated is the JPY(¥). The Company also holds cash denominated in US$ and EUR€ for working capital purposes.

16
Capital management

The primary objective of the Company’s capital management is to safeguard the Company’s ability as a going concern, so that it can continue to provide returns for shareholders by pricing products and services commensurately with the level of risk. The Company sets the amount of capital in proportion to risk. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debts. The Company is not exposed to any externally imposed capital requirements.

L10N Media (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
- 19 -
17
Cash (absorbed by)/generated from operations
2023
2022
£
£
Profit/(loss) for the year after tax
144,512
(47,921)
Adjustments for:
Taxation charged/(credited)
34,309
(2,132)
Finance costs
48,722
36,771
Depreciation and impairment of property, plant and equipment
12,945
12,420
Movements in working capital:
(Increase)/decrease in trade and other receivables
(104,047)
20,077
(Decrease)/increase in trade and other payables
(349,610)
60,522
Cash (absorbed by)/generated from operations
(213,169)
79,737
18
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
394,981
(261,940)
133,041
Bank overdrafts
(656)
(677)
(1,333)
394,325
(262,617)
131,708
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100No description of principal activityS JenkinsF ChelmsfordF ChelmsfordB Clarkfalsefalse122746442023-01-012023-12-3112274644bus:CompanySecretaryDirector12023-01-012023-12-3112274644bus:Director12023-01-012023-12-3112274644bus:Director22023-01-012023-12-3112274644bus:CompanySecretary12023-01-012023-12-3112274644bus:Director32023-01-012023-12-3112274644bus:RegisteredOffice2023-01-012023-12-31122746442023-12-31122746442022-01-012022-12-3112274644core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3112274644core:RetainedEarningsAccumulatedLosses2023-01-012023-12-31122746442022-12-3112274644core:FurnitureFittings2023-12-3112274644core:ComputerEquipment2023-12-3112274644core:FurnitureFittings2022-12-3112274644core:ComputerEquipment2022-12-3112274644core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3112274644core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3112274644core:CurrentFinancialInstruments2023-12-3112274644core:CurrentFinancialInstruments2022-12-3112274644core:ShareCapital2023-12-3112274644core:ShareCapital2022-12-3112274644core:RetainedEarningsAccumulatedLosses2023-12-3112274644core:RetainedEarningsAccumulatedLosses2022-12-3112274644core:ShareCapital2021-12-3112274644core:RetainedEarningsAccumulatedLosses2021-12-31122746442022-12-31122746442021-12-3112274644core:WithinOneYear2023-12-3112274644core:WithinOneYear2022-12-3112274644core:FurnitureFittings2023-01-012023-12-3112274644core:ComputerEquipment2023-01-012023-12-3112274644core:UKTax2023-01-012023-12-3112274644core:UKTax2022-01-012022-12-3112274644core:FurnitureFittings2022-12-3112274644core:ComputerEquipment2022-12-3112274644core:OtherGroupMember42023-01-012023-12-3112274644core:OtherGroupMember52023-01-012023-12-3112274644core:OtherGroupMember22023-01-012023-12-3112274644core:OtherGroupMember12023-01-012023-12-3112274644core:OtherGroupMember32023-01-012023-12-3112274644core:ParentEntities2023-01-012023-12-3112274644core:OtherGroupMember62023-01-012023-12-3112274644core:OtherGroupMember72023-01-012023-12-3112274644core:Subsidiary992023-01-012023-12-3112274644core:OtherGroupMember42022-01-012022-12-3112274644core:OtherGroupMember52022-01-012022-12-3112274644core:OtherGroupMember22022-01-012022-12-3112274644core:OtherGroupMember12022-01-012022-12-3112274644core:OtherGroupMember32022-01-012022-12-3112274644core:ParentEntities2022-01-012022-12-3112274644core:OtherGroupMember62022-01-012022-12-3112274644core:OtherGroupMember22023-12-3112274644core:OtherGroupMember22022-12-3112274644core:Subsidiary992023-12-3112274644core:Subsidiary992022-12-3112274644bus:PrivateLimitedCompanyLtd2023-01-012023-12-3112274644bus:FRS1022023-01-012023-12-3112274644bus:Audited2023-01-012023-12-3112274644bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP