Company registration number 05822990 (England and Wales)
KELSEY MEDIA LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
KELSEY MEDIA LIMITED
COMPANY INFORMATION
Directors
Kevin McCormick
Philip Weeden
Stephen Wright
Company number
05822990
Registered office
The Granary
Yalding Hill
Maidstone
ME18 6AL
Auditor
Bright Grahame Murray
Emperor's Gate
114a Cromwell Road
Kensington
London
UK
SW7 4AG
KELSEY MEDIA LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 33
KELSEY MEDIA LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -

The directors present the strategic report for the year ended 31 October 2023.

Fair review of the business

Kelsey Media Limited is the parent company of a media group, providing content and entertainment to audiences throughout print, online, video and live events.

 

Business review

 

 

2023

 

2022

 

Change

 

 

 

 

 

 

 

 

Turnover

 

 

£28.2m

 

£28.3m

 

0%

EBITDA

 

 

£2.7m

 

£2.2m

 

27%

EBITDA Margin

 

 

9.69%

 

7.61%

 

27%

EBITDAR*

 

 

£2.7m

 

£2.2m

 

24%

EBITDAR Margin

 

 

9.65%

 

7.90%

 

2%

Debt finance to EBITDAR

 

 

0.58x

 

0.88x

 

-34%

 

 

* Earnings before Interest, Tax, Depreciation, Amortisation and Redundancy costs.

 

 

Non financial KPIs

 

The business continues to invest in future capabilities and using data to gain greater insight to improve operational efficiency and customer experience. The group makes a conscious effort to develop and grow effective, diverse teams to foster innovation and maintain sustainable growth. The business develops a collaborative culture and invests in talented employees, so they continue to thrive in the face of a changing business environment.

Principal risks and uncertainties

Debtor risk

The group’s main debtor is its magazine distributor, and this is considered low risk due to its financial strength. Debt risk with advertisers is spread widely, with the ten largest debtors representing less than 15% of total advertiser debt.

 

Cash Flow and Borrowings
End year cash totalled £1.6m and borrowings totalled £1.6m. During the year the business secured additional funding from its lender, Lloyds Bank, to assist with the financing of acquisitions and to purchase the business park where its office is located.

 

COVID19

During the year the business experienced a continued recovery from the impacts COVID19 had on live action events, advertising and retail revenues.

On behalf of the board

Stephen Wright
Director
6 July 2024
KELSEY MEDIA LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -

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

Principal activities

The principal activity of the group throughout the year under review was that of magazine publishing. The future developments of the group are discussed in the Strategic Report.

Results and dividends

The results for the year are set out on page 7.

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

Directors

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

Kevin McCormick
Philip Weeden
Stephen Wright
Financial risk management policies
Liquidity risk

The group manages financial risk by ensuring sufficient working capital is available to meet its foreseeable needs.

The group policy during the year was unchanged to hold cash balances in readily accessible treasury deposits.

Interest rate risk

The group has borrowings and is therefore susceptible to interest rate fluctuations. Borrowing costs have been increasing. However, aside from the property loan, the business mitigates interest rate risks by funding 50% of any acquisition from internal reserves, by repaying acquisition loans over three years, and, by targeting a high cash return on investment with its acquisitions.

Foreign currency risk

The company does not hedge its foreign currency business as the risk is relatively small.

Post reporting date events

After its year-end, the business sold Pilot Magazine to Key Publishing, purchased two events from Bauer Consumer Media which fit well with existing Kelsey brands, and purchased 220 Triathlon Magazine from Our Media.

Auditor

Bright Grahame Murray were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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
Stephen Wright
Director
6 July 2024
KELSEY MEDIA LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -

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.

The directors are responsible for the maintenance and integrity of the corporate and financial information on the company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

 

KELSEY MEDIA LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KELSEY MEDIA LIMITED
- 4 -
Opinion

We have audited the financial statements of Kelsey Media Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 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, the company 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.

Opinions on other matters prescribed by the Companies Act 2006

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

KELSEY MEDIA LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KELSEY MEDIA LIMITED
- 5 -
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 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 parent 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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.

KELSEY MEDIA LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KELSEY MEDIA LIMITED
- 6 -

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

Use of our report

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

Brian Clifford (Senior Statutory Auditor)
For and on behalf of Bright Grahame Murray
Chartered Accountants
Statutory Auditor
Emperor's Gate
114a Cromwell Road
Kensington
London
SW7 4AG
UK
30 July 2024
KELSEY MEDIA LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
28,201,456
28,248,931
Cost of sales
(21,513,324)
(21,799,483)
Gross profit
6,688,132
6,449,448
Administrative expenses
(5,974,010)
(5,564,407)
Other operating income
34,026
18,161
Exceptional item
4
-
0
(14,626)
Operating profit
5
748,148
888,576
Interest receivable and similar income
7
4,406
-
0
Interest payable and similar expenses
8
(135,159)
(76,034)
Profit before taxation
617,395
812,542
Tax on profit
9
(221,641)
(148,531)
Profit for the financial year
22
395,754
664,011
Profit for the financial year is all attributable to the owners of the parent company.
KELSEY MEDIA LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 8 -
2023
2022
£
£
Profit for the year
395,754
664,011
Other comprehensive income
-
-
Total comprehensive income for the year
395,754
664,011
Total comprehensive income for the year is all attributable to the owners of the parent company.
KELSEY MEDIA LIMITED
GROUP BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
352,135
362,649
Other intangible assets
10
7,768,054
7,203,246
Total intangible assets
8,120,189
7,565,895
Tangible assets
11
1,770,951
1,724,041
Investments
12
41,315
-
0
9,932,455
9,289,936
Current assets
Stocks
14
185,337
243,294
Debtors
15
2,938,729
3,521,148
Cash at bank and in hand
1,600,655
889,762
4,724,721
4,654,204
Creditors: amounts falling due within one year
16
(10,474,648)
(9,800,573)
Net current liabilities
(5,749,927)
(5,146,369)
Total assets less current liabilities
4,182,528
4,143,567
Creditors: amounts falling due after more than one year
17
(1,251,159)
(1,583,314)
Provisions for liabilities
Deferred tax liability
19
168,275
192,913
(168,275)
(192,913)
Net assets
2,763,094
2,367,340
Capital and reserves
Called up share capital
21
74,737
74,737
Share premium account
22
93,038
93,038
Capital redemption reserve
22
47,934
47,934
Other reserves
22
5,818
5,818
Profit and loss reserves
22
2,541,567
2,145,813
Total equity
2,763,094
2,367,340
The financial statements were approved by the board of directors and authorised for issue on 6 July 2024 and are signed on its behalf by:
06 July 2024
Stephen Wright
Director
KELSEY MEDIA LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
12
1,231,483
1,231,483
Current assets
Debtors
15
-
0
245,881
Creditors: amounts falling due within one year
16
(819,415)
(1,234,415)
Net current liabilities
(819,415)
(988,534)
Net assets
412,068
242,949
Capital and reserves
Called up share capital
21
74,737
74,737
Share premium account
22
93,038
93,038
Capital redemption reserve
22
47,934
47,934
Other reserves
22
5,818
5,818
Profit and loss reserves
22
190,541
21,422
Total equity
412,068
242,949

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 £169,119 (2022 - £2,499,972 profit).

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

The financial statements were approved by the board of directors and authorised for issue on 6 July 2024 and are signed on its behalf by:
06 July 2024
Stephen Wright
Director
Company registration number 05822990 (England and Wales)
KELSEY MEDIA LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
Share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 November 2021
122,671
93,038
-
0
5,818
3,962,741
4,184,268
Year ended 31 October 2022:
Profit and total comprehensive income
-
-
-
-
664,011
664,011
Own shares acquired
-
-
-
-
(2,480,939)
(2,480,939)
Redemption of shares
21
(47,934)
-
-
-
-
(47,934)
Other movements
-
-
47,934
-
-
47,934
Balance at 31 October 2022
74,737
93,038
47,934
5,818
2,145,813
2,367,340
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
-
-
395,754
395,754
Balance at 31 October 2023
74,737
93,038
47,934
5,818
2,541,567
2,763,094
KELSEY MEDIA LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 12 -
Share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 November 2021
122,671
93,038
-
0
5,818
2,389
223,916
Year ended 31 October 2022:
Profit and total comprehensive income for the year
-
-
-
-
2,499,972
2,499,972
Own shares acquired
-
-
-
-
(2,480,939)
(2,480,939)
Redemption of shares
21
(47,934)
-
-
-
-
(47,934)
Other movements
-
-
47,934
-
-
47,934
Balance at 31 October 2022
74,737
93,038
47,934
5,818
21,422
242,949
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
-
-
169,119
169,119
Balance at 31 October 2023
74,737
93,038
47,934
5,818
190,541
412,068
KELSEY MEDIA LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
3,501,520
2,242,246
Interest paid
(135,159)
(76,034)
Income taxes paid
(509,700)
(169,900)
Net cash inflow from operating activities
2,856,661
1,996,312
Investing activities
Purchase of intangible assets
(2,245,119)
(2,703,456)
Purchase of tangible fixed assets
(344,420)
(1,590,339)
Proceeds on disposal of tangible fixed assets
62,800
33,962
Proceeds on disposal of intangible fixed assets
600,000
-
Proceeds on purchase of investments
(41,315)
-
Dividends received
4,406
-
0
Net cash used in investing activities
(1,963,648)
(4,259,833)
Financing activities
Purchase of treasury shares
-
0
(2,480,939)
Payment / (Repayment) of bank loans
(304,858)
1,208,196
Payment of finance leases obligations
122,738
34,133
Net cash used in financing activities
(182,120)
(1,238,610)
Net increase/(decrease) in cash and cash equivalents
710,893
(3,502,131)
Cash and cash equivalents at beginning of year
889,762
4,391,893
Cash and cash equivalents at end of year
1,600,655
889,762
KELSEY MEDIA LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
KELSEY MEDIA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 15 -
1
Accounting policies
Company information

Kelsey Media Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is The Granary, Yalding Hill, Maidstone, ME18 6AL.

 

The group consists of Kelsey Media 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
Business combinations

In the parent company financial statements, 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. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Kelsey Media Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 October 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

KELSEY MEDIA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 16 -

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Although the group has a net liability position at the balance sheet date, a significant proportion of this arises from the existence of deferred subscription revenue which will be taken to income when earned, over the coming 12 month period.

 

Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover from the sale of goods and services is recognised when the significant risks and rewards of ownership of the goods supplied has passed to the customer and on delivery of services.

 

Turnover is recognised when the company has no further control of the goods; the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the company and all costs incurred in respect of the revenue can be measured reliably.

 

Turnover represents amounts invoiced to or receivable from customers for newsstand sales; event and tour revenue; advertising services, magazine subscriptions and back issues in both print and digital format; book and bookazine sales; merchandise related to events and publishing titles and licensing and royalty income.

 

Newsstand, advertising and subscription revenue is included in the Statement of comprehensive income on the date the magazine goes on-sale (the publication date). Subscription income received is divided equally between the number of issues the customer has paid for and included in turnover after making, once the publication date has been reached. The subscription income received for unpublished issues is included in accruals and deferred income.

 

Turnover from events is included in the Statement of comprehensive income once an event has taken place. Advance cash receipts for events that have not occurred at the period end are included in accruals and deferred income.

KELSEY MEDIA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 17 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 five to ten years depending on the title.

 

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.

1.7
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.

Publishing titles

 

Publishing titles included in intangible assets comprise the historic cost of publishing rights for magazines acquired.

 

Website development costs and software

 

When the company's websites are expected to generate future revenues in excess of the costs of developing those websites and all other capitalisation criteria are met, expenditure on the functionality of the website is capitalised and treated as an intangible fixed asset. Expenditure incurred on maintaining websites and expenditure incurred on developing websites used only for advertising and promotional purposes are written off as incurred. Development costs that are capitalised in accordance with the requirements of FRS 102 are not treated, for dividend purposes, as a realised loss.

 

Intangible software costs represent historical cost less accumulated depreciation and any accumulated impairment losses of operating systems continuously used within the business. Costs include right of use licences, installation and the configuration necessary for the systems to be capable of operating in the manner intended by management.

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 and website costs
33% straight line
Publication titles
10% to 20% straight line dependent on title
1.8
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.

KELSEY MEDIA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 18 -

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:

Leasehold land and buildings
Land is not depreciated. Buildings are depreciated over their useful economic life.
Plant and equipment
15% p.a. on a straight line basis
Fixtures and fittings
15% p.a. on a straight line basis
Computers
33% p.a. on a straight line basis
Motor vehicles
25% p.a. on a straight line basis
Other fixed assets
range 15% to 20% p.a. on a straight line basis

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.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

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.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

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.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

KELSEY MEDIA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 19 -
1.10
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.

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

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis, from work undertaken on un-published magazines and books and for events that have not occurred at the reporting date. The carrying amount of stock sold and work in progress attributable is recognised as an expense in the period in which the related revenue is recognised. Work in progress and finished goods include labour and attributable overheads.

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

1.12
Cash and cash equivalents

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

1.13
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.

KELSEY MEDIA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 20 -
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

KELSEY MEDIA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 21 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
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.

1.15
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.

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.

KELSEY MEDIA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 22 -
1.16
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.

1.17
Retirement benefits

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

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

The group has sub-let space in buildings in occupation under an operating lease. The sub-leases are treated as an operating lease. Their annual rentals are credited to the Statement of Comprehensive Income on a straight-line basis over the term of the lease. Incentive payments to new tenants to occupy the sub-let space are treated as a reduction in revenue and initially recorded as prepayments. The payments are charged to profit or loss over the term of the lease.

1.19
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.

1.20

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which has accrued at the Balance Sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Balance Sheet date.

KELSEY MEDIA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 23 -
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.

 

In preparing these financial statements, the directors have made the following judgements :

 

 

 

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.

Determining the useful economic life of fixed assets

Tangible assets are depreciated over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applies by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation and product life cycles.

Establishing recoverable values of impaired assets

Loans, receivables, tangible and intangible fixed assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable. If an asset's recoverable amount is less than the asset's carrying amount, an impairment loss is recognised. Loans and receivables are evaluated based on collectability. Changes in estimates could impact recoverable values of the assets.

KELSEY MEDIA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 24 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
20,851,743
23,187,409
Europe
4,071,628
1,219,155
Rest of world
3,278,085
3,842,367
28,201,456
28,248,931
2023
2022
£
£
Other revenue
Dividends received
4,406
-

A segmental analysis of turnover by class is not presented, as it would be prejudicial to the interests of the business.

4
Exceptional item
2023
2022
£
£
Expenditure
Restructuring costs
-
14,626

The restructuring costs comprise the costs of an ongoing redundancy programme; to outsource magazine production roles on both existing titles and also on some acquired titles; to move the location of the Events production team closer to the main event locations and to outsource certain of the magazine and events sales functions. The restructuring costs affected the sales, production and management functions. The costs have been charged to operating profit in the statement of comprehensive income.

5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
13,104
-
Fees payable to the group's auditor for the audit of the group's financial statements
24,600
23,000
Depreciation of owned tangible fixed assets
270,808
197,723
Profit on disposal of tangible fixed assets
(48,230)
(23,179)
Amortisation of intangible assets
1,597,075
1,063,756
Profit on disposal of intangible assets
(515,591)
-
Operating lease charges
63,447
80,239
KELSEY MEDIA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 25 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management
18
27
-
-
Sales
38
23
-
-
Administration
24
37
-
-
Production
75
71
-
-
Total
155
158
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
5,874,002
5,695,890
-
0
-
0
Social security costs
553,376
529,818
-
-
Pension costs
371,847
251,034
-
0
-
0
6,799,225
6,476,742
-
0
-
0
7
Interest receivable and similar income
2023
2022
£
£
Income from fixed asset investments
Income from shares in group undertakings
4,406
-
0
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
129,368
72,895
Other finance costs:
Interest on finance leases and hire purchase contracts
5,791
3,139
Total finance costs
135,159
76,034
KELSEY MEDIA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 26 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
246,279
-
0
Deferred tax
Origination and reversal of timing differences
(24,638)
148,531
Total tax charge
221,641
148,531

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:

2023
2022
£
£
Profit before taxation
617,395
812,542
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
154,349
154,383
Tax effect of expenses that are not deductible in determining taxable profit
-
0
1,036
Effect of change in corporation tax rate
84,591
-
Other permanent differences
14,020
2,431
Fixed asset differences
(31,319)
(9,319)
Taxation charge
221,641
148,531
KELSEY MEDIA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 27 -
10
Intangible fixed assets
Group
Events Businesses
Software and website costs
Publication titles
Total
£
£
£
£
Cost
At 1 November 2022
2,467,221
1,602,667
19,602,664
23,672,552
Additions
77,098
71,439
2,119,006
2,267,543
Disposals
-
0
-
0
(150,000)
(150,000)
Other changes
-
0
-
0
(22,424)
(22,424)
At 31 October 2023
2,544,319
1,674,106
21,549,246
25,767,671
Amortisation and impairment
At 1 November 2022
2,104,572
1,189,693
12,812,392
16,106,657
Amortisation charged for the year
87,612
277,062
1,232,401
1,597,075
Disposals
-
0
-
0
(56,250)
(56,250)
At 31 October 2023
2,192,184
1,466,755
13,988,543
17,647,482
Carrying amount
At 31 October 2023
352,135
207,351
7,560,703
8,120,189
At 31 October 2022
362,649
412,974
6,790,272
7,565,895
In the year, the group purchased a number of specialist magazines, accounting entries are summarised below.
2023
£
Total consideration :
Cash paid
1,308,894
Deferred consideration
835,000
Other
123,649
2,267,543
KELSEY MEDIA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 28 -
11
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Other fixed assets
Total
£
£
£
£
£
£
£
Cost
At 1 November 2022
1,113,063
348,326
351,499
951,303
657,937
411,052
3,833,180
Additions
-
0
-
0
48,377
57,396
238,262
385
344,420
Disposals
-
0
-
0
-
0
-
0
(76,379)
-
0
(76,379)
At 31 October 2023
1,113,063
348,326
399,876
1,008,699
819,820
411,437
4,101,221
Depreciation and impairment
At 1 November 2022
-
0
324,957
261,734
900,956
242,907
378,585
2,109,139
Depreciation charged in the year
-
0
8,926
25,935
53,767
169,113
13,067
270,808
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(49,677)
-
0
(49,677)
At 31 October 2023
-
0
333,883
287,669
954,723
362,343
391,652
2,330,270
Carrying amount
At 31 October 2023
1,113,063
14,443
112,207
53,976
457,477
19,785
1,770,951
At 31 October 2022
1,113,063
23,369
89,765
50,347
415,030
32,467
1,724,041
The company had no tangible fixed assets at 31 October 2023 or 31 October 2022.
KELSEY MEDIA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
11
Tangible fixed assets
(Continued)
- 29 -

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
2023
2022
2023
2022
£
£
£
£
Plant and equipment
243,256
70,051
-
0
-
0
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
1,231,483
1,231,483
Unlisted investments
41,315
-
0
-
0
-
0
41,315
-
0
1,231,483
1,231,483
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 November 2022
-
Additions
41,315
At 31 October 2023
41,315
Carrying amount
At 31 October 2023
41,315
At 31 October 2022
-
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2022 and 31 October 2023
1,231,483
Carrying amount
At 31 October 2023
1,231,483
At 31 October 2022
1,231,483
KELSEY MEDIA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 30 -
13
Subsidiaries

 

Details of the company's subsidiaries at 31 October 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Kelsey Publishing Limited
The Granary Yalding Hill, Yalding, Maidstone, ME18 6AL
Ordinary
100.00
-
Raven Publishing Limited
22 Northumberland Road, Ballisbridge, Dublin
Ordinary
100.00
-
-
-
Toffee Publications Limited
The Granary Yalding Hill, Yalding, Maidstone, ME18 6AL
Ordinary
-
100.00

The parent of the indirectly held subsidiaries is Kelsey Publishing Limited.

14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
185,337
243,294
-
0
-
0
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,415,993
2,979,664
-
0
-
0
Amounts owed by group undertakings
-
-
-
245,881
Other debtors
111,543
100,197
-
0
-
0
Prepayments and accrued income
411,193
441,287
-
0
-
0
2,938,729
3,521,148
-
245,881
KELSEY MEDIA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 31 -
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
18
595,772
439,570
-
0
-
0
Obligations under finance leases
150,496
26,663
-
0
-
0
Trade creditors
3,424,660
2,459,381
-
0
-
0
Corporation tax payable
242,057
505,478
-
0
-
0
Other taxation and social security
159,085
189,351
-
-
Other creditors
1,829,516
1,744,014
819,415
1,234,415
Accruals and deferred income
4,073,062
4,436,116
-
0
-
0
10,474,648
9,800,573
819,415
1,234,415
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
991,310
1,452,370
-
0
-
0
Obligations under finance leases
59,849
60,944
-
0
-
0
Other creditors
200,000
70,000
-
0
-
0
1,251,159
1,583,314
-
-
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,587,082
1,891,940
-
0
-
0
Payable within one year
595,772
439,570
-
0
-
0
Payable after one year
991,310
1,452,370
-
0
-
0

The bank loans balances comprise multiple loans, which are secured by floating charge over the assets of the company and those of the group headed by the company's parent company undertaking, Kelsey Media Limited.

 

Repayment dates vary from January 2023 to December 2036 with repayments made via equal monthly payments. The loans accrue interest at a variable rate equivalent to Base Rate plus 3.25%.

 

Arrangement fees are released to the Statement of Comprehensive Income over the life of the loan.

KELSEY MEDIA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 32 -
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
48,984
202,438
Retirement benefit obligations
(9,606)
(9,525)
Short term timing differences
128,897
-
168,275
192,913
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 November 2022
192,913
-
Credit to profit or loss
(24,638)
-
Liability at 31 October 2023
168,275
-
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
371,847
251,034

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.

21
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of 10p each
747,377
747,377
74,737
74,737
KELSEY MEDIA LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 33 -
22
Reserves
Share premium

The share premium account included the premium on issue of equity shares, net of any issue costs.

Other reserves

Other reserves represent the fair value of bonus shares issued.

Capital redemption reserve

The capital redemption reserve contains the nominal value of own shares that have been acquired by the group and cancelled.

Profit and loss reserves

The profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.

23
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
2023
2022
2023
2022
£
£
£
£
Within one year
67,879
65,431
-
-
Between two and five years
4,590
72,469
-
-
72,469
137,900
-
-

The group had lease payments of £87,722 recognised as an expense in the year.

24
Related party transactions

During the prior year the group acquired a property owned by a pension fund of which Mr S Wright is the beneficiary for £1,113,063. At 31 October 2023 the group owed rent of £nil (31 October 2022 - £nil) to the pension fund. The maximum amount owed to the pension fund during the year was £nil (31 October 2022 - £ nil) and £9,717 was paid in rent by Kelsey Publishing Limited during the year (31 October 2022 - £33,336). The rent charged was calculated on an arm’s length basis by an RICS independent qualified valuation expert.

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