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Registration number: 08705057

Readly UK Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

Pages for Filing with Registrar

 

Readly UK Limited

(Registration number: 08705057)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Current assets

 

Debtors

6

321,185

327,463

Cash at bank and in hand

 

162,630

371,759

 

483,815

699,222

Creditors: Amounts falling due within one year

7

(98,725)

(372,491)

Net assets

 

385,090

326,731

Capital and reserves

 

Called up share capital

100

100

Retained earnings

384,990

326,631

Shareholders' funds

 

385,090

326,731

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the director on 14 June 2024
 

.........................................

R K Begley
Director

 

Readly UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The Company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
1 Chapel Street
Warwick
CV34 4HL
United Kingdom

Principal activity

The principal activity of the Company is that of the provision of local marketing services and customer and ethical support services to a fellow subsidiary, which is a company that specialises in distributing magazines via an international digital subscription service.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The company is dependent on the support of its parent company to continue as a going concern. Confirmation of this support has been provided and the directors consider it appropriate to prepare the accounts on a going concern basis.

 

Readly UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Turnover recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the Company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The Company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the Company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Tax

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

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

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from and to related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 

Readly UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Debtors

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Trade debtors are amounts due from customers for services performed in the ordinary course of the business.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Creditors

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, 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. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Readly UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Share based payments

The Group provides equity-settled share-based payments to certain employees.

Equity-settled arrangements are measured at fair value (excluding the effect on non-market based vesting conditions) at the date of the grant. The fair value is expensed on a straight-line basis over the vesting period. The amount recognised as an expense is adjusted to reflect the actual number of shares or options that will vest.

Where equity settled arrangements are modified, and are of benefit to the employee, the incremental fair value is recognised over the period from the date of modification to date of vesting. Where a modification is not beneficial to the employee there is no change to the charge for the share-based payment. Settlements and cancellations are treated as an acceleration of vesting and the unvested amount is recognised immediately in the income statement.

The Group has no cash-settled arrangements.

3

Significant judgements and estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. In the Director's opinion there are no significant judgements or key sources of estimation uncertainty.

4

Audit report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 14 June 2024 was Hannah Fowlie, who signed for and on behalf of Bourner Bullock.

 

Readly UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

5

Staff numbers

The average number of persons employed by the Company (including the director) during the year, was 14 (2022 - 17).

6

Debtors

2023
£

2022
£

Amounts owed by group undertakings

306,428

304,956

Prepayments

4,772

7,952

Other debtors

9,985

14,555

321,185

327,463

7

Creditors

2023
£

2022
£

Due within one year

Trade creditors

8,376

1,582

Amounts owed to group undertakings

6,849

267,760

Taxation and social security

25,519

39,201

Income tax liability

25,555

17,958

Other creditors

32,426

45,990

98,725

372,491

 

Readly UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

8

Share-based payments

Enterprise Management Incentive Scheme

The Readly Group operates share option schemes for its employees.

The equity-settled share option schemes provide for a grant price equal to the average estimated market price of the Parent Company's shares on the date of grant. The value of the option on the date of the grant is calculated using the Black-Scholes option pricing model.

The share options granted on 15 March 2019 vest over 1 year, and can be exercised between 30 April 2022 and 30 April 2023. Options not exercised will expire.

The share options granted on 18 June 2019 vest over 4 years, and can be exercised between 01 July 2023 and 30 December 2023. Options not exercised will expire.

The share options granted on 9 April 2020 vest over 3 years and 9 months, and can be exercised between 01 July 2023 to 30 December 2023. Options not exercised will expire.

The share options granted on 9 July 2021 vest over 2 years, and can be exercised between 09 July 2024 to 15 December 2024. Options not exercised will expire.

The share options granted on 2 September 2022 vest over 3 years, and can be exercised between 02 September 2025 to 31 December 2025. Options not exercised will expire.
 

9

Dividends

There were no dividends paid or proposed in either the current year or the previous year.

10

Operating leases

The total of future minimum lease payments is as follows:

2023
 £

2022
 £

Not later than one year

3,325

37,905

 

Readly UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

11

Parent and ultimate parent undertaking

The parent of the smallest group in which these financial statements are consolidated is Readly International AB, incorporated in Sweden.

The address of Readly International AB is:
Gjörwellsgatan 30, 112 60, Stockholm, Sweden.