EHARMONY UK LIMITED

Company Registration Number:
06700696 (England and Wales)

Unaudited statutory accounts for the year ended 31 December 2023

Period of accounts

Start date: 1 January 2023

End date: 31 December 2023

EHARMONY UK LIMITED

Contents of the Financial Statements

for the Period Ended 31 December 2023

Directors report
Profit and loss
Balance sheet
Additional notes
Balance sheet notes

EHARMONY UK LIMITED

Directors' report period ended 31 December 2023

The directors present their report with the financial statements of the company for the period ended 31 December 2023

Additional information

Going concernThe Company made a loss of £300,939 (2022: profit £733,627) in the year and has net liabilities of£3,289,976 (2022: £2,989,037) The financial statements have been prepared on the going concern basis,which the directors believe to be appropriate for the following reasons. No material uncertainties thatmay cast significant doubt about the ability of the Company to continue as a going concern have beenidentified by the directors. The parent company ParshipMeet Holding GmbH provided a letter of supportthat it will continue to provide financial support until 30 June 2025. We also refer to note 2.3.1 to thefinancial statements.The directors, having assessed the responses of the directors of the company's affiliate ParshipMeetHolding GmbH to their enquiries have no reason to believe that a material uncertainty exists that maycast significant doubt about the ability of eHarmony UK Limited to continue as a going concern. Aftermaking these detailed enquiries, the directors are confident that ParshipMeet Holding GmbH hassufficient resources to enable it to provide financial support.On the basis of their assessment of the company's financial position and the letter of support providedas set out above, the Company's directors have reasonable expectation that the Company will be ableto continue in operational existence for the foreseeable future. Thus, they continue to adopt the goingconcern basis of accounting in preparing the annual financial statements.Directors’ responsibilities statementThe directors are responsible for preparing the Directors’ Report and the financial statements in accordance with applicable United Kingdom 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), including Financial Reporting Standard FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS 102”)’. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.In preparing these financial statements, the directors are required to:-select suitable accounting policies in accordance with the Company’s financial statements, Section 10 of FRS 102 and then apply them consistently;-make judgements and accounting estimates that are reasonable and prudent;-present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;-state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and 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.Under applicable law and regulations, the directors are also responsible for preparing a Directors’ Report that complies with that law and those regulations. The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website.Qualifying third party indemnity provisionsThe Company has granted an indemnity to one or more of its directors against liability in respect of proceedings brought by third parties, subject to the conditions set out in section 234 of the Companies Act 2006. Such qualifying third party indemnity provision remain in force as at the date of approving the Directors’ Report.Subsequent eventsOn 18 March 2024, the Company exercised an additional utilisation request under the loan agreement dated 16 August 2021 between eHarmony UK Limited and ParshipMeet Holding GmbH, increasing the loan amount by £300,000 to £3,525,000.Disclosure of information to auditorsEach of the persons who are directors at the time when this Directors’ Report is approved has confirmed that:-so far as they are each aware, there is no relevant audit information of which the Company's auditors are unaware; and-each director has taken all the steps that he ought to have taken as a director to make himself aware of any relevant audit information and to establish that the Company's auditors are aware of that information.Small companies’ noteIn preparing this report, the directors have taken advantage of the small companies’ exemptions provided by section 415A of the Companies Act 2006.The Company has taken advantage of the small companies’ exemptions provided by sections 414A(2) and 414B of the Companies Act 2006 and has not prepared a Strategic Report.This report was approved by the board and signed on its behalf.



Directors

The directors shown below have held office during the whole of the period from
1 January 2023 to 31 December 2023

Gareth Mandel
Stefan Schulze


The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
18 June 2024

And signed on behalf of the board by:
Name: Stefan Schulze
Status: Director

EHARMONY UK LIMITED

Profit And Loss Account

for the Period Ended 31 December 2023

2023 2022


£

£
Turnover: 8,902,977 9,321,818
Cost of sales: ( 775,853 ) ( 815,405 )
Gross profit(or loss): 8,127,124 8,506,413
Distribution costs: ( 6,659,425 ) ( 5,786,791 )
Administrative expenses: ( 1,675,485 ) ( 1,870,346 )
Other operating income: 10,248 12,041
Operating profit(or loss): (197,538) 861,317
Interest payable and similar charges: ( 103,401 ) ( 127,690 )
Profit(or loss) before tax: (300,939) 733,627
Tax: 0 0
Profit(or loss) for the financial year: (300,939) 733,627

EHARMONY UK LIMITED

Balance sheet

As at 31 December 2023

Notes 2023 2022


£

£
Fixed assets
Tangible assets: 3 4,354 4,803
Total fixed assets: 4,354 4,803
Current assets
Debtors: 4 1,799,083 1,982,225
Cash at bank and in hand: 462,843 362,240
Total current assets: 2,261,926 2,344,465
Creditors: amounts falling due within one year: 5 ( 5,533,256 ) ( 5,307,305 )
Net current assets (liabilities): (3,271,330) (2,962,840)
Total assets less current liabilities: (3,266,976) ( 2,958,037)
Provision for liabilities: ( 23,000 ) ( 31,000 )
Total net assets (liabilities): (3,289,976) (2,989,037)
Capital and reserves
Called up share capital: 1 1
Profit and loss account: (3,289,977 ) (2,989,038 )
Total Shareholders' funds: ( 3,289,976 ) (2,989,037)

The notes form part of these financial statements

EHARMONY UK LIMITED

Balance sheet statements

For the year ending 31 December 2023 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

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

This report was approved by the board of directors on 18 June 2024
and signed on behalf of the board by:

Name: Stefan Schulze
Status: Director

The notes form part of these financial statements

EHARMONY UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

    Turnover policy

    Revenue represents amounts receivable for service net of VAT. The Company derives subscription revenues by providing access to its online relationship services under the eharmony brand, with subscription periods ranging from one to 24 months. Independently of the subscription period length, the subscription product consists of three components: the personality report, the profile review, and the daily usage fee. Subscription revenues are collected primarily from credit cards through the Company's website, either at the beginning of the subscription period or in monthly installments over the course of the subscription period. Deferred revenues represent any amounts received prior to the recognition as revenue, and are recognised over the subscription period.The Company recognises revenues related to subscriptions when (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered to the customer, (iii) the fee is fixed or determinable, and (iv) collectability is reasonably assured. Subscription revenues are recognised in daily increments, net of estimated cancellations and chargebacks, and depending on when services under the three product components are provided. Any discounts are allocated to all three components. Provisions are recorded to account for cancellations and goodwill credits in the subsequent year.

    Tangible fixed assets depreciation policy

    Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.Depreciation is provided on the following basis:-Leasehold land and buildings the lesser of the lease term or the life of the related asset-Computer equipment 33 %The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

    Other accounting policies

    TaxationTax is recognised in the Statement of Comprehensive Income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date in the countries where the Company operates and generates income.Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:-The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;and-Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date.ProvisionsProvisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.When payments are eventually made, they are charged to the provision carried in the Balance Sheet.Employee benefitsThe 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.Retirement benefitsPayments to defined contribution retirement benefit plans are charged as an expense as they fall due.Foreign exchangeTransactions in currencies other than pound 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 are included in the profit or loss for the period.Financial instrumentsFinancial assets and financial liabilities are recognised in the Balance Sheet when the Company becomes a party to the contractual provisions of the instrument.Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the Company will not be able to collect all amounts due.Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank, short-term bank deposits with an original maturity of three months or less and bank overdrafts which are an integral part of the Company's cash management.Financial liabilities and equity instruments issued by the Company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.

EHARMONY UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

  • 2. Employees

    2023 2022
    Average number of employees during the period 7 10

    The Company reorganised its marketing team in March 2023. The annual result includes restructuring expenses amounting to £276k (2022: Nil).

EHARMONY UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

3. Tangible assets

Land & buildings Plant & machinery Fixtures & fittings Office equipment Motor vehicles Total
Cost £ £ £ £ £ £
At 1 January 2023 13,736 49,220 62,956
Additions
Disposals
Revaluations
Transfers
At 31 December 2023 13,736 49,220 62,956
Depreciation
At 1 January 2023 13,736 44,417 58,153
Charge for year 449 449
On disposals
Other adjustments
At 31 December 2023 13,736 44,866 58,602
Net book value
At 31 December 2023 0 4,354 4,354
At 31 December 2022 0 4,803 4,803

EHARMONY UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

4. Debtors

2023 2022
£ £
Trade debtors 851,249 1,257,817
Other debtors 947,834 724,408
Total 1,799,083 1,982,225
Debtors due after more than one year: 22,237

EHARMONY UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

5. Creditors: amounts falling due within one year note

2023 2022
£ £
Trade creditors 26,928 73,169
Taxation and social security 128,304 219,927
Accruals and deferred income 1,335,530 1,456,947
Other creditors 4,042,494 3,557,262
Total 5,533,256 5,307,305