Incorporated Society Of British Advertisers Limited
Annual Report and Financial Statements
For the year ended 31 March 2024
Company Registration No. 00068497 (England and Wales)
Incorporated Society of British Advertisers Limited
Company Information
Directors
Benjamin Scott Rhodes
Dan Brooke
Daniel Elek Rubel
Daniel Robert Howell
David Hills
(Appointed 30/10/2023)
Gary Booker
Jill Dougan
Kerry Cavanaugh
Laetitia Raoust
(Appointed 05/03/2024)
Margaret Jobling
Mark Given
Peter David Markey
Phiilip Raby Smith
Samuel Lee Day
Sarah Barron
(Appointed 07/12/2023)
Sarah Mansfield
Simon Keith Groves
Taide Guajardo Vite
(Appointed 04/01/2024)
Secretary
David Poyser
Company number
00068497
Registered office
12 Henrietta Street
Covent Garden
London
WC2E 8LH
Auditors
Moore Kingston Smith LLP
Charlotte Building
17 Gresse Street
London
W1T 1QL
Incorporated Society of British Advertisers Limited
Incorporated Society Of British Advertisers Limited
Contents
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
Incorporated Society of British Advertisers Limited
Incorporated Society Of British Advertisers Limited
Strategic Report
For the year ended 31 March 2024
Page 1

The directors present the strategic report for the year ended 31 March 2024.

Fair review of the business

ISBA has achieved a surplus before taxation of £216,125 (2023: £748) and a surplus after taxation of £181,719 (2023: deficit of £5,902) resulting in revenue reserves of £718,889 (2023: £537,170). The increase in surplus compared to the prior year reflects a higher margin from trading activity combined with the impact of a release of a dilapidations provision of £181k to reflect the terms of a new lease on ISBA’s Henrietta Street offices from April 2024.

Member subscription income at £3,557k was £163k higher than the prior year’s figure of £3,394k. Against a difficult economic backdrop, fifteen new members were recruited with the loss of twelve members. The directors are pleased with this outcome.

Our events and training programme generated £53k revenue (2023: £30k) with our 101 Knowledge Sessions and Media Foundation Certificate again proving very successful. The Media Foundation Certificate is a CPD accredited learning programme enabling members to increase media and marketing knowledge. We again collaborated with the IPA and the Advertising Association to hold our third joint industry conference, LEAD 2024, in February 2024.

Our strategic partnership programme generated revenue of £146k compared to £162k in the prior year.

Turnover in excess of £18m has been disclosed in relation to funding raised from stakeholders of Origin, the programme led by ISBA on behalf of brand owners to create a platform that accountably measures cross-media reach and frequency. During 2024/25, funding in excess of £21m will allow the programme to enter its beta trial and pilot phases followed by the launch of a Minimum Viable Product across linear TV, digital video and digital display. Following this launch, ISBA will no longer directly fund Origin which will be run as a separate legal entity with media owners, agencies and advertisers as stakeholder members. It is expected that there will be a significant reduction in income following the transfer to the separate entity.

The Council considers this year’s result to be in line with current expectations and will continue to ensure good financial management and proper controls remain in place.

Risk management

Senior management are aware of their responsibility for managing risks within the business and set appropriate policies to mitigate these risks. Insurance policies are regularly reviewed to ensure they are adequate to cover all business activities.

The Council regularly reviews business strategy with formal priorities set each year which are monitored on a monthly basis.

Other associations

ISBA paid £263,570 (2023: £255,260) to the Advertising Association and £44,021 (2023: £42,689) to the World Federation of Advertisers based in Brussels during the year. The Council considers that this is a cost effective means for ensuring that members' interests are fully represented in the United Kingdom and internationally.

On behalf of the board

Margaret Jobling
President
19 July 2024
Incorporated Society of British Advertisers Limited
Directors' Report
For the year ended 31 March 2024
Page 2
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities

The principal activities of ISBA are to champion advertising and promote the freedom of commercial speech; to represent the views of its members on advertising and communication matters to parties including the Government, industry regulators, media owners, agencies and the public; to represent members on any committees or working groups which may affect their interests; to support responsible self-regulation of the advertising industry and facilitate best practice within the industry through education, training, publications and networking; to help its members to advertise as effectively, efficiently and economically as possible; to provide a forum for debate amongst members to establish consensus opinions, goals and objectives and pursue on their behalf.

Annual General Meeting
At the Annual General Meeting on 5 July 2022, Margaret Jobling, NatWest Group, was elected President. Peter Markey, Boots, and Sarah Mansfield, Unilever, were re-elected as Vice-Presidents.
Directors
The members of Council, who are also directors of ISBA, during the year were:
Andrew Tomkins (Resigned 01/07/2023)
Margaret Jobling
Benjamin Rhodes
Mark Given
Dan Brooke
Nicholas Robinson (Resigned 01/04/2023)
Daniel Rubel
Peter Markey
Daniel Howell
Philip Smith
David Hills (Appointed 30/10/2023)
Samuel Day
Dominic Grounsell (Resigned 21/03/2024)
Sarah Barron (Appointed 07/12/2023)
Gary Booker
Sarah Mansfield
Jill Dougan
Simeon Bird (Resigned 01/08/2023)
Katherine Newby Grant (Resigned 01/08/2024)
Simon Groves
Keith Moor (Resigned 23/08/2023)
Simon Michaelides (Resigned 01/04/2023)
Kerry Cavanaugh
Stephen Vowles  (Resigned 08/11/2023)
Laetitia Raoust (Appointed 15/03/2024)
Taide Vite (Appointed 04/01/2024)
Lucien Bradshaw Zanger (Resigned 21/04/2023)
Auditors
The auditors, Moore Kingston Smith LLP, are deemed to be reappointed under section 487 (2) of the Companies Act 2006.
Results

The results for the year are set out on page 8.

Incorporated Society of British Advertisers Limited
Directors' Report (Continued)
For the year ended 31 March 2024
Page 3
Statement of directors' responsibilities

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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

Statement of disclosure to auditor

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

On behalf of the board
Margaret Jobling
President
19 July 2024
Date
Incorporated Society Of British Advertisers Limited
Independent Auditor's Report
To the Members of Incorporated Society Of British Advertisers Limited
Page 4
Opinion

We have audited the financial statements of Incorporated Society of British Advertisers Limited (the 'company') for the year ended 31 March 2024 which comprise the Statement of income and retained earnings, the Balance sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the 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.

Incorporated Society Of British Advertisers Limited
Independent Auditor's Report (Continued)
To the Members of Incorporated Society Of British Advertisers Limited
Page 5

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

 

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.

 

 

 

 

 

 

Incorporated Society Of British Advertisers Limited
Independent Auditor's Report (Continued)
To the Members of Incorporated Society Of British Advertisers Limited
Page 6

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

 

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

 

Our approach was as follows:

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

Incorporated Society Of British Advertisers Limited
Independent Auditor's Report (Continued)
To the Members of Incorporated Society Of British Advertisers Limited
Page 7

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.

Francesca Robe
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
9 August 2024
Chartered Accountants
Statutory Auditor
Charlotte Building
17 Gresse Street
London
W1T 1QL
Incorporated Society Of British Advertisers Limited
Statement of Income and Retained Earnings
For the year ended 31 March 2024
Page 8
2024
2023
as restated
Notes
£
£
Turnover
3
22,064,293
14,805,012
Cost of sales
(18,565,569)
(11,557,630)
Gross surplus
3,498,724
3,247,382
Administrative expenses
(3,309,025)
(3,230,471)
Operating surplus
4
189,699
16,911
Interest receivable and similar income
7
21,613
10,723
Fair value gains and losses
8
4,813
(26,886)
Surplus before taxation
216,125
748
Tax on surplus
9
(34,406)
(6,650)
Surplus/(deficit) for the financial year
181,719
(5,902)
Retained earnings brought forward
537,170
543,072
Retained earnings carried forward
718,889
537,170

The income and expenditure account has been prepared on the basis that all operations are continuing operations.

Incorporated Society Of British Advertisers Limited
Balance Sheet
As at 31 March 2024
Page 9
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
10
5,100
15,115
Tangible assets
11
22,106
96,007
Investments
12
748,671
743,858
775,877
854,980
Current assets
Debtors
13
3,323,746
4,025,720
Cash at bank and in hand
6,568,853
2,982,179
9,892,599
7,007,899
Creditors: amounts falling due within one year
14
(9,946,376)
(7,132,235)
Net current liabilities
(53,777)
(124,336)
Total assets less current liabilities
722,100
730,644
Provisions for liabilities
Provisions
15
-
0
(181,000)
Deferred tax liability
16
(3,211)
(12,474)
(3,211)
(193,474)
Net assets
718,889
537,170
Reserves
Income and expenditure account
718,889
537,170
Members' funds
718,889
537,170
The financial statements were approved by the board of directors and authorised for issue on 19 July 2024 and are signed on its behalf by:
Ms S  Mansfield
Director
Company Registration No. 00068497
Incorporated Society Of British Advertisers Limited
Statement of Cash Flows
For the year ended 31 March 2024
Page 10
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
3,587,216
546,558
Income taxes paid
(8,663)
(4,286)
Net cash inflow from operating activities
3,578,553
542,272
Investing activities
Purchase of intangible assets
(6,800)
-
0
Purchase of tangible fixed assets
(8,443)
(54,838)
Proceeds from disposal of tangible fixed assets
1,751
-
0
Interest received
21,613
10,723
Net cash generated from/(used in) investing activities
8,121
(44,115)
Net increase in cash and cash equivalents
3,586,674
498,157
Cash and cash equivalents at beginning of year
2,982,179
2,484,022
Cash and cash equivalents at end of year
6,568,853
2,982,179
Incorporated Society of British Advertisers Limited
Notes to the Financial Statements
For the year ended 31 March 2024
Page 11
1
Accounting policies
Company information
Incorporated Society of British Advertisers is a private company limited by guarantee incorporated in England and Wales. The registered office is 12 Henrietta Street, Covent Garden, London, WC2E 8LH.
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
Going concern

The company generates stable cash inflows from subscriptions. In addition the company has strong cash balances and readily realisable fixed asset investments such that it would be able to meet its non-discretionary expenditure even in the event of a significant reduction in income for a period of at least 12 months from the date of signing the financial statements. On this basis the directors consider it appropriate to prepare the financial statements on a going concern basis.true

1.3
Income
Income is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, membership and professional services and is shown net of VAT and other sales related taxes.
Revenue from subscriptions is recognised across the period to which it relates.
Revenue from contracts for the provision of professional services, including conferences and training workshops, is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
Where revenue represents the reimbursement of costs incurred on a project, both the revenue and the related costs are recognised at the point the underlying cost is incurred.  Payments on account received in advance of costs being incurred are recognised as deferred income.
1.4
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.

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 (CRM & Website)
over 4 years
Incorporated Society of British Advertisers Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 12
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

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

Leasehold improvements
over 10 years
Plant and equipment
over 4-10 years

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

1.6
Impairment of fixed assets

At each reporting period end date, the company 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.

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 surplus or deficit, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.7
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.

1.8
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

Incorporated Society of British Advertisers Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 13
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 surplus or deficit, 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 surplus and deficit, 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 surplus or deficit.

 

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 surplus or deficit.

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 company 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 company after deducting all of its liabilities.

Incorporated Society of British Advertisers Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 14

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Taxation
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 company’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 when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Incorporated Society of British Advertisers Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 15
1.10
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in surplus or deficit in the period in which it arises.

1.11
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.

1.12
Leases

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 leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

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

 

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

Incorporated Society of British Advertisers Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 16
3
Turnover

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Origin project
18,257,978
11,169,681
Subscriptions from members
3,557,243
3,393,947
Amounts received from conferences and training workshops
53,200
29,975
Other Income
195,872
211,409
22,064,293
14,805,012
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
11,748,993
9,428,250
Europe
109,520
113,449
USA
10,020,094
5,143,750
Rest of the world
185,686
119,563
22,064,293
14,805,012
4
Operating surplus
2024
2023
Operating surplus for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditors for the audit of the company's financial statements
22,500
16,400
Depreciation of owned tangible fixed assets
81,142
83,858
Operating lease charges
343,250
303,644
Amortisation of owned intangible fixed assets
16,815
15,115
Staff costs
2,289,419
2,091,164
Expenses related to conferences and training workshops
29,012
27,050
Other accommodation costs
98,696
207,928
Representation and promotion
194,690
196,322
General administration
303,165
273,323
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was 22 (2023: 20)

Incorporated Society of British Advertisers Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
5
Employees
(Continued)
Page 17

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,916,956
1,745,984
Social security costs
227,400
211,771
Pension costs
145,063
133,409
2,289,419
2,091,164
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
245,269
245,712
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
245,269
245,712
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
21,613
10,723

Investment income includes the following:

Interest on financial assets not measured at fair value through surplus or deficit
21,613
10,723
8
Fair value gains and losses
2024
2023
£
£
Gain/(loss) on disposal of financial assets held at fair value through profit or loss
4,813
(26,886)
Incorporated Society of British Advertisers Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 18
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
43,669
8,663
Deferred tax
Origination and reversal of timing differences
(9,263)
(2,013)
Total tax charge
34,406
6,650

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:

2024
2023
£
£
Profit before taxation
216,125
748
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
54,031
142
Tax effect of expenses that are not deductible in determining taxable profit
(21,523)
6,508
Tax at marginal rate
(1,066)
-
0
Deferred tax calculated at 19%
2,964
-
0
Taxation charge for the year
34,406
6,650
Incorporated Society of British Advertisers Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 19
10
Intangible fixed assets
Software (CRM & Website)
£
Cost
At 1 April 2023
60,460
Additions
6,800
At 31 March 2024
67,260
Amortisation and impairment
At 1 April 2023
45,345
Amortisation charged for the year
16,815
At 31 March 2024
62,160
Carrying amount
At 31 March 2024
5,100
At 31 March 2023
15,115
11
Tangible fixed assets
Leasehold improvements
Plant and equipment
Total
£
£
£
Cost
At 1 April 2023
478,861
215,517
694,378
Additions
-
0
8,443
8,443
Disposals
(88,625)
(1,803)
(90,428)
At 31 March 2024
390,236
222,157
612,393
Depreciation and impairment
At 1 April 2023
418,631
179,740
598,371
Depreciation charged in the year
60,230
20,912
81,142
Eliminated in respect of disposals
(88,625)
(601)
(89,226)
At 31 March 2024
390,236
200,051
590,287
Carrying amount
At 31 March 2024
-
0
22,106
22,106
At 31 March 2023
60,230
35,777
96,007
Incorporated Society of British Advertisers Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 20
12
Fixed asset investments
2024
2023
£
£
Listed investments
748,671
743,858

Investments are held at market value.

Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 April 2023
743,858
Valuation changes
4,813
At 31 March 2024
748,671
Carrying amount
At 31 March 2024
748,671
At 31 March 2023
743,858
13
Debtors
2024
2023
as restated
Amounts falling due within one year:
£
£
Trade debtors
1,741,275
2,507,421
Other debtors
198,858
205,530
Prepayments and accrued income
1,383,613
1,221,080
3,323,746
3,934,031
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
-
0
91,689
Total debtors
3,323,746
4,025,720
Incorporated Society of British Advertisers Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 21
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,911,018
1,690,078
Corporation tax
43,656
8,650
Other taxation and social security
82,994
89,008
Other creditors
20,916
7,837
Accruals and deferred income
7,887,792
5,336,662
9,946,376
7,132,235
15
Provisions for liabilities
2024
2023
£
£
Dilapidations provision
-
181,000
16
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
3,211
12,474
2024
Movements in the year:
£
Liability at 1 April 2023
12,474
Credit to profit or loss
(9,263)
Liability at 31 March 2024
3,211

 

Incorporated Society of British Advertisers Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 22
17
Retirement Benefit Schemes

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

The charge to income and expenditure in respect of defined contribution schemes was £145,063 (2023 - £133,409 ).

 

There were no contributions outstanding at 31 March 2024 (2023 - £nil).

18
Members' liability

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.

19
Operating lease commitments
Lessee

 

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
22,294
346,058
Between two and five years
-
0
22,294
20
Capital commitments

As at the year-end, there was a commitment to transfer the operations of Origin to a separate legal entity, Origin Media Measurement Limited. The company was incorporated on 8 November 2023 and it is expected that operations will be transferred during 2024, initially with ISBA as the sole member. It is expected that other Origin stakeholders will become members of the company in the financial year 2025. As the Origin project is run at zero profit there will be no impact on the company’s profit or net assets, although both revenue and costs will be reduced.

21
Events after the reporting date

The company entered into a new lease after the year end date to remain in their current property until 2027.

22
Control

There is no ultimate controlling party.

Incorporated Society of British Advertisers Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 23
23
Prior period adjustment

During the year it was identified that an adjustment to Origin revenue has been deducted from costs rather than being recognised as revenue. Furthermore, the adjustment for this revenue had been included within deferred income rather than accrued income. To correct this, accrued income, deferred income, sales and cost of sales have been increased by £814,513. There is no impact on net assets or net profit.

24
Cash generated from operations
2024
2023
£
£
Surplus/(deficit) for the year after tax
181,719
(5,902)
Adjustments for:
Taxation charged
34,406
6,650
Investment income
(21,613)
(10,723)
Gain on disposal of tangible fixed assets
(549)
-
Amortisation and impairment of intangible assets
16,815
15,115
Depreciation and impairment of tangible fixed assets
81,142
83,858
Other gains and losses
(4,813)
26,886
(Decrease)/increase in provisions
(181,000)
11,000
Movements in working capital:
Decrease/(increase) in debtors
701,974
(1,703,698)
Increase in creditors
2,779,135
2,123,372
Cash generated from operations
3,587,216
546,558
25
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
2,982,179
3,586,674
6,568,853
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