Caseware UK (AP4) 2023.0.135 2023.0.135 2023-09-302023-09-302023-09-30falsefalse2022-10-01To act as a holding company for companies in the UK, Canada, Australia, Hong Kong, Japan and Germany which are internet-based communities specialising in investing information and guidance.33falsefalse 08763737 2022-10-01 2023-09-30 08763737 2021-10-01 2022-09-30 08763737 2023-09-30 08763737 2022-09-30 08763737 2021-10-01 08763737 c:CompanySecretary1 2022-10-01 2023-09-30 08763737 c:Director1 2022-10-01 2023-09-30 08763737 c:Director2 2022-10-01 2023-09-30 08763737 c:Director3 2022-10-01 2023-09-30 08763737 c:Director3 2023-09-30 08763737 c:RegisteredOffice 2022-10-01 2023-09-30 08763737 d:Buildings d:LongLeaseholdAssets 2022-10-01 2023-09-30 08763737 d:OfficeEquipment 2022-10-01 2023-09-30 08763737 d:ComputerEquipment 2022-10-01 2023-09-30 08763737 d:CurrentFinancialInstruments 2023-09-30 08763737 d:CurrentFinancialInstruments 2022-09-30 08763737 d:Non-currentFinancialInstruments 2023-09-30 08763737 d:Non-currentFinancialInstruments 2022-09-30 08763737 d:CurrentFinancialInstruments d:WithinOneYear 2023-09-30 08763737 d:CurrentFinancialInstruments d:WithinOneYear 2022-09-30 08763737 d:ShareCapital 2022-10-01 2023-09-30 08763737 d:ShareCapital 2023-09-30 08763737 d:ShareCapital 2022-09-30 08763737 d:ShareCapital 2021-10-01 08763737 d:SharePremium 2022-10-01 2023-09-30 08763737 d:SharePremium 2023-09-30 08763737 d:SharePremium 2022-09-30 08763737 d:SharePremium 2021-10-01 08763737 d:ForeignCurrencyTranslationReserve 2022-10-01 2023-09-30 08763737 d:OtherMiscellaneousReserve 2022-10-01 2023-09-30 08763737 d:OtherMiscellaneousReserve 2023-09-30 08763737 d:OtherMiscellaneousReserve 2022-09-30 08763737 d:OtherMiscellaneousReserve 2021-10-01 08763737 d:RetainedEarningsAccumulatedLosses 2022-10-01 2023-09-30 08763737 d:RetainedEarningsAccumulatedLosses 2023-09-30 08763737 d:RetainedEarningsAccumulatedLosses 2021-10-01 2022-09-30 08763737 d:RetainedEarningsAccumulatedLosses 2022-09-30 08763737 d:RetainedEarningsAccumulatedLosses 2021-10-01 08763737 c:OrdinaryShareClass1 2022-10-01 2023-09-30 08763737 c:OrdinaryShareClass1 2023-09-30 08763737 c:OrdinaryShareClass1 2022-09-30 08763737 c:FRS102 2022-10-01 2023-09-30 08763737 c:Audited 2022-10-01 2023-09-30 08763737 c:FullAccounts 2022-10-01 2023-09-30 08763737 c:PrivateLimitedCompanyLtd 2022-10-01 2023-09-30 08763737 d:Subsidiary1 2022-10-01 2023-09-30 08763737 d:Subsidiary1 1 2022-10-01 2023-09-30 08763737 d:Subsidiary2 2022-10-01 2023-09-30 08763737 d:Subsidiary2 1 2022-10-01 2023-09-30 08763737 d:Subsidiary3 2022-10-01 2023-09-30 08763737 d:Subsidiary3 1 2022-10-01 2023-09-30 08763737 d:Subsidiary4 2022-10-01 2023-09-30 08763737 d:Subsidiary4 1 2022-10-01 2023-09-30 08763737 d:Subsidiary5 2022-10-01 2023-09-30 08763737 d:Subsidiary5 1 2022-10-01 2023-09-30 08763737 c:Consolidated 2023-09-30 08763737 c:ConsolidatedGroupCompanyAccounts 2022-10-01 2023-09-30 08763737 2 2022-10-01 2023-09-30 08763737 6 2022-10-01 2023-09-30 08763737 e:PoundSterling 2022-10-01 2023-09-30 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 08763737










THE MOTLEY FOOL GLOBAL LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
COMPANY INFORMATION


Directors
L Greenberg 
K Mcdonough 
J Ralph (resigned 31 March 2023)




Company secretary
Taylor Wessing Secretaries Limited



Registered number
08763737



Registered office
5 New Street Square

London

England

EC4A 3TW




Independent auditor
MHA

Building 4

Foundation Park

Roxborough Way

Maidenhead

SL6 3UD





 
THE MOTLEY FOOL GLOBAL LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditor's Report
5 - 8
Consolidated Statement of Comprehensive Income
9
Consolidated Statement of Financial Position
10 - 11
Company Statement of Financial Position
12
Consolidated Statement of Changes in Equity
13
Company Statement of Changes in Equity
14
Consolidated Statement of Cash Flows
15
Consolidated Analysis of Net Debt
16
Notes to the Financial Statements
17 - 35


 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Introduction
 
The Directors present the audited consolidated financial statements of The Motley Fool Global Limited ("the Group") for the year ended 30 September 2023.

Principal activities
 
The Group's principal activity is to act as a holding company for companies in the UK, Canada, Australia, and Germany (divested January 3, 2023) which are internet-based communities specialising in investing information and guidance.

Principal risks and uncertainties
 
The Group is exposed to risks and uncertainties relating to economic, legal and regulatory risks that are inherent in the environment in which the company will operate. The risks and uncertainties described below are not the only ones the company may face. Additional risks and uncertainties not presently known to the Group or that the Group's management currently deems minor or insignificant may also impair its business operations.
 
Economic
Competition from established competitors;
Inflationary pressure on prices and salaries; and
General stock market performance.

Legal
Challenges resulting from activity on our discussion boards and newsletters.

Regulatory
Further enhancements to the existing regulatory framework and reporting guidelines.

Operational
Loss of key staff within the editorial, marketing and support functions would impact the business whilst     replacements are identified and employed; and 
Technical failures related to the website or newsletter delivery would impact renewals.

Key performance indicators
 
The Group's future Key performance indicators are;
Cash received from subscription products (bookings);
The number of subscribers to the investment newsletter services;
The related renewal rates of subscribers to those services;
The number of online sessions from visitors;
The number of email addresses indicating an interest in our offerings; and 
The conversion rate of those email addresses into subscribers

Page 1

 
THE MOTLEY FOOL GLOBAL LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Directors' statement of compliance with duty to promote the success of the Group
 
The directors always consider, both individually and together, that they have acted in the way they consider, in
good faith, would be most likely to promote the success of the company for the benefit of its members as a
whole, having regard to the stakeholders and matters set out in s172(1) (a) - (f) of the Companies Act 2006, in
the decisions taken during the year ended 30 September 2023.
Our plan is designed to have a long term beneficial impact on the company and to contribute to its success in delivering a high quality of service across all of our business divisions.
Our employees are fundamental to the delivery of our plan. We aim to be a responsible employer in our approach to the pay and benefits our employees receive. The health, safety and well-being of our team members
is one of our primary considerations in the way we conduct our business. Engagement with suppliers and customers is also key to our success. We meet with our major manufacturing partners regularly throughout the year and take the appropriate action, when necessary, to prevent involvement in modern slavery, corruption, bribery and breaches of competition law.
Our plan considers the impact of the company’s operations on the community and environment and our wider social responsibilities, and in particular how we comply with environmental legislation and pursue waste-saving opportunities and react promptly to local concerns.
As directors, our intention is to behave in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours and in doing so, will contribute to the delivery of our plan. The intention is to nurture our reputation, through both construction and delivery of our plan, that reflects our values, beliefs and culture. Our intention is to behave responsibly to all of our stakeholders, including our shareholders, and treat them fairly so that they too may benefit from the successful delivery of our plan.


This report was approved by the board and signed on its behalf.



................................................
L Greenberg
Director

Date: 28 August 2024

Page 2

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

The directors present their report and the financial statements for the year ended 30 September 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Business review

The Group is a provider of financial education and independent advice intended to help consumers make better financial decisions. Investment and personal finance solutions and services are delivered through subscriptions and other products sold directly to consumers. In relation to similar efforts of its ultimate parent undertaking conducting business in the United States, the Group’s purpose is to provide these consumer services to regions outside the United States, specifically targeting consumers in the United Kingdom, Canada, and Australia. Prior efforts in Germany, Hong Kong, and Japan have been abandoned as of September 30, 2023.

Results and dividends

The profit for the year, after taxation, amounted to £1,525,710 (2022 - £5,778).

The directors do not recommend the payment of a dividend, and the profit for the year has been transferred to the reserves.

Directors

The directors who served during the year were:

L Greenberg 
K Mcdonough 
J Ralph (resigned 31 March 2023)

Page 3

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Future developments

The Group expects to continue to develop The Motley Fool brand into a widely known and trusted online name and community worldwide.

Greenhouse gas emissions, energy consumption and energy efficiency action

The Group has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as its energy consumption in the United Kingdom for the year is 40,000kWh or lower.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Auditor

Under section 487(2) of the Companies Act 2006MHA will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





................................................
L Greenberg
Director

Date: 28 August 2024

Page 4

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE MOTLEY FOOL GLOBAL LIMITED
 

Opinion


We have audited the financial statements of The Motley Fool Global Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 September 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 30 September 2023 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 or the 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.


Page 5

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE MOTLEY FOOL GLOBAL LIMITED (CONTINUED)


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 ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 6

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE MOTLEY FOOL GLOBAL LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 Group's and 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 Group or 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 Group 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:

enquiry of management, those charged with governance around actual and potential litigation and claims;
performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
reviewing minutes of meetings of those charged with governance;
reviewing financial statement disclosures and testing to supporting documentation to asses compliance with applicable laws and regulations; and
maintaining professional scepticism throughout the course of our audit work.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.


Page 7

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE MOTLEY FOOL GLOBAL LIMITED (CONTINUED)


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 2006Our 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.





Justin Moss MA FCA (Senior Statutory Auditor)
for and on behalf of
MHA
Statutory Auditor
Maidenhead, United Kingdom
Date:

29 August 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
Page 8

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023
2022
£
£


Turnover
23,334,899
38,619,496

Cost of sales
(4,278,545)
(6,333,378)

Gross profit
19,056,354
32,286,118

Administrative expenses
(17,971,773)
(34,447,126)

Other operating income
80,109
80,831

Fair value movements
-
2,218,149

Operating profit
1,164,690
137,972

Interest receivable and similar income
968,865
67,803

Profit/(loss) on disposal of subsidiaries
521,529
-

Interest payable and similar expenses
-
(16)

Profit before taxation
2,655,084
205,759

Tax on profit
(1,129,374)
(199,981)

(Loss)/profit for the financial year
1,525,710
5,778


Currency translation differences
(1,380,572)
1,900,308

Total comprehensive (loss)/income for the year
145,138
1,906,086

Profit for the year attributable to:
  

Owners of the parent Company
  
1,525,710
5,778

  
1,525,710
5,778

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.

The notes on pages 17 to 35 form part of these financial statements.

Page 9

 
THE MOTLEY FOOL GLOBAL LIMITED
REGISTERED NUMBER: 08763737

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 12 
74,836
78,182

Tangible assets
 13 
44,092
90,539

  
118,928
168,721

Current assets
  

Debtors: amounts falling due after more than one year
 15 
520,710
-

Debtors: amounts falling due within one year
 15 
11,711,511
14,480,236

Current asset investments
 16 
5,611,561
6,017,128

Cash at bank and in hand
 17 
35,370,192
56,074,039

  
53,213,974
76,571,403

Creditors: amounts falling due within one year
 18 
(29,564,840)
(53,329,755)

Net current assets
  
 
 
23,649,134
 
 
23,241,648

Total assets less current liabilities
  
23,768,062
23,410,369

Creditors: amounts falling due after more than one year
 19 
(403,493)
(521,363)

Provisions for liabilities
  

Net assets
  
23,364,569
22,889,006


Capital and reserves
  

Called up share capital 
 20 
214,112
214,111

Share premium account
 21 
2,096,865
1,766,441

Foreign exchange reserve
 21 
(580,440)
800,132

Other reserves
 21 
5,636,806
5,636,806

Profit and loss account
 21 
15,997,226
14,471,516

  
23,364,569
22,889,006


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


................................................
L Greenberg
Director

Date: 28 August 2024

The notes on pages 17 to 35 form part of these financial statements.
Page 10

 
THE MOTLEY FOOL GLOBAL LIMITED
REGISTERED NUMBER: 08763737
    
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 SEPTEMBER 2023


Page 11

 
THE MOTLEY FOOL GLOBAL LIMITED
REGISTERED NUMBER: 08763737

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 14 
5,135,320
6,337,349

  
5,135,320
6,337,349

Current assets
  

Debtors: amounts falling due after more than one year
 15 
520,710
-

Debtors: amounts falling due within one year
 15 
203,110
475,701

Cash at bank and in hand
 17 
1,324,122
1,051

  
2,047,942
476,752

Creditors: amounts falling due within one year
 18 
(2,341,771)
(159,520)

Net current (liabilities)/assets
  
 
 
(293,829)
 
 
317,232

Total assets less current liabilities
  
4,841,491
6,654,581

  

  

Net assets
  
4,841,491
6,654,581


Capital and reserves
  

Called up share capital 
 20 
214,112
214,111

Share premium account
 21 
2,096,865
1,766,441

Other reserves
 21 
5,636,806
5,636,806

Profit and loss account brought forward
  
(962,777)
3,400,557

Loss for the year
  
(2,143,515)
(4,363,334)

Profit and loss account carried forward
  
(3,106,292)
(962,777)

  
4,841,491
6,654,581


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


................................................
L Greenberg
Director

Date: 28 August 2024

The notes on pages 17 to 35 form part of these financial statements.

Page 12

 

 
THE MOTLEY FOOL GLOBAL LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023



Called up share capital
Share premium account
Foreign exchange reserve
Other reserves
Profit and loss account
Total equity


£
£
£
£
£
£



At 1 October 2021
214,111
1,766,441
(1,100,176)
5,636,806
14,465,738
20,982,920





Profit for the year
-
-
-
-
5,778
5,778


Currency translation differences
-
-
1,900,308
-
-
1,900,308





At 1 October 2022
214,111
1,766,441
800,132
5,636,806
14,471,516
22,889,006





Profit for the year
-
-
-
-
1,525,710
1,525,710


Currency translation differences
-
-
(1,380,572)
-
-
(1,380,572)


Shares issued during the year
1
330,424
-
-
-
330,425



At 30 September 2023
214,112
2,096,865
(580,440)
5,636,806
15,997,226
23,364,569



The notes on pages 17 to 35 form part of these financial statements.

Page 13

 
THE MOTLEY FOOL GLOBAL LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023


Called up share capital
Share premium account
Other reserves
Profit and loss account
Total equity

£
£
£
£
£


At 1 October 2021
214,111
1,766,441
5,636,806
3,400,557
11,017,915



Loss for the year
-
-
-
(4,363,334)
(4,363,334)



At 1 October 2022
214,111
1,766,441
5,636,806
(962,777)
6,654,581



Loss for the year
-
-
-
(2,143,515)
(2,143,515)

Shares issued during the year
1
330,424
-
-
330,425


At 30 September 2023
214,112
2,096,865
5,636,806
(3,106,292)
4,841,491


The notes on pages 17 to 35 form part of these financial statements.

Page 14

 
THE MOTLEY FOOL GLOBAL LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
1,525,710
5,778

Adjustments for:

Depreciation of tangible assets
44,146
44,983

Profit on disposal of subsidiary
(521,529)
-

Interest received
(968,865)
(67,803)

Taxation charge
1,129,374
199,981

Decrease/(increase) in debtors
3,678,889
(3,369,459)

(Decrease)/increase in creditors
(27,948,454)
3,810,771

Net fair value (gains)/losses recognised in P&L
(681,443)
2,218,149

Corporation tax received/(paid)
1,163,266
(406,785)

Foreign exchange movement
(1,380,572)
1,900,308

Net cash generated from operating activities

(23,959,478)
4,335,923


Cash flows from investing activities

Purchase of intangible fixed assets
-
(56,530)

Purchase of short-term listed investments
(401,995)
(624,917)

Sale of short-term listed investments
1,489,005
698,379

Interest received
968,865
67,803

Proceeds on disposal of subsidiary
869,331
-

Net cash from investing activities

2,925,206
84,735

Issue of ordinary shares
330,425
-

Net cash used in financing activities
330,425
-

Net (decrease)/increase in cash and cash equivalents
(20,703,847)
4,420,658

Cash and cash equivalents at beginning of year
56,074,039
51,653,381

Cash and cash equivalents at the end of year
35,370,192
56,074,039


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
35,370,192
56,074,039

35,370,192
56,074,039


The notes on pages 17 to 35 form part of these financial statements.

Page 15

 
THE MOTLEY FOOL GLOBAL LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 SEPTEMBER 2023





At 1 October 2022
Cash flows
Other non-cash changes
At 30 September 2023
£

£

£

£

Cash at bank and in hand

56,074,039

(20,703,847)

-

35,370,192

Liquid investments

6,017,128

(1,087,010)

681,443

5,611,561


62,091,167
(21,790,857)
681,443
40,981,753

The notes on pages 17 to 35 form part of these financial statements.

Page 16

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

1.


General information

The Company (registration number 08763737) is a private company limited by shares, and is incorporated in England and Wales with its principal place of business and registered office at 5 New Street Square, London, EC4A 3TW.
The Group's principal activity is to act as a holding company for companies in the UK, Canada, Australia, Hong Kong, Japan and Germany which are internet-based communities specialising in investing information and guidance.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 17

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Subscription revenues are recognised following the completion of the money back guarantee period over the term of the subscription payment received. 
Investment fee revenue is recognised in accordance with the underlying contracts and periods of delivery of contracted content and services. 
Advertising revenues are originally recognised based on the expected delivery of online and email advertising activity; any shortfall against expected delivery is quantified and deferred until it is served.
Turnover is stated net of VAT.
Other income includes gains on unquoted equity investments and dividends received from current asset investments.

Page 18

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.5

Operating leases: the Group as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

The Group has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard 01 October 2021 to continue to be charged over the period to the first market rent review rather than the term of the lease.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

Page 19

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.10

Taxation

Tax is recognised in profit or loss 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 reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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 reporting date.

 
2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.12

Tangible fixed assets

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.

Page 20

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

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:

Long-term leasehold property
-
20%
per annum
Office equipment
-
4%
- 12.5% per annum
Computer equipment
-
33%
per annum

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 profit or loss.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Equity investments comprise a portfolio of investments in quoted equity instruments which are measured at fair value. Changes in fair value are recognised in the profit or loss account. Fair value is estimated by using either a recent available price per share if possible or by using a valuation model.
Dividend income is recognised when earned.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 21

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.17

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Page 22

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)


2.17
Financial instruments (continued)

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
 
Significant judgements in applying accounting policies
 
The Group has not made any significant judgements in applying its accounting policies.
 
Significant accounting estimates and assumptions
 
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. Areas with significant estimates and assumptions are addressed below:
 
Taxation
 
Determining income tax provisions involves judgements on the tax treatment of certain transactions.  Deferred tax is recognised on tax losses not yet used on temporary differences where it is probable that there will be taxable income against which these can be offset. See Note 2.10 for details of deferred tax recognized.
 
Share-based payments 
 
The Motley Fool Holdings, Inc. uses an external valuation group to assist in valuing its ordinary shares, with the fair value of the ordinary shares determined based on a multiple market approach that uses estimates and assumptions of competitive groups, appropriate multiples, and marketing and liquidity discounts.  There is inherent uncertainty in making these judgements and estimates. See Note 22 for details of share-based payments.

Page 23

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Subscription revenue
19,893,010
34,220,077

Fund revenue
3,312,567
4,176,725

Advertising revenue
129,322
222,694

23,334,899
38,619,496


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
2,243,017
3,171,271

Rest of Europe
258,936
1,920,112

Rest of the world
20,832,946
33,528,113

23,334,899
38,619,496



5.


Other operating income

2023
2022
£
£

Other operating income
80,109
80,831



6.


Operating profit/(loss)

The operating profit/(loss) is stated after charging:

2023
2022
£
£

Depreciation
44,146
44,983

Other operating lease rentals
414,922
118,566

Profit on disposal of subsidiaries
(521,529)
-

Page 24

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

7.


Auditor's remuneration

During the year, the Group obtained the following services from the Company's auditor and its associates:


2023
2022
£
£

Fees payable to the Company's auditor and its associates for the audit of the consolidated and parent Company's financial statements
43,500
30,500

Fees payable to the Company's auditor in respect of:

All other services
15,000
28,000


8.


Employees

Staff costs were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
4,336,898
5,033,663
-
-

Social security costs
300,264
491,449
-
-

Cost of defined contribution scheme
335,341
403,766
-
-

4,972,503
5,928,878
-
-


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Administration
5
4
3
3



Operations
38
44
-
-



Design and technology
2
2
-
-

45
50
3
3


9.


Interest receivable

2023
2022
£
£


Other interest receivable
968,865
67,803

Page 25

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

10.


Interest payable and similar expenses

2023
2022
£
£


Loans from group undertakings
-
16


11.


Taxation


2023
2022
£
£


Foreign tax


Foreign tax on income for the year
1,163,266
1,540,481


Origination and reversal of timing differences
(33,892)
(1,340,500)


Taxation on profit on ordinary activities
1,129,374
199,981

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 22% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
2,655,084
205,759


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 22% (2022 - 19%)
584,118
39,094

Effects of:


Non-tax deductible amortisation of goodwill and impairment
-
(317,602)

Differences in overseas tax rates
158,136
618,000

Losses carried forward not provided for
(111,206)
497,000

Temporary differences not provided for
120,639
34,000

Prior year adjustments
400,418
(1,000)

Rate change adjustment
19,338
(502,000)

Non-taxable income
(42,069)
(167,511)

Total tax charge for the year
1,129,374
199,981



Page 26

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
 
11.Taxation (continued)


Factors that may affect future tax charges

A deferred tax asset of £2,471,478 (2022: £1,408,373) has not been recognised in subsidiary entities on the basis that it will be recoverable only to the extent that the relevant Company has future taxable profits.
The Finance Bill 2021 was substantively enacted on 24 May 2021. Under this bill the main rate of corporation tax will increase to 25% from 1 April 2023. Profits up to £50,000 will continue to be taxed at 19%, with tapered rates applied to profits between £50,000 and £250,000.
The 22% used above represents the effective interest rate charged for year of assessment.


12.


Intangible assets

Group and Company





Licence fees
Trademarks
Crypto-currencies
Total

£
£
£
£



Cost


At 1 October 2022
17,295
4,357
56,530
78,182


Foreign exchange movement
-
(3,826)
480
(3,346)



At 30 September 2023

17,295
531
57,010
74,836






Net book value



At 30 September 2023
17,295
531
57,010
74,836



At 30 September 2022
17,295
4,357
56,530
78,182



Page 27

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

13.


Tangible fixed assets

Group






Long-term leasehold property
Office equipment
Computer equipment
Total

£
£
£
£



Cost


At 1 October 2022
265,564
7,948
30,238
303,750


Disposals
-
-
(30,238)
(30,238)


Exchange adjustments
(2,301)
-
-
(2,301)



At 30 September 2023

263,263
7,948
-
271,211



Depreciation


At 1 October 2022
175,099
7,874
30,238
213,211


Charge for the year on owned assets
44,072
74
-
44,146


Disposals
-
-
(30,238)
(30,238)



At 30 September 2023

219,171
7,948
-
227,119



Net book value



At 30 September 2023
44,092
-
-
44,092



At 30 September 2022
90,465
74
-
90,539

Page 28

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

14.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost


At 1 October 2022
6,337,349


Disposals
(1,202,029)



At 30 September 2023
5,135,320




The Company's principal activity is to act as a holding company for companies in the UK, Canada, Australia, Hong Kong, Japan and Germany which are internet-based communities specialising in investing information and guidance.


Direct subsidiary undertakings


The following were direct subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

The Motley Fool Asia Limited
United Kingdom
Ordinary
100%
The Motley Fool Limited
United Kingdom
Ordinary
100%
The Motley Fool GmbH
Germany
Ordinary
100%
The Motley Fool Australia Pty, Ltd
Australia
Ordinary
100%
The Motley Fool Canada, ULC
Canada
Ordinary
100%


Indirect subsidiary undertakings


The following were indirect subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Lakehouse Capital Pty, Ltd
Australia
Ordinary
100%
The Motley Fool Hong Kong Ltd
Hong Kong
Ordinary
100%
The Motley Fool Japan KK
Japan
Ordinary
100%

The Motley Fool GmbH and Lakehouse Capital Pty Ltd were sold under share purchase arrangements to separate, unrelated parties on January 3, 2023 and October 2, 2023, respectively. As a result, the Company terminated its initiatives in Germany during the year. The Company continues to pursue its online publishing efforts in Australia under The Motley Fool Australia Pty, Ltd. Realised gains for the period are included in net realised gain from sale of consolidated subsidiaries on the accompanying Consolidated Statement of Comprehensive Income.

Page 29

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

15.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Due after more than one year

Other debtors
520,710
-
520,710
-


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Due within one year

Trade debtors
360,786
327,886
-
-

Amounts owed by group undertakings
335,716
1,368,661
29,540
475,701

Other debtors
10,630,008
12,242,880
173,570
-

Prepayments and accrued income
385,001
540,809
-
-

11,711,511
14,480,236
203,110
475,701



16.


Current asset investments

Group
Group
2023
2022
£
£

Listed investments
5,611,561
6,017,128


Group
Group
2023
2022
£
£


Opening fair value
6,017,128
8,308,739

Purchases
401,995
624,917

Sales
(1,489,005)
(698,379)

(Loss)/gain on remeasurement to fair value
681,443
(2,218,149)

Market value
5,611,561
6,017,128




Page 30

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

17.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
35,370,192
56,074,039
1,324,122
1,051



18.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
57,426
49,314
-
-

Amounts owed to group undertakings
19,767,370
37,173,885
1,497,701
137,620

Corporation tax
97,842
97,842
97,842
-

Other taxation and social security
668,370
2,539,674
-
-

Other creditors
723,702
396,363
715,728
-

Accruals and deferred income
8,250,130
13,072,677
30,500
21,900

29,564,840
53,329,755
2,341,771
159,520



19.


Creditors: Amounts falling due after more than one year

Group
Group
2023
2022
£
£

Accruals and deferred income
403,493
521,363





20.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



214,112 (2022 - 214,111) Ordinary shares of £1.00 each
214,112
214,111


On 12 December 2022, the Company issued 1 Ordinary share, with a nominal value of $1, for total consideration of $405,431, resulting in a share premium of $405,430. These amounts have been translated at the spot rate on the date of the issue and presented in pound sterling in these financial statements.

Page 31

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

21.


Reserves

Share premium account

The share premium account represents the premium arising on the issue of shares net of issue costs.

Foreign exchange reserve

The foreign exchange reserve is made up of all current period other comprehensive income related to the translation of overseas entities into the functional and presentational currency.

Other reserves

Other reserves represent capital contributions from the group members.

Profit and loss account

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

Page 32

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

22.


Share-based payments

Stock options and Restricted Stock Awards
Employees are generally granted share options (options), restricted stock awards (RSAs), or restricted stock units (RSUs) on joining the Company and may receive subsequent grants during their employment as part of the Company’s incentive program. The options, RSAs, and RSUs are granted in the ultimate parent undertaking, The Motley Fool Holdings, Inc., under that Company’s Amended and Restated 2008 Equity Incentive Plan (the Plan). The Plan provides for the granting of options, RSAs, and RSUs to employees and consultants of The Motley Fool Holdings, Inc. and its subsidiary undertakings. Options granted generally vest over a 4-year period and have a 10-year term. RSAs and RSUs are subject to a service-based vesting period or performance-based vesting milestones determined at the date of grant. Unvested options, RSAs, and RSUs are forfeited if the employee leaves the Company.
In the event of a sale of all or substantially all of the ultimate parent company’s assets, or a merger with or into another organisation, the Board of Directors of The Motley Fool Holdings, Inc. has the authority to provide automatic acceleration of vesting.
The options are exercisable at the exercise price determined at the time of grant. RSAs and RSUs are granted at market value and become the property of the employee proportionally over the vesting period for service-based awards or at the defined milestones for performance-based awards.
As discussed in Note 1 the Company records compensation expense in the profit and loss account, based on the equity-settled grant-date fair value basis in accordance with the provisions of FRS102. The Company recognises compensation expense on a fair value basis and reflecting the instalment basis of options granted under the Plan.
The total expense recognised for share-based equity-settled payments in respect of employee services received during the period to September 30, 2023 was £1,023,202 (2022: £1,427,427) of which £0 relates to options and £1,023,202 relates to RSAs and RSUs (2022: £0 and £1,427,427 respectively).
As of September 30, 2023, there was no unrecognised compensation cost related to stock options and £620,789 of total unrecognised compensation cost related to restricted stock expected to be recognised over approximately one year.
Stock Options Fair Value and Grants
There were no stock options granted during the periods ended September 30, 2023 and September 30, 2022. All outstanding share options were fully vested.
The following table illustrates the number and weighted average exercise price (WAEP) of, and movements in, share options during the period:

Weighted average exercise price (pence)
2023
Number
2023
Weighted average exercise price
(pence)
2022
Number
2022

Outstanding at the beginning of the year

538

-

446
 
2,300
 
Exercised during the year

600

-

542
 
(300)
 
Outstanding at the end of the year
0

-

538
 
2,000
 
Page 33

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

22.Share-based payments (continued)


There are no outstanding stock options at September 30, 2023.  The share options outstanding at September 30, 2022 had the weighted average remaining contractual life of approximately 1 year.
Restricted Stock Awards Fair Value and Grants 
The Motley Fool Holdings, Inc. uses an external valuation group to assist in valuing its ordinary shares, with the fair value of the ordinary shares determined based on a multiple market approach that uses estimates and assumptions of competitive groups, appropriate multiples, and marketing and liquidity discounts. There is inherent uncertainty in making these judgements and estimates.
RSAs are valued on the grant date based on the most current external valuation at the date of grant. Share valuations were as follows:
October 2013 - August 2014     US $6.50 / £4.28 per share
August 2014 - February 2015         US $11.00 / £7.25 per share
February 2015 - July 2015         US $13.75 / £9.06 per share
July 2015 - February 2016             US $14.75 / £10.60 per share
February 2016 - September 2016         US $10.75 / £7.25 per share
September 2016 - April 2017        US $8.20 / £6.12 per share
April 2017 - October 2017       US $12.20 / £9.51 per share
October 2017 - April 2018       US $16.70 / £12.46 per share
April 2018 - October 2018       US $21.50 / £15.01 per share
October 2018 - April 2019       US $29.80 / £22.80 per share
April 2019 - September 2019    US $35.80 / £27.56 per share
October 2019 - September 2020    US $43.10 / £33.81 per share
October 2020 - April 2021                                        US $70.67 / £54.16 per share                                  
April 2021 - September 2021                                    US $146.87 / £105.68 per share
September 2021 - January 2022                               US $133.32 / £119.50 per share
January 2022 - July 2022                                         US $62.31 / £55.85 per share
July 2022 - January 2023                                         US $62,31 / £50.60 per share
January 2023 - July 2023                                         US $56.91 / £46.64 per share
Restricted stock awards equivalent to 3,758 shares were granted in the period ended September 30, 2032 (2022: 8,242) with the total fair value for the granted shares of £184,007 (2022: £1,059,336).




Page 34

 
THE MOTLEY FOOL GLOBAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023


23.


Pension commitments

The Group operates a defined contributions pension scheme, which all employees are entitled to join. The Group directly contributes to the pension scheme, and contributions are charged in the profit and loss account as they become payable. At the year, end contributions amounting to £35,396 were payable to the scheme (2022 - £60,663).


24.


Commitments under operating leases

The Group and the Company had no commitments under non-cancellable operating leases at the reporting date.


25.


Related party transactions

During the year the Group paid management charges and royalty fees of £1,380,549 to its parent undertaking, The Motley Fool, LLC (2022 - £2,845,692).
At the Balance Sheet date, the amount due to The Motley Fool, LLC was £19,767,370 (2022 - £37,173,885), and the amount due from the Motley Fool, LLC was £335,716 (2022 - £1,368,661).


26.


Controlling party

The immediate parent undertaking is The Motley Fool, LLC. The ultimate parent undertaking and controlling party is The Motley Fool Holdings, Inc. incorporated in Delaware, USA.
The largest group which prepares consolidated financial statements, including the Company, is The Motley Fool Holdings, Inc.

 
Page 35