Company registration number 10389234 (England and Wales)
JOURNEY FURTHER LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
JOURNEY FURTHER LIMITED
COMPANY INFORMATION
Director
R. Skidmore
Company number
10389234
Registered office
Old Linen Court
83-85 Shambles Street
Barnsley
S70 2SB
Auditor
GBAC Limited
Old Linen Court
83-85 Shambles Street
Barnsley
South Yorkshire
S70 2SB
JOURNEY FURTHER LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditors' report
4 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 25
JOURNEY FURTHER LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The director presents the strategic report for the year ended 31 December 2023.
Fair review of the business
Turnover for the year is £14,157,846. The director considers the profit on ordinary activities before taxation to be satisfactory.
The company has maintained a good level of turnover and gross profit margin over the year. Current market trends indicate trade to be reasonably stable considering the climate.
The director is confident that the company will continue to maintain and grow turnover and profitability in the future period.
The company has at the end of the period, total equity of £2,854,335 and the director considers the state of affairs of the company to be satisfactory.
Principal risks and uncertainties
Risk Management
The company's financial instruments comprise bank balances, trade creditors, trade debtors and loan facilities to the company. The main purpose of these instruments is to raise funds and finance the company operations.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Key performance indicators
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Turnover growth (percent) | | | |
Gross profit margin (percent) | | | |
Profit / (loss) before tax | | | |
R. Skidmore
Director
6 September 2024
JOURNEY FURTHER LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The director presents his annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company is that of a digital advertising agency.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £543,088. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
R. Skidmore
Auditor
The auditor, GBAC Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
R. Skidmore
Director
6 September 2024
JOURNEY FURTHER LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is 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.
JOURNEY FURTHER LIMITED
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF JOURNEY FURTHER LIMITED
- 4 -
Opinion
We have audited the financial statements of Journey Further Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss 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.
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 Auditors' 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 director's 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditors' report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
JOURNEY FURTHER LIMITED
INDEPENDENT AUDITORS' REPORT (CONTINUED)
TO THE MEMBERS OF JOURNEY FURTHER LIMITED
- 5 -
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 or the director's 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditors' 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 auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We obtained an understanding of the company and the sector in which it operates to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through discussions with management, application of cumulative audit knowledge and experience of the sector.
We determined the principal laws and regulations relevant to the company in this regard to be those arising from the Companies Act 2006, Local tax laws and regulations and Anti Money Laundering Legislation.
We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the company with those laws and regulations. These procedures included, but were not limited to; a review of general ledger transactions and discussions with management.
We also identified the risks of material misstatement of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls, including the potential for management bias identified in relation to the provisions and estimates and and we addressed this by challenging the assumptions and judgements made by management when auditing that significant accounting estimate.
As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included, but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditors/audit-assurance-ethics/auditors-responsibilities-for-the-audit. This description forms part of our auditors' report.
JOURNEY FURTHER LIMITED
INDEPENDENT AUDITORS' REPORT (CONTINUED)
TO THE MEMBERS OF JOURNEY FURTHER LIMITED
- 6 -
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 auditors' 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.
Mrs Pamela Parker
Senior Statutory Auditor
For and on behalf of GBAC Limited
9 September 2024
Statutory Auditor
Old Linen Court
83-85 Shambles Street
Barnsley
South Yorkshire
S70 2SB
JOURNEY FURTHER LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
Year
Year
ended
ended
31 December
31 December
2023
2022
Notes
£
£
Revenue
3
14,157,846
12,793,934
Cost of sales
(7,852,100)
(6,592,483)
Gross profit
6,305,746
6,201,451
Administrative expenses
(4,227,681)
(3,521,742)
Other operating income
6,591
10,883
Exceptional item
4
(1,607,976)
Operating profit
5
476,680
2,690,592
Investment income
7
52,340
460,629
Finance costs
8
(68,799)
(34,540)
Other gains and losses
9
(1,050)
-
Profit before taxation
459,171
3,116,681
Tax on profit
10
(530,697)
(519,784)
(Loss)/profit for the financial year
(71,526)
2,596,897
The income statement has been prepared on the basis that all operations are continuing operations.
JOURNEY FURTHER LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Non-current assets
Intangible assets
12
80,751
Property, plant and equipment
13
319,790
224,744
Investments
14
1,050
400,541
225,794
Current assets
Trade and other receivables
17
3,816,889
4,009,180
Cash and cash equivalents
2,117,040
2,883,550
5,933,929
6,892,730
Current liabilities
18
(2,931,599)
(2,919,075)
Net current assets
3,002,330
3,973,655
Total assets less current liabilities
3,402,871
4,199,449
Non-current liabilities
19
(483,333)
(689,022)
Provisions for liabilities
(65,203)
(41,478)
Net assets
2,854,335
3,468,949
Equity
Called up share capital
23
5
5
Retained earnings
2,854,330
3,468,944
Total equity
2,854,335
3,468,949
The financial statements were approved and signed by the director and authorised for issue on 6 September 2024
R. Skidmore
Director
Company Registration No. 10389234
JOURNEY FURTHER LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 January 2022
5
1,746,496
1,746,501
Period ended 31 December 2022:
Profit and total comprehensive income
-
2,596,897
2,596,897
Dividends
11
-
(874,449)
(874,449)
Balance at 31 December 2022
5
3,468,944
3,468,949
Period ended 31 December 2023:
Loss and total comprehensive income
-
(71,526)
(71,526)
Dividends
11
-
(543,088)
(543,088)
Balance at 31 December 2023
5
2,854,330
2,854,335
JOURNEY FURTHER LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
880,604
2,066,937
Interest paid
(68,799)
(34,540)
Income taxes paid
(582,000)
(582,152)
Net cash inflow from operating activities
229,805
1,450,245
Investing activities
Purchase of intangible assets
(101,129)
Purchase of property, plant and equipment
(204,438)
(87,754)
Interest received
52,340
1,551
Net cash used in investing activities
(253,227)
(86,203)
Financing activities
Repayment of bank loans
(200,000)
(116,667)
Dividends paid
(543,088)
(874,449)
Net cash used in financing activities
(743,088)
(991,116)
Net (decrease)/increase in cash and cash equivalents
(766,510)
372,926
Cash and cash equivalents at beginning of year
2,883,550
2,510,624
Cash and cash equivalents at end of year
2,117,040
2,883,550
JOURNEY FURTHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Journey Further Limited is a private company limited by shares incorporated in England and Wales. The registered office is Old Linen Court, 83-85 Shambles Street, Barnsley, S70 2SB.
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.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
When the company's obligation is to arrange for the procurement of media on behalf of the customer, the company acts as an agent as, ultimately it is the media vendor, not the company that is responsible to the customer for hosting the media. The company does not control the underlying distribution platforms or the services prior to transferring to the customer. Therefore revenue is recognised at the net amount the company is entitled to receive.
Revenue from contracts for the provision of professional services 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 it is probable will be recovered.
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.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
JOURNEY FURTHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
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
- Straight line over 4 years
1.5
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
Over the term of the lease
Fixtures and fittings
25% on reducing balance basis
Computers
3 years on straight line basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Non-current investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Impairment of non-current 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 profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
JOURNEY FURTHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.8
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.
1.9
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 statement of financial position 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.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the 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.
JOURNEY FURTHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.
JOURNEY FURTHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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 income statement, 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.
1.12
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 non-current 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.
1.13
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.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
JOURNEY FURTHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
3
Revenue
2023
2022
£
£
Revenue analysed by class of business
Digital advertising
14,157,846
12,793,934
2023
2022
£
£
Revenue analysed by geographical market
UK
12,594,907
11,662,744
Europe
721,747
656,094
Rest of World
841,192
475,096
14,157,846
12,793,934
2023
2022
£
£
Other revenue
Interest income
52,340
1,551
Dividends received
-
459,078
Grants received
6,591
7,675
Rental income
-
3,208
4
Exceptional item
2023
2022
£
£
Expenditure
Amounts owed by group undertaking
1,607,976
-
At the year end a provision was made for amounts due from a group undertaking.
JOURNEY FURTHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
5
Operating profit
2023
2022
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange losses/(gains)
139,870
(53,603)
Government grants
(6,591)
(7,675)
Fees payable to the company's auditor for the audit of the company's financial statements
12,000
12,000
Depreciation of owned property, plant and equipment
109,392
101,080
Amortisation of intangible assets
20,378
-
Operating lease charges
457,241
415,181
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
168
152
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
9,163,046
7,888,249
7
Investment income
2023
2022
£
£
Interest income
Interest on bank deposits
52,340
1,551
Income from fixed asset investments
Income from shares in group undertakings
459,078
Total income
52,340
460,629
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
52,340
1,551
JOURNEY FURTHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
8
Finance costs
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
66,440
32,399
Other finance costs:
Other interest
2,359
2,141
68,799
34,540
9
Other gains and losses
2023
2022
£
£
Amounts written off investments held at fair value
(1,050)
-
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
506,972
517,789
Deferred tax
Origination and reversal of timing differences
23,725
1,995
Total tax charge
530,697
519,784
On 1st April 2023 the rate of corporation tax increased from 19% to 25%.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
459,171
3,116,681
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
114,793
592,169
Tax effect of expenses that are not deductible in determining taxable profit
410,407
(71,376)
Effect of change in corporation tax rate
(31,889)
Permanent capital allowances in excess of depreciation
13,661
(3,004)
Other non-reversing timing differences
23,725
1,995
Taxation charge for the period
530,697
519,784
JOURNEY FURTHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
11
Dividends
2023
2022
£
£
Interim paid
543,088
874,449
12
Intangible fixed assets
Software
£
Cost
At 1 January 2023
Additions - internally developed
101,129
At 31 December 2023
101,129
Amortisation and impairment
At 1 January 2023
Amortisation charged for the year
20,378
At 31 December 2023
20,378
Carrying amount
At 31 December 2023
80,751
At 31 December 2022
13
Property, plant and equipment
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2023
55,095
240,372
262,421
557,888
Additions
43,706
117,187
43,545
204,438
At 31 December 2023
98,801
357,559
305,966
762,326
Depreciation and impairment
At 1 January 2023
34,914
153,208
145,022
333,144
Depreciation charged in the year
14,376
25,249
69,767
109,392
At 31 December 2023
49,290
178,457
214,789
442,536
Carrying amount
At 31 December 2023
49,511
179,102
91,177
319,790
At 31 December 2022
20,181
87,164
117,399
224,744
JOURNEY FURTHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
14
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
15
1,050
Movements in non-current investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
1,050
Valuation changes
(1,050)
At 31 December 2023
-
Carrying amount
At 31 December 2023
-
At 31 December 2022
1,050
15
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Journey Further Conversion Limited
Old Linen Court, 83-85 Shambles Street, Barnsley S70 2SB
Dormant
Ordinary and VV Shares
100.00
Journey Further Influence Limited
Old Linen Court, 83-85 Shambles Street, Barnsley S70 2SB
Dormant
Ordinary and VV
100.00
16
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
3,534,614
3,773,019
Carrying amount of financial liabilities
Measured at amortised cost
2,581,012
2,518,779
JOURNEY FURTHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
17
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Trade receivables
2,669,803
2,546,066
Amounts owed by group undertakings
751,395
1,113,421
Other receivables
113,416
113,532
Prepayments and accrued income
282,275
236,161
3,816,889
4,009,180
18
Current liabilities
2023
2022
Notes
£
£
Bank loans
20
200,000
200,000
Trade payables
537,010
426,265
Amounts owed to group undertakings
1,050
Corporation tax
202,761
277,789
Other taxation and social security
625,470
799,249
Government grants
22
5,689
6,591
Other payables
419,845
473,905
Accruals and deferred income
939,774
735,276
2,931,599
2,919,075
The bank loan is a government-backed CBILS loan, secured by debentures over the assets of the company and its group, together with guarantees from subsidiary companies and the director.
19
Non-current liabilities
2023
2022
Notes
£
£
Bank loans and overdrafts
20
483,333
683,333
Government grants
22
5,689
483,333
689,022
The bank loan is a government-backed CBILS loan, secured by debentures over the assets of the company and its group, together with guarantees from subsidiary companies and the director.
JOURNEY FURTHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
20
Borrowings
2023
2022
£
£
Bank loans
683,333
883,333
Payable within one year
200,000
200,000
Payable after one year
483,333
683,333
The bank loan is a government-backed CBILS loan, secured by debentures over the assets of the company and its group, together with guarantees from subsidiary companies and the director.
The loan is for a 72 month term, including an initial interest-only period of 12 months. Interest is payable at a rate of 3.80% above the base rate.
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
65,203
41,478
2023
Movements in the year:
£
Liability at 1 January 2023
41,478
Charge to profit or loss
8,076
Effect of change in tax rate - profit or loss
15,649
Liability at 31 December 2023
65,203
The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature within the same period.
JOURNEY FURTHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
22
Government grants
2023
2022
£
£
Arising from government grants
5,689
12,280
Included in the financial statements as follows:
Current liabilities
5,689
6,591
Non-current liabilities
5,689
5,689
12,280
23
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
38,750 Ordinary shares of 0.01p each
4
4
14,372 VV shares of 0.01p each
1
1
5
5
Ordinary shares carry full rights.
VV shares have a 3 year vesting period during which certain rights are restricted. After this period VV shares carry full rights.
24
Operating lease commitments
Lessee
Operating lease payments represent rentals payable by the company for certain of its properties, vehicles and equipment. Leases are negotiated for terms of 1-5 years with rentals fixed for the lease term.
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:
2023
2022
£
£
Within one year
244,438
437,917
Between two and five years
323,589
126,924
568,027
564,841
25
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
JOURNEY FURTHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
25
Related party transactions
(Continued)
- 24 -
Costs recharged to related company
2023
2022
£
£
Entities over which the entity has control, joint control or significant influence
-
129,213
The following amounts were outstanding at the reporting end date:
2022
Amounts due from related parties
£
Entities over which the entity has control, joint control or significant influence
363,615
Amounts outstanding are unsecured and expected to be settled in cash.
JOURNEY FURTHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
26
Directors' transactions
Dividends totalling £0 (2022 - £300,000) were paid in the year in respect of shares held by the company's directors.
27
Ultimate controlling party
The parent company of Journey Further Limited is Journey Further Group Limited. Its registered office is Old Linen Court, 83-85 Shambles Street, Barnsley S70 2SB.
The ultimate controlling party is considered to be Mr R. Skidmore, by virtue of a controlling interest in the parent company.
28
Cash generated from operations
2023
2022
£
£
(Loss)/profit for the year after tax
(71,526)
2,596,897
Adjustments for:
Taxation charged
530,697
519,784
Finance costs
68,799
34,540
Investment income
(52,340)
(460,629)
Amortisation and impairment of intangible assets
20,378
Depreciation and impairment of property, plant and equipment
109,392
101,080
Other gains and losses
1,050
-
Movements in working capital:
Decrease/(increase) in trade and other receivables
192,291
(979,131)
Increase in trade and other payables
88,454
262,071
Decrease in deferred income
(6,591)
(7,675)
Cash generated from operations
880,604
2,066,937
29
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
2,883,550
(766,510)
2,117,040
Borrowings excluding overdrafts
(883,333)
200,000
(683,333)
2,000,217
(566,510)
1,433,707
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