Company registration number 01642045 (England and Wales)
GRANTA PUBLICATIONS
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
GRANTA PUBLICATIONS
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
GRANTA PUBLICATIONS
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
7,125
10,725
Current assets
Stocks
343,459
490,847
Debtors
5
2,303,830
2,203,073
Cash at bank and in hand
278,641
95,137
2,925,930
2,789,057
Creditors: amounts falling due within one year
6
(1,148,829)
(1,296,780)
Net current assets
1,777,101
1,492,277
Total assets less current liabilities
1,784,226
1,503,002
Creditors: amounts falling due after more than one year
7
(543,362)
(14,770,933)
Net assets/(liabilities)
1,240,864
(13,267,931)
Capital and reserves
Called up share capital
9,401,730
9,401,730
Share premium account
1,532,649
1,532,649
Profit and loss reserves
(9,693,515)
(24,202,310)
Total equity
1,240,864
(13,267,931)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 12 September 2024 and are signed on its behalf by:
Sigrid Rausing
Director
Company registration number 01642045 (England and Wales)
GRANTA PUBLICATIONS
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
9,401,730
1,532,649
(23,900,875)
(12,966,496)
Year ended 31 December 2022:
Loss and total comprehensive income
-
-
(301,435)
(301,435)
Balance at 31 December 2022
9,401,730
1,532,649
(24,202,310)
(13,267,931)
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
14,508,795
14,508,795
Balance at 31 December 2023
9,401,730
1,532,649
(9,693,515)
1,240,864
GRANTA PUBLICATIONS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information
Granta Publications is a private unlimited company incorporated in England and Wales. The registered office is 12 Addison Avenue, London, UK, W11 4QR.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements are prepared on a going concern basis as the controlling party has given an undertaking to continue to provide such financial support to the company to enable it to continue trading and to pay its liabilities as they fall due for a period of at least a year from the date of approval of these financial statements, and this includes a commitment not to recall the loans which have been provided to the company within that period. Were such support not to continue beyond that date then adjustments would need to be made to the financial statements as the going concern basis might then prove to be inappropriate.true
1.3
Turnover
Turnover represents amounts receivable for good and services net of VAT and trade discounts from the publication of books in both print and digital form, and income from sales of subsidiary and serial rights to the works on Granta Publications’ lists
Digital sales are handled by third party providers. Sales from these providers are accrued as soon as the relevant supporting information is provided by the third party provider.
1.4
Tangible fixed assets
Tangible fixed assets 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:
Fixtures & fittings
12.5% to 25% per annum
Computer equipment
25% per annum
Website
33% per annum
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.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
GRANTA PUBLICATIONS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs comprise paper, printing and binding and other direct production costs. Costs relating to books are transferred from work in progress to stock upon publication.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
GRANTA PUBLICATIONS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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.
1.13
Advance Payments to Authors
Advances paid to authors are carried forward within debtors until such time as they are recovered from royalties received. The costs carried forward at the end of the accounting period are reviewed and are provided against if the directors consider that they are irrecoverable.
GRANTA PUBLICATIONS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stock and advances provisions
The company publishes and sells works of literary fiction and non-fiction. As a result, it is necessary to consider the recoverability of the associated stock and unearned advances to authors. In determining any provisions, management uses future sales forecasts, their knowledge of the individual titles, and the wider market trends to determine the appropriate level of provision.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
16
17
4
Tangible fixed assets
Fixtures & fittings
Computer equipment
Website
Total
£
£
£
£
Cost
At 1 January 2023
16,151
124,393
5,113
145,657
Additions
1,362
1,362
At 31 December 2023
16,151
124,393
6,475
147,019
Depreciation and impairment
At 1 January 2023
15,781
118,867
284
134,932
Depreciation charged in the year
370
2,850
1,742
4,962
At 31 December 2023
16,151
121,717
2,026
139,894
Carrying amount
At 31 December 2023
2,676
4,449
7,125
At 31 December 2022
370
5,526
4,829
10,725
GRANTA PUBLICATIONS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,272,883
1,113,130
Other debtors
971,589
1,059,733
Prepayments and accrued income
59,358
30,210
2,303,830
2,203,073
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
587,643
643,611
Taxation and social security
26,911
33,723
Other creditors
534,275
619,446
1,148,829
1,296,780
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
543,362
14,770,933
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Brian Clifford
Statutory Auditor:
Bright Grahame Murray
Date of audit report:
16 September 2024
GRANTA PUBLICATIONS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
5,680
6,715
10
Parent company
The company's immediate and ultimate parent company is Granta Holdings Limited.
The ultimate controlling party of that company is Sigrid Rausing.