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Registered number: 08197142









Touch Medical Media Group Holdings Ltd









Annual Report and Consolidated Financial Statements

For the Year Ended 31 December 2023

 
Touch Medical Media Group Holdings Ltd
 
 
Company Information


Directors
B Kent 
B Tempest 
C Goodwin 
L Kent 
E Sheldrick 




Registered number
08197142



Registered office
3 Stockport Exchange

Stockport

Cheshire

SK1 3GG




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

3 Stockport Exchange

Stockport

SK1 3GG





 
Touch Medical Media Group Holdings Ltd
 

Contents



Page
Group Strategic Report
 
1 - 3
Directors' Report
 
4 - 5
Independent Auditors' Report
 
6 - 9
Consolidated Statement of Comprehensive Income
 
10
Consolidated Balance Sheet
 
11
Company Balance Sheet
 
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 - 33


 
Touch Medical Media Group Holdings Ltd
 
 
Group Strategic Report
For the Year Ended 31 December 2023

Introduction
 
The directors present their Strategic Report for the year ended 31 December 2023.
The principal activities of the Group are the publication of learned journals and the provision of medical education.

Business review
 
Touch Medical Group is a leading international provider of global independent medical education and medical communications which develops medical education content delivered by expert faculty covering nine major therapy areas.
The Group offers a broad set of integrated services to pharmaceutical (“pharma”) and biopharmaceutical (“biopharma”) via its wholly owned subsidiaries Touch Independent Medical Education Limited (“touchIME”) and Touch Medical Communications Limited (“TMC”). The Group also includes a third wholly owned subsidiary Touch Medical Media Services Limited (“TMMS”), which provides central business support services to the separate trading companies. During 2023 the Group also established Touch Independent Medical Education USA LLC (“touchIME USA”), a new trading subsidiary registered in Delaware, which is designed to meet the compliance needs of IME supporters in North America.
Independent Medical Education describes educational content that is developed at ‘arm’s length’ from supporting companies. It is focused on disease awareness and compounds in clinical development and is supported by the medical affairs and grant teams within supporter companies. Expert faculty explain and discuss the rationale behind specific approaches to disease management and share the scientific evidence base – the ultimate goal is to positively impact and improve clinical practice and patient health outcomes.
TMC delivers MedComms, which is predominantly focused on brand and marketing teams within pharmaceutical company clients, supporting newly licensed brands in the market, introducing these brands to HCPs, and educating them on how best to use them in their clinical practice.
touchIME and TMC are uniquely placed to support new medicines in the market, with touchIME predominantly working on compounds from phase 2 to very early launch, and TMC focusing on the post marketing authorisation phase.
The Group has delivered considerable organic growth in recent years, supported by a track record of investment in operating platforms, management, and wider teams.
Today, the business counts 42 of the top 50 global Delivery Pharma companies and an increasing cohort of innovative biopharma companies amongst its clients. The Group has a global client reach and operating platform, with significant focus on the US and Europe.
As an open access network, Touch optimises levels of engagement through a variety of publicity tactics. This contrasts with some key competitors who operate closed networks and have a bigger reliance on their HCP databases to drive engagement which can be limiting. Management believes closed networks will not survive and that Touch being an open network is a key differentiator and gives them a competitive advantage in its ability to reach a higher number of healthcare professionals (HCPs) with highly relevant content delivered on the right platform and at the right time. Touch uses a blended tactical approach including leveraging 150+ established society partnerships (2.3M HCP network), social media campaigns across all key platforms, communication via their HCP database and organic traffic resulting in engagement levels that are significantly higher compared to that of the competition. 
 
Page 1

 
Touch Medical Media Group Holdings Ltd
 

Group Strategic Report (continued)
For the Year Ended 31 December 2023

The Touch platforms, which are underpinned by 385 world renowned editorial board members (including a high-profile Editor-in-Chief for each therapy area), include over 11,000 pieces of trusted high quality scientific, fair, and balanced content. Website visitors are forecast to be close to 2 million in FY24.
2023  started strongly, with Q1 sales ahead of budget and the pipeline continuing to grow in value and diversify. However, during the second half of the year there was a reduction in project volumes,  especially in the IME business - a result of several factors driven by the wider market:
 
nervousness amongst supporters around the Inflationary Reduction Act (“IRA”) in the USA, which amongst several things is aimed at reducing the cost of prescription drug prices;
a regulatory issue whereby a Discovery Pharma was fined for a compliance breach, entirely unrelated to Touch but a cause of heightened legal scrutiny around new contract terms; and
general economic uncertainty related to the war in Ukraine and Brexit, contributing to high levels of cost inflation.
 
Despite these external pressures, Group turnover remained above £10.1 million in the year ended December 2023, reduced from £12.5 million in the year ended 31 December 2022.
EBITDA decreased from a £1.63m profit in the year ended 31 December 2022 to a loss of £1.71m in the year ended 31 December 2023.
In response to the market slowdown the business reduced its expenditure swiftly and prudently. Unfortunately, this included a reduction in headcount the directors thank all employees past and present for their hard work and dedication during the period.
The Group benefited in FY23 from strong levels of cash reserves relative to its size, which reflected the high proportion of funding being received in advance of project delivery. As a result of the market slowdown, cash reserves were utilised to manage working capital, which led to a reduction from £4.0m on 31 Dec 2022 to £2.3m on 31 Dec 2023. During the year, the Group borrowed £1m, repayable over five years, in order to mitigate against any potential working capital issues - however, these did not materialise and the loan balance has not been utilised. The Group’s net cash position has stabilised and begun to improve in FY24.
In 2024 the market has improved, with most supporters having either recommenced spend or confirmed larger budgets for the year. Consequently, sales levels in H1 2024 have markedly increased on the prior year, and the Group has returned to profitability.

Page 2

 
Touch Medical Media Group Holdings Ltd
 

Group Strategic Report (continued)
For the Year Ended 31 December 2023

Principal risks and uncertainties
 
In recent years, high volume growth especially in the IME (independent medical education) market led to there being a limited medical writing resource pool. During FY21 and FY22 the Group mitigated this risk by investing in recruitment and growth of its in-house medical, editorial and project management teams. However, the unexpected weakening in market conditions during FY23 meant that the Group’s fixed cost base was overly leveraged, and while the business was able to reduce costs considerably, it took several months to stabilise.
All of the steps taken to reduce costs during FY23 mean the business has now returned to profitability off a reduced sales pipeline, and is now much better protected against any further market slowdown. Downside trading risk is further mitigated by the access to additional loan capital which provides cash flow headroom, and allows the business to begin to invest again in its people and systems in order to drive growth.
The Group operates in a highly regulated market with strict rules around independence which dictate that continuing education serves the needs of patients and the public, is based on valid content, and is free from commercial influence. The Group mitigates this risk via a structure that maintains a distinct separation between its touchIME and TMC businesses, and via close management oversight over all activities to ensure compliance. In addition, the Group maintains close relationships with the Accreditation Council for Continuing Medical Education (“ACCME”) and the European Accreditation Council for Continuing Medical Education (“EACCME”), who are the key accreditors for physician targeted CME content. The Group has been audited by the ACCME and is approved as meeting their standards, the accreditation of touchIME content is provided by the University of South Florida, Health (“USF”), one of the largest not-for-profit accreditors in the USA. Both touchIME and TMC maintain regular, compulsory training, regarding EFPIA and ABPI standards.
The Group like all businesses is vulnerable to high levels of cost inflation – it mitigates the exposure as much as possible via close control of all overheads and strong relationships with its key suppliers.

Financial key performance indicators
 

2023
2022

£
£



Turnover
10,191,181
12,531,372
Gross profit
6,335,018
8,180,664
EBITDA
(1,711,535)
1,630,521
Profit/(loss) before tax
(2,046,832)
1,372,015


Other key performance indicators
 

2023
2022



Average headcount
103
92
Cash less debt
£1,326,121
£3,995,709



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



B Kent
Director
Date: 6 September 2024

Page 3

 
Touch Medical Media Group Holdings Ltd
 
 
 
Directors' Report
For the Year Ended 31 December 2023

The directors present their report and the financial statements for the year ended 31 December 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;

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.

Results and dividends

The loss for the year, after taxation, amounted to £1,798,712 (2022 - profit £1,091,511).

Dividends paid on equity capital amounted to £757,000 (2022: £762,000). The directors do not recommend the payment of a final dividend.

Directors

The directors who served during the year were:

B Kent 
B Tempest 
C Goodwin 
L Kent 
E Sheldrick 

Page 4

 
Touch Medical Media Group Holdings Ltd
 
 
 
Directors' Report (continued)
For the Year Ended 31 December 2023

Future developments

The Group completed a cost reduction programme in early 2024, and as a consequence has returned to profitability. Market conditions have improved during the year but have not recovered fully, and as such the Group’s short term focus remains on improving sales performance and maximising margin, in order to deliver stable growth. At the same time, the Group has taken numerous steps during the year to date to ensure it is primed to take advantage of improvements in the market over the longer term.
The Group continues to boast a successful track record of innovation and a focus on new product development, which will ensure it remains at the forefront of medical advancements.

Matters covered in the Group Strategic Report

The directors have referred to their risk management policies in the Group Strategic Report.

Disclosure of information to auditors

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 auditors are 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 auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsHurst Accountants Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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



B Kent
Director
Date: 6 September 2024

Page 5

 
Touch Medical Media Group Holdings Ltd
 
 
 
Independent Auditors' Report to the Members of Touch Medical Media Group Holdings Ltd
 

Opinion


We have audited the financial statements of Touch Medical Media Group Holdings Ltd (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, 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 31 December 2023 and of the Group's 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.


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 Auditors' 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 6

 
Touch Medical Media Group Holdings Ltd
 
 
 
Independent Auditors' Report to the Members of Touch Medical Media Group Holdings Ltd (continued)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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.


Page 7

 
Touch Medical Media Group Holdings Ltd
 
 
 
Independent Auditors' Report to the Members of Touch Medical Media Group Holdings Ltd (continued)


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 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:

Identifying and assessing potential risks related to irregularities
 
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

The nature of the industry and sector in which the group operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud. 
Supporting documentation relating to the Group's policies and procedures for:
°Identifying, evaluating, and complying with laws and regulations
°Detecting and responding to the risks of fraud
The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
The legal and regulatory framework in which the Group operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Group, including General Data Protection requirements, and Anti-bribery and Corruption.

Audit response to risks identified
Our procedures to respond to the risks identified included the following:
 
Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
Evaluation of management’s controls designed to prevent and detect irregularities.
Enquiring of management about any actual and potential litigation and claims.
Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
Page 8

 
Touch Medical Media Group Holdings Ltd
 
 
 
Independent Auditors' Report to the Members of Touch Medical Media Group Holdings Ltd (continued)


We have also considered the risk of fraud through management override of controls by:
 
Testing the appropriateness of journal entries and other adjustments to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error.
Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them.  Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.


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 Auditors' Report.


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 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.




Mike Jackson (Senior Statutory Auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors
3 Stockport Exchange
Stockport
SK1 3GG

9 September 2024
Page 9

 
Touch Medical Media Group Holdings Ltd
 
 
Consolidated Statement of Comprehensive Income
For the Year Ended 31 December 2023

2023
2022
£
£

  

Turnover
 4 
10,191,181
12,531,372

Cost of sales
  
(3,856,163)
(4,350,728)

Gross profit
  
6,335,018
8,180,644

Administrative expenses
  
(8,367,323)
(6,808,760)

Operating (loss)/profit
 5 
(2,032,305)
1,371,884

Interest receivable and similar income
 9 
5,420
131

Interest payable and similar expenses
 10 
(19,947)
-

(Loss)/profit before tax
  
(2,046,832)
1,372,015

Tax on (loss)/profit
 11 
248,120
(280,504)

(Loss)/profit for the financial year
  
(1,798,712)
1,091,511

Profit for the year attributable to:
  

Owners of the parent company
  
(1,798,712)
1,091,511

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

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 17 to 33 form part of these financial statements.

Page 10

 
Touch Medical Media Group Holdings Ltd
Registered number: 08197142

Consolidated Balance Sheet
As at 31 December 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
425,151
506,307

Tangible assets
 14 
47,854
71,943

  
473,005
578,250

Current assets
  

Debtors: amounts falling due within one year
 16 
1,041,154
1,823,718

Cash at bank and in hand
 17 
2,299,327
3,995,709

  
3,340,481
5,819,427

Creditors: amounts falling due within one year
 18 
(2,824,467)
(3,627,102)

Net current assets
  
 
 
516,014
 
 
2,192,325

Total assets less current liabilities
  
989,019
2,770,575

Creditors: amounts falling due after more than one year
 19 
(797,837)
-

Provisions for liabilities
  

Deferred tax
 21 
(81,533)
(105,214)

Net assets
  
109,649
2,665,361


Capital and reserves
  

Called up share capital 
 22 
3,060
3,060

Profit and loss account
 23 
106,589
2,662,301

  
109,649
2,665,361


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


B Kent
Director
Date: 6 September 2024

The notes on pages 17 to 33 form part of these financial statements.

Page 11

 
Touch Medical Media Group Holdings Ltd
Registered number: 08197142

Company Balance Sheet
As at 31 December 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 15 
144,854
115,293

Current assets
  

Debtors: amounts falling due within one year
 16 
6,202,945
4,480,761

Cash at bank and in hand
 17 
1,217,145
710,785

  
7,420,090
5,191,546

Creditors: amounts falling due within one year
 18 
(6,699,832)
(4,045,533)

Net current assets
  
 
 
720,258
 
 
1,146,013

Creditors: amounts falling due after more than one year
 19 
(797,837)
-

Net assets
  
67,275
1,261,306


Capital and reserves
  

Called up share capital 
 22 
3,060
3,060

Profit and loss account brought forward
  
1,258,246
1,133,348

Loss/(profit) for the year
  
(437,031)
886,898

Dividends

 12 

(757,000)
(762,000)

Profit and loss account carried forward
  
64,215
1,258,246

  
67,275
1,261,306


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


B Kent
Director
Date: 6 September 2024

The notes on pages 17 to 33 form part of these financial statements.

Page 12

 
Touch Medical Media Group Holdings Ltd
 

Consolidated Statement of Changes in Equity
For the Year Ended 31 December 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2023
3,060
2,662,301
2,665,361


Comprehensive income for the year

Loss for the year
-
(1,798,712)
(1,798,712)


Contributions by and distributions to owners

Dividends: Equity capital
-
(757,000)
(757,000)


At 31 December 2023
3,060
106,589
109,649



Consolidated Statement of Changes in Equity
For the Year Ended 31 December 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
3,060
2,332,790
2,335,850


Comprehensive income for the year

Profit for the year
-
1,091,511
1,091,511


Contributions by and distributions to owners

Dividends: Equity capital
-
(762,000)
(762,000)


At 31 December 2022
3,060
2,662,301
2,665,361


The notes on pages 17 to 33 form part of these financial statements.

Page 13

 
Touch Medical Media Group Holdings Ltd
 

Company Statement of Changes in Equity
For the Year Ended 31 December 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2023
3,060
1,258,246
1,261,306


Comprehensive income for the year

Loss for the year
-
(437,031)
(437,031)


Contributions by and distributions to owners

Dividends: Equity capital
-
(757,000)
(757,000)


At 31 December 2023
3,060
64,215
67,275



Company Statement of Changes in Equity
For the Year Ended 31 December 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
3,060
1,133,348
1,136,408


Comprehensive income for the year

Profit for the year
-
886,898
886,898


Contributions by and distributions to owners

Dividends: Equity capital
-
(762,000)
(762,000)


At 31 December 2022
3,060
1,258,246
1,261,306


The notes on pages 17 to 33 form part of these financial statements.

Page 14

 
Touch Medical Media Group Holdings Ltd
 

Consolidated Statement of Cash Flows
For the Year Ended 31 December 2023

2023
2022
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(1,798,712)
1,091,511

Adjustments for:

Amortisation of intangible assets
290,539
225,693

Depreciation of tangible assets
44,748
32,944

Interest paid
19,947
-

Interest received
(5,420)
(131)

Taxation charge/(credit)
(248,120)
280,504

Decrease in debtors
1,007,003
1,303,593

(Decrease) in creditors
(754,452)
(2,719,295)

Corporation tax (paid)
(223,552)
(460,133)

Net cash generated from operating activities

(1,668,019)
(245,314)


Cash flows from investing activities

Purchase of intangible fixed assets
(209,383)
(357,106)

Purchase of tangible fixed assets
(20,659)
(51,861)

Interest received
5,420
131

Net cash from investing activities

(224,622)
(408,836)

Cash flows from financing activities

New secured loans
1,015,000
-

Repayment of loans
(41,794)
-

Dividends paid
(757,000)
(762,000)

Interest paid
(19,947)
-

Net (decrease) in cash and cash equivalents
(1,696,382)
(1,416,150)

Cash and cash equivalents at beginning of year
3,995,709
5,411,859

Cash and cash equivalents at the end of year
2,299,327
3,995,709


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,299,327
3,995,709


Page 15

 
Touch Medical Media Group Holdings Ltd
 

Consolidated Analysis of Net Debt
For the Year Ended 31 December 2023






At 1 January 2023
Cash flows
Non-cash changes
New bank loan
At 31 December 2023
£

£

£

£

£

Cash at bank and in hand

3,995,709

(1,696,382)

-

-

2,299,327

Debt due after 1 year

-

41,794

175,369

(1,015,000)

(797,837)

Debt due within 1 year

-

-

(175,369)

-

(175,369)


3,995,709
(1,654,588)
-
(1,015,000)
1,326,121

Page 16

 
Touch Medical Media Group Holdings Ltd
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

1.


General information

Touch Medical Media Group Holdings Limited is a private company limited by shares incorporated in England and Wales. The address of the registered office is 3 Stockport Exchange, Stockport, SK1 3GG. The company's registration number is 08197142.
The nature of the group's operations and its principal activities is the publication of learned journals and the provision of medical education. The nature of the company's principal activity is that of a holding company.

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.

As permitted by FRS 102, the company has not presented its own Statement of cash flows in these financial statements as the cash flows for the company are included in the Consolidated statement of cash flows presented and and net debt reconciliation within the 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 Balance Sheet, 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.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2014.

 
2.3

Going concern

The financial statements have been prepared on a going concern basis. The following paragraphs set out the basis of which the directors have reached their conclusion.
Management has prepared forecasts which show the company will be able to realise its assets and discharge its liabilities in the normal course of business. Accordingly, the directors believe it is appropriate to prepare the financial statements on a going concern basis.

Page 17

 
Touch Medical Media Group Holdings Ltd
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.4

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.

 
2.5

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:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Revenue is typically recognised alongside 7 milestones. A relevant percentage of revenue is released when these milestones are met. These milestones can be measured reliably thanks to the extensive project management systems the company has in place. 

 
2.6

Interest income

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

 
2.7

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.

Page 18

 
Touch Medical Media Group Holdings Ltd
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
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 Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. 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 balance sheet 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 balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
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 balance sheet date.

Page 19

 
Touch Medical Media Group Holdings Ltd
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.11

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

Other 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.

 The estimated useful lives range as follows:

Product development
-
3
years
IT development
-
3
years
Goodwill
-
5
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.

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:

Office equipment
-
33%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 20

 
Touch Medical Media Group Holdings Ltd
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
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.

 
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.

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.

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.
 

Page 21

 
Touch Medical Media Group Holdings Ltd
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)


2.17
Financial instruments (continued)

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.

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.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

 
2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 22

 
Touch Medical Media Group Holdings Ltd
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates that affect amounts recognised for assets and liabilities at the report date and the amounts of revenue and expenses incurred during the reporting period. Actual outcomes may differ from these judgements, estimates and assumptions. The judgements, estimates and assumptions that have the most significant effect on the carrying value of assets and liabilities of the company are discussed below. 
Revenue and margin recognition
The group's revenue recognition policies which are set out in note 2.4 are central to how the group values the work it has carried out in each financial year. These policies require assessments and judgements to be made in respect of budgeted versus actual costs. The group reviews, and when necessary, revises the estimates surrounding actual costs as the contracts progress. Following this review, the company deferred income totalling £1,146,835 (2022: £2,176,194).
Goodwill
Goodwill acquired on business combinations is capitalised on the balance sheet and amortised over its expected useful economic life, or ten years, whichever is shorter. At 31 December 2023 the carrying value of goodwill was £46,116 (2022: £69,174)


4.


Turnover

The whole of the turnover is attributable to the group's principal activity as described in note 1.

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
1,124,108
645,408

Rest of Europe
943,487
2,224,686

Rest of the world
8,123,586
9,661,278

10,191,181
12,531,372



5.


Operating (loss)/profit

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

2023
2022
£
£

Exchange differences
85,925
(175,783)

Page 23

 
Touch Medical Media Group Holdings Ltd
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

6.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
20,800
20,800


All other services
3,800
27,965


7.


Employees

Staff costs, including directors' remuneration, were as follows:


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


Wages and salaries
6,130,725
5,446,335
337,903
401,036

Social security costs
561,503
509,168
6,785
41,665

Cost of defined contribution scheme
333,864
277,031
41,282
44,016

7,026,092
6,232,534
385,970
486,717


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.









Directors
10
10
4
4



Business and educational development
7
9
-
4



Medical and editorial
46
32
-
-



Project management
12
13
-
-



Admin
28
28
-
-

103
92
4
8

Page 24

 
Touch Medical Media Group Holdings Ltd
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
30,586
32,003

Group contributions to defined contribution pension schemes
24,000
24,000

54,586
56,003


During the year retirement benefits were accruing to 1 directors (2022 - 1) in respect of defined contribution pension schemes.


9.


Interest receivable

2023
2022
£
£


Other interest receivable
5,420
131


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
19,947
-


11.


Taxation


2023
2022
£
£



Current tax on profits for the year
-
224,439

Adjustments in respect of previous periods
(224,439)
-


Total current tax
(224,439)
224,439

Deferred tax


Origination and reversal of timing differences
(23,681)
30,813

Changes to tax rates
-
25,252

Total deferred tax
(23,681)
56,065


Taxation on (loss)/profit on ordinary activities
(248,120)
280,504
Page 25

 
Touch Medical Media Group Holdings Ltd
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023
 
11.Taxation (continued)


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 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(2,046,832)
1,372,015


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
(481,415)
260,683

Effects of:


Non-tax deductible amortisation of goodwill and impairment
6,567
4,381

Expenses not deductible for tax purposes
75,928
10,180

Losses carried back
277,838
-

Change in future tax rates
-
25,251

Super deduction pool adjustment
(1,389)
(19,991)

Remeasurement of deferred tax for changes in tax rates
(7,703)
-

Adjustment in respect of prior periods
(224,439)
-

Losses carried forward
106,493
-

Total tax charge for the year
(248,120)
280,504


Factors that may affect future tax charges

From 1 April 2023 the main rate of corporation tax increased to 25%. The 23.52% rate used above reflects 9 months of the new rate and 3 months of the previous rate of 19%.


12.


Dividends

2023
2022
£
£


Dividends paid on equity capital
757,000
762,000

Page 26

 
Touch Medical Media Group Holdings Ltd
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

13.


Intangible assets

Group





Product development
IT development
Goodwill
Total

£
£
£
£



Cost


At 1 January 2023
15,241
922,436
115,290
1,052,967


Additions
2,635
177,188
29,560
209,383



At 31 December 2023

17,876
1,099,624
144,850
1,262,350



Amortisation


At 1 January 2023
3,433
497,111
46,116
546,660


Charge for the year
5,725
261,756
23,058
290,539



At 31 December 2023

9,158
758,867
69,174
837,199



Net book value



At 31 December 2023
8,718
340,757
75,676
425,151



At 31 December 2022
11,808
425,325
69,174
506,307



The parent company holds no intangible fixed assets.
The goodwill has arisen on consolidation and is being amortised over 5 years.
Product development relates to the development of new and existing products. Capitalised costs include review, scoping out and design of specifications performed by a third party consultant. These costs are being amortised over 3 years.
IT Development relates to the development of an integrated financial and customer relationship management system, the website, and other internal IT development costs. These costs are being amortised over 3 years.

Page 27

 
Touch Medical Media Group Holdings Ltd
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

14.


Tangible fixed assets

Group






Office equipment

£



Cost or valuation


At 1 January 2023
153,993


Additions
20,659



At 31 December 2023

174,652



Depreciation


At 1 January 2023
82,050


Charge the year
44,748



At 31 December 2023

126,798



Net book value



At 31 December 2023
47,854



At 31 December 2022
71,943

The parent company holds no tangible fixed assets.


15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
115,293


Additions
29,561



At 31 December 2023
144,854




Page 28

 
Touch Medical Media Group Holdings Ltd
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Touch Medical Communications Limited
Ordinary
100%
Touch Independent Medical Education Limited
Ordinary
100%
Touch Medical Media Services Limited
Ordinary
100%
Touch Independent Medical Education USA LLC
Ordinary
100%

The address of the subsidiary undertakings is 3 Stockport Exchange, Stockport, SK1 3GG.
All subsidiaries are included in the consolidated accounts.


16.


Debtors

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


Trade debtors
491,868
1,611,532
-
68,438

Amounts owed by group undertakings
-
-
6,190,747
4,388,832

Other debtors
54,569
46,447
2,274
2,432

Prepayments and accrued income
270,278
165,739
-
10,500

Tax recoverable
224,439
-
-
-

Deferred taxation
-
-
9,924
10,559

1,041,154
1,823,718
6,202,945
4,480,761



17.


Cash and cash equivalents

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

Cash at bank and in hand
2,299,327
3,995,709
1,217,145
710,785


Page 29

 
Touch Medical Media Group Holdings Ltd
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

18.


Creditors: Amounts falling due within one year

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

Bank loans
175,369
-
175,369
-

Trade creditors
383,248
352,681
20,036
40,764

Amounts owed to group undertakings
-
-
6,298,442
3,671,439

Corporation tax
-
223,552
-
-

Other taxation and social security
153,455
198,458
153,455
198,458

Other creditors
39,698
42,236
39,698
42,236

Accruals and deferred income
2,072,697
2,810,175
12,832
92,636

2,824,467
3,627,102
6,699,832
4,045,533


Bank loans are secured by fixed and floating charges against the assets of the group.
Amounts owed to group are unsecured, interest free and repayable on demand.


19.


Creditors: Amounts falling due after more than one year

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

Bank loans
797,837
-
797,837
-


Bank loans are secured by fixed and floating charges against the assets of the group.

Page 30

 
Touch Medical Media Group Holdings Ltd
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

20.


Loans


Analysis of the maturity of loans is given below:


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

Amounts falling due within one year

Bank loans
175,369
-
175,369
-

Amounts falling due 1-2 years

Bank loans
190,006
-
190,006
-

Amounts falling due 2-5 years

Bank loans
607,831
-
607,831
-


973,206
-
973,206
-


The bank loan attracts an interest rate of 2.74% over the Bank of England base rate and is repayable in monthly instalments.


21.


Deferred taxation


Group



2023
2022


£

£






Liability at beginning of year
(105,214)
(49,149)


Charged to profit or loss
23,681
(56,065)



Liability at end of year
(81,533)
(105,214)

Page 31

 
Touch Medical Media Group Holdings Ltd
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023
 
21.Deferred taxation (continued)

Company


2023
2022


£

£






Asset at beginning of year
10,559
4,793


Credited to profit or loss
(635)
5,766



Asset at end of year
9,924
10,559

The provision for deferred taxation is made up as follows:

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

Accelerated capital allowances
(91,457)
(115,773)
-
-

Other timing differences
9,924
10,559
9,924
10,559

(81,533)
(105,214)
9,924
10,559


The deferred tax has been calculated using the 25% corporation tax rate.
Deferred tax on losses not recognised total £106,493.


22.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



300,000 (2022 - 300,000) Ordinary shares of £0.01 each
3,000
3,000
6,000 (2022 - 6,000) Ordinary B shares of £0.01 each
60
60

3,060

3,060

Ordinary shares are entitled to dividends and have full voting rights.
Ordinary B shares are entitled to dividends and have no voting rights.



23.


Reserves

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses.

Page 32

 
Touch Medical Media Group Holdings Ltd
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

24.


Share-based payments

The Company has a share option scheme for employees (including directors). Each option was granted over a maximum number of shares.  As at 31 December 2023, the maximum number of shares in option agreement was 170,400 (2022: 170,400).
The exact number of shares over which the option may be exercised is calculated by reference to a fixed percentage of the issued ordinary share capital of the Company at the date of exercise. As at 31 December 2023, the number of shares exercisable was 82,813 
(2022: 82,813).
The plan is exit only with the exception that the Board may permit the exercise of EMI options prior to an exit.
Valuations of the option shares were produced for each round of options and were agreed by HMRC using the comparable earnings valuation method.
During the period, nil 
(2022: 12,000) options were granted, nil (2022: 24,800) options lapsed, and nil (2022: 4,000) options were surrendered. No options were exercised. 
The fair value of the options are not considered to be material so an equity-settled share based payment adjustment is not required in the profit and loss account.


25.


Pension commitments

The Group operates a defined contribution pension scheme. The pension cost charge represents contributions payable by the group to the fund and amounted to £333,864 (2022: £277,031). The outstanding amount payable at the year end is £39,698 (2022: £42,236). The assets of the scheme are held separately from those of the group in an independently administered fund.


26.


Related party transactions

Professional fees and expenses totalling £27,590 (2022: £29,380) were charged by a director of the Group in the year. At the year end £2,600 (2022: £NIL) was owed to the director.
The company has made use of the provisions available under FRS 102, paragraph 33.1A, to not disclose transactions between companies wholly owned within the group.
Directors received dividends during the period of £468,500 
(2022: £762,000).
Key management personnel (including directors) compensation totalled £1,449,492
 (2022: £1,018,261).


27.


Controlling party

During the year there was no overall controlling party of Touch Medical Media Group Holdings Limited.

 
Page 33