Company registration number 03921985 (England and Wales)
TRADEDOUBLER LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
TRADEDOUBLER LIMITED
COMPANY INFORMATION
Directors
N V Wagstrom
M K Stadelmeyer
Secretary
Goodwille Limited
Company number
03921985
Registered office
1 Chapel Street
Warwick
United Kingdom
CV34  4HL
Auditor
Ernst & Young LLP
Bedford House
16 Bedford Street
Belfast
County Antrim
United Kingdom
BT2 7DT
Bankers
Nordea Bank Finland Plc
London Branch
8th Floor, City Place House
55 Basinghall Street
London
EC2V 5NB
Solicitors
Goodwille Limited
24 Old Queen Street
London
United Kingdom
SW1H 9HP
TRADEDOUBLER LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 35
TRADEDOUBLER LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report and audited financial statements for the year ended 31 December 2023.

 

REVIEW OF BUSINESS

The results and key performance indicators for the year are as follows:

 

Turnover for the year increased by 36.79% to £22,387k (2022: £16,366k).

 

Gross profit for the year was £3,366k (2022: £2,925k).

 

Profit before tax was £446k (2022: £259k).

 

Cash and cash equivalents at 31 December 2023 were £3,080k (2022: £1,899k).

 

Net assets at 31 December 2023 were £1,156k (2022: £818k).

 

The average number of employees during the year was 42 (2022: 35).

 

PRINCIPAL RISKS AND UNCERTAINTIES

The company handles a very large number of transactions between different parties, and in order to accomplish this the company depends on the Tradedoubler group's advanced technical platform, which is continuously improving. Identifying and managing risks, both at group level and at company level is a central component in the governance and control of the company's business.

 

Following Russia’s invasion of Ukraine on 24 February 2022, and the ongoing war, the security policy situation has changed rapidly in Europe. As well as the UK, many countries within and outside the European Union itself, have sanctioned some Russian banks, oligarchs and leaders. Some Russian banks are excluded from the SWIFT system, which is a global provider of secure financial messaging services. The effects of the sanctions have been minimal to Tradedoubler’s business more than two years after the emergence of the war. The Israel/Palestine conflict has had no impact on the business so far. The long-term effects of the conflicts are still hard to predict.

 

In 2023 there was still a cost of living crisis due to inflation and increased market interest. Tradedoubler have not seen any greater impact from this crisis, but the management are following the progress closely. Tradedoubler’s business model is somewhat risk advert in these terms as the earnings are based on order value and should follow inflation, and our clients only receive marketing costs for sales they have actually had, which should be attractive in uncertain times.

 

Other than the risks discussed above, the company distinguishes between market-related risks, operational risks, liquidity risks, customer credit risks and legal risks. The most significant risks affecting the company's operations are described below:

 

Market-related risks

Market-related risks refer to the risks and opportunities that are related to external factors, which may impact the company's operations, profitability and financial position. Market-related risks include foreign exchange risks which are detailed in Note 20 to the financial statements.

 

Tradedoubler operates within the dynamic environment of digital and mobile commerce, which is characterised by positive trends in both consumer and advertising expenditure. The digital marketing sector in Europe is changing rapidly. Channels such as social media, video and mobile are expanding their market share and advertising is increasingly traded on an automated basis. At the same time, growth within traditional affiliate marketing is declining.

 

Tradedoubler's aim is to address a larger part of the digital marketplace with a significantly expanded and integrated performance marketing offering across all major digital channels. Tradedoubler's new expanded performance marketing offering uses a powerful combination of data and artificial intelligence to find new customers for its clients' businesses. Tradedoubler has begun testing this offering in the United Kingdom with positive results. Tradedoubler's ultimate aim is to help digital marketers succeed by creating smarter results through traffic, technology and expertise.

TRADEDOUBLER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
PRINCIPAL RISKS AND UNCERTAINTIES (continued)

Operational risks

Tradedoubler is dependent on people's use of, and behaviour on, the internet. Should internet use decrease, or

present behavioural patterns change, for example so that users are prevented from reaching websites displaying adverts, this may affect Tradedoubler's operations.

 

Tradedoubler sits on all the main industry bodies and so plays a role in the monitoring and shaping of internet use in the United Kingdom and is therefore ideally positioned to adapt to changes in the market as they occur.

 

As internet marketing develops, increasing demands are made of the company's employees and their skills. The company is dependent upon being able to attract and retain skilled personnel, key employees and management. As a market leader, Tradedoubler is able to attract top talent in the industry. The company is currently reviewing its HR strategy in order to improve retention amongst its current employees.

 

The company's business operations are dependent on computer and communications systems functioning effectively and without disruptions. A breakdown or fault in public communications or in internal systems may complicate or render Tradedoubler's operations impossible. All systems are vulnerable, and although the company takes appropriate precautionary measures, unlawful acts from third parties, natural catastrophes or other unforeseen events can result in information at Tradedoubler, or at third parties, being destroyed or lost.

 

 

Customer credit risk

Credit risk primarily arises from credit exposures to trade receivables. New clients are subjected to credit rating reports, which provides the basis for setting credit and payment terms and conditions for each client. The credit controls provide an assessment of clients' financial position based on information obtained from various credit information companies.

 

The company has established a credit policy that determines how clients are managed, with decision-making levels set for various credit limits. The company's business model is based on advanced payment from clients. When there are deviations from the advance payment policy, the company's credit policy serves as the basis for any decision. No specific risk concentration exists for any customer category. In most cases, a publisher only gets paid when the customer has paid their invoice to Tradedoubler, therefore reducing the company's customer credit risk.

 

Liquidity risk

Liquidity risk is managed through the group's treasury and finance function which includes close monitoring and control of cash flows to ensure adequate funding for the company's day-to-day operations. In most cases a publisher is only paid when the customer has paid Tradedoubler. This therefore minimises the company's liquidity risk. Credit checks are carried out on new customers and if considered necessary advance payments will be required.

 

Legal risks

From time to time the company is involved in disputes in the normal course of business, and typically these involve small amounts. The company is also exposed to disputes involving intellectual property rights and the potential infringement of the company's rights and property. The company's operations are dependent on the group's technical platform which is largely internally developed and is protected by copyright and trade secrets legislation. The company and the group have an in-house legal department which regularly monitors and manages these risks.

 

TRADEDOUBLER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

FUTURE DEVELOPMENTS

Internet marketing is conducted in the same way as any other form of marketing, in order to raise awareness of the consumer or to get the consumer to carry out an action, such as a purchase of a product or service. Over the past two decades, the internet has established itself as an obvious tool for finding information, communicating and shopping. Both internet usage and the number of web pages have had strong growth during this period. The growth in internet usage has created a significant market for internet marketing services and products.

 

The growth in internet usage has created a significant market for internet marketing services and products. According to IAB UK Digital Adspend H1 2023 report, the digital marketing spend in the United Kingdom grew by 11% in 2023 and reached a total of £29.6 billion.

 

Internet marketing competes for advertising money with traditional forms of media like newspapers, magazines, TV, radio, cinema and outdoor advertising. The spend on internet marketing has grown significantly year-on-year and this trend is expected to continue into the future as the population spends more time on the internet compared with the other traditional forms of media.

 

 

On behalf of the board

N V Wagstrom
Director
19 September 2024
TRADEDOUBLER LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors present their annual report and audited financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of developing affiliate networks on the internet.

Results and dividends

The results for the year are set out on page 10.

No dividends were declared or paid during the year ended 31 December 2023 and 2022.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

N V Wagstrom
M K Stadelmeyer

Going concern

The company achieved a net profit for the year of £338k (2022: £547k) and had net assets of £1,156k (2022: £818k) and net current assets of £1,143k (2022: £771k) at the 31 December 2023. The company has reverted the downward sloping trend in turnover and show double digit growth in turnover for the second year in a row. These results and the long-term contracts with a number of customers and suppliers, enable the directors to believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook.

 

Following Russia’s invasion of Ukraine on 24 February 2022, and the ongoing war, the security policy situation has changed rapidly in Europe. As well as the UK, many countries within and outside the European Union, and the European Union itself, have anctioned some Russian banks, oligarchs and leaders. Some Russian banks are excluded from the SWIFT system, which is a global provider of secure financial messaging services. The effects of the sanctions have been minimal to Tradedoubler’s business more than two years after the emergence of the war. The Israel/Palestine conflict has had no impact on the business so far. The long-term effects of the conflicts are still hard to predict.

Tradedoubler has also obtained a letter of support from its parent company Tradedoubler AB. This support covers a period up to the 31 December 2025.

 

After making enquiries, the directors have a reasonable expectation that the company has adequate resources and parent support to continue in operational existence for a period to 31 December 2025.

 

Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements. As a result, the financial statements do not include any adjustments to the carrying amount or classification of assets and liabilities that would be necessary if the company were unable to continue as a going concern.

Supplier payment policy

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

 

The company's current policy concerning the payment of trade creditors is to:

 

 

TRADEDOUBLER LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Post reporting date events

There are no post balance sheet events that require disclosing.

Auditor

Ernst and Young LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

On behalf of the board
N V Wagstrom
Director
19 September 2024
TRADEDOUBLER LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with UK-adopted international accounting standards in conformity with the Companies Act 2006. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, International Accounting Standard 1 requires that directors:

 

 

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

 

Under applicable law and regulations, the directors are also responsible for preparing a Strategic Report and Directors’ Report, that comply with that law and those regulations. The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website.

TRADEDOUBLER LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TRADEDOUBLER LIMITED
- 7 -
Opinion

We have audited the financial statements of Tradedoubler Limited 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, Statement of Cash Flows and the related notes 1 to 23, including material accounting policy information. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company’s ability to continue as a going concern for a period to 31 December 2025.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company’s ability to continue as a going concern.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report.

 

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this 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 the other information, we are required to report that fact.

 

We have nothing to report in this regard.

 

TRADEDOUBLER LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRADEDOUBLER LIMITED
- 8 -

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or 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:

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement set out on page 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

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

Auditor's responsibilities for the audit of the financial statements

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

TRADEDOUBLER LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRADEDOUBLER LIMITED
- 9 -

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

 

Our approach was as follows:

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Neil Warnock (Senior Statutory Auditor)
For and on behalf of Ernst & Young LLP
20 September 2024
Chartered Accountants
Statutory Auditor
Bedford House
16 Bedford Street
Belfast
County Antrim
United Kingdom
BT2 7DT
TRADEDOUBLER LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Revenue
4
22,386,790
16,365,656
Cost of sales
(19,020,445)
(13,440,631)
Gross profit
3,366,345
2,925,025
Administrative expenses
(3,053,151)
(2,695,905)
Operating profit
5
313,194
229,120
Interest and similar income
9
132,838
30,169
Finance costs
8
(160)
(650)
Profit before taxation
445,872
258,639
Income tax (expense)/income
10
(107,665)
288,633
Profit and total comprehensive income for the year
19
338,207
547,272

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations. The notes included on pages 14 to 35 form part of these financial statements.

TRADEDOUBLER LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Note
£
£
Non-current assets
Property, plant and equipment
11
2,939
4,891
Deferred tax asset
16
9,638
41,671
12,577
46,562
Current assets
Trade and other receivables
12
5,824,213
6,213,214
Current tax recoverable
-
0
259,678
Cash and cash equivalents
3,080,272
1,899,027
8,904,485
8,371,919
Total assets
8,917,062
8,418,481
Current liabilities
Trade and other payables
14
7,684,922
7,600,719
Current tax liabilities
76,171
-
0
7,761,093
7,600,719
Net current assets
1,143,392
771,200
Total liabilities
7,761,093
7,600,719
Net assets
1,155,969
817,762
Equity
Called up share capital
18
100,000
100,000
Retained earnings
19
1,055,969
717,762
Total equity
1,155,969
817,762
The statement of financial position has been prepared on the basis that all operations are continuing operations. The notes included on pages 14 to 35 form part of these financial statements.
The financial statements were approved by the board of directors and authorised for issue on 19 September 2024 and are signed on its behalf by:
N V Wagstrom
Director
Company Registration No. 03921985
TRADEDOUBLER LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Called up share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2022
100,000
170,490
270,490
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
547,272
547,272
Balances at 31 December 2022
100,000
717,762
817,762
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
338,207
338,207
Balances at 31 December 2023
100,000
1,055,969
1,155,969
Called up share capital represents the issued and fully paid up share capital of the company.
Retained earnings represent all current and prior period profit, losses and dividends paid.
The statement of changes in equity has been prepared on the basis that all operations are continuing operations. The notes included on pages 14 to 35 form part of these financial statements.
TRADEDOUBLER LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
792,418
666,996
Interest paid
(160)
(650)
Income taxes refunded/(paid)
260,217
(21,497)
Net cash inflow from operating activities
1,052,475
644,849
Investing activities
Purchase of property, plant and equipment
(4,068)
-
0
Interest received
132,838
30,169
Net cash generated from investing activities
128,770
30,169
Net increase in cash and cash equivalents
1,181,245
675,018
Cash and cash equivalents at beginning of year
1,899,027
1,224,009
Cash and cash equivalents at end of year
3,080,272
1,899,027
TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

Tradedoubler Limited is a private company limited by shares incorporated and domiciled in England and Wales. The registered office is 1 Chapel Street, Warwick, United Kingdom, CV34 4HL.

1.1
Accounting convention

These financial statements have been prepared in accordance with the UK adopted international accounting standards. The financial statements have been prepared under the historical cost convention. No new accounting standards have been applied in the preparation of the company's financial statements for the year ended 31 December 2023.

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 £.

1.2
Going concern

Ttruehe directors have at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for a period of one year from the date of approval of the financial statements.

 

The company achieved a net profit for the year of £338k (2022: £547k) and had net assets of £1,156k (2022: £818k) and net current assets of £1,143k (2022: £771k) at the 31 December 2023. The company has reverted the downward sloping trend in turnover and show double digit growth in turnover for the second year in a row. These results and the long-term contracts with a number of customers and suppliers, enable the directors to believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook.

 

Following Russia’s invasion of Ukraine on 24 February 2022, and the ongoing war, the security policy situation has changed rapidly in Europe. As well as the UK, many countries within and outside the European Union, and the European Union itself, have anctioned some Russian banks, oligarchs and leaders. Some Russian banks are excluded from the SWIFT system, which is a global provider of secure financial messaging services. The effects of the sanctions have been minimal to Tradedoubler’s business more than two years after the emergence of the war. The Israel/Palestine conflict has had no impact on the business so far. The long-term effects of the conflicts are still hard to predict.

 

Tradedoubler has also obtained a letter of support from its parent company Tradedoubler AB. This support covers a period up to the 31 December 2025.

 

After making enquiries, the directors have a reasonable expectation that the company has adequate resources and parent support to continue in operational existence for a period to 31 December 2025.

Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements. As a result, the financial statements do not include any adjustments to the carrying amount or classification of assets and liabilities that would be necessary if the company were unable to continue as a going concern.

TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.3
Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer. The transfer of control occurs at the point of delivery of a product or service to a customer.

 

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 recognized as interest income.

 

Tradedoubler acts as a principal with its affiliate solution where it connects publishers with advertisers. The company also offers expertise, insights and handle campaigns, as well as having the responsibility of the managing the performance between the different parts.

 

Tradedoubler also acts as an agent with the company's white-label solution where advertisers use the company's technology to handle their own network.

1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of accumulated depreciation and any accumulated 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:

Computers
20% to 33.3% on reducing balance

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 recognised in the income statement.

1.5
Impairment of tangible assets

At each reporting 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.

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.

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.

TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.6
Fair value measurement

IFRS 13 establishes a single source of guidance for all fair value measurements. IFRS 13 does not change when an entity is required to use fair value, but rather provides guidance on how to measure fair value under IFRS when fair value is required or permitted. The resulting calculations under IFRS 13 affected the principles that the company uses to assess the fair value, but the assessment of fair value under IFRS 13 has not materially changed the fair values recognised or disclosed. IFRS 13 mainly impacts the disclosures of the company. It requires specific disclosures about fair value measurements and disclosures of fair values, some of which replace existing disclosure requirements in other standards.

1.7
Cash and cash equivalents

Cash and cash equivalents 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. The company has no short-term liquid investments (2022: £nil).

1.8
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

 

All of the company's financial assets are held at their amortised cost. There are no financial assets measured at fair value through profit or loss or fair value through other comprehensive income.

Financial assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognised initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Financial assets at fair value through other comprehensive income

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

 

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Impairment of financial assets

Financial assets, other than those measured at fair value through profit or loss, are assessed for indicators of impairment at each reporting end date.

 

IFRS 9 requires that impairment losses incurred on financial assets are measured and recognised using the expected credit loss approach. Expected credit losses are the differences between the present value of all contractual cash flows and the present value of expected future cash flows.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.9
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Financial liabilities at fair value through profit or loss

Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:

 

 

Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue 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.

TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
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.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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.

 

Deferred tax is measured at the tax rates that are expected to apply in the periods when temporary differences are expected to reverse, based on tax rates and law enacted or substantively enacted at the date of the statement of financial position. Deferred tax assets and liabilities are not discounted.

 

Pillar Two

The Parent Company assumes full responsibility for the calculation, recognition, and compliance with the Global Minimum Tax under Pillar Two of the OECD/G20 BEPS initiative. The Subsidiary must provide the necessary financial data to the Parent Company to ensure accurate and timely compliance with these international tax obligations, while the impact of Pillar Two will be reflected in the Parent Company's consolidated financial statements.

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 inventories 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
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.14
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

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.

2
Adoption of new and revised standards and changes in accounting policies

There has been no material impact on the financial statements of adopting new standards or amendments.

 

New standards and interpretations not yet adopted

Certain new accounting standards and interpretations have been published that are not mandatory for the year ended 31 December 2023 reporting period and have not been early adopted by the Company. These standards are not expected to have a material impact on the Company in the current or future reporting periods and on foreseeable future transactions.

3
Critical accounting estimates and judgements

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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

One of the company's critical accounting estimates during the year ended 31 December 2023 and 31 December 2022 is the bad debt provision. The company has an established a credit policy to determine what outstanding balances should be included in the bad debt provision.

 

For balances that have been outstanding for less than 3 years, they must fulfill the following criteria:

 

For balances that have been outstanding for more than 3 years, the whole amount is included in the company's bad debt provision.

TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
4
Revenue
2023
2022
£
£
Revenue analysed by class of business
Transactions
21,853,008
15,086,403
Commission
348,569
1,056,436
Network access fees
54,988
41,032
Account management
38,420
33,900
Media spending
90,094
60,230
Hosting
384
5,319
Other
1,327
82,336
22,386,790
16,365,656
2023
2022
£
£
Distribution of revenue
Transaction revenue
21,622,368
15,228,185
Fixed revenue
763,889
1,136,366
Other revenue
533
1,105
22,386,790
16,365,656

Transaction revenues are mainly generated within the framework of various advertising campaigns, where each campaign constitutes a performance commitment. Advertisers only pay a success-based fee to the publisher if the advertising material has actually been used and resulted in the desired transaction for the advertiser. The transaction is then validated by the advertiser and Tradedoubler then reports the revenue as the performance commitment is considered fulfilled.

 

Tradedoubler connects advertisers and publishers, who have no contractual obligations to each other. Tradedoubler provides the advertisers with expertise, insights, campaign management, among other services, and has the main responsibility for the performance between the parties.

 

The assessment according to the criteria in IFRS 15 - Revenue from Contracts with Customers is that transaction income must be reported as gross income. Therefore, transaction revenue also includes publishers’ remuneration earned through Tradedoubler’s network.

 

In cases where advertisers use Tradedoubler’s white-label solution (eg: use Tradedoubler’s technology to manage their own network) customers pay a fixed or variable fee to Tradedoubler, and in some cases the publisher compensation that Tradedoubler later pays to the publishers. This publisher compensation is not included in net sales as Tradedoubler is not considered to have a sufficiently large influence on the outcome, which is one of the criteria for gross revenue recognition in accordance with IFRS 15 - Revenue from Contracts with Customers.

 

Invoicing normally takes place in the same month as the transactions have been validated and with an average credit period of approximately 30 days. In some cases, an advance payment is received for the expected transaction volume for an agreed period.

TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
33,853
(60,285)
Fees payable to the company's auditor for the audit of the company's financial statements
33,675
24,008
Depreciation of property, plant and equipment
6,020
4,890
Bad and doubtful debts
(127,144)
59,773
6
Employees

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

2023
2022
Number
Number
Sales
35
28
Administration
7
7
42
35

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,049,274
1,600,616
Social security costs
289,127
233,982
Pension costs
63,442
50,028
2,401,843
1,884,626
7
Directors' remuneration
2023
2022
£
£
Directors remuneration
-
0
-
0

N V Wagstrom and M K Stadelmeyer received no emoluments from Tradedoubler Limited but were remunerated by virtue of their employment with Tradedoubler AB.

 

No remuneration is charged from Tradedoubler AB as there is no reasonable basis of allocation to Tradedoubler Limited.

TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
8
Finance costs
2023
2022
£
£
Other interest payable
160
650
9
Interest and similar income
2023
2022
£
£
Interest income
Bank deposits
42,176
11,348
Other interest income
90,662
18,821
Total interest income
132,838
30,169
Total interest income for financial assets that are not held at fair value through profit or loss is £42,176 (2022: £11,348)
10
Income tax expense
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
75,400
5,732
Adjustments in respect of prior periods
232
(260,449)
Total UK current tax
75,632
(254,717)
Deferred tax
Origination and reversal of temporary differences
32,033
802
Adjustment in respect of prior periods
-
0
(34,718)
32,033
(33,916)
Total tax charge/(credit)
107,665
(288,633)
TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Income tax expense
(Continued)
- 23 -

The tax assessed for the year is lower than (2022: lower than) the standard rate of corporation tax in the UK. The charge for the year can be reconciled to the profit per the income statement as follows:

2023
2022
£
£
Profit before taxation
445,872
258,639
Expected tax charge based on a corporation tax rate of 23.50% (2022: 19.00%)
104,780
49,141
Effect of expenses not deductible in determining taxable profit
15,562
4,155
Utilisation of tax losses not previously recognised
-
0
(46,762)
Effect of change in UK corporation tax rate
(12,909)
-
0
Under/(over) provided in prior years
232
-
0
Adjustment in respect of prior years current tax
-
0
(260,449)
Adjustment in respect of prior years deferred tax
-
0
(34,718)
Taxation charge/(credit) for the year
107,665
(288,633)

Factors that may affect future tax expense

Future changes in UK tax laws and regulations could further impact the tax rates applicable to our earnings. This includes potential adjustments to existing rates, introduction or alteration of tax reliefs and credits, and amendments to laws governing tax deductions.

 

Changes in international tax regulations, particularly those arising from the OECD/G20 BEPS initiative under Pillar Two, may impact our Global Minimum Tax obligations. The Subsidiary will provide the necessary financial data to support this process, with the impact of Pillar Two reflected in the Parent Company’s consolidated financial statements.

TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
11
Property, plant and equipment
Computers
£
Cost
At 1 January 2022
14,671
At 31 December 2022
14,671
Additions
4,068
At 31 December 2023
18,739
Accumulated depreciation and impairment
At 1 January 2022
4,890
Charge for the year
4,890
At 31 December 2022
9,780
Charge for the year
6,020
At 31 December 2023
15,800
Carrying amount
At 31 December 2023
2,939
At 31 December 2022
4,891
12
Trade and other receivables
2023
2022
£
£
Trade receivables
5,689,886
6,114,723
Provision for bad and doubtful debts
(306,212)
(427,669)
5,383,674
5,687,054
Other receivables
55,440
54,022
Amount owed by parent company and other group undertakings
333,884
194,906
Prepayments
51,215
277,232
5,824,213
6,213,214

Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost under the requirements of IFRS 9 - Financial Instruments. Trade receivables relate to amounts due from customers where Tradedoubler has fulfilled its performance commitment and has an unconditional right to payment.

Amounts owed by parent company and other group undertakings are repayable on demand and unsecured.

Further disclosures relating to financial assets are given in note 20 to the financial statements.
TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
13
Trade receivables - credit risk
Fair value of trade receivables

Due to the short-term nature of the company's trade and other receivables, the directors consider that the carrying amounts of trade and other receivables are approximately equal to their fair values.

No significant receivable balances are impaired at the reporting end date (2022: £nil).

14
Trade and other payables
2023
2022
£
£
Trade payables
596,007
474,112
Amount owed to parent company and other group undertakings
36,367
4,747
Accruals and deferred income
6,583,127
6,979,725
Social security and other taxation
469,421
142,135
7,684,922
7,600,719

Trade payables disclosed above are classified as loans and payables and are therefore measured at amortised cost under the requirements of IFRS 9 - Financial Instruments.

 

Amounts owed to parent company and other group undertakings are repayable on demand, unsecured and interest free.

 

Accruals and deferred income includes £6,284,645 (2022: £6,631,224) which relates to commission earned by the company's publishers but is yet to be paid.

15
Fair value of financial liabilities

Due to the short-term nature of the financial liabilities, the directors consider that the carrying amounts of the financial liabilities measured at amortised cost in the financial statements are approximately equal to their fair values.

 

No significant receivable balances are impaired at the reporting end date (2022: £nil).

TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
16
Deferred taxation

The following are the deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

2023
£
Deferred tax liability at 1 January 2022
-
0
Deferred tax asset at 1 January 2022
(7,755)
Deferred tax movements in prior year
Credit to the profit or loss
(33,916)
Deferred tax liability at 1 January 2023
-
0
Deferred tax asset at 1 January 2023
(41,671)
Deferred tax movements in current year
Debit to the profit or loss
32,033
Deferred tax liability at 31 December 2023
-
0
Deferred tax asset at 31 December 2023
(9,638)

Deferred tax assets and liabilities are offset in the financial statements only where the company has a legally enforceable right to do so.

2023
2022
£
£
Deferred tax assets
(9,638)
(41,671)

The deferred tax asset relates to timing differneces between the net book value reported in the finanical statements and the written down value reported in the compuation.

17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
63,442
50,028

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The total contributions that were paid during the year ended 31 December 2023 was £63,442 (2022: £50,028).

TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
18
Called up share capital
2023
2022
£
£
Issued and fully paid
100,000 Ordinary of £1 each
100,000
100,000
19
Retained earnings
2023
2022
£
£
At the beginning of the year
717,762
170,490
Profit for the year
338,207
547,272
At the end of the year
1,055,969
717,762
TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
20
Financial instruments
Financial assets - loans and receivables
2023
2022
£
£
Trade receivables
5,689,886
6,114,723
Allowance for doubtful debts
(306,212)
(427,669)
5,383,674
5,687,054
Other receivables
55,440
54,022
Current tax receivables
-
259,678
Amount due from parent company
27,909
45,580
Amount due from other group companies
305,975
149,326
Total current financial assets
5,772,998
6,195,660
Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days. Amounts due from parent company and amounts due from other group undertakings are receivable on demand and are generally received within 30 days. There is no difference between the carrying amount and the fair value of any financial assets.
Movement in allowance for doubtful debts:
2023
2022
£
£
Balance at 1 January
427,669
431,407
Doubtful debts booked during the year
174,716
139,435
Doubtful debts reversed during the year
(169,029)
(202,946)
Amounts charged to income statement
(127,144)
59,773
Balance at 31 December
306,212
427,669
The maturity analysis of trade receivables less doubtful debts is as follows:
2023
2022
£
£
Trade receivables, not due
1,693,865
3,103,114
Trade receivables, due between 1-30 days
164,839
1,751,770
Trade receivables, due between 31-90 days
2,400,681
578,070
Trade receivables, due after more than 90 days
1,430,501
681,769
Total trade receivables
5,689,886
6,114,723
Provision for doubtful debts
(306,212)
(427,669)
Total trade receivables less the provision for doubtful debts
5,383,674
5,687,054
TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Financial instruments
(Continued)
- 29 -
In determining the recoverability of trade receivables the company considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the reporting date. The concentration of credit risk is limited due to the customer base being large and unrelated. Accordingly, the directors believe that there is no further credit provision required in excess of the allowance for doubtful debts.
Financial liabilities - loans and payables
2023
2022
£
£
Trade payables - third parties
53,810
8,079
Trade payables - affiliates and clients
542,197
466,033
Accruals
6,583,127
6,979,725
Amount due to parent company
39,070
-
Amount due to other group undertakings
(2,703)
4,747
Total current financial liabilities
7,215,501
7,458,584
There are no financial liabilities at fair value through profit or loss at either 31 December 2023 or 31 December 2022.
Trade payables are non-interest bearing and are generally on terms of 30 to 60 days. Amounts due to parent company and amounts due to other group undertakings are payable on demand and are generally paid within 30 days. There is no difference between the carrying amount and the fair value of any financial liabilities.
The maturity analysis of third party trade payables is as follows:
2023
2022
£
£
Trade payables, not due
452,176
375,748
Trade payables, due between 1-30 days
86,776
45,548
Trade payables, due between 31-90 days
44,390
38,381
Trade payables, due after more than 90 days
12,665
14,435
Total third party trade payables
596,007
474,112
The company has policies in place to ensure that payables are paid within the credit timeframe.
Financial risk management
The company's activities expose it to a variety of financial risks: liquidity risk, credit risk and market risk (including foreign exchange risk and interest rate risk). Risk management policy is set by the parent company Board of Directors in conjunction with the company's management and seeks to minimise potential adverse effects on the company's position.
Liquidity risk
The maturity profile and details of financial liabilities are set out within trade and other payables above. The company finances its operations partly through these financial liabilities.
TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Financial instruments
(Continued)
- 30 -
Liquidity risk is managed through the group's treasury and finance function which includes close monitoring and control of cash flows to ensure adequate funding for the company's day to day operations. In most cases a publisher is only paid when the customer has paid TradeDoubler and this minimizes liquidity risk. Credit checks are carried out on new customers and, if considered necessary, advance payments will be required.
When funding is required for day to day operations, the company's parent company, TradeDoubler AB, provides finance to the company through an intercompany loan, both for current operations and the longer term development of the business. There were no inter company loans payable to the parent company, TradeDoubler AB, at either 31 December 2023 or 31 December 2022.
Customer credit risk
Credit risk primarily arises from credit exposures to trade receivables. New clients are subjected to credit rating reports, which provides the basis for setting credit and payment terms and conditions for each client. The credit controls provide an assessment of clients' financial position based on information obtained from various credit information companies.
The company has established a credit policy that determines how clients are managed, with decision-making levels set for various credit limits. The company's business model is based on advanced payment from clients. When deviations from the advance payment policy are made, the company's credit policy serves as the basis for decision. No specific risk concentration exists for any customer category. Since a publisher in most cases only gets paid when the customer has paid the invoice, the company's customer credit risk is reduced in this way.
Market risk
Market-related risks refer to the risks and opportunities that are related to external factors, which may impact the company's operations, profitability and financial position. Market-related risks and strategies are detailed in the Strategic Report on page 1.
In addition, the company sells and buys internationally and is exposed to foreign exchange risk arising from various currency exposures.  The foreign exchange risk arises where assets or liabilities are denominated in a currency that is not the company's functional currency of pounds sterling.
Foreign exchange risk refers to the risk that changes in exchange rates may affect the income statement, statement of financial position and the statement of cash flows. Foreign exchange risk exists in the form of transaction risk, with the majority share of foreign exchange risk involving the Euro and USD.
Exposure to transaction risk attributable to exchange rate fluctuations in client and supplier invoices is limited since invoicing to customers and from suppliers largely occurs in pounds sterling.
Liquidity risk is managed through the group's treasury and finance function which includes close monitoring and control of cash flows to ensure adequate funding for the company's day to day operations. In most cases a publisher is only paid when the customer has paid TradeDoubler and this minimizes liquidity risk. Credit checks are carried out on new customers and, if considered necessary, advance payments will be required.
Foreign exchange risk also arises in the intra-group lending to and from the parent company. Intra-group lending is not hedged.
The company has significant interest bearing assets and liabilities in relation to amounts due to and from the parent company and group undertakings and accordingly the company's income and operating cash flows are partially dependent of changes in market interest rates. The company's interest rate risk arises from the group borrowing at variable commercial interest rates. The directors are prepared to accept the level of risk this entails.
TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Financial instruments
(Continued)
- 31 -
The sensitivity analysis in the following section relates to the company's position as at the 31 December 2023 and 31 December 2022. The sensitivity analysis have been prepared on the basis that the proportion of financial instruments in foreign currencies are all constant. In calculating the sensitivity analysis, it has been assumed that the sensitivity of the relevant statement of profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held by the company at the 31 December 2023 and 31 December 2022.
The following table demonstrates the sensitivity to a reasonably possible change in the material foreign currencies relating to monetary assets and liabilities which are held by the company in Euros, US dollars, Canadian dollars, Australian dollars and Singapore dollars as at the 31 December 2023 and 31 December 2022. The amount of monetary assets exceeds the amount of monetary liabilities at both dates. The company's exposure to foreign currency changes in all other currencies is not material.
TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Financial instruments
(Continued)
- 32 -
Balance at
Rate of
Effect on
Effect on
in Original
Exchange
profit
pre-tax
Currency
to GBP
before tax
equity
£
£
31 December 2023
Euro
38,349
0.8699
1,668
1,668
38,349
0.8699
1,668
1,668
US Dollar
558,840
0.7870
21,989
21,989
558,840
0.7870
21,989
21,989
Canadian Dollar
57,535
0.5935
1,707
1,707
57,535
0.5935
1,707
1,707
Singapore Dollar
(357)
0.5956
(11)
(11)
(357)
0.5956
(11)
(11)
Australian Dollar
1,869
0.5344
50
50
1,869
0.5344
50
50
31 December 2022
Euro
2,264,429
0.8833
100,008
100,008
2,264,429
0.8833
100,008
100,008
US Dollar
422,194
0.8296
17,513
17,513
422,194
0.8296
17,513
17,513
Canadian Dollar
34,863
0.6125
1,068
1,068
34,863
0.6125
1,068
1,068
Singapore Dollar
(857)
0.6180
(26)
(26)
(857)
0.6180
(26)
(26)
There is no difference between the movement in profit before tax and the movement in pre-tax equity at any date.
The movement on the post-tax effect is a result of the change in the fair value of monetary assets and liabilities denominated in the material foreign currencies, where the functional currency of the entity is a currency other than these material foreign currencies.
Capital risk
The company's treasury policy has been drawn up for the purpose of balancing the group's financial risks. The policy is continually reviewed and has been approved by the parent company's board of directors. The responsibility for the group's financial transactions and risks are tasked to the group's central financial department.
TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
21
Related party disclosure

During the year ended 31 December 2023, the company had the following transactions with related parties under common control, including £41,223 of licence fees invoiced to Tradedoubler Limited by its parent company, Tradedoubler AB (2022: £243,021).

2023
2022
£
£
Related party:
Types of transactions:
Tradedoubler GmbH
Sales
105,763
284,993
Purchases
24,397
4,934
Tradedoubler S.L
Sales
1,372
-
Purchases
1,971
-
Tradedoubler SARL
Sales
2,029
(107)
Purchases
11,848
-
R-Advertising
Sales
5,027
25,415
Tradedoubler Sp. z.o.o
Sales
4,057
-
Purchases
34,216
9,453
Tradedoubler AB
Sales
326,262
374,695
Purchases
(18,039)
230,088
Tradedoubler International AB
Sales
2,726,573
1,741,095
Purchases
1,520
867
Tradedoubler Singapore PTE Ltd
Sales
1,352
-
Purchases
2,702
308
Metapic Sweden AB
Sales
315,707
66,892
Tradedoubler Sweden AB
Sales
676
-
Purchases
-
42
Tradedoubler Australia Pty Ltd
Sales
130
-
Purchases
-
-
TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
21
Related party disclosure
(Continued)
- 34 -
In addition, the company had the following transactions with key management personnel:
2023
2022
£
£
Key management personnel compensation
199,602
147,575
Post-employment benefits
6,875
6,500
206,477
154,075
The related party balances outstanding at the 31 December 2023 and 31 December 2022 were:
2023
2022
£
£
Parent company
Amounts due from
27,909
45,580
Amounts due (to)
(39,070)
-
Other group undertakings
Amounts due from
305,975
149,326
Amounts due (to)
2,703
(4,747)
During the year ended 31 December 2023, dividends of £nil (2022: £nil) were paid to related parties as follows:
2023
2022
£
£
Tradedoubler AB (parent company)
-
-
All transactions with related parties during the year ended 31 December 2023 took place in the normal course of business and at arms length. Amounts owed to and by the parent company and other group undertakings are repayable on demand and unsecured.
22
Controlling party

The company was controlled throughout the current and prior periods by Tradedoubler AB, a company incorporated in Sweden. The directors regard Tradedoubler AB as the immediate and ultimate parent company. Consolidated financial statements of Tradedoubler AB are available to the public and may be obtained from Centralplan 15,111 20 Stockholm, Sweden. The only company required to prepare consolidated financial statements is Tradedoubler AB.

TRADEDOUBLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
23
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
338,207
547,272
Adjustments for:
Taxation charged/(credited)
107,665
(288,633)
Finance costs
160
650
Finance income
(132,838)
(30,169)
Depreciation and impairment of property, plant and equipment
6,020
4,890
Movements in working capital:
Decrease in trade and other receivables
389,001
45,502
Increase in trade and other payables
84,203
387,484
Cash generated from operations
792,418
666,996
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