Company Registration No. 09178013 (England and Wales)
Incisive Business Media Limited
Annual report and financial statements
for the year ended 31 December 2023
Incisive Business Media Limited
Company information
Directors
Simon Foster
Claire Kraft
Company number
09178013
Registered office
New London House
172 Drury Lane
London
WC2B 5QR
Independent auditor
BDO LLP
55 Baker Street
London
W1U 7EU
Bankers
HSBC Bank plc
69 Pall Mall
London
SW1Y 5EY
Incisive Business Media Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Notes to the financial statements
13 - 28
Incisive Business Media Limited
Strategic report
For the year ended 31 December 2023
1

The directors present the strategic report for the year ended 31 December 2023 for Incisive Business Media Limited.

Review of the Business

The company’s principal activity is the provision of information, analysis and events for the asset management and financial services sectors. The company delivers the information via a variety of platforms, including websites, live and digital events. Our major brands include Investment Week, Professional Adviser and Professional Pensions. The company holds the trade, license and other assets relating to the group’s brands. Intellectual property rights are either owned by the company or licensed and owned by its parent company Incisive Business Media (IP) Limited.

As reported in the prior year, the Incisive Media group was acquired by Arc Media Holdings Limited and became part of the Arc group. Following the acquisition, there were several changes within the Incisive Media group structure. Historical intellectual property (IP) related to the Tech brands was transferred from Incisive Business Media IP Limited (IBMIP) to Incisive Business Media Limited (IBM) in exchange for a shareholding in IBM. Subsequently, IBM sold the Tech division’s trade and assets to The Channel Company EMEA Limited (TCCE) in return for shares in TCCE. TCCE then began trading under the Tech division brands. Later, IBM sold its entire stake in TCCE to The Channel Company International Limited. As a result, the IM Group no longer owns any trade or assets associated with the Tech division, which includes the brands Computing, CRN, and Channel Partner Insight.

The results for the Company show turnover of £16.5m (2022 - £18.9m) and an operating profit of £1.2m (2022 -£1.6m) for the year ended 31 December 2023. The drop in revenue and profits are due to the sale of the tech business as described above as well as a slight decrease in digital media revenues.

Key Performance Indicators

The Directors monitor the performance of the business by reference to key financial performance indicators. These indicators include revenue, contribution and earnings before tax, depreciation and amortisation (EBITDA).

2023
2022
£
£
PBT
1,168,695
24,903,603
Interest
917
(105,761)
Depreciation
229,806
281,388
Amortisation
340,288
479,582
Other gains
-
(23,151,646)
EBITDA
1,739,705
2,407,166

In addition to the above KPIs, each division has a managing director responsible for the operation of the division and they use a number of other KPIs to manage and develop the business and achieve the group’s objectives. These include, but are not limited to, yield management analysis, subscription renewal rates, forward bookings and pacing reports each with comparatives versus budget, prior financial year and the last rolling twelve months where appropriate.

Incisive Business Media Limited
Strategic report (continued)
For the year ended 31 December 2023
2
Prinicipal Risks and Uncertainties

The objective of the Board is to manage risk across the Group (Arc Investco Limited and its subsidiaries) of which the Company is a member, in order to enable the Group to achieve its business objectives. Changes to these objectives may result in a change to the risks faced by the Group and this is monitored closely by the Board. The main risks arising from the Group's financial instruments which also impact the Company are credit risk and liquidity risk.

 

Credit risk

In the normal course of business, the Company incurs credit risk associated with cash and trade receivables. The Company follows the Group's credit policy that is used to manage this exposure to credit risk. The company does not have a significant concentration of risk with any single entity.

 

Liquidity risk

Liquidity risk represents the Company's ability to meet its contractual obligations. The Group evaluates its liquidity requirements on an ongoing basis for all entities within the Group. The Company generates sufficient cash flows from its operating activities to meet its financial obligations.

Future development

The Company’s strategic objective is to develop market-leading brands that engage senior, professional audiences in large and growing end-markets by delivering business critical information, analysis and professional networks through digital and live platforms. Our business model is centred on delivering our clients access to these audiences through content focused and performance led marketing services and events.

 

While the Company is focused on continually improving and growing its products and the solutions that we can offer clients by investing where necessary, we also have a strong focus on the cost base and a key objective of growing the operating margins to improve profitability.

 

On behalf of the board

Simon Foster
Director
30 September 2024
Incisive Business Media Limited
Directors' report
For the year ended 31 December 2023
3

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

Principal activities

The Company's principal activity is the provision of information, analysis and events for the asset management, financial services, enterprise technology and sustainability sectors. We deliver this information via a variety of platforms including websites, live and digital events, and both digital and printed editions. Our major brands include Investment Week, Professional Adviser, Professional Pensions and Business Green.

Results and dividends

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

Ordinary dividends paid during the year amounted to £6,001,000 (2022: £25,874,091). The directors do not recommend payment of a final dividend (2022: £nil).

Directors

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

Leighton Newbury
(Resigned 31 March 2024)
Jonathon Whiteley
(Resigned 31 March 2024)
Simon Foster
Claire Kraft
(Appointed 31 March 2024)
Post reporting date events

The Directors confirm that there have been no post balance sheet events that require disclosure or that have a significant impact on the financial statements as of the date of this report.

Auditor

The auditor, BDO LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Statement of directors' responsibilities

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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

 

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, the directors are required to:

 

Incisive Business Media Limited
Directors' report (continued)
For the year ended 31 December 2023
4

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.

Matters covered in the Strategic report

Details of the Company's Business review, Principal Risk and Uncertainties, Financial Key Performance Indicator and Future Development sections are disclosed in the Strategic Report as permitted by s414c(11) of the Companies Act.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware.

Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Going concern

The company remains profitable and is expected to continue to operate profitably for the foreseeable future. After reviewing the resources and credit facilities available to the company, the directors are confident that the company has sufficient resources to continue its operations for the foreseeable future. Although not expected to be needed, additionally, the directors have received confirmation from the ultimate parent company, Arc Investco Limited, that financial support will be provided if the situation arises. Arc Investco Limited has confirmed both its ability and intention to offer financial assistance to the company for a period of at least 12 months plus one day from the signing of the financial statements. The directors of the company are common directors of the parent company and are confident support will be available if needed.

 

Based on the company's business activities and the availability of financial support from its parent company, the directors have a reasonable expectation that the company will be able to continue its operations for the foreseeable future. Accordingly, they continue to adopt the going concern basis of accounting in preparing the financial statements.

On behalf of the board
Simon Foster
Director
30 September 2024
Incisive Business Media Limited
Independent auditor's report
To the members of Incisive Business Media Limited
5
Opinion on the financial statements

In our opinion the financial statements:

 

We have audited the financial statements of Incisive Business Media Limited (“the Company”) for the year ended 31 December 2023 which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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

Independence

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.

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 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.

Other information

The Directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Incisive Business Media Limited
Independent auditor's report (continued)
To the members of Incisive Business Media Limited
6

Other Companies Act 2006 reporting

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

 

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

Incisive Business Media Limited
Independent auditor's report (continued)
To the members of Incisive Business Media Limited
7

Extent to which the audit was 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 material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Non-compliance with laws and regulations

 

Based on:

 

we considered the significant laws and regulations to be Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice), the Companies Act of 2006, Data Protection Act 2018, General Data Protection Regulation (GDPR), and UK tax legislation.

 

The Company is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be regulations such as National Insurance and VAT requirements.

 

Our procedures in respect of the above included:

Incisive Business Media Limited
Independent auditor's report (continued)
To the members of Incisive Business Media Limited
8

Fraud

 

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

o Detecting and responding to the risks of fraud; and

o Internal controls established to mitigate risks related to fraud.

 

Based on our risk assessment, we considered the areas most susceptible to fraud to be revenue recognition and management override of controls.

 

Our procedures in respect of the above included:

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Incisive Business Media Limited
Independent auditor's report (continued)
To the members of Incisive Business Media Limited
9

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.

Peter Smithson (Senior Statutory Auditor)
30 September 2024
For and on behalf of BDO LLP
Accountants
Statutory Auditors
55 Baker Street
London
W1U 7EU
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
Incisive Business Media Limited
Statement of comprehensive income
For the year ended 31 December 2023
10
2023
2022
as restated
Notes
£
£
Turnover
3
16,482,939
18,930,358
Cost of sales
(10,842,706)
(12,338,428)
Gross profit
5,640,233
6,591,930
Administrative expenses
(4,484,971)
(4,945,734)
Other operating income
14,350
-
0
Operating profit
4
1,169,612
1,646,196
Interest receivable and similar income
7
-
0
106,779
Interest payable and similar expenses
8
(917)
(1,018)
Other gains and losses
9
-
23,151,646
Profit before taxation
1,168,695
24,903,603
Tax on profit
10
446,599
(355,322)
Profit for the financial year
1,615,294
24,548,281

The income statement has been prepared on the basis that all operations are continuing operations.

 

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

The notes on pages 13 to 28 form part of these financial statements.

 

Incisive Business Media Limited
Statement of financial position
As at 31 December 2023
11
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
788,467
677,180
Tangible assets
13
506,980
575,953
1,295,447
1,253,133
Current assets
Debtors
14
17,008,179
11,401,001
Cash at bank and in hand
873,776
3,349,409
17,881,955
14,750,410
Creditors: amounts falling due within one year
15
(12,641,625)
(5,082,060)
Net current assets
5,240,330
9,668,350
Total assets less current liabilities
6,535,777
10,921,483
Provisions for liabilities
Provisions
16
161,446
161,446
(161,446)
(161,446)
Net assets
6,374,331
10,760,037
Capital and reserves
Called up share capital
19
6
6
Share premium account
20
318,203
318,203
Other reserves
21
(1,526,769)
(1,526,769)
Profit and loss reserves
7,582,891
11,968,597
Total equity
6,374,331
10,760,037

The notes on pages 13 to 28 form part of these financial statements.

 

The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
Simon Foster
Director
Company Registration No. 09178013
Incisive Business Media Limited
Statement of changes in equity
For the year ended 31 December 2023
12
Share capital
Share premium account
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
5
7,610,708
(1,526,769)
5,683,699
11,767,643
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
24,548,281
24,548,281
Issue of share capital
19
1
318,203
-
-
318,204
Dividends
11
-
-
-
(25,874,091)
(25,874,091)
Reduction of shares
19
-
0
(7,610,708)
-
7,610,708
-
0
Balance at 31 December 2022
6
318,203
(1,526,769)
11,968,597
10,760,037
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
1,615,294
1,615,294
Dividends
11
-
-
-
(6,001,000)
(6,001,000)
Balance at 31 December 2023
6
318,203
(1,526,769)
7,582,891
6,374,331

The notes on pages 13 to 28 form part of these financial statements.

 

Incisive Business Media Limited
Notes to the financial statements
For the year ended 31 December 2023
13
1
Accounting policies
Company information

Incisive Business Media Limited is a private company limited by shares incorporated in England and Wales. The registered office is New London House, 172 Drury Lane, London, WC2B 5QR. The company's principal activity is set out in the directors' report.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in pound sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The results of Incisive Business Media Limited are included in the consolidated financial statements of Arc Investco Limited as at 31 December 2023 which are available from Unit 4 Fulwood Park, Caxton Road, Fulwood, Preston, PR2 9NZ.

1.2
Going concern

The company remains profitable and is expected to continue to operate profitably for the foreseeable future. After reviewing the resources and credit facilities available to the company, the directors are confident that the company has sufficient resources to continue its operations for the foreseeable future. Although not expected to be needed, additionally, the directors have received confirmation from the ultimate parent company, Arc Investco Limited, that financial support will be provided if the situation arises. Arc Investco Limited has confirmed both its ability and intention to offer financial assistance to the company for a period of at least 12 months plus one day from the signing of the financial statements. The directors of the company are common directors of the parent company and are confident support will be available if needed.true

 

Based on the company's business activities and the availability of financial support from its parent company, the directors have a reasonable expectation that the company will be able to continue its operations for the foreseeable future. Accordingly, they continue to adopt the going concern basis of accounting in preparing the financial statements.

Incisive Business Media Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
14
1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

The company recognises turnover when (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the company retains no continuing involvement or control over the goods; (c) the amount of turnover can be measured reliably; (d) it is probable that future economic benefits will flow to the entity and (e) when the specific criteria relating to each of the company's sales channels have been met, as described below.

 

Where payments are received in advance of the turnover being recognised, the turnover is deferred on the statement of financial position as a liability until the turnover is earned.

Turnover for the key services provided by the company is recognised as follows:

 

(i) Events

 

The company runs a portfolio of events for businesses including conferences, exhibitions, awards evenings and training. Turnover from the provisions of events, including sponsorship, is recognised in the accounting period when the services are provided to the customer.

 

(ii) Subscriptions and other content

 

The company published print and digital content which customers purchase either through annually renewable subscription contracts or through one time purchases. Turnover relating to one time purchases is recognised on sale of the content to the customer, which is considered the point of delivery. Turnover relating to annual subscription contracts is recognised as the company's obligations under the contract are delivered to the customer, which is typically on a straight line basis over the period of the contract.

 

(iii) Advertising

 

The company generates advertising turnover from customers from both print and digital platforms. Turnover is recognised in the accounting period in which the services are provided to the customer which, for print, is when the content is published and for digital, over the period of the advertising agreement.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. The cost of software acquired includes the cost of implementation including testing and tailoring the software to the company's requirements, prior to the software coming into use.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
3 years
Intellectual property
10 years
Incisive Business Media Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
15
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
Full term of lease
Fixtures and fittings
2 - 10 years
Computer equipment
3 - 4 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Incisive Business Media Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
16
Basic financial assets

Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Incisive Business Media Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
17
1.8
Financial instruments (continued)
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. Where losses are surrendered to other companies within the group to obtain group relief for corporation tax, no charge is made for their use by the surrendering company.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.

Incisive Business Media Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
18
1.11
Taxation (continued)

Group relief

The Company and its related companies utilise the allocation of group relief whereby current year tax losses from one company will be surrendered to a company with current year taxable profits. The amounts surrendered from the loss-making company will not exceed the amount of the profit making Group taxable profits.

 

1.12
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

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

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.16
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.

Incisive Business Media Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
19
2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment of tangible and intangible assets

Determine whether there are indicators of impairment of the company's tangible and intangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Recoverability of amounts owed by group undertakings

We consider the need for any provision for impairment of the carrying value of amounts owed by group undertakings, based on management's estimate of the prospect of recovering the amounts due, which includes considering the solvency of the counterparty and its future outlook, based on budgets and forecasts prepared by management. No such provisions have been made as at 31 December 2022.

3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Events
9,350,919
9,597,419
Subscriptions and other content
4,447,849
5,416,761
Digital advertising
2,680,065
3,775,492
Print advertising
4,106
140,686
16,482,939
18,930,358

All turnover for 2023 and 2022 arose in the United Kingdom.

Incisive Business Media Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
20
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
221
(56,026)
Fees payable to the company's auditor for the audit of the company's financial statements
54,000
50,000
Depreciation of owned tangible fixed assets
229,806
281,388
Amortisation of intangible assets
340,288
479,582
Operating lease charges
324,591
312,956
5
Employees

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

2023
2022
Number
Number
Restated
Editorial and production
35
29
Sales, Marketing and events management
81
104
Administration
20
11
Total
136
144

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
7,294,764
7,853,330
Social security costs
885,357
1,058,306
Pension costs
266,631
323,242
8,446,752
9,234,878

Remuneration costs for sales staff are included within cost of sales and total £2,200,805 (2022: £2,404,138).

 

On review of employee numbers, management identified an error in the allocation of employee numbers in the prior year which has been corrected to assist with comparability with the current year disclosure.

Incisive Business Media Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
21
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
653,013
673,763
Company pension contributions to defined contribution schemes
43,610
25,125
696,623
698,888

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
393,658
364,000
Company pension contributions to defined contribution schemes
26,100
10,000
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest receivable from group companies
-
0
106,779
8
Interest payable and similar expenses
2023
2022
£
£
Other interest on financial liabilities
917
1,018
9
Other gains and losses
2023
2022
£
£
Gain on disposal of fixed asset investments
-
0
23,151,646
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
419,140
Adjustments in respect of prior periods
(419,140)
(33,339)
Total current tax
(419,140)
385,801
Incisive Business Media Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
10
Taxation
2023
2022
£
£ (continued)
22
Deferred tax
Origination and reversal of timing differences
(25,466)
(9,995)
Changes in tax rates
(1,602)
(21,284)
Previously unrecognised tax loss, tax credit or timing difference
-
0
800
Adjustment in respect of prior periods
(391)
-
0
Total deferred tax
(27,459)
(30,479)
Total tax (credit)/charge
(446,599)
355,322

The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,168,695
24,903,603
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
274,883
4,731,685
Tax effect of expenses that are not deductible in determining taxable profit
74,745
97,502
Tax effect of income not taxable in determining taxable profit
-
0
(4,398,813)
Adjustments in respect of prior years
(419,531)
(32,539)
Effect of change in corporation tax rate
(1,602)
(21,284)
Group relief
(375,094)
-
0
Tax rate changes
-
0
(21,229)
Taxation (credit)/charge for the year
(446,599)
355,322

The company has an unrecognised deferred tax asset of £1,177,215 (2022 - £1,161,958) comprised of capital losses and trading losses which are not expected to be relieved against future profits in the foreseeable period.

Factors that may affect future tax charges

 

The Finance Act 2021 was substantively enacted in May 2021 and increased the corporation tax rate from 19% to 25% with effect from 1 April 2023. The deferred taxation balances have been measured using the rates expected to apply in the reporting periods when the timing differences reverse.

Incisive Business Media Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
23
11
Dividends
2023
2022
£
£
Interim paid
6,001,000
25,874,091

During the year, the Company declared and paid a dividend to its shareholders of £6,001,000 (2022: £25,874,091). No amounts were outstanding in respect of this dividend at the year end (2022: £nil).

12
Intangible fixed assets
Software
Intellectual property
Total
£
£
£
Cost
At 1 January 2023
-
0
2,981,626
2,981,626
Additions
451,575
-
0
451,575
At 31 December 2023
451,575
2,981,626
3,433,201
Amortisation and impairment
At 1 January 2023
-
0
2,304,446
2,304,446
Amortisation charged for the year
-
0
340,288
340,288
At 31 December 2023
-
0
2,644,734
2,644,734
Carrying amount
At 31 December 2023
451,575
336,892
788,467
At 31 December 2022
-
0
677,180
677,180

Intangible fixed assets represent the trade and licences in respect of the group trademarks and websites transferred from other group companies.

Incisive Business Media Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
24
13
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2023
311,939
417,951
1,444,536
2,174,426
Additions
-
0
32,324
128,509
160,833
At 31 December 2023
311,939
450,275
1,573,045
2,335,259
Depreciation and impairment
At 1 January 2023
309,709
249,606
1,039,158
1,598,473
Depreciation charged in the year
-
0
57,412
172,394
229,806
At 31 December 2023
309,709
307,018
1,211,552
1,828,279
Carrying amount
At 31 December 2023
2,230
143,257
361,493
506,980
At 31 December 2022
2,230
168,345
405,378
575,953
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,319,968
2,423,016
Corporation tax recoverable
364,156
-
0
Amounts owed by group undertakings
13,067,267
8,122,702
Other debtors
182,259
410,618
Prepayments and accrued income
967,867
365,461
16,901,517
11,321,797
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 17)
106,662
79,204
Total debtors
17,008,179
11,401,001

The trade debtor balance includes a provision for bad debts of £70,818 (2022: £205,077).

 

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

Incisive Business Media Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
25
15
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
989,476
661,061
Amounts owed to group undertakings
8,135,778
-
0
Corporation tax
-
0
375,055
Other taxation and social security
711,288
191,833
Other creditors
-
0
1,215,012
Accruals and deferred income
2,805,083
2,639,099
12,641,625
5,082,060

Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

16
Provisions for liabilities
2023
2022
£
£
Dilapidations
161,446
161,446
Movements on provisions:
Dilapidations
£
At 1 January 2023 and 31 December 2023
161,446
17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
44,258
-
Fixed asset timing differences
-
25,098
Short term timing differences
62,404
54,106
106,662
79,204
Incisive Business Media Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
17
Deferred taxation (continued)
26
2023
Movements in the year:
£
Asset at 1 January 2023
(79,204)
Credit to profit or loss
(27,458)
Asset at 31 December 2023
(106,662)

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
266,631
323,242

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.

Contributions totalling £90,155 (2022 - £98,087) were payable to the funds at the year end.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
6
6
6
6

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

On 31 May 2022 the right to any IP licenses relating to the Tech brands were transferred from IBMIP to IBM in exchange for one share in IBM. This transaction was undertaken at book value, resulting in share premium of £318,203 arising on the share issue.

20
Share premium account

The share premium account includes the premium on issue of equity shares, net of any issue costs

21
Merger reserve
2023
2022
£
£
At the beginning and end of the year
(1,526,769)
(1,526,769)
Incisive Business Media Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
21
Merger reserve (continued)
27

The merger reserve represents the difference between the consideration paid and the net book value of the assets transferred of Open Door Media Publishing Limited and The Financial Services Forum Limited as part of a group restructure at 31 December 2019.

22
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
355,597
297,535
Between two and five years
886,404
1,242,001
1,242,001
1,539,536
23
Events after the reporting date

There are no disclosable post balance sheet events.

24
Related party transactions

The company has taken advantage of the exemption under paragraph 33.1A of the Financial Reporting Standard 102 not to disclose transactions with other wholly owned members of the wider group.

25
Ultimate controlling party

The immediate parent undertaking is Incisive Business Media (IP) Limited, a company incorporated in England and Wales. The ultimate parent company is Arc Investco Limited. This is the only group of which the company is a member for which group financial statements are prepared. Copies of the group financial statements are available from the company's registered office at Unit 4 Fulwood Park, Caxton Road, Fulwood, Preston, England, PR2 9NZ.

 

In the opinion of the directors, there is no ultimate controlling party.

Incisive Business Media Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
28
26
Prior period adjustment

Management has reviewed the classification of certain expenses and has determined that salary and other costs for marketing staff should be classified as administrative expenses. These costs were previously categorised as distribution costs. The comparative figures in the profit and loss account have therefore been restated to give consistent presentation across the two years. The restatement does not affect reported profit for the period or the balance sheet.

Changes to the statement of financial position
As previously reported
Adjustment
As restated at 31 Dec 2022
£
£
£
Net assets
10,760,037
-
10,760,037
Capital and reserves
Total equity
10,760,037
-
10,760,037
Changes to the income statement
As previously reported
Adjustment
As restated
Period ended 31 December 2022
£
£
£
Cost of sales
(13,383,469)
1,045,041
(12,338,428)
Administrative expenses
(3,900,693)
(1,045,041)
(4,945,734)
Profit for the financial period
24,548,281
-
24,548,281
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2022
£
Total adjustments
-
Profit as previously reported
24,548,281
Profit as adjusted
24,548,281
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