Company registration number 08998836 (England and Wales)
ANALOGFOLK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
ANALOGFOLK LIMITED
COMPANY INFORMATION
Directors
G Wieynk
S Isiker
M P T Dyke
W G Brock
Company number
08998836
Registered office
1-2 Bath Court
London
EC1R 5AD
Auditor
CLA Evelyn Partners Limited
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
ANALOGFOLK LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Notes to the financial statements
9 - 21
ANALOGFOLK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present the strategic report for the year ended 31 December 2022.

Review of the business

Turnover decreased by £2,277,442 in the year. We made an operating loss of £81,273 (2021 - £1,039,651). Cash reduced by £1,769,841 during the year.

 

Within the profit are the amortisation of intangibles relating to a previous acquisition of £250,000.

Principal risks and uncertainties

Despite a 17.3% year-over-year decline in overall income, primarily due to reduced spending by major technology platforms like Amazon and Meta, the company achieved a significant turnaround in its underlying profitability. Overall profit for the financial year increased to £215,734 following on loss of £663,602 in the previous period, driven by a North American turnaround and the strong growth of our new, emerging service offerings. While strategic investments in our content and AI automation platforms, which support both our business and third-party licensing to larger agency groups, have tempered short-term profits, they position us well for sustainable growth and innovation in the long term.

Development and performance

After successfully course-correcting our North American operations and implementing borderless resourcing alongside a nearshore capability, our focus is now on scaling these achievements. This strategic approach will enable us to continue investing in new features across our product roadmap for both our content and automation platforms, ultimately allowing us to deliver a wider service offering in higher-margin areas.

Key performance indicators
Financial risk management

Currency exchange risk

Our operating loans in our overseas subsidiaries are subject to exchange risk as are our invoicing to client outside the UK.

Funding

We have agreed overdraft facilities of £0.5 million but these continue to be unused in 2022. Working capital and the overall cash position has remained unchanged.

On behalf of the board

G Wieynk
Director
10 October 2024
ANALOGFOLK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company continued to be that of digital technology: product, services, communications, data and transformation.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

G Wieynk
S Isiker
(Appointed 1 August 2023)
M P T Dyke
W G Brock
N A Thomson
(Resigned 1 August 2023)
Auditor

CLA Evelyn Partners Limited 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 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:

 

 

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.

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.

ANALOGFOLK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
G Wieynk
Director
10 October 2024
ANALOGFOLK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ANALOGFOLK LIMITED
- 4 -
Opinion

We have audited the financial statements of AnalogFolk Limited (the 'company') for the year ended 31 December 2022 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 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 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 our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

ANALOGFOLK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ANALOGFOLK LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception

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

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:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

ANALOGFOLK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ANALOGFOLK LIMITED (CONTINUED)
- 6 -

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to;

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.

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.

Keir Singleton
Senior Statutory Auditor
For and on behalf of CLA Evelyn Partners Limited
10 October 2024
Chartered Accountants
Statutory Auditor
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
ANALOGFOLK LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
2022
2021
as restated
Notes
£
£
Turnover
3
10,875,728
13,153,170
Cost of sales
(2,558,169)
(2,630,419)
Gross profit
8,317,559
10,522,751
Administrative expenses
(11,898,373)
(12,351,893)
Other operating income
4
3,508,686
835,574
Operating loss
5
(72,128)
(993,568)
Interest receivable and similar income
8
3,524
34
Interest payable and similar expenses
9
(12,669)
(46,117)
Loss before taxation
(81,273)
(1,039,651)
Tax on loss
10
297,007
376,049
Profit/(loss) for the financial year
215,734
(663,602)
Retained earnings brought forward
4,746,084
5,409,686
Retained earnings carried forward
4,961,818
4,746,084

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ANALOGFOLK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 8 -
2022
2021
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
11
437,500
687,500
Other intangible assets
11
40,946
52,935
Total intangible assets
478,446
740,435
Tangible assets
12
123,526
133,192
601,972
873,627
Current assets
Debtors
13
9,700,498
8,632,432
Cash at bank and in hand
504,302
2,274,143
10,204,800
10,906,575
Creditors: amounts falling due within one year
14
(5,766,524)
(6,958,625)
Net current assets
4,438,276
3,947,950
Total assets less current liabilities
5,040,248
4,821,577
Provisions for liabilities
Deferred tax liability
16
44,957
42,020
(44,957)
(42,020)
Net assets
4,995,291
4,779,557
Capital and reserves
Called up share capital
19
1,000
1,000
Other reserves
32,473
32,473
Profit and loss reserves
4,961,818
4,746,084
Total equity
4,995,291
4,779,557

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 10 October 2024 and are signed on its behalf by:
G Wieynk
Director
Company registration number 08998836 (England and Wales)
ANALOGFOLK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
1
Accounting policies
Company information

AnalogFolk Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1-2 Bath Court, London, EC1R 5AD.

1.1
Accounting convention

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

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

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

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 financial statements of the company are consolidated in the financial statements of AFG Marketing Technologies Limited. These consolidated financial statements are from Companies House.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

The company made a profit for the year of £215,734 (2021 - £663,602 loss) and as at the balance sheet date had net assets of £4,995,291 (2021 - £4,779,557). The in the year to 31 December 2023 the company also made a loss and the directors have prepared detailed cash flow projections with the company expecting to make a profit in 2024 based on current expectations of trading prospects. The company has positive cash reserves at the date of approval of the financial statements and has been trading profitably since the year end. This will enable the company to continue to meet its liabilities as they fall due for at least the next twelve months.

 

The company does not have a high level of fixed costs, however should there be a negative impact, a cost deferral and reduction plan will be put in place in order to minimise the impact of any potential risks. This will be proportionate to any anticipated drop off in revenues and cash inflows.

 

As a result the directors are confident that they have the ability to respond effectively to continued uncertainty and as a result, the directors believe that the company will be able to continue to meet its liabilities as they fall due for a period of at least twelve months from the date of approval of the financial statements. Consequently the financial statements have been prepared on a going concern basis.

ANALOGFOLK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 10 -
1.3
Turnover

Turnover is measured at the fair value of the consideration received or receivable for the sale of goods and the rendering of services in the normal course of business, and is shown net of discounts and VAT.

 

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

 

When services have been delivered but not yet billed by the balance sheet date, income is accrued. Where amounts are received in advance of deliver, income is deferred based on the percentage of services not yet completed.

 

Revenue derived from retainer fees is recognised on a straight line basis across the retainer period in accordance with the terms of the contractual arrangements.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

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

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
20% straight line
1.6
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 land and buildings
Over the term of the lease
Fixtures and fittings
33% straight line
Computers
33% straight line
ANALOGFOLK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 11 -

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.

1.7
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).

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ”Basic Financial Instruments” to all of its financial instruments.

 

Financial instruments are recognised in the company’s balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Short term debtors are measured at transaction price less any provision for impairment. Loans receivable are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method, less any provision for impairment.

Basic financial liabilities

Short term creditors are measured at transaction price. Other financial liabilities, including bank loans and other loans, are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method.

1.9
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 profit and loss account 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 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.

 

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 profit and loss account.

1.10
Employee benefits

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

1.11
Retirement benefits

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

ANALOGFOLK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -
1.12
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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.13
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.14
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
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.

ANALOGFOLK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
2
Judgements and key sources of estimation uncertainty
(Continued)
- 13 -
Key sources of estimation uncertainty

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

Amortisation of goodwill

The annual amortisation charge for intangible assets is sensitive to changes in the estimated lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. Goodwill impairment reviews are also performed annually. These reviews require an estimation of the value in use of the cash generating units to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise for the cash generating unit and a suitable discount rate to calculate present value. See note 11 for the carrying amount of the intangible assets

Revenue recognition

Revenue from contracts is assessed on an individual basis with revenue earned being ascertained

based on the stage of completion of the contract which is estimated using a combination of milestones in the contract and the time spent to date compared to the total time expected to be required to undertake the contract. Estimates of the total time required to undertake the contracts are made on a regular basis and subject to management review. These estimates may differ from the actual results due to a variety of factors such as efficiency of working, accuracy of assessment of progress to date and client decision making.

3
Turnover and other revenue
2022
2021
As restated
£
£
Turnover analysed by class of business
Digital technology
4,018,602
2,348,088
Product
1,489,750
3,220,581
Communications
5,309,166
7,226,852
Transformation
58,210
357,649
10,875,728
13,153,170
2022
2021
As restated
£
£
Turnover analysed by geographical market
United Kingdom
6,291,535
6,586,900
Europe
3,684,892
4,628,779
United States of America
360,411
1,715,325
Rest of world
538,890
222,166
10,875,728
13,153,170
2022
2021
£
£
Other revenue
Interest income
3,524
34
Grants received
-
40,815
ANALOGFOLK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
4
Other operating income
2022
2021
£
£
Management recharge
3,209,267
758,653
Government grant receivable
-
40,815
Other income
-
26,356
Rent receivable
299,419
9,750
3,508,686
835,574
During the year the company recharged costs of £1,679,367 to other group entities. The recharges have been offset against the costs as the directors believe these to be a cost reimbursement for amount paid for on behalf of another group entity rather than being a component of management fee income.
The directors are of the opinion that the above accounting treatment reflects the true substance of the transactions and so departure from the general requirements of the Companies Act 2006 not to set off income against expenditure is required to reflect a true and fair view.
5
Operating loss
2022
2021
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange losses
88,161
102,187
Government grants
-
(40,815)
Fees payable to the company's auditor for the audit of the company's financial statements
30,000
23,560
Depreciation of owned tangible fixed assets
71,261
50,559
Profit on disposal of tangible fixed assets
-
(396)
Amortisation of intangible assets
263,636
261,936
Operating lease charges
583,605
583,605
ANALOGFOLK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
6
Employees

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

2022
2021
Number
Number
Business Operations
27
9
Business Solutions
-
1
Client Services
7
7
Creative
13
10
Data Business Unit
-
2
Design
8
12
Editorial
-
2
Finance
7
3
Production
13
14
Strategy
5
6
Partners
2
-
Technology
-
5
User experiance
5
5
Total
87
76

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
6,464,294
5,529,176
Social security costs
886,774
833,040
Pension costs
194,917
250,237
7,545,985
6,612,453
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
981,349
469,677
Company pension contributions to defined contribution schemes
24,416
50,373
1,005,765
520,050

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2021 - 4).

ANALOGFOLK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
7
Directors' remuneration
(Continued)
- 16 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2022
2021
£
£
Remuneration for qualifying services
291,708
238,293
Company pension contributions to defined contribution schemes
6,750
6,750
8
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
3,524
34
9
Interest payable and similar expenses
2022
2021
£
£
Interest on bank overdrafts and loans
1,450
160
Other interest on financial liabilities
-
0
45,957
Other interest
11,219
-
0
12,669
46,117
10
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
(301,393)
(397,424)
Deferred tax
Origination and reversal of timing differences
4,386
21,375
Total tax credit
(297,007)
(376,049)
ANALOGFOLK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
10
Taxation
(Continued)
- 17 -

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

2022
2021
£
£
Loss before taxation
(81,273)
(1,039,651)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(15,442)
(197,534)
Tax effect of expenses that are not deductible in determining taxable profit
6,000
24,975
Permanent capital allowances in excess of depreciation
(1,290)
(26,848)
Research and development tax credit
(393,448)
(397,424)
Provisions
-
0
(6,245)
Loan relationship credits tax adjustment
8,474
8,474
Losses surrendered for R&D tax credit
93,536
197,178
Deferred tax movements
5,163
21,375
Taxation credit for the year
(297,007)
(376,049)

An increase in the UK corporation tax rate from 19% to 25% (effective from 1 April 2023) was substantively enacted on 24 May 2021. This will increase the group’s future tax charge and i any deferred tax balances accordingly.

 

 

11
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2022
2,500,000
64,871
2,564,871
Additions
-
0
1,647
1,647
At 31 December 2022
2,500,000
66,518
2,566,518
Amortisation and impairment
At 1 January 2022
1,812,500
11,936
1,824,436
Amortisation charged for the year
250,000
13,636
263,636
At 31 December 2022
2,062,500
25,572
2,088,072
Carrying amount
At 31 December 2022
437,500
40,946
478,446
At 31 December 2021
687,500
52,935
740,435
ANALOGFOLK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
12
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2022
419,593
29,184
211,104
659,881
Additions
38,962
-
0
22,633
61,595
At 31 December 2022
458,555
29,184
233,737
721,476
Depreciation and impairment
At 1 January 2022
393,206
27,967
105,516
526,689
Depreciation charged in the year
12,386
1,217
57,658
71,261
At 31 December 2022
405,592
29,184
163,174
597,950
Carrying amount
At 31 December 2022
52,963
-
0
70,563
123,526
At 31 December 2021
26,387
1,217
105,588
133,192
13
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
3,649,180
5,200,944
Corporation tax recoverable
698,816
397,424
Amounts owed by group undertakings
4,423,371
2,043,110
Other debtors
266,524
135,292
Prepayments and accrued income
649,329
840,935
9,687,220
8,617,705
Deferred tax asset (note 16)
13,278
14,727
9,700,498
8,632,432
ANALOGFOLK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 19 -
14
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans and overdrafts
15
3,223
-
0
Trade creditors
706,238
993,519
Amounts owed to group undertakings
2,270,293
1,125,054
Taxation and social security
258,389
550,008
Deferred income
1,029,137
2,714,233
Other creditors
243,796
441,362
Accruals
1,255,448
1,134,449
5,766,524
6,958,625
15
Loans and overdrafts
2022
2021
£
£
Bank overdrafts
3,223
-
0
Payable within one year
3,223
-
0
16
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2022
2021
2022
2021
Balances:
£
£
£
£
Accelerated capital allowances
22,657
21,366
-
-
Provisions & pension liabilities
-
-
13,278
14,727
Capital contribution discount
22,300
20,654
-
-
44,957
42,020
13,278
14,727
2022
Movements in the year:
£
Liability at 1 January 2022
27,293
Charge to profit or loss
4,386
Liability at 31 December 2022
31,679
ANALOGFOLK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
17
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
194,917
250,237

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 £79,552 (2021 - £38,980) were payable to the fund at the balance sheet date and are included in other creditors.

18
Share-based payment transactions
Number of share options
Weighted average exercise price
2022
2021
2022
2021
Number
Number
£
£
Outstanding at 1 January 2022
850
850
194.06
194.06
Forfeited
(450)
-
0
219.65
-
0
Outstanding at 31 December 2022
400
850
98.53
194.06
Exercisable at 31 December 2022
205
210
101.86
235.23

The company runs an unapproved share option scheme. The options outstanding at 31 December 2022 had an exercise price of 101.86, and a remaining contractual life of 4 years.

 

The options granted under this scheme each have difference vesting conditions. There are 7 continued employment vesting conditions and 4 performance based vesting conditions. There were no shares granted in 2022. In 2023, the company has asked the individuals with AnalogFolk Limited share options to surrender their share options and convert to AFG Marketing Technologies Group share options.

19
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 10p each
10,000
10,000
1,000
1,000
20
Contingent liabilities

A composite guarantee has been given to the Company's bankers in respect of any debts or liabilities owing to the bank by any party to the guarantee. The parties to the guarantee are the companies listed below:

 

AFG Marketing Technologies Limited

Analogfolk Limited

Untold Fable Limited

ANALOGFOLK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
21
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:

2022
2021
£
£
Within one year
84,306
515,993
Between two and five years
-
0
82,801
84,306
598,794
22
Related party transactions

At the balance sheet date the following balances were owed to/from directors:

 

W Brock: £5 owed from (2021 - £29,140 owed to). M Dyke: £4,539 owed from (2021 - £28,140 owed to).

 

In respect of wholly owned subsidiaries, the company has taken advantage of the exemption permitted by Section 33 "Related Party Disclosures" not to provide disclosures of transactions entered into with other wholly owned members of the group.

 

At the balance sheet date, the company was owed £1,093,561 (2021 - £49,988) by its non-wholly owned subsidiaries, and owed £121,354 (2021 - £484,870) to its non-wholly owned subsidiaries.

 

The company made purchases of £45,241 (2021 - £1,205,850) from non-wholly owned subsidiaries. The company made sales of £277,232 (2021 - £861,415) and charged management fees of £1,185,400 to non-wholly owned subsidiaries. The company was also charged management fees of £44,950 from non-wholly owned subsidiaries.

23
Ultimate controlling party

The immediate and ultimate parent company is AFG Marketing Technologies Limited, a company incorporated in England, by virtue of it's 100% ownership of Analogfolk Limited. There is no ultimate controlling party.

 

Group accounts are prepared for AFG Marketing Technologies Ltd, whose registered office is 6th Floor Charlotte Building, 17 Gresse Street, London, W1T 1QL. Copies of the group accounts are available from Companies House.

 

24
Prior period adjustment

It was noted during the preparation of 2022 accounts that sales were being made on behalf of other group entities as an agent and so should not be recognised gross in the company's accounts. Sales of this nature of £3,276,610 were also identified in 2021. The sales and cost of sales figures for 2021 have therefore both been reduced by this amount. This has no impact on the overall profit or equity figure for 2021.

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