The notes on pages 3 to 8 form part of these financial statements.
The notes on pages 3 to 8 form part of these financial statements.
BDG Media UK, Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, One London Wall, London, United Kingdom, EC2Y 5EB.
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 accounts have been prepared on a going concern basis on the assumption that the parent undertaking will make adequate funds available to the Company, should they be required, in order to meet its liabilities as and when they fall due. A letter of support has been provided from the parent company confirming this support will continue for 12 months from the approval of these financial statements; including, but not limited to, confirmation that the intercompany loan will not be recalled.
In making his assessment of the going concern assumption, the director has considered the ability and intent of the parent undertaking to support the Company for the next 12 months following the approval of the financial statements. This assessment included a review of the parent company's available cash facilities and cashflow forecasts for the next 12 months, from the approval of these financial statements. In most forecasted scenarios, the parent has the resources to support the Company. However, the parent has and continues to face risks and material uncertainties that have raised significant doubt about the parent's ability to continue as a going concern for the next 12 months from the date of approval of these financial statements. These challenges include a challenging macroeconomic environment that has impacted the Group's revenue and its ability to meet its debt covenants and therefore its ability to Support the Company. The parent company experienced covenant breaches throughout 2022 that has since been waived by its lender and new covenant targets have been established, which go beyond the period considered for going concern. The parent continues to face macroeconomic challenges as such it continues to be uncertain whether it will meet its amended covenant amounts which would make the funding in the parent repayable on demand. The parent doesn't have the available cash to repay this, representing a material uncertainty in relation to being able to provide support to the company when required.
This material uncertainty may cast significant doubt on the Group's ability to be able to generate significant cash flows to continue as a going concern and provide the Company support. The Company may therefore be unable to realize its assets and discharge its liabilities in the normal course of business.
However, the director believes his assumptions are valid and are satisfied that it remains appropriate to prepare the financial statements on a going concern basis.
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.
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transactions costs, and are measured subsequently at amortised cost using the effective interest method.
In the application of the company’s accounting policies, the director is 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.
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.
The recoverability of the receivables is determined by the Company. Management monitors the circumstances relating to the payments due from third parties, together with the recoverability of the amounts due. Any indication of non-recoverability and change in fair value is adjusted for accordingly.
The average monthly number of persons (including directors) employed by the company during the year was:
An allowance for doubtful debts of £41,675 (2022: £43,124) was recognised against trade debtors.
The amount due to parent undertaking is repayable on demand and has no interest accruing.
The Company has unutilised trade losses of £2.6m at the end of the period, but no deferred tax asset has been recognised in respect of these due to remaining uncertainty over future taxable profits as at the reporting date.
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The Company has taken advantage of the exemption, under the terms of FRS 102 Paragraph 33.1A, not to disclose related party transactions with wholly owned subsidiaries within the group.
The immediate and ultimate controlling party is BDG Media Inc., a company incorporated in the United States of America at 315 Park Ave S FL 12 New York, NY, 10010-3625 and owns 100% of the issued share capital of the Company.
The director is of the opinion that there is no controlling party of BDG Media Inc., due to the number of different shareholders and no one shareholder having an individual majority.