Company registration number 03126700 (England and Wales)
TURNAROUND PUBLISHER SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
TURNAROUND PUBLISHER SERVICES LIMITED
COMPANY INFORMATION
Directors
Andrew Webb
Claire Thompson
Gethyn Jordan
(Appointed 20 July 2023)
Alison Hamilton
(Appointed 1 February 2024)
Secretary
Claire Thompson
Company number
03126700
Registered office
Second Floor, Crown House 47 Chase Side
Southgate
London
England
N14 5BP
Auditor
Goodman Jones LLP
1st Floor Arthur Stanley House
40-50 Tottenham Street
London
United Kingdom
W1T 4RN
TURNAROUND PUBLISHER SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
11
Statement of cash flows
10
Notes to the financial statements
12 - 24
TURNAROUND PUBLISHER SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Review of business and future developments

The principal activity of the company continued to be that of a publisher services company. The main activities relate to sales, marketing and distribution services incorporating both book and non-book products.

 

The company continued to enjoy considerable success thanks to sustained consumer confidence and appetite for the product offering, generating revenue of £29.8m, flat on the previous year. Operating profit was £2.6m, which was in line with expectations. Financial performance to date in the current year remains robust despite more challenging trading conditions. The infrastructure in place and investments made in systems and facilities have allowed the company to meet ongoing consumer demands comfortably.

 

Sales of printed books remain buoyant with continued growth in several areas and strong performances from many of our independent clients. Our own digital publishing service remains small but continues to grow. The company also continues to expand its portfolio of non-book products, and we continue to expand sales into the book market as well as into general high street stores, specialist outlets and via the web.

 

We believe that a major asset of our business continues to be our workforce who have proved their resilience during the economic uncertainty of the last four years caused by the pandemic, the UK’s departure from the EU and other global events. Our commitment to our employees is critical to the success of the business and means that the company is well positioned to continue to exploit a variety of commercial opportunities.

 

The board is committed to making the company not only an attractive place to work, but also one in which the rewards of ownership are shares. The company is controlled by its employees through the Turnaround Publisher Services Employee Ownership Trust, giving all colleagues the opportunity to share in the financial success of the business. The beneficiaries of the trust are all qualifying employees. The purpose of the trust is to provide the benefits of indirect ownership of the company in the form of realised capital value and/or company profits, and the sustainable long-term success of the company for the beneficiaries. The directors are able to recognize the contribution made by employees to the company’s success by issuing EOT profit-share payments to the beneficiaries.

 

The company ends the year with a healthy cash balance of £6.5m. The generation of cash through trading activities remains a priority and we believe that the company has a high-quality customer base that will enable it to continue to achieve strong cash flows in the future. By continuing to seek new trading opportunities and expanding both our customer base and product offer, we remain committed to maintaining a financially resilient company, not only to provide the best quality services to our publisher clients, trade customers and the end consumer, but also to fulfil our responsibilities to all our employees, as well as to other stakeholders.

TURNAROUND PUBLISHER SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Principal risks and uncertainties

Due to the nature of the company's business, and the assets and liabilities contained within the company's balance sheet, the only financial risks that the directors consider relevant to the company are credit risk through its trade debtors, and exchange rate risk on foreign currency. Credit risk is mitigated by credit control policies and the fact that exposure is spread over a large number of customers. In addition, the company uses credit insurance to further reduce any exposure to bad debts. Exchange rate risk is managed by policies to monitor and review rates regularly. The company also enters into exchange rate forward contracts through banks to protect against adverse exchange rate fluctuations over significant future contracted foreign currency payments.

 

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have prepared cash flow and profit forecasts which show that the company can meet its financial obligations as they fall due. Thus, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.

 

With the UK having left the European Union, uncertainty surrounds many industries including publishing. The impact of Brexit on cross-border movement of goods has created complexity and increased costs, but trade in those territories has nevertheless seen growth. The increased volatility in exchange rates has had an inflationary effect on the price of imported products, which constitute a significant proportion of the company’s turnover. To try to mitigate the impact of this the company enters into currency hedging strategies, primarily through the use of forward contracts. As a consequence of the increase in shipping costs arising from these changes, the company has focused on economies of scale to manage such costs through larger shipments of goods. Inflation has impacted on the costs of goods sold through increased production costs; however, the company has not yet experienced a restriction in demand for its products generally.

Key performance indicators

The directors consider revenue generation on behalf of our clients to be the key performance indicator. Revenue of £29.8m was delivered in the year, compared to £30.5m in the previous year.

Andrew Webb
Director
29 November 2024
TURNAROUND PUBLISHER SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company continued to be that of a publisher services company. The main activities relate to sales, marketing and distribution services incorporating both book and non-book products.

Directors

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

Andrew Webb
Sue Gregg
(Resigned 31 March 2024)
Claire Thompson
Gethyn Jordan
(Appointed 20 July 2023)
Alison Hamilton
(Appointed 1 February 2024)
Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £24,003 (2023: £18,000). The directors do not recommend payment of a further dividend.

Financial instruments
Treasury operations and financial instruments

The company's principal financial instruments comprise bank balances, trade creditors and trade debtors. The main purpose of these instruments is to raise funds to finance the company's operations.

Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the businesses.

Foreign currency risk

Exchange rate risk is managed by policies to monitor and review rates regularly and a natural hedge between foreign currency debt and income. In addition, exchange rate risk is managed by entering into exchange rate forward contract arrangements with banks in relation to fixed amounts of foreign currency required to meet future payment obligations.

 

Credit risk

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet the amounts due. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The company also uses credit insurance to further reduce exposure to bad debts.

TURNAROUND PUBLISHER SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Going concern

The directors have considered the forecast position of the company in reaching their conclusions in respect of going concern.

In assessing the appropriateness of the going concern assumption, the directors have considered the ability of the Company to continue to trade profitably and maintain adequate liquidity through the forecast period. The Company has cash of £6.5m at the year-end. The Company’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Company is able to operate comfortably within the level of its current working capital. Given the current demand for its products at the date of this report, the assumptions in these sensitivities, when taking into account the factors set out above, are considered to be highly unlikely to lead to any funding issues.

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and that it remains appropriate to continue to adopt the going concern basis in preparing the annual report and financial statements.

Auditor

The auditor, Goodman Jones LLP, is deemed to be reappointed under section 487(2) 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) including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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.

On behalf of the board
Andrew Webb
Director
29 November 2024
TURNAROUND PUBLISHER SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TURNAROUND PUBLISHER SERVICES LIMITED
- 5 -
Opinion

We have audited the financial statements of Turnaround Publisher Services Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows 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:

TURNAROUND PUBLISHER SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TURNAROUND PUBLISHER SERVICES LIMITED (CONTINUED)
- 6 -
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 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.

 

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:

 

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to industry sector regulations and unethical and prohibited business practices, and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and UK Tax Legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Appropriate audit procedures in response to these risks were carried. These procedures included:

• Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;

• Reading minutes of meetings of those charged with governance;

• Obtaining and reading correspondence from legal and regulatory bodies including HMRC;

• Identifying and testing journal entries;

• Challenging assumptions and judgements made by management in their significant accounting estimates.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members; and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

TURNAROUND PUBLISHER SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TURNAROUND PUBLISHER SERVICES LIMITED (CONTINUED)
- 7 -

There are inherent limitations in the audit procedures described above 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 would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities 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.

Sarf Malik
Senior Statutory Auditor
For and on behalf of Goodman Jones LLP
29 November 2024
Chartered Accountants
Statutory Auditor
1st Floor Arthur Stanley House
40-50 Tottenham Street
London
United Kingdom
W1T 4RN
TURNAROUND PUBLISHER SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Revenue
3
29,812,550
30,495,596
Cost of sales
(21,832,714)
(23,201,095)
Gross profit
7,979,836
7,294,501
Distribution costs
(3,084,872)
(2,911,117)
Administrative expenses
(2,294,458)
(1,885,850)
Operating profit
4
2,600,506
2,497,534
Investment income
8
123,448
16,137
Finance costs
7
(2,214)
-
0
Profit before taxation
2,721,740
2,513,671
Tax on profit
9
(685,616)
(483,794)
Profit for the financial year
2,036,124
2,029,877

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

TURNAROUND PUBLISHER SERVICES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Non-current assets
Intangible assets
10
17,664
78,000
Property, plant and equipment
12
106,354
131,110
Investments
11
33,943
33,943
157,961
243,053
Current assets
Inventories
13
4,232,744
3,778,459
Trade and other receivables
14
3,875,820
4,504,295
Cash and cash equivalents
6,525,589
4,169,230
14,634,153
12,451,984
Current liabilities
15
(7,529,047)
(7,415,828)
Net current assets
7,105,106
5,036,156
Total assets less current liabilities
7,263,067
5,279,209
Non-current liabilities
16
(28,148)
(42,223)
Provisions for liabilities
Deferred tax liability
17
16,285
30,473
(16,285)
(30,473)
Net assets
7,218,634
5,206,513
Equity
Called up share capital
19
81
81
Capital redemption reserve
19
19
Retained earnings
7,218,534
5,206,413
Total equity
7,218,634
5,206,513
The financial statements were approved by the board of directors and authorised for issue on 29 November 2024 and are signed on its behalf by:
Andrew Webb
Alison Hamilton
Director
Director
Company registration number 03126700 (England and Wales)
TURNAROUND PUBLISHER SERVICES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
2,871,860
2,664,799
Interest paid
(2,214)
-
0
Income taxes paid
(590,286)
(954,038)
Net cash inflow from operating activities
2,279,360
1,710,761
Investing activities
Purchase of property, plant and equipment
(22,446)
(3,225)
Interest received
123,448
16,137
Net cash generated from investing activities
101,002
12,912
Financing activities
Payment of finance leases obligations
-
0
(15,227)
Dividends and distributions paid
(24,003)
(3,018,000)
Net cash used in financing activities
(24,003)
(3,033,227)
Net increase/(decrease) in cash and cash equivalents
2,356,359
(1,309,554)
Cash and cash equivalents at beginning of year
4,169,230
5,478,784
Cash and cash equivalents at end of year
6,525,589
4,169,230
TURNAROUND PUBLISHER SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Capital redemption reserve
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 April 2022
81
19
6,194,536
6,194,636
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
2,029,877
2,029,877
Dividends
-
-
(18,000)
(18,000)
Distributions to parent charity under gift aid
-
-
(3,000,000)
(3,000,000)
Balance at 31 March 2023
81
19
5,206,413
5,206,513
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
2,036,124
2,036,124
Dividends
-
-
(24,003)
(24,003)
Balance at 31 March 2024
81
19
7,218,534
7,218,634
TURNAROUND PUBLISHER SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information

Turnaround Publisher Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Second Floor, Crown House 47 Chase Side, Southgate, London, England, N14 5BP.

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 pound.

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

1.2
Going concern

The company’s business activities, together with the factors likely to affect its future development, performance and position are set out in the strategic report. true

 

In assessing the appropriateness of the going concern assumption, the directors have considered the ability of the Company to continue to trade profitably and maintain adequate liquidity through the forecast period. The Company has cash of £6.5 m at the year-end. The Company’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Company is able to operate comfortably within the level of its current working capital. Given the current demand for its products at the date of this report, the assumptions in these sensitivities, when taking into account the factors set out above, are considered to be highly unlikely to lead to any funding issues.

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and that it remains appropriate to continue to adopt the going concern basis in preparing the annual report and financial statements.

 

1.3
Revenue

Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Revenue is recognised on despatch of goods.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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.

 

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.

TURNAROUND PUBLISHER SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -

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:

Business systems
10% straight line
1.5
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Tangible fixed assets are stated at cost less depreciation. Cost represents purchase price together with any incidental costs of acquisition. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Leasehold Land & buildings
10% straight line
Plant & machinery
25% straight line
Computer equipment
33.33% straight line

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 non-current 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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

TURNAROUND PUBLISHER SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.7
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

 

Inventories held for distribution at no or nominal consideration are measured at cost, adjusted where applicable for any loss of service potential.

 

Consignment inventories are not included in the carrying value within the financial statements as the risks and rewards of ownership remain with the publisher.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
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.

1.9
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.

Basic financial assets

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.

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.

TURNAROUND PUBLISHER SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
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 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.

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.

TURNAROUND PUBLISHER SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities

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

1.10
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.

1.11
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.

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. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

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

 

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

 

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

1.13
Retirement benefits

The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year. The assets of the scheme are held separately from those of the company in an independently administered fund.

1.14
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.

TURNAROUND PUBLISHER SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.15
Foreign exchange

Transactions in currencies other than pounds 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 are included in the Statement of Comprehensive Income for the year.

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.

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.

Trade receivables recoverability

At each reporting date, an assessment is made of the recoverability of trade receivables. Any amounts known to not be recoverable are fully provided for through the income statement as a charge with a corresponding provision.

Valuation of inventories

Inventories are valued at the lower cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends.

Sales return provision

Calculation of this provision requires judgements to be made, which include estimates of the level of sales returns after the period end related to sales included within the financial statements. These judgements are based on trading cycle analysis.

3
Revenue

An analysis of the company's revenue is as follows:

2024
2023
£
£
Revenue analysed by class of business
Publisher services
29,812,550
30,495,596
2024
2023
£
£
Other significant revenue
Interest income
123,448
16,137
TURNAROUND PUBLISHER SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Revenue
(Continued)
- 18 -
2024
2023
£
£
Revenue analysed by geographical market
United Kingdom
28,797,003
29,343,679
Overseas
1,029,351
1,151,917
29,826,354
30,495,597
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
23,000
20,000
Depreciation of owned property, plant and equipment
47,202
44,397
Amortisation of intangible assets
60,336
60,335
Operating lease charges
413,066
412,375
5
Employees

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

2024
2023
Number
Number
Distribution
33
32
Administration
7
9
Sales
6
6
Shop
3
2
Gift
3
4
Marketing
6
6
Directors
4
3
Total
62
62

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,646,796
2,273,382
Social security costs
234,633
210,087
Pension costs
114,300
105,884
2,995,729
2,589,353
TURNAROUND PUBLISHER SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
349,840
252,073
Company pension contributions to defined contribution schemes
50,742
41,630
400,582
293,703

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
74,581
75,073
Company pension contributions to defined contribution schemes
13,316
12,300

The remuneration of key management personnel is included in the above disclosures.

7
Finance costs
2024
2023
£
£
Other finance costs:
Other interest
2,214
-
0
8
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
123,448
16,137
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
733,795
507,553
Deferred tax
Origination and reversal of timing differences
(48,179)
(23,759)
Total tax charge
685,616
483,794
TURNAROUND PUBLISHER SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Taxation
(Continued)
- 20 -

The actual 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:

2024
2023
£
£
Profit before taxation
2,721,740
2,513,671
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
680,435
477,597
Tax effect of expenses that are not deductible in determining taxable profit
31,249
10,920
Permanent capital allowances in excess of depreciation
18,042
16,107
Pensions provision
4,069
2,929
Deferred taxation
(48,179)
(23,759)
Taxation charge for the year
685,616
483,794

Changes to UK corporation tax rates were substantively enacted by the Finance Bill 2021 including an increase in the corporation tax rate to 25% from 1 April 2023. Deferred tax is recognised at 25% in the current year.

10
Intangible fixed assets
Business systems
£
Cost
At 1 April 2023 and 31 March 2024
603,357
Amortisation and impairment
At 1 April 2023
525,357
Amortisation charged for the year
60,336
At 31 March 2024
585,693
Carrying amount
At 31 March 2024
17,664
At 31 March 2023
78,000
11
Fixed asset investments
2024
2023
£
£
Unlisted investments
33,943
33,943
TURNAROUND PUBLISHER SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
12
Property, plant and equipment
Leasehold Land & buildings
Plant & machinery
Computer equipment
Total
£
£
£
£
Cost
At 1 April 2023
261,678
323,217
213,511
798,406
Additions
-
0
-
0
22,446
22,446
At 31 March 2024
261,678
323,217
235,957
820,852
Depreciation and impairment
At 1 April 2023
156,865
323,217
187,214
667,296
Depreciation charged in the year
21,285
-
0
25,917
47,202
At 31 March 2024
178,150
323,217
213,131
714,498
Carrying amount
At 31 March 2024
83,528
-
0
22,826
106,354
At 31 March 2023
104,813
-
0
26,297
131,110
13
Inventories
2024
2023
£
£
Finished goods and goods for resale
4,232,744
3,778,459
14
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
3,375,844
4,125,661
Other receivables
237,604
227,643
Prepayments and accrued income
228,381
150,991
3,841,829
4,504,295
Deferred tax asset (note 17)
33,991
-
0
3,875,820
4,504,295
TURNAROUND PUBLISHER SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
15
Current liabilities
2024
2023
£
£
Trade payables
6,462,803
6,684,599
Corporation tax
412,364
268,855
Other taxation and social security
91,565
90,279
Accruals and deferred income
562,315
372,095
7,529,047
7,415,828
16
Non-current liabilities
2024
2023
£
£
Accruals and deferred income
28,148
42,223
17
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
16,285
34,327
-
-
Retirement benefit obligations
-
(3,854)
4,069
-
Remuneration adjustment
-
-
29,922
-
16,285
30,473
33,991
-
2024
Movements in the year:
£
Liability at 1 April 2023
30,473
Credit to profit or loss
(48,179)
Asset at 31 March 2024
(17,706)

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. The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

TURNAROUND PUBLISHER SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
114,300
105,884

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

The pension cost charge represents contributions payable by the company to the fund. At the year end outstanding contributions of £37,816 (2023: £21,539 ) are included within other creditors.

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
81
81
81
81
20
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:

2024
2023
£
£
Within one year
85,970
394,040
Between two and five years
269,027
1,180,787
In over five years
312,500
-
0
667,497
1,574,827
21
Ultimate controlling party

Turnaround Publisher Services Employee Ownership Trust acquired an 89% majority interest in the issued share capital of the company on 6 September 2022.

TURNAROUND PUBLISHER SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
22
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
2,036,124
2,029,877
Adjustments for:
Taxation charged
685,616
483,794
Finance costs
2,214
-
0
Investment income
(123,448)
(16,137)
Amortisation and impairment of intangible assets
60,336
60,335
Depreciation and impairment of property, plant and equipment
47,202
44,397
Movements in working capital:
(Increase)/decrease in inventories
(454,285)
362,678
Decrease in trade and other receivables
662,466
171,561
Decrease in trade and other payables
(44,365)
(471,706)
Cash generated from operations
2,871,860
2,664,799
23
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
4,169,230
2,356,359
6,525,589
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