Company registration number 07022358 (England and Wales)
MEDIA AGENCY GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
MEDIA AGENCY GROUP LIMITED
COMPANY INFORMATION
Directors
L Dentith
J Kehoe
Company number
07022358
Registered office
34 South Molton Street
Mayfair
London
United Kingdom
W1K 5RG
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
MEDIA AGENCY GROUP 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
Statement of cash flows
9
Notes to the financial statements
10 - 20
MEDIA AGENCY GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 1 -
The directors present the strategic report for the year ended 29 February 2024.
Business Review
Media Agency Group has seen a downturn in the UK advertising market this year due to tough economic trading conditions, however the company has expanded its network and service offering through its related parties ('MAG group of companies') to improve services provided outside of the UK and has gained some notable large international clients.
The MAG group of companies has established a global HQ based in Dubai, and representative offices in the USA and wider UAE. All group level executives are based in the UAE, and all strategic decision-making relating to finance, operations, administration, procurement and sales functions are undertaken out of the UAE based global HQ.
MAG will be looking to grow geographically into new territories as we expand our footprint to service new and existing clients worldwide.
L Dentith
Director
28 November 2024
MEDIA AGENCY GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -
The directors present their annual report and financial statements for the year ended 29 February 2024.
Principal activities
The principal activity of the company continued to be that of an advertising agency.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £2,766,918. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
L Dentith
J Kehoe
Financial instruments
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 business.
Interest rate risk
The company is exposed to interest rate risk on floating rate deposits. The company monitors interest rates on deposits to achieve the best return in order to minimise interest rate risk.
Foreign currency risk
The company’s principal foreign currency exposures arise from trading with overseas companies. Where practicable, the company will pay overseas suppliers using their foreign currency bank accounts to reduce the exposure of exchange rate fluctuations.
Credit risk
Investments of cash surpluses and borrowings are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
MEDIA AGENCY GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 3 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
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
L Dentith
Director
28 November 2024
MEDIA AGENCY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MEDIA AGENCY GROUP LIMITED
- 4 -
Opinion
We have audited the financial statements of Media Agency Group Limited (the 'company') for the year ended 29 February 2024 which comprise the statement of income and retained earnings, the balance sheet, 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:
give a true and fair view of the state of the company's affairs as at 29 February 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
MEDIA AGENCY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MEDIA AGENCY GROUP LIMITED
- 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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.
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.
MEDIA AGENCY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MEDIA AGENCY GROUP LIMITED
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Helen Davies
Senior Statutory Auditor
For and on behalf of Azets Audit Services
29 November 2024
Chartered Accountants
Statutory Auditor
Ship Canal House
98 King Street
Manchester
M2 4WU
MEDIA AGENCY GROUP LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
12,075,617
28,127,661
Cost of sales
(9,084,924)
(21,073,024)
Gross profit
2,990,693
7,054,637
Administrative expenses
(2,222,902)
(2,183,908)
Operating profit
4
767,791
4,870,729
Interest receivable and similar income
7
205,779
173,971
Recovery of previously impaired related party loan
8
-
201,472
Profit before taxation
973,570
5,246,172
Tax on profit
9
(227,811)
(950,219)
Profit for the financial year
745,759
4,295,953
Retained earnings brought forward
13,794,540
11,173,587
Dividends
10
(2,766,918)
(1,675,000)
Retained earnings carried forward
11,773,381
13,794,540
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MEDIA AGENCY GROUP LIMITED
BALANCE SHEET
AS AT
29 FEBRUARY 2024
29 February 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
55,908
66,990
Current assets
Debtors
12
13,301,429
15,836,332
Cash at bank and in hand
2,224,928
4,268,142
15,526,357
20,104,474
Creditors: amounts falling due within one year
13
(3,798,749)
(6,362,946)
Net current assets
11,727,608
13,741,528
Total assets less current liabilities
11,783,516
13,808,518
Provisions for liabilities
Deferred tax liability
14
10,032
13,875
(10,032)
(13,875)
Net assets
11,773,484
13,794,643
Capital and reserves
Called up share capital
16
103
103
Profit and loss reserves
17
11,773,381
13,794,540
Total equity
11,773,484
13,794,643
The financial statements were approved by the board of directors and authorised for issue on 28 November 2024 and are signed on its behalf by:
L Dentith
Director
Company Registration No. 07022358
MEDIA AGENCY GROUP LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
977,808
3,167,838
Income taxes paid
(978,387)
(981,927)
Net cash (outflow)/inflow from operating activities
(579)
2,185,911
Investing activities
Purchase of tangible fixed assets
(4,663)
(20,870)
Movement on directors' loan accounts
523,167
(1,707,096)
Interest received
205,779
173,971
Net cash generated from/(used in) investing activities
724,283
(1,553,995)
Financing activities
Dividends paid
(2,766,918)
(1,675,000)
Net cash used in financing activities
(2,766,918)
(1,675,000)
Net decrease in cash and cash equivalents
(2,043,214)
(1,043,084)
Cash and cash equivalents at beginning of year
4,268,142
5,311,226
Cash and cash equivalents at end of year
2,224,928
4,268,142
MEDIA AGENCY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 10 -
1
Accounting policies
Company information
Media Agency Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is 34 South Molton Street, Mayfair, London, United Kingdom, W1K 5RG.
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.
1.2
Going concern
At 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.true
The Company monitors its cash flow as part of its daily control procedures. The Directors consider the cash position and future requirements on a regular basis and ensure that appropriate facilities are available.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account discounts and volume rebates.
Revenue from contracts for the provision of services is recognised by reference to the stage of delivery of the services. Amounts received in advance of delivering the services are held on the balance sheet as deferred income.
1.4
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:
Plant and machinery
16.66% reducing balance
Fixtures and fittings
20% reducing balance
Office equipment
33% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
MEDIA AGENCY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 11 -
1.6
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.
1.7
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 balance sheet 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 debtors 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.
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.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
MEDIA AGENCY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 12 -
1.8
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.
1.9
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. 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 profit and loss account, 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.
1.10
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.
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
1.13
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.
MEDIA AGENCY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 13 -
1.14
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when declared. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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.
Deferred income
Deferred income is calculated based on the stage completion of a particular campaign. This is normally on a time relative basis. Invoices received to date are apportioned based on the percentage completed by the year end, with the corresponding amount recognised as revenue and the balance held within deferred income.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Provision of media services
12,075,617
28,127,661
2024
2023
£
£
Turnover analysed by geographical market
UK turnover
8,208,760
23,039,117
Rest of world
3,862,857
5,088,544
12,071,617
28,127,661
2024
2023
£
£
Other revenue
Interest income
205,779
173,971
MEDIA AGENCY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 14 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(3,956)
(2,652)
Fees payable to the company's auditor for the audit of the company's financial statements
28,000
26,950
Depreciation of owned tangible fixed assets
15,745
15,417
Operating lease charges
364,659
393,070
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales and administrative staff
32
32
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,908,509
2,541,724
Social security costs
197,231
305,317
Pension costs
29,144
21,226
2,134,884
2,868,267
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
90,047
78,190
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
43,695
19,219
Other interest income
162,084
154,752
Total income
205,779
173,971
MEDIA AGENCY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 15 -
8
Amounts written off investments
2024
2023
£
£
Amounts recovered on loans to related parties previously impaired
-
201,472
During the prior year, the company received a distribution from a related party debtor that went into liquidation and was fully provided for.
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
242,546
976,603
Adjustments in respect of prior periods
(10,892)
(28,943)
Total current tax
231,654
947,660
Deferred tax
Origination and reversal of timing differences
(3,843)
2,319
Adjustment in respect of prior periods
240
Total deferred tax
(3,843)
2,559
Total tax charge
227,811
950,219
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
973,570
5,246,172
Expected tax charge based on the standard rate of corporation tax in the UK of 24.49% (2023: 19.00%)
238,427
996,773
Tax effect of expenses that are not deductible in determining taxable profit
377
21,168
Tax effect of income not taxable in determining taxable profit
(38,331)
Effect of change in corporation tax rate
(78)
557
Under/(over) provided in prior years
(10,892)
(28,943)
Deferred tax adjustments in respect of prior years
240
Super deduction allowance
(23)
(1,245)
Taxation charge for the year
227,811
950,219
MEDIA AGENCY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 16 -
10
Dividends
2024
2023
£
£
Final paid
2,766,918
1,675,000
11
Tangible fixed assets
Plant and machinery
Fixtures and fittings
Office equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 March 2023
113,097
202,826
166,006
128,421
610,350
Additions
4,663
4,663
At 29 February 2024
113,097
202,826
170,669
128,421
615,013
Depreciation and impairment
At 1 March 2023
102,439
165,961
147,226
127,734
543,360
Depreciation charged in the year
1,775
7,320
6,478
172
15,745
At 29 February 2024
104,214
173,281
153,704
127,906
559,105
Carrying amount
At 29 February 2024
8,883
29,545
16,965
515
55,908
At 28 February 2023
10,658
36,865
18,780
687
66,990
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,006,907
1,738,920
Other debtors
12,176,029
13,762,993
Prepayments and accrued income
118,493
334,419
13,301,429
15,836,332
Included within other debtors is an amount of £8,266,302 (2023: £8,102,409) in respect of a loan made to Dentith Property Limited, a company registered in the United Arab Emirates which is 100% owned by L Dentith. The loan is unsecured and has interest of 2% per annum charged on the balance.
MEDIA AGENCY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 17 -
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
757,768
2,086,961
Corporation tax
231,654
978,387
Other taxation and social security
307,646
247,314
Other creditors
464,535
642,171
Accruals and deferred income
2,037,146
2,408,113
3,798,749
6,362,946
14
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
10,032
13,875
2024
Movements in the year:
£
Liability at 1 March 2023
13,875
Credit to profit or loss
(3,843)
Liability at 29 February 2024
10,032
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
29,144
21,226
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.
At the year end an amount of £6,359 (2023: £2,603) was unpaid and included within other creditors.
MEDIA AGENCY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 18 -
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
80
80
80
80
B Ordinary shares of £1 each
10
10
10
10
C Ordinary shares of £1 each
10
10
10
10
D Ordinary shares of £1 each
1
1
1
1
E Ordinary shares of £1 each
2
2
2
2
103
103
103
103
The A Ordinary, B Ordinary and C Ordinary shares have full voting rights, rights to capital distribution including winding up and rights to dividends as declared for that class of share.
The D Ordinary and E Ordinary shares are non-voting but hold the right to receive an amount on a future disposal in accordance with the articles of association and dividends as declared for that class of share.
17
Profit and loss reserves
The profit and loss account represents accumulated trading profit, less equity dividends paid.
18
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
190,954
164,580
Between two and five years
71,425
102,947
262,379
267,527
MEDIA AGENCY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 19 -
19
Related party transactions
Included within other debtors is an amount of £1,805,647 (2023: £2,672,370) in respect of a loan made to the Dentith Family Company Limited. The Dentith Family Company Limited owns the 10 B Ordinary shares of £1 each in the company. The loan is unsecured and interest free.
Included within other debtors is an amount of £8,266,302 (2023: £8,102,409) in respect of a loan made to a company registered in the United Arab Emirates, which is 100% owned by L Dentith. The loan is unsecured and has interest of 2% per annum charged on the balance. Total interest charged in the year amounted to £162,084 (2023: £154,752).
During the year sales of £102,793 (2023: £363,570) and purchases of £903,420 (2023: £2,748,480) were made to a party related by virtue of a common shareholder. At the balance sheet date, £nil (2023: £390,192) was outstanding from this company and £426,164 (2023: £584,914) was due to this company, included in other debtors and other creditors respectively.
Included within other debtors at the balance sheet date is an amount of £60,648 (2023: £50,648) in respect of a loan made to a close family member of one of the directors.
20
Directors' transactions
During the year the company operated loan accounts with its directors. The loans are interest free and repayable on demand. Funds were withdrawn totalling £2,529,074 (2023: £5,514,379) and dividends of £2,766,918 (2023: £1,075,000) were received by the directors. Funds totalling £266,707 (2023: £2,503,812) were repaid. Included within other debtors at the balance sheet date is £2,062,367 (2023: £2,566,918) owed to the company by the directors.
21
Ultimate controlling party
The company is controlled by L Dentith by virtue of his majority shareholding.
22
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
745,759
4,295,953
Adjustments for:
Taxation charged
227,811
950,219
Investment income
(205,779)
(173,971)
Depreciation and impairment of tangible fixed assets
15,745
15,417
Other gains and losses
-
(201,472)
Movements in working capital:
Decrease in debtors
2,011,736
2,358,253
Decrease in creditors
(1,817,464)
(4,076,561)
Cash generated from operations
977,808
3,167,838
MEDIA AGENCY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 20 -
23
Analysis of changes in net funds
1 March 2023
Cash flows
29 February 2024
£
£
£
Cash at bank and in hand
4,268,142
(2,043,214)
2,224,928
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