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Registration number: 08333698

Mediamonks London Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Mediamonks London Limited

Contents

Company Information

1

Strategic Report

2 to 4

Director's Report

5

Statement of Director's Responsibilities

6

Independent Auditor's Report

7 to 10

Income Statement

11

Statement of Comprehensive Income

12

Statement of Financial Position

13 to 14

Statement of Changes in Equity

15

Statement of Cash Flows

16

Notes to the Financial Statements

17 to 37

 

Mediamonks London Limited

Company Information

Directors

V O Knaap

Registered office

15 Bonhill Street
London
EC2A 4DN

Solicitors

Sheridans
76 Wardour Street
London
W1F 0UR

Auditors

Lambert Chapman LLP
Chartered Accountants and Registered Statutory Auditors
3 Warners Mill
Silks Way
Braintree
Essex
CM7 3GB

 

Mediamonks London Limited

Strategic Report for the Year Ended 31 December 2023

The director presents his strategic report for the year ended 31 December 2023.

Principal Activity
The principal activity of the company is creative digital production services.

Fair review of the business
The results for the year and financial position of the Company are shown in the annexed financial statements.

Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

In total, the activities of the company declined to £30.01m (2022: £33.07m) from new and existing clients. Gross profit increased from 70.55% to 77.44% with a gross profit of £23.24m (2022: £23.33m). Profit before tax increased to £1,010,466 from £883,111 in 2022.

The retained profit after tax this year has increased the company’s net assets by £763,499 (2022: £730,323)
The company’s accumulated reserves are now close to £5m at the balance sheet date.

2023 was a difficult year with slower market growth and continuing microeconomic uncertainty. The first half saw a mixed performance with slower growth and an expected second half seasonal uplift did not materialise amidst continuing client caution and further economic challenges. Overall, we have seen clients very much focused on the short term, particularly in relation to larger transformation projects, which has resulted in longer sales cycles, along with lower regional and local opportunities, and we have found it harder to convert new business opportunities.

In 2023, we have shifted our focus to a more disciplined approach to costs, headcount and operational cash generation. Continued control on hiring and reorganisation of the practice has reduced the number of headcounts at the year end. This strong cost discipline has temporarily tempered the declining net revenue. We continue to focus on improving the operating model, integration and forecasting.

On the other hand, we are also seeing our AI initiatives have impact in improving visualisation and copywriting productivity, in delivering hyper-personalisation at scale, in more automated media planning and buying, in improving general client and agency efficiency and in democratising knowledge. This includes the launch of Monks.Flow, an AI centric professional managed service. The initial client traction reinforces our confidence in our offering and approach. As the one player who understands the interaction of media, data, creative and tech, we can help our clients and their brands learn, adapt and innovate so that they can manoeuvre, control and succeed.

 

Mediamonks London Limited

Strategic Report for the Year Ended 31 December 2023


Principal risks and uncertainties

1. Macroeconomic headwinds
Macroeconomic headwinds could result in existing clients reducing spend and potentially limiting new business opportunities. This could result in the company being unable to meet financial targets or deliver growth expectations

Response:
o Broadening the company’s client and mix to increase contribution of diverse regions and sectors.
o Improved planning processes for all clients.
o Restructuring the growth team to enhance delivery and accountability.

2. Operational decision making
Limits to market visibility and changing client budgets, combined with a complex internal budgeting and forecasting process, may create volatility in forecasts and results, which with a complicated data landscape, could lead to internal
inefficiencies and slow down operational decision making.

Response:
o Continued focus on integration and improvement of the operating model for the company.
o Enhanced oversight and performance tracking with improved business partnering and rigour in target setting. Investment in HR and finance systems and processes, enhanced training, including on Salesforce.
o Dedicated investment in relationship management to drive engagement with key clients and get early insight of client trends and drivers.

3. Artificial intelligence (AI)
AI is a disruptive technology that can impact the standard commercial models in our industry, as well as scale up and down the need for specific teams and talent in the business. AI is also considered to be a business opportunity as well as a risk, as the company considers AI to have considerable upsides to its commercial offering and support processes.

Response:
o Core teams have had training and enablement programs on use of AI.
o The business has forged strong relationships with key technology companies on utilisation and execution of AI tools.
o A ‘Launch and Learn’ model has been rolled out to measure impact of AI use and enable continuous improvement.


Future Outlook
During the last two years the shifting tectonic plates underpinning economic and political activity around the globe came together to release a series of powerful disruptive forces that have thrown the world into a heightened level of uncertainty for the near to medium future. The aftershocks of the pandemic continued to rumble on in the form of new working practices, unprecedented reliance on technology, and an epic overhang of debt which combined with
supply chain disruption to sustain damaging inflation and growth-sapping interest rates around the world.

If 2023 was generative AI’s breakthrough year - to quote McKinsey - then it would be foolish to bet on the pace slowing down in 2024. Key milestones in 2023 included the launches of ChatGPT-4 by OpenAI, and Bard by Google - both taking natural language processing to a new level and bringing these capabilities within the range of millions of workers and even students. ChatGPT became the fastest growing app ever, while a debate was ignited about the economic and social impact of AI. That led to a flurry of investment in AI alongside growing focus on the ethics and governance - a topic on which the UK government convened an international conference.

2023 was a period of adjustment and some retrenchment in our industry, as we evaluated our own response to this changing and uncertain world. We expect our clients to remain cautious in the near term. The profitability is expected to show improvement reflecting the benefit of cost reductions made in 2023. Over the medium to longer term we continue to expect the momentum for our net revenue growth to resume and outperform the markets. The company’s purely digital transformation model, based on first-party data fuelling the creation, production and distribution of digital advertising content, distributed by digital media and built on technology platforms to ensure success and efficiency, resonates with clients. Our tagline ‘faster, better, cheaper, more’ (to which with the arrival of AI we have added ‘more’) and a unitary structure both appeal strongly, even more so in challenging economic times.
 

 

Mediamonks London Limited

Strategic Report for the Year Ended 31 December 2023


Principal risks and uncertainties

1. Macroeconomic headwinds
Macroeconomic headwinds could result in existing clients reducing spend and potentially limiting new business opportunities. This could result in the company being unable to meet financial targets or deliver growth expectations

Response:
o Broadening the company’s client and mix to increase contribution of diverse regions and sectors.
o Improved planning processes for all clients.
o Restructuring the growth team to enhance delivery and accountability.

2. Operational decision making
Limits to market visibility and changing client budgets, combined with a complex internal budgeting and forecasting process, may create volatility in forecasts and results, which with a complicated data landscape, could lead to internal
inefficiencies and slow down operational decision making.

Response:
o Continued focus on integration and improvement of the operating model for the company.
o Enhanced oversight and performance tracking with improved business partnering and rigour in target setting. Investment in HR and finance systems and processes, enhanced training, including on Salesforce.
o Dedicated investment in relationship management to drive engagement with key clients and get early insight of client trends and drivers.

3. Artificial intelligence (AI)
AI is a disruptive technology that can impact the standard commercial models in our industry, as well as scale up and down the need for specific teams and talent in the business. AI is also considered to be a business opportunity as well as a risk, as the company considers AI to have considerable upsides to its commercial offering and support processes.

Response:
o Core teams have had training and enablement programs on use of AI.
o The business has forged strong relationships with key technology companies on utilisation and execution of AI tools.
o A ‘Launch and Learn’ model has been rolled out to measure impact of AI use and enable continuous improvement.


Future Outlook
During the last two years the shifting tectonic plates underpinning economic and political activity around the globe came together to release a series of powerful disruptive forces that have thrown the world into a heightened level of uncertainty for the near to medium future. The aftershocks of the pandemic continued to rumble on in the form of new working practices, unprecedented reliance on technology, and an epic overhang of debt which combined with
supply chain disruption to sustain damaging inflation and growth-sapping interest rates around the world.

If 2023 was generative AI’s breakthrough year - to quote McKinsey - then it would be foolish to bet on the pace slowing down in 2024. Key milestones in 2023 included the launches of ChatGPT-4 by OpenAI, and Bard by Google - both taking natural language processing to a new level and bringing these capabilities within the range of millions of workers and even students. ChatGPT became the fastest growing app ever, while a debate was ignited about the economic and social impact of AI. That led to a flurry of investment in AI alongside growing focus on the ethics and governance - a topic on which the UK government convened an international conference.

2023 was a period of adjustment and some retrenchment in our industry, as we evaluated our own response to this changing and uncertain world. We expect our clients to remain cautious in the near term. The profitability is expected to show improvement reflecting the benefit of cost reductions made in 2023. Over the medium to longer term we continue to expect the momentum for our net revenue growth to resume and outperform the markets. The company’s purely digital transformation model, based on first-party data fuelling the creation, production and distribution of digital advertising content, distributed by digital media and built on technology platforms to ensure success and efficiency, resonates with clients. Our tagline ‘faster, better, cheaper, more’ (to which with the arrival of AI we have added ‘more’) and a unitary structure both appeal strongly, even more so in challenging economic times.
 

We are seeing more and more clients seeking agility and rapid execution. Their focus is on tackling elusive top-line growth and inflation-induced pricing adjustments, with an emphasis on advertising that drives activation and performance. Consumer behaviour has evolved, marked by shorter attention spans and fickleness towards brands. This shift necessitates a focus on immediate activation and performance, rather than long-term brand awareness.

Furthermore, AI is going to have a huge impact in the sectors we serve. Generative tools like ChatGPT and Bard are enhancing productivity and capability across all departments, facilitating the creation of AI-driven brand experiences for clients. These advancements might lead big tech platforms to bypass media agencies, directly serving clients without requiring massive manpower for media plan execution. In such scenarios, our new role would be ensuring algorithm optimization for clients' benefits. While AI's impact can be seen as either a threat or opportunity, we view it unequivocally as the latter and are committed to leveraging our early mover advantage.

Change is happening rapidly every day, and we need to acknowledge that by constantly re-inventing ourselves and becoming the change makers. That’s how industries move forwards, and that’s the measure by which we should judge ourselves.

Summary
The directors are pleased with the overall financial performance of the company for the year ended 31 December 2023.
 

Approved by the director on 31 January 2025 and signed on its behalf by:

.........................................
V O Knaap
Director

   
     
 

Mediamonks London Limited

Director's Report for the Year Ended 31 December 2023

The director presents his report and the financial statements for the year ended 31 December 2023.

Director of the company

The directors, who held office during the year, were as follows:

W T Haar (ceased 1 October 2023)

V O Knaap

Principal activity

The principal activity of the company is creative digital production services.

Disclosure of information to the auditor

The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditor is unaware.

Approved by the director on 31 January 2025
 

.........................................
V O Knaap
Director

 

Mediamonks London Limited

Statement of Director's Responsibilities

The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with UK adopted International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. Under company law the director must not approve the financial statements unless he is 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 director is required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK adopted International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

 

Mediamonks London Limited

Independent Auditor's Report to the Members of Mediamonks London Limited

Opinion

We have audited the financial statements of Mediamonks London Limited (the 'company') for the year ended 31 December 2023, which comprise the Income Statement, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;

have been properly prepared in accordance with UK adopted IFRSs; and

have been prepared in accordance with the requirements of the Companies Act 2006.

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 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 director's 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 original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Mediamonks London Limited

Independent Auditor's Report to the Members of Mediamonks London Limited

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

We have nothing to report in respect of the following matters where 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 directors’ remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of the director

As explained more fully in the Statement of Director's Responsibilities set out on page 6, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Mediamonks London Limited

Independent Auditor's Report to the Members of Mediamonks London Limited

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. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the advertising sector;

• we focused on specific laws and regulations which we considered may have a direct material affect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, and health and safety legislation;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

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

• agreeing financial statement disclosures to underlying supporting documentation;

• enquiring of management as to actual and potential litigation and claims.

 

Mediamonks London Limited

Independent Auditor's Report to the Members of Mediamonks London Limited

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may
involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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.

......................................
Sean Wiegand FCA (Senior Statutory Auditor)
For and on behalf of Lambert Chapman LLP, Statutory Auditor

3 Warners Mill
Silks Way
Braintree
Essex
CM7 3GB

31 January 2025

 

Mediamonks London Limited

Income Statement for the Year Ended 31 December 2023

Note

2023
£

2022
£

Revenue

4

30,011,421

33,070,274

Cost of sales

 

(6,771,114)

(9,738,980)

Gross profit

 

23,240,307

23,331,294

Administrative expenses

 

(23,045,954)

(22,807,105)

Other operating income

1,394,856

918,536

Operating profit

1,589,209

1,442,725

Finance income

 

12,064

-

Finance costs

 

(590,807)

(559,614)

Net finance cost

5

(578,743)

(559,614)

Profit before tax

 

1,010,466

883,111

Tax expense

15

(246,967)

(152,788)

Profit for the year

 

763,499

730,323

The above results were derived from continuing operations.

 

Mediamonks London Limited

Statement of Comprehensive Income for the Year Ended 31 December 2023

2023
£

2022
£

Profit for the year

763,499

730,323

Total comprehensive income for the year

763,499

730,323

 

Mediamonks London Limited

(Registration number: 08333698)
Statement of Financial Position as at 31 December 2023

Note

31 December
2023
£

31 December
2022
£

Assets

Non-current assets

 

Property, plant and equipment

8

168,668

788,485

Right of use assets

9

4,749,542

15,500,597

Trade and other receivables

10

1,014,613

-

Deferred tax assets

15

26,087

26,265

 

5,958,910

16,315,347

Current assets

 

Trade and other receivables

10

7,932,029

9,322,423

Corporation tax

 

-

15,084

Cash and cash equivalents

11

839,384

2,052,282

   

8,771,413

11,389,789

Total assets

 

14,730,323

27,705,136

Current liabilities

 

Trade and other payables

13

5,260,078

7,395,507

Corporation tax liability

 

132,134

-

Right of use liability

9

773,382

3,667,283

   

6,165,594

11,062,790

Net current assets

 

2,605,819

326,999

Total assets less current liabilities

 

8,564,729

16,642,346

Non-current liabilities

 

Provisions

12

357,500

646,580

Deferred tax provision

15

27,074

53,631

Right of use liability

9

3,211,005

11,793,758

 

3,595,579

12,493,969

Net assets

 

4,969,150

4,148,377

 

Mediamonks London Limited

(Registration number: 08333698)
Statement of Financial Position as at 31 December 2023

Note

31 December
2023
£

31 December
2022
£

Equity

 

Share capital

16, 17

100

100

Share premium

17

2,000,000

2,000,000

Capital contribution

17

93,893

36,619

Retained earnings

 

2,875,157

2,111,658

Total equity and liabilities

 

4,969,150

4,148,377

Approved by the director on 31 January 2025
 

.........................................
V O Knaap
Director

 

Mediamonks London Limited

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Share premium
£

Capital contribution
£

Retained earnings
£

Total
£

At 1 January 2023

100

2,000,000

36,619

2,111,658

4,148,377

Profit for the year

-

-

-

763,499

763,499

Total comprehensive income

-

-

-

763,499

763,499

Share based payment transactions

-

-

57,274

-

57,274

At 31 December 2023

100

2,000,000

93,893

2,875,157

4,969,150

Share capital
£

Share premium
£

Capital contribution
£

Retained earnings
£

Total
£

At 1 January 2022

100

-

-

2,601,335

2,601,435

Profit for the year

-

-

-

730,323

730,323

Total comprehensive income

-

-

-

730,323

730,323

Dividends

-

-

-

(1,220,000)

(1,220,000)

Other share premium reserve movements

-

2,000,000

-

-

2,000,000

Share based payment transactions

-

-

36,619

-

36,619

At 31 December 2022

100

2,000,000

36,619

2,111,658

4,148,377

The share premium reserve movement in the prior year relates to the write off of an intercompany loan with S4 Capital UK Holdings Limited as an investment in Mediamonks London Limited.

 

Mediamonks London Limited

Statement of Cash Flows for the Year Ended 31 December 2023

2023
£

2022
£

Cash flows from operating activities

Profit for the year

763,499

730,323

Adjustments to cash flows from non-cash items

Depreciation and amortisation

275,840

240,238

Depreciation on right of use assets

3,401,236

3,005,322

(Profit)/loss on disposal of property plant and equipment

(195,684)

5,259

Finance income

(12,064)

-

Finance costs

590,807

559,614

Share based payment transactions

57,274

36,619

Tax expense

246,967

152,788

5,127,875

4,730,163

Working capital adjustments

Decrease/(increase) in trade and other receivables

375,781

(2,211,784)

(Decrease)/increase in trade and other payables

(2,135,429)

2,171,009

Cash generated from operations

3,368,227

4,689,388

Income taxes paid

(95,226)

(112,763)

Net cash flow from operating activities

3,273,001

4,576,625

Cash flows from investing activities

Interest received

12,064

-

Acquisitions of property plant and equipment

(106,919)

(796,036)

Proceeds from sale of property plant and equipment

-

73,648

Payments made on leased assets during the year

(4,379,174)

(3,003,027)

Net cash flows from investing activities

(4,474,029)

(3,725,415)

Cash flows from financing activities

Interest paid

(11,870)

(13,741)

Proceeds from exercise of share options

-

2,000,000

Dividends paid

-

(1,220,000)

Net cash flows from financing activities

(11,870)

766,259

Net (decrease)/increase in cash and cash equivalents

(1,212,898)

1,617,469

Cash and cash equivalents at 1 January

2,052,282

434,813

Cash and cash equivalents at 31 December

839,384

2,052,282

 

Mediamonks London Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated and domiciled in England and Wales.

The address of its registered office is:
15 Bonhill Street
London
EC2A 4DN

These financial statements were authorised for issue by the director on 31 January 2025.

2

Accounting policies

Statement of compliance

The company financial statements have been prepared in accordance with International Financial Reporting Standards and its interpretations adopted by the UK ("adopted IFRS's").

Summary of material accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Basis of preparation

The financial statements have been prepared in accordance with adopted IFRSs and under historical cost accounting rules.

The preparation of financial statements, in compliance with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies.

These financial statements are presented in Sterling (£), which is the company's functional currency.

Changes in accounting policy

None of the standards, interpretations and amendments effective for the first time from 1 January 2023 have had a material effect on the financial statements.

New standards, interpretations and amendments not yet effective

The following newly issued but not yet effective standards, interpretations and amendments, which have not been applied in these financial statements, will or may have an effect on the company financial statements in future:

IAS 1

The aim of the amendments are to clarify the definition of current and non-current depending on the rights existing at the end of the reporting period, as well as improving the information an entity provides when its right to defer. The company will adopt the amendments when it becomes effective for periods commencing on or after 1 January 2024. There is not expected to be any material effect on the financial statements upon adopting.

 

Mediamonks London Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

IFRS 7

The aim of the amendment is require an entity to provide additional disclosures about its supplier finance arrangements. The amendments also add supplier finance arrangements as an example within the liquidity risk disclosure requirements of IFRS 7 Financial Instruments: Disclosures. The company will adopt the amendments when it becomes effective for periods commencing on or after 1 January 2024. There is not expected to be any material effect on the financial statements upon adopting.

IFRS 16

The aim of the amendment is to include further subsequent measurement requirements for sale and leaseback transactions. The company will adopt the amendments when it becomes effective for periods commencing on or after 1 January 2024. There is not expected to be any material effect on the financial statements upon adopting.

None of the other standards, interpretations and amendments which are effective for periods beginning after 1 January 2023 and which have not been adopted early, are expected to have a material effect on the financial statements.

 

Mediamonks London Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Revenue recognition

The company produces digital campaigns, films, creative content, platforms and E- commerce for home grown and international brands. The company has three principal operating segments which are assets at scale, platform and E- commerce and creative content and innovation. Projects in the assets at scale have, on average a one to two month duration and have a mix of fixed pricing and projects on an actual time spend basis. The focus of the platform and E-commerce pillar is on retaining repeat work with longer lasting characteristics with prices that are mostly based on actual time spent. The characteristics of the projects on the creative content and innovation pillar include a life cycle of two to four months and fixed prices.

Revenue is recognised as a performance obligation is satisfied in accordance with terms of the contractual agreement. Typically, performance obligations are satisfied over time as services are rendered. Revenue recognised over time is based on the proportion of level of service performed.

The company determines all the separate performance obligations within the customer's contract at contract inception. The company determines at contract inception whether each performance obligation will be satisfied (that is when control will be transferred) over time or at a point in time. In general, the company satisfies a performance obligation and recognises revenue over time, as the asset has no alternative use to the company and the company is entitled to payment for performance to date. The asset for each project is produced to the customer's specification and the asset can only be used by the customer.

For each performance obligation that is satisfied over time, revenue is recognised by measuring progress towards completion of that performance obligation. Revenue recognised over time is based on the proportion of the level of services performed. For most contracts, costs incurred are used as an objective input measure of performance. The primary input of substantially all work performed under these contracts is labour.

If profit on the project can be determined reliably, revenue is recognised in proportion to the services provided at reporting date. Otherwise, revenue is recognised based on the cost incurred.

Where the total project costs exceed the project revenue, the loss is recognised in the cost of sales in the income statement.

For projects which are sold on a time and material basis and meet the criteria of recognising revenue over time, the revenue is recognised as the service is performed at the rate contracted on a time and material basis.

Accrued income and deferred income arising on contracts is included in trade and other receivables as accrued income and in trade and other payables as deferred income as appropriate.

Revenue is recognised net of Value added tax when the revenue criteria as disclosed above for each contract has been met.
 

Foreign currency transactions and balances

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operation result.

 

Mediamonks London Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Tax

Current Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on material temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Property, plant and equipment is stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Office equipment

33% Straight Line Method

Fixtures and fittings

20% Straight Line Method

Improvements to property

Over the term of the lease

Right of use asset

Leases are accounted for by recognising a right of use asset and a lease liability.

Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the bank borrowings offered by the company's bankers.

Right of use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for:
· lease payments made at or before commencement of the lease;
· initial direct costs incurred; and

Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset if, rarely, this is judged to be shorter than the lease term.

 

Mediamonks London Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits.

Cash flow statement
The cash flow statement is prepared using the indirect method. The cash and cash equivalents in the cash flow statement comprise cash and cash equivalents. Cash flows denominated in foreign currencies are converted based on average exchange rates.

Income taxes paid and received are included in cash flows from operating activities. Principal elements of lease payments are included in cash flows from financing activities. Transactions not resulting in inflow or outflow of cash are not included in the cash flow statement.

Trade receivables

Trade receivables are amounts due from customers for digital services performed in the ordinary course of business.

Trade receivables are recognised initially at the transaction price. A provision for the impairment of trade receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the payable for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade payable are recognised initially at the transaction price.

Provisions

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

Provisions are measured at the directors’ best estimate of the expenditure required to settle the obligation at the reporting date and are discounted to present value where the effect is material.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the company’s financial statements in the period in which the dividends are approved by the company’s shareholders.

 

Mediamonks London Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a separate entity and has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

For defined contribution plans contributions are paid publicly or privately administered pension insurance plans on a mandatory or contractual basis. The contributions are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as an asset.

Share based payments

The company operates an equity-settled, share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the entity. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated using the Black Scholes option pricing model. The total amount expensed is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.

The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.

Financial instruments

Initial recognition

Financial assets and financial liabilities comprise all assets and liabilities reflected in the statement of financial position, although excluding property, plant and equipment, investment properties, intangible assets, deferred tax assets, prepayments, deferred tax liabilities and employee benefits plan.

The company recognises financial assets and financial liabilities in the statement of financial position when, and only when, the company becomes party to the contractual provisions of the financial instrument.

Financial assets are initially recognised at fair value. Financial liabilities are initially recognised at fair value, representing the proceeds received net of premiums, discounts and transaction costs that are directly attributable to the financial liability.

Subsequent to initial measurement, financial assets and financial liabilities are measured at either amortised cost or fair value.

Classification and measurement

Financial instruments are classified at inception into one of the following categories, which then determine the subsequent measurement methodology:-

Financial assets are classified into one of the following three categories:-
· financial assets at amortised cost;
· financial assets at fair value through other comprehensive income (FVTOCI); or
· financial assets at fair value through the profit or loss (FVTPL).

Financial liabilities are classified into one of the following two categories:-
· financial liabilities at amortised cost; or
· financial liabilities at fair value through the profit or loss (FVTPL).

The classification and the basis for measurement are subject to the company’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets, as detailed below:-

 

Mediamonks London Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Financial liabilities at amortised cost

All financial liabilities, other than those classified as financial liabilities at FVTPL, are measured at amortised cost using the effective interest rate method.

Impairment of financial assets

Measurement of Expected Credit Losses

For trade receivables, the company applies the simplified approach, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

The expected loss rates are based on the payment profiles of sales over a period before 31 December 2023 and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables.

3

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the Company's financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of asset or liability affected in future periods.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The company based its assumptions and estimates on parameters when the financial statements were prepared. Existing circumstances and assumptions about future developments, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Provision for expected credit losses of trade receivables
The company applies the IFRS 9 simplified approach to measure expected credit losses. The company exercises judgement in determining credit losses. In this judgement the company has considered credit losses and has included a provision as necessary.

A credit impairment is recognised when there is objective evidence that the company will not be able to collect all amounts due according to original terms of the receivables.

Evidence of impairment includes significant financial difficulties of the receivable balances, probability that the receivable will enter bankruptcy or financial reorganisation.

The carrying amount of the asset is either reduced through the use of a credit allowance or directly written off when there is no expectation of future recoverability. Should an expense need to be recognised for any credit allowance it would be recognised in the Income statement.

 

Mediamonks London Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Work in progress and revenue recognition
The company applies IFRS 15 Revenue from contracts with customers. The company exercises judgement in determining the amount of work completed at the balance sheet date. As at 31 December 2023 the project managers assess the percentage complete on each contract in progress to determine the level of revenue to be reported within the income statement and accrued/ deferred income in the statement of the financial position.

Further details regarding revenue recognition are included in the accounting policy for revenue recognition.

There are no other critical accounting estimates and judgements leading to material impact to the financial statements.

4

Revenue

The analysis of the company's revenue for the year from continuing operations is as follows:

2023
£

2022
£

Sale of creative digital production services

30,011,421

33,070,274

5

Finance income and costs

2023
£

2022
£

Finance income

Interest income on bank deposits

12,064

-

Finance costs

Interest on bank overdrafts and borrowings

5,016

8,969

Interest expenses on other liabilities

6,854

4,772

Interest expenses on right of use assets

578,937

545,873

Total finance costs

590,807

559,614

Net finance costs

(578,743)

(559,614)

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

13,967,009

13,938,409

Social security costs

1,828,176

1,782,762

Pension costs, defined contribution scheme

559,572

547,234

Share-based payment expenses

57,274

36,619

Other employee expense

530,387

372,679

16,942,418

16,677,703

 

Mediamonks London Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:

2023
No.

2022
No.

Sales, support and production

202

210

Directors

2

2

204

212

7

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

22,000

18,000

 

Mediamonks London Limited

Notes to the Financial Statements for the Year Ended 31 December 2023


 

8

Property, plant and equipment

Improvements to property
£

Office Equipment
£

Fixtures and fittings
£

Total
£

Cost or valuation

At 1 January 2022

91,197

413,176

89,209

593,582

Additions

631,698

164,338

-

796,036

Disposals

-

(84,454)

-

(84,454)

At 31 December 2022

722,895

493,060

89,209

1,305,164

At 1 January 2023

722,895

493,060

89,209

1,305,164

Additions

74,299

19,078

13,542

106,919

Disposals

(732,720)

-

-

(732,720)

At 31 December 2023

64,474

512,138

102,751

679,363

Depreciation

At 1 January 2022

54,114

180,438

47,436

281,988

Charge for year

94,821

127,623

17,794

240,238

Eliminated on disposal

-

(5,547)

-

(5,547)

At 31 December 2022

148,935

302,514

65,230

516,679

At 1 January 2023

148,935

302,514

65,230

516,679

Charge for the year

136,992

121,286

17,562

275,840

Eliminated on disposal

(281,824)

-

-

(281,824)

At 31 December 2023

4,103

423,800

82,792

510,695

Carrying amount

At 31 December 2023

60,371

88,338

19,959

168,668

At 31 December 2022

573,960

190,546

23,979

788,485

At 1 January 2022

37,083

232,738

41,773

311,594

 

Mediamonks London Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

9

Right of use assets

Property
£

Total
£

Cost or valuation

At 1 January 2022

1,545,806

1,545,806

Additions

17,944,830

17,944,830

Disposals

(104,002)

(104,002)

At 31 December 2022

19,386,634

19,386,634

At 1 January 2023

19,386,634

19,386,634

Additions

5,535,353

5,535,353

Disposals

(20,102,836)

(20,102,836)

At 31 December 2023

4,819,151

4,819,151

Depreciation

At 1 January 2022

984,717

984,717

Charge for year

3,005,322

3,005,322

Eliminated on disposal

(104,002)

(104,002)

At 31 December 2022

3,886,037

3,886,037

At 1 January 2023

3,886,037

3,886,037

Charge for the year

3,401,236

3,401,236

Eliminated on disposal

(7,217,664)

(7,217,664)

At 31 December 2023

69,609

69,609

Carrying amount

At 31 December 2023

4,749,542

4,749,542

At 31 December 2022

15,500,597

15,500,597

 

Mediamonks London Limited

Notes to the Financial Statements for the Year Ended 31 December 2023


Lease liabilities

Property
£

Total
£

At 1 January 2022

619,945

619,945

Additions

17,295,250

17,295,250

Interest expense

545,873

545,873

Lease payments

(3,000,027)

(3,000,027)

At 31 December 2022

15,461,041

15,461,041

At 1 January 2023

15,461,041

15,461,041

Additions

4,461,652

4,461,652

Disposals

(12,131,072)

(12,131,072)

Interest expense

571,939

571,939

Lease payments

(4,379,173)

(4,379,173)

At 31 December 2023

3,984,387

3,984,387


 

2023
 £

2022
£

Due within one year

773,382

3,667,283

Due in more than one year

3,211,005

11,793,758

3,984,387

15,461,041



 

A maturity analysis of lease liabilities based on undiscounted gross cash flow is reported in the table below:
 

31 December
2023
£

31 December
2022
£

Less than one year

676,408

4,121,109

1-2 years

1,014,613

4,032,140

2-5 years

2,536,531

8,677,803

Total lease liabilities (undiscounted)

4,227,552

16,831,052

 

Mediamonks London Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

10

Trade and other receivables

Current

31 December
2023
£

31 December
2022
£

Trade receivables

5,871,349

5,109,426

Receivables from related parties

1,395,105

3,015,075

Prepayments

400,595

795,039

Other receivables

264,980

402,883

 

7,932,029

9,322,423

The company's exposure to credit and market risks, including maturity analysis, relating to trade and other receivables is disclosed in note 21 "Financial risk review".

Non-current

31 December
2023
£

31 December
2022
£

Other receivables

1,014,613

-

11

Cash and cash equivalents

31 December
2023
£

31 December
2022
£

Cash at bank

839,384

2,052,282

12

Provisions

Provisions
£

Total
£

At 1 January 2023

(646,580)

(646,580)

Additional provisions

357,500

357,500

Release of provision

646,580

646,580

At 31 December 2023

357,500

357,500

Leasehold dilapidations relate to the estimated cost of returning the leasehold properties to its original state at the end of the lease in accordance with the lease terms. The cost is recognised as depreciation of leasehold improvements over the remaining term of the lease. The main uncertainty relates to estimating the cost that will be incurred at the end of the lease.

The release of the provision during the year is as a consequence of the company's obligations in respect of the dilapidations ceasing when the lease was terminated by the lessor.

 

Mediamonks London Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

13

Trade and other payables

31 December
2023
£

31 December
2022
£

Trade payables

1,757,987

487,609

Amounts due to related parties

663,655

4,830,959

Other payables

87,359

93,117

Social security and other taxes

637,040

648,823

Accrued expenses

2,114,037

1,334,999

Trade and other payables

5,260,078

7,395,507

The company's exposure to market and liquidity risks, including maturity analysis, related to trade and other payables is disclosed in note 21 "Financial risk review".

14

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £559,572 (2022 - £547,234).

 

Mediamonks London Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

15

Income tax

Tax charged/(credited) in the income statement

2023
£

2022
£

Current taxation

UK corporation tax

273,346

85,550

Deferred taxation

Arising from origination and reversal of temporary differences

(26,379)

67,238

Tax expense in the income statement

246,967

152,788

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 23.52% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

1,010,466

883,111

Corporation tax at standard rate

237,662

167,791

Decrease from effect of capital allowances in excess of depreciation

(3,017)

(14,358)

Increase from effect of expenses not deductible in determining taxable profit (tax loss)

38,701

13,244

Decrease arising from group relief tax

-

(81,127)

Movement in Deferred tax

(26,379)

67,238

Total tax charge

246,967

152,788

 

Mediamonks London Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Deferred tax

Deferred tax assets and liabilities

Deferred tax movement during the year:

At 1 January 2023
£

Recognised in income
£

At
31 December 2023
£

Accelerated tax depreciation

(53,631)

26,557

(27,074)

Provisions

26,265

(178)

26,087

(27,366)

26,379

(987)

Deferred tax movement during the prior year:

At 1 January 2022
£

Recognised in income
£

At
31 December 2022
£

Accelerated tax depreciation

(68,628)

14,997

(53,631)

Provisions

108,500

(82,235)

26,265

39,872

(67,238)

(27,366)

16

Share capital

Allotted, called up and fully paid shares

31 December
2023

31 December
2022

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

       

Rights, preferences and restrictions

Ordinary £1 shares have the following rights, preferences and restrictions:
The Ordinary £1 shares shall be non-redeemable but shall hold full rights in respect of voting, and shall entitle the holder to full participation in respect of equity and in the event of a winding up of the company.

The shares may be considered by the directors when considering dividends from time to time.

 

Mediamonks London Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

17

Reserves

Share Capital
Called up share capital represents the nominal value of the shares issued.

Share premium
Amount subscribed for share capital in excess of nominal value.

Capital contribution
Amounts transferred on redemption of share options.

Accumulated profit
All other net gains and losses and transactions with owners (e.g. dividends) not recognised elsewhere.

18

Share-based payments

Employee Share Ownership Plan (ESOP)

Scheme details and movements

In 2023, the S4Capital Group Board approved employee option schemes for key employees of MediaMonks London of 241,805 options over S4Capital plc Ordinary Shares with an exercise price of between £nil and £2.37 and a maximum term of 36 months. In accordance with IFRS 2, the S4 Group recognises share based payment charges from the date of granting the option plans until the vesting of the option plans. Vesting of the options are subject to S4Capital Group achieving year on year business performance targets and options holders achieving personnel performance targets with continued employment .

The movements in the number of share options during the year were as follows:

31 December
2023
Number

31 December
2022
Number

Outstanding, start of period

277,335

-

Granted during the period

232,480

277,335

Forfeited during the period

270,900

-

Outstanding, end of period

238,915

277,335

The movements in the weighted average exercise price of share options during the year were as follows:

31 December
2023
£

31 December
2022
£

Outstanding, start of period

1.30

-

Granted during the period

0.95

1.30

Outstanding, end of period

0.87

1.30

 

Mediamonks London Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Outstanding share options

Details of share options outstanding at the end of the year are as follows:

31 December
2023

31 December
2022

Weighted average exercise price (£)

0.87

1.30

Number of share options outstanding

238,915

277,335

Expected weighted average remaining life (years)

1.50

1.84

The option pricing model used was is based upon fair value on grant date, which is determined by the market price on that date or the application of a Black-Scholes model, depending upon the characteristics of the scheme concerned. The assumptions underlying the Black-Scholes model are detailed below.
- Market price on any given day is obtained from external, publicly available sources.
- Expected life is the weighted average life across all shares granted.
- Expected volatility is sourced from external market data and represents the historical volatility of share prices of comparable company datasets over a period equivalent to the expected option life.

19

Dividends

Final dividends paid

31 December
2023
£

31 December
2022
£

Final dividend of £Nil (2022 - £12,200.00) per each Ordinary shares

-

1,220,000

 

 

20

Commitments

Capital commitments

The total amount contracted for but not provided in the financial statements was £Nil (2022 - £16,831,052).

21

Contingent liabilities

The company is party to a cross guarantee with its parent company, S4 Capital Plc, and its sister companies for debt relating to its parent entity. Borrowings of €375m were covered by this guarantee.

 

Mediamonks London Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

22

Financial risk review

The company is exposed through its operations to the following financial risks:

- Credit risk
- Liquidity risk
- Market risk

In common with all other businesses, the company is exposed to risks from its use of financial instruments. This note describes the objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements.

There have been no substantive changes in the exposure to financial instrument risks, its objectives, policies and processes for managing those risk.

The principal financial instruments used by the company, from which financial instruments risk arises, are as follows:

- Trade receivables
- Cash and cash equivalents
- Trade and other payables

Credit risk

The company's definition of credit risk is the risk of default on a debt due from a customer. This risk is mainly associated with the accounts receivable resulting from the Company's operations. This risk is monitored on a regular basis by the Company with the aim of:

- Ensure compliance with defined payment policy;
- Evaluation of credit granted to each customer;
- Analyse the financial conditions of its customers on a regular basis.

An impairment analysis is performed at each reporting date on an individual basis. The Company evaluates the collectability and recognises an impairment on a case by case basis.

The Company evaluates the concentration of risk with respect to trade receivables as low.

Liquidity risk

The company's definition of liquidity risk is the risk that the company cannot afford to pay its debts as they fall due. The Company's policy to manage liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stress conditions.

 

Mediamonks London Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two main types of risk: currency risk and interest rate risk.

Foreign exchange risk

Transactional currency exposure arise when supply of services or purchases to/ from subsidiaries, clients and suppliers, are being settled in currencies other than the functional currency of the group. The company is part of a group which operates internationally and is therefore exposed to currency risk. The rates of exchange are dependent on market conditions.

Interest rate risk

Interest rate risk is the risk that the value of a financial instrument or cash flow associated with a financial instrument will fluctuate due to changes in market interest rates. Interest rate risk arises from interest bearing financial assets and liabilities that the company uses. The company is not exposed to any significant interest rate risk.

 

Mediamonks London Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

23

Related party transactions

Loans to related parties

2023

Entities with joint control or significant influence
£

At start of period

(1,815,885)

Rendering of services

19,395,959

Acquisition of services

(2,815,333)

Settlement of balances and loans

(14,033,291)

At end of period

731,450

2022

Entities with joint control or significant influence
£

At start of period

(1,087,193)

Rendering of services

12,007,532

Acquisition of services

(6,843,184)

Settlement of balances and loans

(5,893,040)

At end of period

(1,815,885)

24

Parent and ultimate parent undertaking

Relationship between entity and parents

The parent of the largest group in which these financial statements are consolidated is S4 Capital PLC, incorporated in United Kingdom.

The address of S4 Capital PLC is:
12 St James Place, London, SW1A 1NX