Company registration number 04342267 (England and Wales)
GENERATION MEDIA LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2024
Century House
Wargrave Road
Henley-on-Thames
Oxfordshire
United Kingdom
RG9 2LT
GENERATION MEDIA LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 10
Statement of comprehensive income
11
Balance sheet
12 - 13
Statement of changes in equity
14
Notes to the financial statements
15 - 28
GENERATION MEDIA LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr. D. Weller
Mrs. V. Weller
Secretary
Mr. D. Weller
Company number
04342267
Registered office
Century House
Wargrave Road
Henley-on-Thames
Oxfordshire
United Kingdom
RG9 2LT
Auditor
Verallo
Century House
Wargrave Road
Henley-on-Thames
Oxfordshire
United Kingdom
RG9 2LT
GENERATION MEDIA LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
The CEO and Directors present the strategic report for the year ended 31 March 2024.
Generation Media Limited is continuing to develop strategic plans for the future of the business which as always are reviewed every year.
Our key objectives are:
Maintain and strengthen our market-leading position as the world’s leading independent media specialist and Audience 1st experts in communication to Children, Families and Gamers.
Develop and support our customers' businesses specifically and generally to ensure that we maintain the highest and benchmarkable standards of professionalism and expertise.
Recruit and invest in key personnel to drive business growth and strengthen offering to clients.
To continue to invest in systems and services both bespoke and off the shelf to increase and support our existing and new business growth in the online and traditional media sectors.
To be a market leader in the development of media planning and trading strategies in the rapidly changing and fragmenting children’s and youth digital space.
To continue to increase our market share in the Gaming, Content and Entertainment marketing arena.
To continue to develop our brand in new overseas markets notably Germany and the United States.
Maintain and build upon our strong financial performance and strengths against the current economic climate.
GENERATION MEDIA LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
REVIEW OF BUSINESS
The principal activity of the company is the provision of media buying and marketing services to advertisers in the Children, Families and Gamers’ marketing space.
The financial results for the year reflect the successful transition to an Employee Ownership Trust (EOT), demonstrating the resilience and stability of the business during this significant structural change. While profitability has been impacted by this transition, the company remains in a strong financial position, with performance aligning with forecasts and strategic expectations. Looking ahead, Generation Media Limited is poised for significant organic growth, driven by its commitment to innovation, expansion into key international markets, and continued investment in technology and talent.
Key performance indicators
During the year, the turnover saw a 4.4% increase to £51.1m (2023: £49.0m) and the gross profit margin remained consistent at 14.3% (2023: 15.6%).
EBITDA has decreased from £2.98m in 2023 to £0.60m in 2024.
Employees
As an employer, Generation Media Limited provides an effective and ongoing year-long training programme to ensure that all staff members are trained above and beyond the required standard. The Company is proud to be an accredited Platinum CPD business awarded by our industry body, the IPA. Additionally, we are honoured to maintain our accredited Gold standard 'Investors in People', and 'Best Places to Work' awards from both the Sunday Times and Campaign Magazine.
Principal risks and uncertainties
Credit Risk
The Company operates in a field where significant turnover is required to drive advantageous deals for our clients. Scale has always been and has further become increasingly important in the media trading space and whilst we operate in specific media sectors, sufficient scale is still required to leverage the necessary benefits our clients' investments deserve and expect. Like all agencies who are first party principals, we always run a risk of defaulted payments. Our credit control and finance management team is necessarily honed to the highest standards to ensure the Company protects itself from such eventualities. In this regard we continually invest in Company credit with a third party and tracking systems to assist in evaluating risk that the Company may be exposed to. We also maintain a strong risk management policy and ensure our turnover is credit insured where possible to mitigate these risks.
GENERATION MEDIA LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Technical Risk
Investment in new technology is pivotal to maintaining our market leading position and ensuring we can compete successfully in the media planning and trading market of the future. The UK advertising arena is reported as the third highest spending globally, with the majority of this planned and bought via Digital platforms. Therefore, continuing to develop our approach to Digital Online adtech, and the increased usage of AI, to meet the needs of our UK customers will positively impact our growth plans for international advertising spend as global markets adjust to match the UK (and US market). The media buying world will become increasingly benchmarked and audited and the Company will need to ensure its insurances and protections are updated and evaluated.
Future developments
Managing the impact of potential inflation on the UK and global economy will continue to be a persistent and complex problem to navigate for our customers. Increased costs to the development, manufacturing and transportation of goods and services will increase pressure on advertising budgets to deliver return on investment.
The ongoing Digital transformation of the media marketplace means that the landscape will continue to be fragmented, both on a local and global level, making management of customer budgets become more demanding and difficult for customers to navigate. Therefore we be onboarding a new media planning and reporting system, to grant customers increased access to their marketing data in order to make more informed marketing investment decisions.
Given the current economic position within the UK and globally, persistent inflation poses a challenge for the media industry. Whilst the Bank of England (BoE) anticipates UK inflation to drop below targets in 2024, it is projected to rise to 3% in 2025. However, as uncertainties ease and interest rates decrease, the UK economy could gain growth momentum. This is expected to result in GDP growth reaching 1.2% by 2025. Consequently, we anticipate improved market conditions for both the UK & global entertainment and media sectors.
As reported by WARC, UK Advertising Spend is projected to increase +7.7% year-on-year by the end of 2024, and the Global Ad Spend Outlook for 2024/25 is projected to increase by +10.5% YoY. Many of our clients are international in their outlook and Generation Media will continue to evaluate current and new systems and processes in order to assist our customers in their cross market ambitions.
In our opinion, the economic environment will continue to evolve at a rapid pace in the long, medium and short terms. Like many businesses that are ambitious, we constantly monitor world events and their potential effects on local and international business whilst the world is entering a period of political uncertainty. We are well set to manage most eventualities: financially and in thought-leadership.
Overall, in the coming year (2024/25) we aim to grow revenues at a rate planned. We will continue to effectively develop our relationships with customers, supplier-partners and industry stakeholders in so doing, generating new business and increased wealth for our customers and of course our own business.
Mr. D. Weller
Director
18 March 2025
GENERATION MEDIA LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Results and dividends
The results for the year are set out on page 11.
Ordinary dividends were paid amounting to £8,442,600 (2023: £385,000). The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr. D. Weller
Mrs. V. Weller
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Auditor
The auditor, Verallo, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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.
GENERATION MEDIA LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
Strategic report
The Company has chosen, in accordance with section 414c(11) of the Companies Act 2006, and as noted in this Directors' report, to include certain additional matters in its strategic report, that would otherwise be required to be disclosed in this Directors' report:
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr. D. Weller
Director
18 March 2025
GENERATION MEDIA LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GENERATION MEDIA LIMITED
- 7 -
Opinion
We have audited the financial statements of Generation Media Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 31 March 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.
GENERATION MEDIA LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GENERATION MEDIA LIMITED
- 8 -
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.
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 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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
GENERATION MEDIA LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GENERATION MEDIA LIMITED
- 9 -
Our approach was as follows:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), the policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;
We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-the-fi/description-of-the-auditor%E2%80%99s-responsibilities-for. This description forms part of our auditor’s report.
GENERATION MEDIA LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GENERATION MEDIA LIMITED
- 10 -
Use of 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.
Michelle Hewitt-Dutton FCCA (Senior Statutory Auditor)
For and on behalf of Verallo
Statutory Auditor
Office: Henley-on-Thames
19 March 2025
GENERATION MEDIA LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
Turnover
4
51,113,939
48,961,812
Cost of sales
(43,821,202)
(41,300,768)
Gross profit
7,292,737
7,661,044
Administrative expenses
(6,888,890)
(5,474,176)
Other operating income
24,000
Operating profit
3
427,847
2,186,868
Interest receivable and similar income
8
66,736
33,409
Interest payable and similar expenses
9
(737)
(77)
Amounts written off loans
10
(69,677)
(128,185)
Profit before taxation
424,169
2,092,015
Tax on profit
11
(157,921)
(112,984)
Profit for the financial year
266,248
1,979,031
The profit and loss account has been prepared on the basis that all operations are continuing operations.
The notes on pages 15 to 28 form part of these financial statements
GENERATION MEDIA LIMITED
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
213,935
257,408
Current assets
Debtors
14
4,383,818
5,880,070
Cash at bank and in hand
7,523,050
12,150,235
11,906,868
18,030,305
Creditors: amounts falling due within one year
15
(8,760,706)
(7,044,606)
Net current assets
3,146,162
10,985,699
Total assets less current liabilities
3,360,097
11,243,107
Provisions for liabilities
Deferred tax liability
17
31,703
39,078
(31,703)
(39,078)
Net assets
3,328,394
11,204,029
Capital and reserves
Called up share capital
18
1,030
1,030
Share premium account
75,839
75,839
Profit and loss reserves
3,251,525
11,127,160
Total equity
3,328,394
11,204,029
GENERATION MEDIA LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024
31 March 2024
- 13 -
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 18 March 2025 and are signed on its behalf by:
Mr. D. Weller
Director
Company registration number 04342267 (England and Wales)
GENERATION MEDIA LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
Share capital
Share premium account
Share based payment reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2022
1,030
75,839
9,533,129
9,609,998
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
-
1,979,031
1,979,031
Dividends
12
-
-
-
(385,000)
(385,000)
Balance at 31 March 2023
1,030
75,839
11,127,160
11,204,029
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
-
266,248
266,248
Dividends
12
-
-
-
(8,442,600)
(8,442,600)
Transfers
-
-
(300,717)
300,717
-
Share based payment
-
-
300,717
-
300,717
Balance at 31 March 2024
1,030
75,839
3,251,525
3,328,394
The notes on pages 15 to 28 form part of these financial statements
GENERATION MEDIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
1
Accounting policies
Company information
Generation Media Limited is a private company limited by shares incorporated in England and Wales (04342267). The registered office is Century House, Wargrave Road, Henley-on-Thames, Oxfordshire, United Kingdom, RG9 2LT.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Generation Media Enterprises Limited. These consolidated financial statement are available from its registered office, Century House, Wargrave Road, Henley-on-Thames, RG9 2LT.
1.2
Going concern
The financial statements have been prepared on a going concern basis, which assumes the company will continue in operational existence, and will be able to meet its liabilities as they fall due, for a period of at least twelve months from the date of approval of the financial statements.true
The directors have reviewed the continued impact of the economy on the operations and financial position of the company and have a reasonable expectation that the company has adequate resources to continue to adopt the going concern basis of accounting in preparing the financial statements.
GENERATION MEDIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Turnover
Turnover represents amounts receivable for advertising and media services net of VAT and trade discounts.
Revenue from contracts for advertising and media services, is recognised as spent, over the life of the campaign.
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:
Leasehold improvements
Over the life of the lease
Fixtures, fittings & equipment
25% reducing balance
Motor vehicles
33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
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’.
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.
GENERATION MEDIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
GENERATION MEDIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
Basic financial liabilities
Basic financial liabilities, including trade 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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
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.
GENERATION MEDIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
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
Share-based payments
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest.
A corresponding adjustment is made to equity.
The company has granted share options to its key management personnel.
1.13
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.
GENERATION MEDIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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.
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.
Supplier rebates
At the year end, supplier rebates are recognised in other debtors. The amounts receivable from rebates affect the cost of sales on invoice, and are often subject to negotiation after the balance sheet date. A number of agreements are non-coterminous with the financial year end, requiring judgement over the amounts receivable. At the balance sheet date the directors estimate the amount of rebate due to the company, based upon the agreements in place.
At the balance sheet date, management had estimated supplier rebates due back to the company stood at £243,553. A 10% increase or decrease in the rebates would result in a £24,355 rise or drop in profit before tax respectively.
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(72,640)
(418,379)
Depreciation of owned tangible fixed assets
167,532
180,969
Profit on disposal of tangible fixed assets
-
(13,498)
Share-based payments
300,717
-
Operating lease charges
518,288
513,919
GENERATION MEDIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
4
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover
Media planning and buying
51,113,939
48,961,812
Other significant revenue
Interest income
66,736
33,409
Turnover analysed by geographical market
2024
2023
£
£
UK and Ireland
37,322,312
42,997,658
Europe
9,633,709
2,769,384
Rest of World
4,157,918
3,194,770
51,113,939
48,961,812
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
26,250
22,500
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales and administration
50
44
GENERATION MEDIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Employees
(Continued)
- 22 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,270,487
2,256,163
Social security costs
347,137
266,047
Pension costs
105,845
102,391
3,723,469
2,624,601
Included in wages and salaries is £300,717 (2023: £nil) relating to equity settled share based payments, as referred to in Note 19.
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
175,562
18,860
Company pension contributions to defined contribution schemes
20,000
20,000
195,562
38,860
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
66,451
33,409
Other interest income
285
Total income
66,736
33,409
All the interest received relates to financial assets measured at amortised cost.
GENERATION MEDIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
737
-
Other interest
77
737
77
All the interest paid related to financial liabilities measured at amortised cost.
10
Amounts written off investments
2024
2023
£
£
Amounts written off current loans
(69,677)
(128,185)
During the year an amount totalling £69,677 (2023: £128,185) owed from a company under mutual control, was written off as a result of doubts over its recoverability.
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
163,559
134,610
Adjustments in respect of prior periods
1,737
Total current tax
165,296
134,610
Deferred tax
Origination and reversal of timing differences
(7,375)
(21,626)
Total tax charge
157,921
112,984
GENERATION MEDIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
11
Taxation
(Continued)
- 24 -
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
424,169
2,092,015
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
106,042
397,483
Tax effect of expenses that are not deductible in determining taxable profit
57,926
50,996
Effect of change in corporation tax rate
(7,871)
Permanent capital allowances in excess of depreciation
(7,405)
Under/(over) provided in prior years
1,737
Deferred tax adjustments in respect of prior years
(11,481)
Super deduction
(2,872)
Share scheme deduction under part 12 CTA 2009
(379)
(314,557)
Provisions
1,286
Taxation charge for the year
157,921
112,984
As of 1 April 2023 the corporation tax rate in the UK increased to 25% (rather than remaining at 19% as previously enacted). The 25% main rate of corporation tax and marginal relief will be relevant for any asset sales or timing differences expected to reverse on or after 1 April 2023.
12
Dividends
2024
2023
£
£
Interim paid
8,442,600
385,000
GENERATION MEDIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
13
Tangible fixed assets
Leasehold improvements
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
262,151
428,781
93,738
784,670
Additions
124,059
124,059
At 31 March 2024
262,151
552,840
93,738
908,729
Depreciation and impairment
At 1 April 2023
221,900
272,818
32,544
527,262
Depreciation charged in the year
24,284
112,152
31,096
167,532
At 31 March 2024
246,184
384,970
63,640
694,794
Carrying amount
At 31 March 2024
15,967
167,870
30,098
213,935
At 31 March 2023
40,251
155,963
61,194
257,408
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,127,177
2,329,760
Other debtors
942,852
1,800,298
Prepayments and accrued income
313,789
1,750,012
4,383,818
5,880,070
GENERATION MEDIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
5,476,707
3,690,573
Amounts owed to group undertakings
435,793
154,157
Corporation tax
163,559
449,168
Other taxation and social security
629,540
349,129
Other creditors
284,397
188,380
Accruals and deferred income
1,770,710
2,213,199
8,760,706
7,044,606
The amounts owed to group undertakings is interest-free, unsecured and repayable on demand.
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
105,845
102,391
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.
17
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
31,703
39,078
2024
Movements in the year:
£
Liability at 1 April 2023
39,078
Credit to profit or loss
(7,375)
Liability at 31 March 2024
31,703
GENERATION MEDIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
103,000
103,000
1,030
1,030
The company has one class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.
On 31 October 2023, shares in Generation Media Enterprises Limited, under the Enterprise Management Incentive Scheme were exercised. As a result, 800 Ordinary D 1p shares were issued at an exercise price of £74.32 per share, and 500 Ordinary E 1p shares were issued at an exercise price of £74.32 per share for a total consideration of £96,616. As a result of the employees involved being employed by Generation Media Limited, an expense of £300,717 has been included in admin expenses, in relation to equity settled share based payments.
19
Operating lease commitments
Lessee
The operating lease is for offices in central London for a period of 10 years, with a break clause available on the 5 year anniversary of the lease. Lease payments are subject to a rent review on the 5 year anniversary of the lease.
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
299,385
410,000
Between two and five years
1,524,260
170,833
In over five years
183,646
2,007,291
580,833
20
Ultimate controlling party
The immediate and ultimate parent undertaking is Generation Media Enterprises Limited, a company incorporated in England & Wales, Generation Media Enterprises Limited is the smallest and largest group to consolidate these financial statements. Copies of the consolidated financial statements of Generation Media Enterprises Limited are available from Companies House.
The ultimate controlling party is GME Trustees Limited.
GENERATION MEDIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
21
Related party transactions
During the year the company entered into transactions with companies under common control. Sales transactions were entered with the related companies to the value of £43,250 (2023: £27,439), purchases to the value of £367,460 (2023: £408,732), and management charges amounting to £1,533,555 (2023: £1,532,208) were charged to Generation Media Limited.
At the year end, balances owed from these companies totalled £502,885 (2023: £1,469,844). The amount owed is unsecured, interest-free and is repayable on demand.
At the year end an amount totalling £69,677 (2023: £128,185) owed from a company under mutual control, was written off as a result of doubts over its recoverability.
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