Company registration number 12794726 (England and Wales)
GENERATION MEDIA ENTERPRISES LIMITED
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2024
Century House
Wargrave Road
Henley-on-Thames
Oxfordshire
United Kingdom
RG9 2LT
GENERATION MEDIA ENTERPRISES LIMITED
CONTENTS
Page
Company Information
1
Strategic report
2 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 38
GENERATION MEDIA ENTERPRISES LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr. D. Weller
Mrs. V. Weller
Company number
12794726
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 ENTERPRISES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

The CEO and Directors are pleased to present the strategic report for the year ended 31 March 2024.

 

Generation Media Enterprises Limited is continuing to develop strategic plans for the future of the Business which as always are reviewed every year.

 

Our key objectives are continuing to:

REVIEW OF BUSINESS

The principal activity of the group is the provision of media trading 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, the group provides an effective and ongoing year-long training programme to ensure that all staff members are trained above and beyond the required standard. The group 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.

GENERATION MEDIA ENTERPRISES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Principal risks and uncertainties

Credit Risk

The group 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 group protects itself from such eventualities. In this regard we continually invest in group credit with a third party and tracking systems to assist in evaluating risk that the group 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.

 

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 group 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.

GENERATION MEDIA ENTERPRISES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

On behalf of the board

Mr. D. Weller
Director
18 March 2025
GENERATION MEDIA ENTERPRISES 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.

Principal activities

The principal activity of the group continued to be that of the provision of advertising services. The principal activity of the company is that of a holding company.

Results and dividends

The results for the year are set out on page 11.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

Mr. D. Weller
Mrs. V. Weller
Qualifying third party indemnity provisions

The group 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

In accordance with the company's articles, a resolution proposing that Verallo be reappointed as auditor of the group will be put at a General Meeting.

GENERATION MEDIA ENTERPRISES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company 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 auditor of the company is aware of that information.

Strategic report

The group has chosen in accordance with the Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.

On behalf of the board
Mr. D. Weller
Director
18 March 2025
GENERATION MEDIA ENTERPRISES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GENERATION MEDIA ENTERPRISES LIMITED
- 7 -
Opinion

We have audited the financial statements of Generation Media Enterprises Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent 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.

GENERATION MEDIA ENTERPRISES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GENERATION MEDIA ENTERPRISES LIMITED
- 8 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent 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 parent 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.

GENERATION MEDIA ENTERPRISES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GENERATION MEDIA ENTERPRISES LIMITED
- 9 -

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

Our approach was as follows:

 

 

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/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

 

GENERATION MEDIA ENTERPRISES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GENERATION MEDIA ENTERPRISES LIMITED
- 10 -

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.

Michelle Hewitt-Dutton FCCA (Senior Statutory Auditor)
For and on behalf of Verallo
Statutory Auditor
Office: Henley-on-Thames
19 March 2025
GENERATION MEDIA ENTERPRISES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
51,113,939
48,961,812
Cost of sales
(43,488,026)
(41,060,656)
Gross profit
7,625,913
7,901,156
Administrative expenses
(7,116,004)
(5,614,447)
Other operating income
24,070
10,153
Operating profit
4
533,979
2,296,862
Interest receivable and similar income
8
66,736
33,411
Interest payable and similar expenses
9
(737)
(77)
Amounts written off loans
10
(69,677)
(128,185)
Profit before taxation
530,301
2,202,011
Tax on profit
11
(170,405)
(148,151)
Profit for the financial year
359,896
2,053,860
Other comprehensive income
Currency translation differences
2,752
(1,493)
Total comprehensive income for the year
362,648
2,052,367
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
GENERATION MEDIA ENTERPRISES LIMITED
GROUP 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
17
4,374,756
5,891,440
Cash at bank and in hand
7,555,458
12,179,868
11,930,214
18,071,308
Creditors: amounts falling due within one year
18
(8,484,937)
(6,979,510)
Net current assets
3,445,277
11,091,798
Total assets less current liabilities
3,659,212
11,349,206
Provisions for liabilities
Deferred tax liability
19
31,703
39,078
(31,703)
(39,078)
Net assets
3,627,509
11,310,128
Capital and reserves
Called up share capital
22
1,043
1,030
Share premium account
172,442
75,839
Profit and loss reserves
3,454,024
11,233,259
Total equity
3,627,509
11,310,128
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:
18 March 2025
Mr. D. Weller
Director
GENERATION MEDIA ENTERPRISES LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
14
23,292
23,292
Current assets
Debtors
17
254,645
80,041
Creditors: amounts falling due within one year
18
(180,291)
(102,303)
Net current assets/(liabilities)
74,354
(22,262)
Net assets
97,646
1,030
Capital and reserves
Called up share capital
22
1,043
1,030
Share premium account
96,603
-
0
Total equity
97,646
1,030

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £8,442,600 (2023 - £385,000 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

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:
18 March 2025
Mr. D. Weller
Director
Company Registration No. 12794726
GENERATION MEDIA ENTERPRISES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
Share capital
Share premium account
Own shares
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2022
1,030
75,839
-
9,565,892
9,642,761
Year ended 31 March 2023:
Profit for the year
-
-
-
2,053,860
2,053,860
Other comprehensive income:
Currency translation differences
-
-
-
(1,493)
(1,493)
Total comprehensive income for the year
-
-
-
2,052,367
2,052,367
Dividends
12
-
-
-
(385,000)
(385,000)
Balance at 31 March 2023
1,030
75,839
-
0
11,233,259
11,310,128
Year ended 31 March 2024:
Profit for the year
-
-
-
359,896
359,896
Other comprehensive income:
Currency translation differences
-
-
-
2,752
2,752
Total comprehensive income for the year
-
-
-
362,648
362,648
Issue of share capital
22
13
96,603
-
-
96,616
Contributions to Employee Ownership Trust
22
-
-
-
(8,442,600)
(8,442,600)
Transfers
-
-
(300,717)
300,717
-
Other movements
-
-
300,717
-
300,717
Balance at 31 March 2024
1,043
172,442
-
0
3,454,024
3,627,509
GENERATION MEDIA ENTERPRISES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
1,030
-
0
-
0
1,030
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
385,000
385,000
Dividends
12
-
-
(385,000)
(385,000)
Balance at 31 March 2023
1,030
-
0
-
0
1,030
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
8,442,600
8,442,600
Issue of share capital
22
13
96,603
-
96,616
Contributions to Employee Ownership Trust
22
-
-
(8,442,600)
(8,442,600)
Balance at 31 March 2024
1,043
96,603
-
0
97,646
GENERATION MEDIA ENTERPRISES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
4,311,184
3,127,809
Interest paid
(737)
(77)
Income taxes paid
(464,625)
(106,119)
Net cash inflow from operating activities
3,845,822
3,021,613
Investing activities
Purchase of tangible fixed assets
(124,059)
(156,958)
Proceeds on disposal of tangible fixed assets
-
21,700
Receipts arising from loans made
(69,677)
(128,185)
Interest received
66,736
33,411
Net cash used in investing activities
(127,000)
(230,032)
Financing activities
Proceeds from issue of shares
96,616
-
Redemption of shares
(8,442,600)
-
0
Dividends paid to equity shareholders
-
(385,000)
Net cash used in financing activities
(8,345,984)
(385,000)
Net (decrease)/increase in cash and cash equivalents
(4,627,162)
2,406,581
Cash and cash equivalents at beginning of year
12,179,868
9,774,780
Effect of foreign exchange rates
2,752
(1,493)
Cash and cash equivalents at end of year
7,555,458
12,179,868

The notes on pages 17 to 38 form part of these financial statements.

GENERATION MEDIA ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
1
Accounting policies
Company information

Generation Media Enterprises Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Century House, Wargrave Road, Henley-on-Thames, Oxfordshire, United Kingdom, RG9 2LT.

 

The group consists of Generation Media Enterprises Limited and all of its subsidiaries.

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.

The 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 for parent company information presented within the consolidated financial statements:

 

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £8,442,600 (2023 - £385,000 profit).

1.2
Business combinations
GENERATION MEDIA ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Generation Media Enterprises Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Purchase acquisition

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at ther fair values at the acquisition date.

 

 

Merger accounting basis

The company acquired Generation Media Limited through a share-for-share exchange on 30 March 2022. There is no change to the ultimate ownership of Generation Media Limited and therefore in accordance with FRS 102 s 19, this is a group reconstruction and should therefore be accounted for in accordance with merger accounting. The following accounting treatments were applied in respect of the merger:

1.4
Going concern

The financial statements have been prepared on a going concern basis, which assumes the group 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.

 

The directors have reviewed the continued impact of the economy on the operations and financial position of the group 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 ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
1.5
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.

1.6
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 land and buildings
Over the life of the lease
Fixtures, fittings and equipment
25% straight line
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 recognised in the profit and loss account.

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.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

GENERATION MEDIA ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

GENERATION MEDIA ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 21 -

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

1.9
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.

1.10
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

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.

GENERATION MEDIA ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 22 -
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 group 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the group 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 group.

1.12
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

GENERATION MEDIA ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 23 -
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 if, and only if, there is 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.

1.13
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.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
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 expense in relation to options over the parent company’s shares granted to employees of a subsidiary is recognised by the company as a capital contribution, and presented as an increase in the company’s investment in that subsidiary.

GENERATION MEDIA ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 24 -

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

1.16
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 leased asset are consumed.

1.17
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 group’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.

GENERATION MEDIA ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 25 -
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 affects 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 Group stood at £243,553 (2023: £307,463). A 10% increase or decrease in the rebates would result in a £24,355 (2023: £30,746) rise or drop in profit before tax respectively.

 

Bad debt provision

The directors review the bad debt provision on a monthly basis and apply professional judgement, combined with customer knowledge to quantify a bad debt provision. The provision continues to be reviewed on a monthly basis, with variances being released to the profit and loss as they arise.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
UK
37,322,312
42,997,658
EU
9,633,709
2,769,384
Rest of World
4,157,918
3,194,770
51,113,939
48,961,812
2024
2023
£
£
Other revenue
Interest income
66,736
33,411
GENERATION MEDIA ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(72,044)
(419,308)
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
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 group and company
8,250
7,500
Audit of the financial statements of the company's subsidiaries
26,250
22,500
34,500
30,000
For other services
Other assurance services
5,900
5,900
Taxation compliance services
4,070
4,070
9,970
9,970
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
50
44
-
0
-
0
GENERATION MEDIA ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Employees
(Continued)
- 27 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,406,034
2,346,431
-
0
-
0
Social security costs
373,621
281,069
-
-
Pension costs
108,104
104,790
-
0
-
0
3,887,759
2,732,290
-
0
-
0
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
33,411
Other interest income
285
-
Total income
66,736
33,411

All the interest received in the periods are related to financial assets measured at amortised cost.

GENERATION MEDIA ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
737
-
Other interest
-
77
Total finance costs
737
77

All the interest expense in the periods are related to financial liabilities not measured at fair value through profit or loss.

10
Amounts written off loans
2024
2023
£
£
Amounts written off current loans
(69,677)
(128,185)

During the year an amount of £69,677 (2023: £128,185) owed from a company under mutual control was written-off as a result of doubts over its recoverability. This impairment is included as a separate line item in the statement of comprehensive income.

11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
179,467
166,372
Adjustments in respect of prior periods
(1,687)
3,405
Total current tax
177,780
169,777
Deferred tax
Origination and reversal of timing differences
(7,375)
(10,145)
Adjustment in respect of prior periods
-
0
(11,481)
Total deferred tax
(7,375)
(21,626)
Total tax charge
170,405
148,151

The main corporation tax rate increased from 19% to 25% from 1 April 2023. The 25% main rate of corporation tax and marginal relief will apply to any asset sales or timing differences that reverse on or after this date.

GENERATION MEDIA ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
11
Taxation
(Continued)
- 29 -

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
530,301
2,202,011
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
132,575
418,382
Tax effect of expenses that are not deductible in determining taxable profit
57,927
50,997
Effect of change in corporation tax rate
-
(7,871)
Permanent capital allowances in excess of depreciation
(7,405)
-
0
Effect of overseas tax rates
(10,626)
14,267
Under/(over) provided in prior years
(1,687)
-
0
Deferred tax adjustments in respect of prior years
-
0
(11,481)
Super deduction
-
0
(2,872)
Share scheme deduction under Part 12 CTA 2009
(379)
(314,557)
Provisions
-
0
1,286
Taxation charge
170,405
148,151
12
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
-
385,000
GENERATION MEDIA ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
13
Tangible fixed assets
Group
Leasehold land and buildings
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
262,151
428,781
93,738
784,670
Additions
-
0
124,059
-
0
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
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
23,292
23,292

On 30 March 2022, the company acquired 100% ownership of Generation Media Limited via a share for share exchange for £1,030.

 

Generation Media GmbH was incorporated on 22 February 2021, 100% of its shareholding at a nominal value of £22,262, was transferred to Generation Media Enterprises Limited on 8 April 2021, when it became part of the group and commenced trading.

GENERATION MEDIA ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
14
Fixed asset investments
(Continued)
- 31 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
23,292
Carrying amount
At 31 March 2024
23,292
At 31 March 2023
23,292
15
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Generation Media Limited
i)
Provision of advertising services
Ordinary
100
Generation Media GmbH
ii)
Provision of advertising services
Ordinary
100

Registered office addresses (all UK unless otherwise indicated):

i)
Century House, Wargrave House, Henley-on-Thames, Oxfordshire RG9 2LT
ii)
Max-Delbrück-Str. 12-16 51377, Leverkusen, Nordrhein-Westfalen, Germany
16
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
4,047,767
4,108,212
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
7,703,033
6,178,864
n/a
n/a
GENERATION MEDIA ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,127,177
2,329,759
-
0
-
0
Amounts owed by group undertakings
-
-
254,645
80,041
Other debtors
920,590
1,778,453
-
0
-
0
Prepayments and accrued income
326,989
1,783,228
-
0
-
0
4,374,756
5,891,440
254,645
80,041
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
5,476,707
3,690,573
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
22,262
22,262
Corporation tax payable
165,842
452,687
-
0
-
0
Other taxation and social security
616,062
347,959
-
-
Other creditors
446,081
268,779
158,029
80,041
Accruals and deferred income
1,780,245
2,219,512
-
0
-
0
8,484,937
6,979,510
180,291
102,303
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
31,703
39,078
The company has no deferred tax assets or liabilities.
GENERATION MEDIA ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
19
Deferred taxation
(Continued)
- 33 -
Group
Company
2024
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
-
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
108,104
104,790

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

21
Share-based payment transactions
Group
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 April 2023
1,800
-
-
-
Forfeited
(500)
-
-
-
Exercised
(1,300)
-
-
-
Outstanding at 31 March 2024
-
-
-
-
Exercisable at 31 March 2024
-
-
-
-
GENERATION MEDIA ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
21
Share-based payment transactions
(Continued)
- 34 -
Company
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 April 2023
1,800
-
53.67
-
Exercised
(1,800)
-
53.67
-
Outstanding at 31 March 2024
-
-
-
-
Exercisable at 31 March 2024
-
-
-
-
Group
Company
2024
2023
2024
2023
£
£
£
£
Expenses recognised in the year
Arising from equity settled share based payment transactions
300,717
-
-
-

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.

GENERATION MEDIA ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 35 -
22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 1p each
58,333
58,333
583
583
Ordinary B shares of 1p each
29,167
29,167
292
292
Ordinary C shares of 1p each
5,500
5,500
55
55
Ordinary D shares of 1p each
10,800
10,000
108
100
Ordinary E shares of 1p each
500
-
5
-
104,300
103,000
1,043
1,030

The company has 5 classes of ordinary shares. All shares rank pari passu with no restrictions on the distribution of dividends and repayment of capital.

On 31 October 2023, Generation Media Enterprises Limited established a trust, GME Trustees Limited, to be constituted as an employee-ownership trust. The trust has been set up by the existing company owners, for the benefit of all employees and for the purposes of section 236H of the Taxation of Chargeable Gains Act 1992. The purchase of 51% of the shares of Generation Media Enterprises Limited, was financed through:

1) Cash consideration for the sum of £8,250,000; and

2) The creation of secured interest-free redeemable loan notes 2023 to the value of £8,070,000.

 

The loan notes are repayable on demand, if funds are available within the EOT, on an exit event or expire on 31 October 2035

On 29 March 2022, all share options held in Generation Media Limited, were vested and exercised as a result of an exit event due to a share-for-share exchange which took place between Generation Media Limited and Generation Media Enterprises Limited. As a result of the exercise, an additional 10,000 ordinary 1p shares were issued, 4,650 for an exercise price of £7 per share and 5,350 for an exercise price of £8.11 per share, giving rise to a share premium of £75,838.50.

 

On 31 October 2023, shares 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.

GENERATION MEDIA ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 36 -
23
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 group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
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
-
-
24
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Group
Other related parties
43,250
27,439
367,460
793,732
Management charges
2024
2023
£
£
Group
Other related parties
1,533,555
1,532,208
GENERATION MEDIA ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
24
Related party transactions
(Continued)
- 37 -

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Other related parties
502,885
1,469,844

The amounts owed are unsecured, interest-free, have no fixed date of repayment and are repayable on demand.

The other related parties are related by virtue of the entities having common key management personnel.

The following amounts were recognised as an expense in the period in respect of bad and doubtful debts due from related parties:

2024
2023
£
£
Group
Other related parties
69,677
128,185
Other information

The company has taken advantage of the exemption allowed under Section 33.1A of FRS 102 not to disclose transactions with wholly owned members of the group.

 

The company has taken advantage of the exemption allowed under Section 33.7A of FRS 102 not to disclose the remuneration of key management personnel as the group considers the directors are one and the same.

25
Directors' transactions

Dividends totalling £192,500 (2023 - £385,000) were paid in the year in respect of shares held by the company's directors.

At the year-end the company owed the directors £158,029 (2023: £80,041), as included in other creditors. The amount owed to the directors are unsecured, interest-free, have no fixed date of repayment and are repayable on demand.

26
Controlling party

The group considers there to be no ultimate controlling party in Generation Media Enterprises Limited.

GENERATION MEDIA ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 38 -
27
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
359,896
2,053,860
Adjustments for:
Taxation charged
170,405
148,151
Finance costs
737
77
Investment income
(66,736)
(33,411)
Gain on disposal of tangible fixed assets
-
(13,498)
Depreciation and impairment of tangible fixed assets
167,532
180,969
Other gains and losses
69,677
128,185
Equity settled share based payment expense
300,717
-
Movements in working capital:
Decrease/(increase) in debtors
1,516,684
(1,524,914)
Increase in creditors
1,792,272
2,188,390
Cash generated from operations
4,311,184
3,127,809
28
Analysis of changes in net funds - group
1 April 2023
Cash flows
Exchange rate movements
31 March 2024
£
£
£
£
Cash at bank and in hand
12,179,868
(4,627,162)
2,752
7,555,458
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