Company registration number 05471049 (England and Wales)
MOTOR SPORT MAGAZINE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
PAGES FOR FILING WITH REGISTRAR
MOTOR SPORT MAGAZINE LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
MOTOR SPORT MAGAZINE LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2024
30 November 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
4
350,905
404,463
Tangible assets
5
15,438
5,388
366,343
409,851
Current assets
Stocks
7,092
6,031
Debtors
6
540,294
559,327
Cash at bank and in hand
14,729
127,735
562,115
693,093
Creditors: amounts falling due within one year
7
(919,090)
(798,983)
Net current liabilities
(356,975)
(105,890)
Total assets less current liabilities
9,368
303,961
Creditors: amounts falling due after more than one year
8
(15,482,780)
(14,561,774)
Net liabilities
(15,473,412)
(14,257,813)
Capital and reserves
Called up share capital
400,000
400,000
Share premium account
800,000
800,000
Distributable profit and loss reserves
9
(16,673,412)
(15,457,813)
Total equity
(15,473,412)
(14,257,813)
MOTOR SPORT MAGAZINE LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 NOVEMBER 2024
30 November 2024
- 2 -
For the financial year ended 30 November 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved and signed by the director and authorised for issue on 1 April 2025
Mr E Atkin
Director
Company registration number 05471049 (England and Wales)
MOTOR SPORT MAGAZINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 3 -
1
Accounting policies
Company information
Motor Sport Magazine Limited is a private company limited by shares incorporated in England and Wales. The registered office is 16 Rosemont Road, London, England, NW3 6NE.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Going concern
The company has operated at a loss for some years and has an accumulated deficiency on shareholders funds of £15,478,912 (2023: £14,257,813). These losses have been financed by the director/shareholder who has introduced loan monies, arranged for support from an associated company, and secured a small overdraft facility.
Budgets prepared for the current year anticipate a reduction in losses, but it is recognised that restoring Motor
Sport Magazine to profit, without compromising the quality of the product, is a long term project. The
director/shareholder has undertaken to continue to provide financial support to enable the company to remain in operation and meet its liabilities as they fall due.
The financial statements have therefore been prepared on the going concern basis.
1.3
Turnover
Revenues from newstrade sales are stated net of distributors' deductions. Revenues relating to magazines
sales are recognised in the month that the magazine is issued. Subscription income is recognised on a straight line basis over the length of the subscription. The value of unexpired subscriptions is included in other creditors.
In the year ended 30 November 2024 20% (2023: 20%) of the company's turnover was from markets outside the United Kingdom.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
MOTOR SPORT MAGAZINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 4 -
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Motor Sport Title
20 Years
Trademarks
10 Years
Website development
3 Years
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:
Office Equipment
3-5 Years, Straight line
Fixtures and fittings
3-5 Years, 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.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.8
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
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 company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
MOTOR SPORT MAGAZINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 5 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, 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.
1.11
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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or 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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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 director is 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.
MOTOR SPORT MAGAZINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 6 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
17
17
4
Intangible fixed assets
Motor Sport Title
Trademarks
Website development
Total
£
£
£
£
Cost
At 1 December 2023
1,200,000
9,383
913,949
2,123,332
Additions
114,391
114,391
At 30 November 2024
1,200,000
9,383
1,028,340
2,237,723
Amortisation and impairment
At 1 December 2023
960,000
9,383
749,486
1,718,869
Amortisation charged for the year
60,000
107,949
167,949
At 30 November 2024
1,020,000
9,383
857,435
1,886,818
Carrying amount
At 30 November 2024
180,000
170,905
350,905
At 30 November 2023
240,000
164,463
404,463
MOTOR SPORT MAGAZINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 7 -
5
Tangible fixed assets
Office Equipment
Fixtures and fittings
Total
£
£
£
Cost
At 1 December 2023
308,231
88,748
396,979
Additions
14,152
14,152
At 30 November 2024
322,383
88,748
411,131
Depreciation and impairment
At 1 December 2023
302,843
88,748
391,591
Depreciation charged in the year
4,102
4,102
At 30 November 2024
306,945
88,748
395,693
Carrying amount
At 30 November 2024
15,438
15,438
At 30 November 2023
5,388
5,388
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
163,870
192,024
Other debtors
376,424
367,303
540,294
559,327
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
103,460
Trade creditors
233,082
194,224
Amounts owed to group undertakings
20,000
Taxation and social security
25,756
26,387
Other creditors
556,792
558,372
919,090
798,983
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
15,482,780
14,561,774
MOTOR SPORT MAGAZINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 8 -
9
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
(15,457,813)
(14,183,320)
Loss for the year
(1,215,599)
(1,274,493)
At the end of the year
(16,673,412)
(15,457,813)
10
Related party transactions
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
During the year, Motor Sport Magazine Limited paid £24,000 (2023: £24,334 ) to a company under common
control in respect of rental charges. At the year-end, the balance due to this company was £Nil (2023: Nil).
Included within other creditors falling due after more than one year is £14,047,780 (2023: £13,197,780) owed to the director of the company. The loan is unsecured and no interest is accruing on the loan.
Also included within other creditors is £1,375,000 (2023: £1,300,000) owed to a related company.
11
Parent company
The company's parent company and largest group to consolidate these financial statements is Welbourne
Holdings Limited, a company registered in England and Wales.
The ultimate controlling party is E Atkin.