Company registration number 09053240 (England and Wales)
AFG MARKETING TECHNOLOGIES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
AFG MARKETING TECHNOLOGIES LIMITED
COMPANY INFORMATION
Directors
W G Brock
M P T Dyke
S Isiker
G Wieynk
Company number
09053240
Registered office
6th Floor Charlotte Building
17 Gresse Street
London
W1T 1QL
Auditors
S&W Partners Audit Limited
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
AFG MARKETING TECHNOLOGIES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9 - 10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 34
AFG MARKETING TECHNOLOGIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
Turnover decreased by £4,241,920 and gross profit decreased by £344,222 in the year primarily from reduced income in technology sector spending slowdown
Administrative expenses have reduced by £1,378,020, meanwhile, the Group continued investment in its teams to support growth of the business.
We made an operating loss of £1,688,970 (2022 – £2,642,094). Capital & reserves were £3,245,026 (2022 - £4,197,886).
Principal risks and uncertainties
The Group operates in a highly competitive market where margins are continuously under pressure. However, the Group is well positioned to maintain its market share.
Development and performance
The Group faced revenue headwinds of £4.2 million, primarily from reduced income in Asia-Pacific markets and technology sector spending slowdown. This impacted our central cost structure. Despite these challenges, overall operating loss reduced by £953,124 to £1,688,970 (2022: £2,642,094), driven by strong North American performance and growth in our emerging service offerings.
In response, we have implemented a clear action plan for 2024:
Strategic disposal of underperforming geographical units over the next 24 months
Accelerated investment in our content and AI automation programme
Optimisation of central costs aligned to our new operational footprint
These decisive actions will enable us to focus resources on our technology platform strategy, particularly in content delivery and AI automation. Our AI and automation platform, launched as a SaaS product in 2023, is expected to reach breakeven in 2024. The platform supports both our core business and third-party licensing to larger agency groups, creating additional revenue streams. Progress against these initiatives will be reported in detail in our 2024 results.
Key performance indicators
• Operating loss as a % of gross profit - 9.0% (2022: -13.8%)
• Post tax profit/(loss) of a % of gross profit - 6.7% (2022: -11.7%)
Financial risk management
Currency exchange risk
Our operating loans in our overseas subsidiaries are subject to exchange risk as are our invoicing to clients outside the UK.
Funding
We have agreed overdraft facilities of £0.5 million. Working capital and the overall cash position has remained unchanged.
AFG MARKETING TECHNOLOGIES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
G Wieynk
Director
1 May 2025
AFG MARKETING TECHNOLOGIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the group continued to be that of communications.
Results and dividends
The results for the year are set out on page 8.
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:
W G Brock
M P T Dyke
S Isiker
(Appointed 1 August 2023)
G Wieynk
N A Thomson
(Resigned 1 August 2023)
Auditor
The auditor, S&W Partners Audit Limited, 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 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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
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.
AFG MARKETING TECHNOLOGIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
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
G Wieynk
Director
AFG MARKETING TECHNOLOGIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AFG MARKETING TECHNOLOGIES LIMITED
- 5 -
Opinion
We have audited the financial statements of AFG Marketing Technologies Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 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, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2023 and of the group's loss 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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
AFG MARKETING TECHNOLOGIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AFG MARKETING TECHNOLOGIES LIMITED
- 6 -
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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the group through discussions with directors and other management, and from our commercial knowledge and experience of the sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and reviewing legal and professional fee invoices;
we reviewed the minutes of board meetings to identify any references to non-compliance with laws and regulations.
We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
AFG MARKETING TECHNOLOGIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AFG MARKETING TECHNOLOGIES LIMITED
- 7 -
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to;
agreeing financial statement disclosures to underlying supporting documentation;
reading minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators and the group's legal advisors.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Keir Singleton (Senior Statutory Auditor)
For and on behalf of S&W Partners Audit Limited
1 May 2025
Chartered Accountants
Statutory Auditor
AFG MARKETING TECHNOLOGIES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
21,921,780
26,163,700
Cost of sales
(3,179,141)
(7,076,839)
Gross profit
18,742,639
19,086,861
Administrative expenses
(20,447,548)
(21,825,568)
Other operating income
15,939
96,613
Operating loss
4
(1,688,970)
(2,642,094)
Interest receivable and similar income
8
7,651
890
Interest payable and similar expenses
9
(41,452)
(19,803)
Amounts written off investments
10
138,430
-
Loss before taxation
(1,584,341)
(2,661,007)
Tax on loss
11
327,516
431,168
Loss for the financial year
(1,256,825)
(2,229,839)
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(17,861)
112,982
Total comprehensive income for the year
(1,274,686)
(2,116,857)
Loss for the financial year is attributable to:
- Owners of the parent company
(934,479)
(1,308,311)
- Non-controlling interests
(322,346)
(921,528)
(1,256,825)
(2,229,839)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(952,860)
(1,230,570)
- Non-controlling interests
(321,826)
(886,287)
(1,274,686)
(2,116,857)
AFG MARKETING TECHNOLOGIES LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
361,629
685,831
Other intangible assets
12
621,977
497,816
Total intangible assets
983,606
1,183,647
Tangible assets
13
162,981
169,551
1,146,587
1,353,198
Current assets
Debtors
16
7,460,811
7,754,072
Cash at bank and in hand
995,884
1,956,775
8,456,695
9,710,847
Creditors: amounts falling due within one year
17
(7,007,889)
(7,096,650)
Net current assets
1,448,806
2,614,197
Total assets less current liabilities
2,595,393
3,967,395
Creditors: amounts falling due after more than one year
18
(55,999)
(90,999)
Provisions for liabilities
Deferred tax liability
20
25,165
46,157
(25,165)
(46,157)
Net assets
2,514,229
3,830,239
Capital and reserves
Called up share capital
22
870
870
Capital redemption reserve
50
50
Other reserves
32,473
32,473
Profit and loss reserves
3,245,026
4,197,886
Equity attributable to owners of the parent company
3,278,419
4,231,279
Non-controlling interests
(764,190)
(401,040)
2,514,229
3,830,239
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
AFG MARKETING TECHNOLOGIES LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
The financial statements were approved by the board of directors and authorised for issue on 1 May 2025 and are signed on its behalf by:
01 May 2025
G Wieynk
Director
Company registration number 09053240 (England and Wales)
AFG MARKETING TECHNOLOGIES LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
596,928
597,241
Current assets
Debtors
16
681,544
942,896
Cash at bank and in hand
3,880
4,358
685,424
947,254
Creditors: amounts falling due within one year
17
(2,274,188)
(2,534,791)
Net current liabilities
(1,588,764)
(1,587,537)
Net liabilities
(991,836)
(990,296)
Capital and reserves
Called up share capital
22
870
870
Capital redemption reserve
50
50
Other reserves
8,684
8,684
Profit and loss reserves
(1,001,440)
(999,900)
Total equity
(991,836)
(990,296)
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £1,540 (2022 - £233,731 loss).
The financial statements were approved by the board of directors and authorised for issue on 1 May 2025 and are signed on its behalf by:
01 May 2025
G Wieynk
Director
Company registration number 09053240 (England and Wales)
AFG MARKETING TECHNOLOGIES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Capital redemption reserve
Other reserves
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
£
£
Balance at 1 January 2022
870
50
32,473
5,428,456
5,461,849
524,953
5,986,802
Year ended 31 December 2022:
Loss for the year
-
-
-
(1,308,311)
(1,308,311)
(921,528)
(2,229,839)
Other comprehensive income:
Currency translation differences
-
-
-
112,982
112,982
-
112,982
Amounts attributable to non-controlling interests
-
-
-
(35,241)
(35,241)
35,241
-
Total comprehensive income
-
-
-
(1,230,570)
(1,230,570)
(886,287)
(2,116,857)
Other movements
-
-
-
-
-
(39,706)
(39,706)
Balance at 31 December 2022
870
50
32,473
4,197,886
4,231,279
(401,040)
3,830,239
Year ended 31 December 2023:
Loss for the year
-
-
-
(934,479)
(934,479)
(322,346)
(1,256,825)
Other comprehensive income:
Currency translation differences
-
-
-
(17,861)
(17,861)
-
(17,861)
Amounts attributable to non-controlling interests
-
-
-
(520)
(520)
520
-
Total comprehensive income
-
-
-
(952,860)
(952,860)
(321,826)
(1,274,686)
Disposal of subsidiary
-
-
-
-
-
(41,324)
(41,324)
Balance at 31 December 2023
870
50
32,473
3,245,026
3,278,419
(764,190)
2,514,229
AFG MARKETING TECHNOLOGIES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2022
870
50
8,684
(766,168)
(756,564)
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
-
(233,732)
(233,732)
Balance at 31 December 2022
870
50
8,684
(999,900)
(990,296)
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
(1,540)
(1,540)
Balance at 31 December 2023
870
50
8,684
(1,001,440)
(991,836)
AFG MARKETING TECHNOLOGIES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
27
(754,067)
(1,514,623)
Interest paid
(37,686)
(19,803)
Income taxes refunded/(paid)
456,301
(182,559)
Net cash outflow from operating activities
(335,452)
(1,716,985)
Investing activities
Purchase of intangible assets
(428,764)
(258,453)
Purchase of tangible fixed assets
(130,005)
(87,969)
Proceeds from disposal of tangible fixed assets
1,800
-
Proceeds from disposal of subsidiaries, net of cash disposed
(37,284)
(75,000)
Interest received
6,536
890
Net cash used in investing activities
(587,717)
(420,532)
Financing activities
Repayment of bank loans
(35,000)
(37,334)
Net cash used in financing activities
(35,000)
(37,334)
Net decrease in cash and cash equivalents
(958,169)
(2,174,851)
Cash and cash equivalents at beginning of year
1,953,552
4,128,403
Effect of foreign exchange rates
501
-
Cash and cash equivalents at end of year
995,884
1,953,552
Relating to:
Cash at bank and in hand
995,884
1,956,775
Bank overdrafts included in creditors payable within one year
-
(3,223)
AFG MARKETING TECHNOLOGIES LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
28
(478)
(420)
Net decrease in cash and cash equivalents
(478)
(420)
Cash and cash equivalents at beginning of year
4,358
4,778
Cash and cash equivalents at end of year
3,880
4,358
AFG MARKETING TECHNOLOGIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information
AFG Marketing Technologies Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 6th Floor Charlotte Building, 17 Gresse Street, London, W1T 1QL.
The group consists of AFG Marketing Technologies Ltd 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.
1.2
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company AFG Marketing Technologies Ltd 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 December 2023. 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.
AFG MARKETING TECHNOLOGIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.3
Going concern
The directors confirm that the company and group is able to continue in business for a period of at least one year from the date of approval of the financial statements.
The directors have prepared detailed profit and loss forecasts and cash flow projections which are based on their current expectations of group trading prospects. The group made a loss in 2023 and is forecast to also make a loss in 2024 but return to profitability in 2025. The company and group has positive cash reserves at the date of approval of the financial statements, and has modelled that it will have sufficient cash to enable it to continue to meet its liabilities as they fall due for at least the next twelve months.
The group made investments in its staff to grow its content delivery platform and drive further revenue and profitability in its key markets.
The AI Automation programme has reached a breakeven position and cash-generative stage. Further investment in our platform is under consideration and this will be delivered with no or limited impact to the group’s cashflow position.
For the agency business, existing clients and new wins are forecasted to drive profitability and cash generation in Q2 of 2025 and beyond. There will be a continuous focus on managing budget and profitability by teams, along with careful cost control.
The directors have modelled potential downside scenarios, and believe that business expenses could be flexed with any decrease in revenues so as to preserve cash.
It is the nature of the group’s business as with any project-led business that the majority of revenue streams cannot be forecast with absolute certainty beyond the completion of projects already agreed with clients, and that teams will need to execute the directors’ plans in order to deliver on budgets and forecasts. The directors therefore consider that there is a degree of uncertainty in their forward-looking position, but that this level of uncertainty is not material and so the use of the going concern basis remains appropriate for the foreseeable future.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.5
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.
AFG MARKETING TECHNOLOGIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
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.
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:
Software
20% - 33% straight line
1.8
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 term of the lease
Fixtures and fittings
20% - 33% straight line
Computers
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.
1.9
Fixed asset investments
In the parent company financial statements, investments in subsidiaries 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.
AFG MARKETING TECHNOLOGIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.10
Impairment of fixed assets
At each reporting period end date, the group 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.
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.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ”Basic financial Instruments” 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.
Basic financial assets
Short term debtors are measured at transaction price less any provision for impairment. Loans receivable are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method, less any provision for impairment.
Basic financial liabilities
Short term creditors are measured at transaction price. Other financial liabilities, including bank loans and other loans, are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method.
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.
AFG MARKETING TECHNOLOGIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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.
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.
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
The fair value of equity-settled share based payments to employees is determined at the date of grant using an appropriate option pricing model and the charge is calculated on a straight-line basis over the vesting period based on the group's estimate of shares or options that will eventually vest.
Where in the opinion of the directors the charge is not material it is not recognised or disclosed in the financial statements.
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.17
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.18
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.
AFG MARKETING TECHNOLOGIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
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.
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.
Amortisation of goodwill
The annual amortisation charge for intangible assets is sensitive to changes in the estimated lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. Goodwill impairment reviews are also performed annually. These reviews require an estimation of the fair value less cost to sell and value in use of the cash generating units to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise for the cash generating unit and a suitable discount rate to calculate present value. See note 11 for the carrying amount of the intangible assets.
Revenue recognition
Revenue from contracts is assessed on an individual basis with revenue earned being ascertained
based on the stage of completion of the contract which is estimated using a combination of milestones in the contract and the time spent to date compared to the total time expected to be required to undertake the contract. Estimates of the total time required to undertake the contracts are made on a regular basis and subject to management review. These estimates may differ from the actual results due to a variety of factors such as efficiency of working, accuracy of assessment of progress to date and client decision making.
Impairment of investments
Where indicators of impairment exist, the directors undertake an impairment review on the value of the company’s investments in subsidiaries, by measuring their value in use and fair value less cost to sell. This requires estimation of future cashflows and appropriate discount rates, as well as the likely market value of the subsidiary by employing a valuation methodology. These are based on future projections and available market data but include a significant degree of judgment based on management’s experience and industry considerations.
Recoverability of intercompany balances
The directors are required to assess whether amounts owed by subsidiaries are recoverable at the period end, and they do so with reference to post year-end information, cash flow forecasts and future plans in relation to the profitability of the subsidiaries. As these are dependent on uncertain future conditions there is an element of inherent uncertainty in such judgments.
AFG MARKETING TECHNOLOGIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Digital technology
6,456,851
6,079,120
Product
1,478,399
1,988,455
Communications
10,839,333
15,276,936
Transformation
1,897,730
321,144
Production
733,611
2,046,265
License
-
127,716
Services
515,856
324,064
21,921,780
26,163,700
2023
2022
£
£
Turnover analysed by geographical market
UK
11,208,752
11,552,364
Europe
6,643,183
6,919,193
U.S.A
2,572,293
3,061,813
Australia
136,885
2,850,078
Hong Kong
1,201,983
1,374,420
Rest of world
158,684
405,832
21,921,780
26,163,700
2023
2022
£
£
Other revenue
Interest income
7,651
890
Grants received
-
35,978
4
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange losses
90,330
120,734
Research and development costs
(2,609)
46,636
Government grants
-
(35,978)
Depreciation of owned tangible fixed assets
113,347
117,986
Profit on disposal of tangible fixed assets
(1,800)
-
Amortisation of intangible assets
597,724
493,344
Operating lease charges
676,447
1,226,932
AFG MARKETING TECHNOLOGIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
27,500
23,000
Audit of the financial statements of the company's subsidiaries
92,000
95,000
119,500
118,000
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Business Operations
24
38
4
4
Client Services
15
16
-
-
Creative
21
25
-
-
Design
21
18
-
-
Editorial
1
-
-
-
Finance
9
9
-
-
Production
17
19
-
-
Strategy
12
10
-
-
Partners
3
6
-
-
Technology
-
3
-
-
User expericance
4
11
-
-
Total
127
155
4
4
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
9,652,659
11,501,523
Social security costs
1,066,893
1,195,894
-
-
Pension costs
286,985
410,734
11,006,537
13,108,151
AFG MARKETING TECHNOLOGIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
905,698
981,349
Company pension contributions to defined contribution schemes
21,875
24,416
927,573
1,005,765
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 4).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
273,960
291,708
Company pension contributions to defined contribution schemes
6,750
6,750
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
6,536
890
Other interest income
1,115
-
Total income
7,651
890
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
6,536
890
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
3,212
4,110
Other interest on financial liabilities
1,202
710
4,414
4,820
Other finance costs:
Other interest
37,038
14,983
Total finance costs
41,452
19,803
AFG MARKETING TECHNOLOGIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
10
Amounts written off investments
2023
2022
£
£
Other gains and losses
138,430
-
In February 2023 AFG Marketing Technologies Limited disposed of their 51% shareholding in Analogfolk Australia Pty Limited.
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(319,802)
(480,906)
Adjustments in respect of prior periods
36,213
Total UK current tax
(319,802)
(444,693)
Foreign current tax on profits for the current period
9,139
Total current tax
(319,802)
(435,554)
Deferred tax
Origination and reversal of timing differences
(7,714)
4,386
Total tax credit
(327,516)
(431,168)
AFG MARKETING TECHNOLOGIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
(Continued)
- 26 -
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Loss before taxation
(1,584,341)
(2,661,007)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(396,085)
(505,591)
Tax effect of expenses that are not deductible in determining taxable profit
34,633
7,376
Change in unrecognised deferred tax assets
109,435
396,966
Adjustments in respect of prior years
36,213
Permanent capital allowances in excess of depreciation
(1,290)
Amortisation on assets not qualifying for tax allowances
10,780
9,989
Research and development tax credit
(447,326)
(484,169)
Other permanent differences
(450)
Effect of overseas tax rates
9,139
Foreign exchange differences
970
Loan relationship credits tax adjustment
8,474
Losses surrendered for R&D tax credit
396,104
634,429
Deferred tax movements
5,163
Enhanced R&D expenditure
-
(548,837)
Disposal of subsidary assets
(34,607)
-
Taxation credit
(327,516)
(431,168)
12
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2023
3,025,746
815,231
3,840,977
Additions - internally developed
428,764
428,764
Disposals
(80,484)
(80,484)
Exchange adjustments
(14,049)
(14,049)
At 31 December 2023
2,931,213
1,243,995
4,175,208
Amortisation and impairment
At 1 January 2023
2,339,915
317,415
2,657,330
Amortisation charged for the year
293,121
304,603
597,724
Disposals
(63,452)
(63,452)
At 31 December 2023
2,569,584
622,018
3,191,602
AFG MARKETING TECHNOLOGIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Intangible fixed assets
(Continued)
- 27 -
Carrying amount
At 31 December 2023
361,629
621,977
983,606
At 31 December 2022
685,831
497,816
1,183,647
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
13
Tangible fixed assets
Group
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2023
555,680
219,293
426,084
1,201,057
Additions
71,101
1,710
57,194
130,005
Disposals
(50,520)
(42,094)
(88,821)
(181,435)
Exchange adjustments
(3,044)
(1,108)
(14,200)
(18,352)
At 31 December 2023
573,217
177,801
380,257
1,131,275
Depreciation and impairment
At 1 January 2023
507,584
130,320
393,602
1,031,506
Depreciation charged in the year
33,764
6,133
73,450
113,347
Eliminated in respect of disposals
(42,458)
(35,194)
(81,527)
(159,179)
Exchange adjustments
(3,041)
(964)
(13,375)
(17,380)
At 31 December 2023
495,849
100,295
372,150
968,294
Carrying amount
At 31 December 2023
77,368
77,506
8,107
162,981
At 31 December 2022
48,096
88,973
32,482
169,551
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
596,928
597,241
AFG MARKETING TECHNOLOGIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
597,241
Disposals
(313)
At 31 December 2023
596,928
Carrying amount
At 31 December 2023
596,928
At 31 December 2022
597,241
In February 2023 AFG Marketing Technologies Limited disposed of their 51% shareholding in Analogfolk Australia Pty Limited.
15
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
Untold Fable Limited
1
Communications
Ordinary
100.00
-
Mindworks Consulting Limited
1
Communications
Ordinary
100.00
-
TSL Digital Limited
1
Communications
Ordinary
60.00
-
Analogfolk BV
2
Communications
Ordinary
100.00
-
Analogfolk Limited
1
Communications
Ordinary
100.00
-
Analogfolk Asia Limited
3
Holding Company
Ordinary
51.00
-
Analogfolk China (HK) Limited
3
Holding Company
Ordinary
51.00
-
Analogfolk Holding Inc
4
Holding Company
Ordinary
100.00
-
Analogfolk Costa Rica Limitada
5
Dormant
Ordinary
100.00
-
Analogfolk Singapore Pte Ltd
6
Communications
Orindary
0
51.00
Analogfolk Hong Kong Limited
3
Communications
Ordinary
0
51.00
Analogfolk LLC
4
Communications
Ordinary
0
62.00
Otomo Inc
7
Communications
Ordinary
0
60.00
Analogfolk (Shanghai) Marketing Consultancy Limited
8
Communications
Orindary
0
51.00
AFG MARKETING TECHNOLOGIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Subsidiaries
(Continued)
- 29 -
Registered office addresses:
1
1-2 Bath Court, London, UK, EC1R 5AD
2
Passeerdersgracht 18, 1016 XH, Amsterdam
3
17th Floor, East Exchange Tower, 38 Leighton Rd, Causewat Bay, Hong Kong
4
109 N. 12th Street, 9th Floor, Brooklyn, NY 11249
5
Sabana Businsess Center, Piso 9 Mata Redonda, San Jose, Costa Rica
6
10 Anson Road 29-07, International Plaza, Singapore
7
2063 Mason Mill RD, Decatur GA 30033-4009, USA
8
Room 3001, No.35 Loushanguan Road, Changning District, Shanghai, China 200336
Untold Fable Limited, Mindworks Consulting Limited and TSL Digital Limited have been given a guarantee by AFG Marketing Technologies Limited and so are entitled to exemption from audit, for the financial year ended 31 December 2023, under section 479A of the Companies Act 2006 relating to subsidiary companies.
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,175,148
4,782,885
Corporation tax recoverable
1,063,939
1,204,496
9
10
Amounts owed by group undertakings
-
-
681,535
942,886
Other debtors
255,830
586,063
Prepayments and accrued income
1,965,894
1,167,350
7,460,811
7,740,794
681,544
942,896
Deferred tax asset (note 20)
13,278
7,460,811
7,754,072
681,544
942,896
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
35,000
38,223
Trade creditors
1,991,031
1,181,537
Amounts owed to group undertakings
2,274,050
2,494,258
Corporation tax payable
61,870
58,104
Other taxation and social security
820,393
663,148
-
Deferred income
2,092,939
2,496,549
Other creditors
168,809
552,924
138
40,533
Accruals
1,837,847
2,106,165
7,007,889
7,096,650
2,274,188
2,534,791
AFG MARKETING TECHNOLOGIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
55,999
90,999
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
90,999
125,999
Bank overdrafts
3,223
90,999
129,222
-
-
Payable within one year
35,000
38,223
Payable after one year
55,999
90,999
Bank loans detailed above are held in TSL Digital Limited, where the bank holds a fixed and floating charge over the assets of that company.
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
14,015
23,857
-
-
Retirement benefit obligations
-
-
-
13,278
Capital contribution account
11,150
22,300
-
-
25,165
46,157
-
13,278
The company has no deferred tax assets or liabilities.
AFG MARKETING TECHNOLOGIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Deferred taxation
(Continued)
- 31 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
32,879
-
Credit to profit or loss
(7,714)
-
Liability at 31 December 2023
25,165
-
The deferred tax liabilities set out above are expected to reverse in the foreseeable future.
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
286,985
410,734
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.
At the balance sheet date the group owed £70 (2022 - £79,552) in relation to its defined contribution pension scheme, this balance is included in other creditors.
22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 10p each
8,700
8,700
870
870
23
Financial commitments, guarantees and contingent liabilities
A composite guarantee has been given to the Group's bankers in respect of any debts or liabilities owing to the bank by any party to the guarantee. The parties to the guarantee are the companiy and its UK subsidiaries.
AFG MARKETING TECHNOLOGIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
24
Operating lease commitments
Lessee
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
2023
2022
2023
2022
£
£
£
£
Within one year
433,606
403,587
-
-
Between two and five years
1,111,658
54,942
-
-
1,545,264
458,529
-
-
25
Events after the reporting date
On 30 August 2024 the company sold its entire shareholding in Analogfolk Asia Limited and as a result Analogfolk Asia Limited's wholly owned subsidiaries: Analogfolk Hong Kong and Analogfolk Singapore Pte Ltd.
26
Related party transactions
Group
At the balance sheet date the following balances were owed to/from the directors:
W Brock: £889 owed from (2022 - £5), M Dyke: £4,539 owed from (2022 - £539).
Company
In respect of wholly owned subsidiaries, the company has taken advantage of the exemption permitted by Section 22 "Related Party Disclosures" not to provide disclosures of transactions entered into with other wholly owned members for the group.
At the balance sheet date the company was owed £1,099,668 (2022 - £1,334,181) by non-wholly owned subsidiaries. Included in the accounts is a provision against this balance of £564,590 (2022 - £622,044).
AFG MARKETING TECHNOLOGIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
27
Cash absorbed by group operations
2023
2022
£
£
Loss for the year after tax
(1,256,825)
(2,229,839)
Adjustments for:
Taxation credited
(327,516)
(431,168)
Finance costs
41,452
19,803
Investment income
(7,651)
(890)
(Gain)/loss on disposal of tangible fixed assets
(1,800)
260
Amortisation and impairment of intangible assets
597,724
493,344
Depreciation and impairment of tangible fixed assets
113,347
117,986
Foreign exchange gains on cash equivalents
-
87,993
Other gains and losses
(138,430)
-
Movements in working capital:
(Increase)/decrease in debtors
(209,629)
3,538,478
Increase/(decrease) in creditors
500,752
(3,110,590)
Decrease in deferred income
(65,491)
-
Cash absorbed by operations
(754,067)
(1,514,623)
28
Cash absorbed by operations - company
2023
2022
£
£
Loss for the year after tax
(1,540)
(233,732)
Adjustments for:
Other gains and losses
258
-
Increase in provisions
-
113,125
Amounts written off loans
154,065
Foreign exchange difference on loans
(35,378)
Movements in working capital:
Increase in debtors
-
(623,743)
Increase in creditors
804
625,243
Cash absorbed by operations
(478)
(420)
AFG MARKETING TECHNOLOGIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
29
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,956,775
(960,891)
995,884
Bank overdrafts
(3,223)
3,223
-
1,953,552
(957,668)
995,884
Borrowings excluding overdrafts
(125,999)
35,000
(90,999)
1,827,553
(922,668)
904,885
30
Analysis of changes in net funds - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
4,358
(478)
3,880
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