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Registered number: 03714660 PRESTEL PUBLISHING LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
PRESTEL PUBLISHING LIMITED COMPANY INFORMATION
Directors | R A Hansen
| C Rieker
Company secretary | R A Hansen
Registered number | 03714660
Registered office | 15 Adeline Place
| London
| WC1B 3AJ
Independent auditor | Grant Thornton UK LLP
| Victoria House
| 199 Avebury Boulevard
| Milton Keynes
| MK9 1AU
PRESTEL PUBLISHING LIMITED CONTENTS
| Page
Strategic Report | 1 - 5
Directors' Report | 6 - 8
Directors' Responsibilities Statement | 9
Independent Auditor's Report | 10 - 14
Statement of Comprehensive Income | 15
Balance Sheet | 16
Statement of Changes in Equity | 17
Notes to the Financial Statements | 18 - 34
PRESTEL PUBLISHING LIMITED STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
Introduction
The Directors present their Strategic Report for Prestel Publishing Limited (‘the Company’) for the year ended 31 December 2024.
Principal activities
The Company is a subsidiary of Penguin Random House Verlagsgruppe GmbH which is incorporated and registered in Germany. The Company is domiciled and registered in the United Kingdom. The principal activity of the Company in the year under review was that of book sales and marketing. This involves: ∙Distribution of the parent company’s products in the UK home market as well as in overseas markets. ∙Distribution of products from other publishers. Although the share of turnover from other publishers distributed is relatively low, the strategy is to position the Company as an important distributor for premium class art and illustrated books and to grow this revenue stream. ∙Providing editorial and marketing services as well as coordination of US sales activities for immediate parent company, Penguin Random House Verlagsgruppe GmbH.
Business review
The Company’s revenue for the year was £2,977,398 which was a 1.36% decrease compared to prior year (2023 (as restated - see note 19): £3,017,916). Operating profit for the year was £18,504, which was a £20,326 increase on prior year (2023: operating loss £1,822). The gross profit margin was 31.42% (2023: 31.05%). The Company saw a 45.26% increase in profit for the financial year compared to the prior year. The Company's profit for the financial year was £29,156 (2023: £20,072). This was largely driven by a reduction in distribution costs, where distribution costs decreased by a greater percentage than the corresponding decrease in revenue for the financial year. The increase in profit generated by decreased distribution costs in the year was offset by increased administrative expenditure, which can be attributed to increased staff costs.
Key performance indicators
The Company monitors progress and performance during the year and historical trend data which is set out in the following KPIs:
|  | As restated
| 2024 | 2023
| £ | £
Revenue | 2,977,398 | 3,017,916
Gross profit margin | 31.42% | 31.05%
Earnings before interest, tax, depreciation, amortisation and impairment of non- financial assets (EBITDA) | 55,616 | 33,011
Page 1
PRESTEL PUBLISHING LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
The KPIs are in line with forecast expectations. Detailed explanations for the year on year movements is included in the business review section. Management makes use of certain alternative performance measures (APMs) that are non-UK GAAP measures. The Board uses these to assess performance of the Company and considers them to provide useful supplementary information to the statutory results. The Board does not consider APMs to be more relevant or reliable than UK GAAP measures and notes that their definition and basis of calculation may differ from other companies. The Company’s APMs are defined and a reconciliation to the most directly comparable UK GAAP measure is shown below. EBITDA is operating profit as measured using UK GAAP principles adjusted for the effects of depreciation, amortisation and impairment of non-financial assets. EBITDA is reported to the Board as management considers that it provides a useful proxy for the Company’s operating profit excluding non-cash items. It can be reconciled to the operating profit measure reported in the Statement of Comprehensive Income as shown below:
| 2024 | 2023
| £ | £
Operating profit/(loss) | 18,504 | (1,822)
Depreciation | 37,112 | 34,833
EBITDA | 55,616 | 33,011
Principal risks and uncertainties
The Company's operations expose it to a variety of commercial and financial risks. The Company is subject to risk management procedures and an annual risk assessment implemented by the ultimate parent company, Bertelsmann SE & Co KGaA. The Company has procedures in place to make the directors aware of the various risks to the Company’s business. The risks are monitored and reported to management. Commercial risk The changing book market is creating both challenges and opportunities for the Company. The Company is facing increased pressure on margins. Other risks arise from the entry of non-traditional publishers into the market, the decline in retail space in high street bookshops and economic uncertainty. The continuing uncertainty in the global economy and high level of inflation in the UK presents ongoing pressure on costs and margins. The Company actively monitors market trends and these are incorporated into the detailed commercial plans of the business. Page 2
PRESTEL PUBLISHING LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Credit risk The Company may offer credit terms to its customers which allow payment of the debt after delivery of the goods. The Company is at risk to the extent that a customer may be unable to pay the debt on the specified due date. The Company has mitigated this risk of payment default by implementing policies which ensure that appropriate checks on potential customers are performed before credit terms are granted. Where a customer or group of customers is assessed to have a higher risk profile, these are included within the Company's credit insurance programme. Liquidity and cash flow risk The objective of the Company in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The Company expects to meet its financial obligations through operating cash flows. The Company’s results, including cash flows, are reviewed by the Board on a monthly basis. Risks are further mitigated by the cash pooling arrangements in place across the Bertelsmann group, which ensures funds are available to the Company to meet all liabilities as and when they fall due.
Directors' section 172 statement
The Directors of the Company must act in accordance with a set of general duties, as detailed in section 172 of the UK Companies Act 2006, summarised as follows: A Director of a Company must act in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its shareholders as a whole and, in doing so have regard (amongst other matters) to: ∙the likely consequences of any decisions in the long-term; ∙the interest of the Company’s employees; ∙the need to foster the Company’s business relationships with suppliers, customers and others; ∙the impact of the Company’s operations on the community and environment; ∙the desirability of the Company maintaining a reputation for high standards of business conduct; and ∙the need to act fairly as between the shareholders Examples of how the Directors have oversight of these stakeholder matters are included throughout the Strategic and Director’s report as well as set out specifically below. Long- term decision making The Board operates a structured governance model which supports the Group in ensuring that decisions are considered, documented and reported upon, and in alignment with our strategic plans. Detailed budgets and forecasts are prepared which enable the Board to track performance and ensure that it is as expected, or that mitigation steps are taken to deliver performance in line with, or close to, expectations. The Board and senior management personnel operate within this structure, with the aim of promoting the success of the Company and delivering long- term shareholder value. The Board is presented with regular board packs and other information that it needs to fulfil its responsibilities. During the period at Board meetings the Board have discussed and made decisions on a number of specific issues including business priorities and strategy, capital investment, and the ongoing management of the current economic situation. Page 3
PRESTEL PUBLISHING LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 The interest of the Company’s employees The Board recognises that employees are central to the long-term success of the Company. The Company systematically provides employees with information on matters of concern to them, consulting them or their representatives regularly, and providing forums and communication routes so that their views can be taken into account when making decisions that are likely to affect their interests. Employee involvement in the Company is encouraged, as achieving a common awareness on the part of all employees of the financial and economic factors affecting the Company, plays a major role in maintaining its prosperity. The Company also regularly informs staff and staff representatives of Company updates and activities to keep them informed of the Company’s progress and performance. The Company is committed to employment policies, which follow best practice, based on equal opportunities for all employees, irrespective of sex, race, colour, disability or sexual orientation as well as providing various employee networks to support the diverse and inclusive culture of the Company. All staff receive regular performance reviews as well as opportunity for learning to support the development of all employees’ careers. This includes training programs and secondment opportunities for staff. Engagement with customers, suppliers and other stakeholders The directors appreciate the importance of fostering business relationships with key stakeholders, such as customers and suppliers, and focus on the maintenance and growth of these relationships in their decision making and strategic planning. The Company employs dedicated relationship managers to foster these relationships which also ensures the Board has a high degree of visibility to take stakeholder considerations into account. Community impact and customer relations The Board ensures significant consideration is given to the impact of the Company’s operations on the community and their customers in their decision-making. The Company’s approach is to use its position of strength to ensure it is an asset to the communities and people with which it interacts. The Company continues to make books for everyone ensuring the creators of books, including authors and illustrators, represent the society we live in. Environmental sustainability The Company’s leadership team ensure environmental issues are managed effectively and considered in the strategic decisions of the Company. The Company strives to create positive change in reducing the environmental impact of its businesses whilst maintaining effective and continuing business practices. The Company consider sustainability, ethical and environmental issues when sourcing core material for use in the printing of their books using the books created to provide a positive leverage for behaviour change of our consumers. As part of the environmental strategy, the wider group aims to be climate neutral by 2030. Page 4
PRESTEL PUBLISHING LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 High standards of business conduct The Company has a Code of Conduct setting out the behaviours and values expected of all of our employees, which is communicated to all colleagues. The Company's processes ensure the Board and management are continually updated on the operation of the code and an independent whistleblowing service enables employees and third parties to anonymously raise concerns. Through its oversight and monitoring role, the Board requires all of our people to work to the highest standards of business conduct. Shareholders The Board recognises the importance of regular and open dialogue with the shareholders and the need to ensure the strategy and goals of the Company are effectively communicated to them. Feedback on these plans and objectives is welcomed by the directors and major business decisions are made closely and with the approval of the shareholders. General The Company is presenting the financial statements in accordance with Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (FRS 101). This report was approved by the Board and signed on its behalf.
R A Hansen Director
Date: 9 April 2025
Page 5
PRESTEL PUBLISHING LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The Directors present their report and the financial statements for the year ended 31 December 2024.
Results and dividends
The profit for the year, after taxation, amounted to £29,156 (2023: £20,072). There were no dividends paid out during the year (2023: £Nil).
Directors
The Directors who served during the year were: R A Hansen C Rieker
Future developments
The Directors do not anticipate any significant changes in the activities of the Company.
Going concern
In preparing these financial statements, the directors have assessed the ability of the Company to continue to operate for a period of at least twelve months from the date of signing the financial statements. The Company has undertaken a risk assessment and forecasting exercise to assess the Company’s liquidity position. The forecast for the going concern period has been prepared using the three year plan approved by the Board and takes account of prior trends and expected titles to be published in the future and key cost drivers such as commodity prices and inflation. For the purposes of the Company’s going concern assessment, the directors have performed sensitivity analysis on cashflows based on unforeseen changes in demand and the potential impact of increased inflationary pressures. In addition, reverse stress testing has been performed to establish the levels of performance where cash availability would be breached. The results of the analysis demonstrated that there was sufficient cash availability within the current intra group cash pooling facility to deal with all of the identified plausible scenarios. Based on the Company’s current trading performance, the sensitivity and reverse stress testing scenarios performed, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future, being a period of no less than twelve months from the date of approval of these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. Page 6
PRESTEL PUBLISHING LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Engagement with employees
The Company systematically provides employees with information on matters of concern to them, consulting them or their representatives regularly, so that their views can be taken into account when making decisions that are likely to affect their interests. Employee involvement in the Company is encouraged, as achieving a common awareness on the part of all employees of the financial and economic factors affecting the Company plays a major role in maintaining its prosperity. The Company encourages the involvement of employees by means of regular meetings with staff and staff representatives to keep them informed of the Company’s progress. The Company operates a pension scheme for which all employees are eligible. The Company is committed to employment policies, which follow best practice, based on equal opportunities for all employees, irrespective of sex, race, colour, disability or sexual orientation. The Company gives full and fair consideration to applications for employment from disabled persons, having regard to their particular aptitudes and abilities. Appropriate arrangements are made for the continued employment and training, career development and promotion of disabled persons employed by the Company. If members of staff become disabled the Company continues employment, either in the same or an alternative position, with appropriate retraining being given if necessary.
Matters covered in the Strategic Report
Details on engagement with customers, suppliers and other stakeholders, and financial risk management policy sections are not included within the Directors Report as they are considered to be of strategic importance to the Company and, as permitted under the Companies Act 2006 s.414C(11), they have instead been included in the Strategic Report. Streamlined energy and carbon reporting (SECR) The Company has not disclosed information in respect of greenhouse gas emissions and energy consumption as it satisfies the thresholds for exemption and its energy consumption in the United Kingdom is less than 40,000kWh for the year.
Disclosure of information to auditor
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
Independent auditor
The auditor, Grant Thornton UK LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. Page 7
PRESTEL PUBLISHING LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 This report was approved by the Board and signed on its behalf.
R A Hansen Director
Date: 9 April 2025
Page 8
PRESTEL PUBLISHING LIMITED DIRECTORS' RESPONSIBILITIES STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2024 The Directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to: ∙select suitable accounting policies and then apply them consistently; ∙make judgments 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 financial statements; ∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 9
PRESTEL PUBLISHING LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRESTEL PUBLISHING LIMITED
Opinion
We have audited the financial statements of Prestel Publishing Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice). In our opinion: ∙the financial statements give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its profit for the year then ended; ∙the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ∙the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the ‘Auditor’s responsibilities for the audit of the financial statements’ section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We are responsible for concluding on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a going concern. In our evaluation of the directors’ conclusions, we considered the inherent risks associated with the company's business model including effects arising from macro-economic uncertainties such as the cost of living crisis and the impact of the war in Ukraine, we assessed and challenged the reasonableness of estimates made by the directors and the related disclosures and analysed how those risks might affect the company's financial resources or ability to continue operations over the going concern period. In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. Page 10
PRESTEL PUBLISHING LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRESTEL PUBLISHING LIMITED (CONTINUED)
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.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit: ∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report under the Companies Act 2006
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report. Matters on which we are required to report by exception 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, or returns adequate for our audit have not been received from branches not visited by us; or ∙the financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of directors' remuneration specified by law are not made; or ∙we have not received all the information and explanations we require for our audit. Page 11
PRESTEL PUBLISHING LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRESTEL PUBLISHING LIMITED (CONTINUED)
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 9, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: ∙We obtained an understanding of the legal and regulatory frameworks applicable to the Company and industry in which it operates through our general commercial and sector experience, discussions with management and review of board minutes. We determined that the following laws and regulations were most significant: United Kingdom Accounting Standards, including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice), the Companies Act 2006 and the relevant tax compliance regulations in the UK. In addition, we concluded that there are certain laws and regulations that may have an effect on the determination of the amounts and disclosures in the financial statements such as health and safety and employee matters. ∙We enquired of management concerning the Company’s policies and procedures relating to: ∙the identification, evaluation and compliance with laws and regulations; ∙the detection and response to the risks of fraud; and ∙the establishment of internal controls to mitigate risks related to fraud or non-compliance with laws and regulations. ∙We enquired of management and those charged with governance, whether they were aware of any instances of non-compliance with laws and regulations or whether they had any knowledge of actual, suspected of alleged fraud. Page 12
PRESTEL PUBLISHING LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRESTEL PUBLISHING LIMITED (CONTINUED) ∙We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur and the risk of management override of controls. Audit procedures are performed by the engagement team included: ∙identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud; ∙challenging assumptions and judgements made by management in its significant accounting estimates; ∙identifying and testing journal entries, in particular journal entries posted with unusual account combinations that increased revenues or that reduced costs in the Profit and loss account; and ∙assessing the extent of compliance with the relevant laws and regulations as part of our procedures on the related financial statement item. ∙In addition, we completed audit procedures to conclude on the compliance of disclosures in the Annual report and financial statements with applicable financial reporting requirements. ∙These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it; ∙The assessment of the appropriateness of the collective competence and capabilities of the engagement team including consideration of the engagement team’s: ∙understanding of, and practical experience with audit engagements of a similar nature and complexity through appropriate training and participation; ∙knowledge of the industry in which the client operates; and ∙understanding of the legal and regulatory requirements specific to the entity including, the provisions of the applicable legislation and the applicable statutory provision. ∙We communicated relevant laws and regulations and potential fraud risks to all engagement team members. We remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report. Page 13
PRESTEL PUBLISHING LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRESTEL PUBLISHING LIMITED (CONTINUED)
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. Abigail Towers Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Milton Keynes 9 April 2025 Page 14
PRESTEL PUBLISHING LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024
|  | As restated
| 2024 | 2023
Note | £ | £
Revenue | 4 | 2,977,398 | 3,017,916
Cost of sales |  | (2,041,815) | (2,080,825)
Gross profit |  | 935,583 | 937,091
Distribution costs |  | (545,552) | (627,145)
Administrative expenses |  | (374,492) | (317,014)
Other operating income |  | 2,965 | 5,246
Operating profit/(loss) | 7 | 18,504 | (1,822)
Interest receivable and similar income | 8 | 33,712 | 29,464
Interest payable and similar expenses | 9 | (7,649) | (1,586)
Profit before tax |  | 44,567 | 26,056
Tax on profit | 10 | (15,411) | (5,984)
Profit for the financial year |  | 29,156 | 20,072
Other comprehensive income |  | - | -
Total comprehensive income for the year |  | 29,156 | 20,072
There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income. All activities derive from continuing operations.
The notes on pages 17 to 33 form part of these financial statements. Prior year balances have been restated as detailed in note 19.
Page 15
PRESTEL PUBLISHING LIMITED REGISTERED NUMBER: 03714660 BALANCE SHEET AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible fixed assets | 11 |  | 10,723 |  | 13,388
Right of use assets | 11 |  | 124,058 |  | 156,398
|  |  | 134,781 |  | 169,786
Current assets |  |  |  |  |
Debtors: amounts falling due in one year | 12 | 1,813,364 |  | 1,641,693 |
Cash at bank and in hand |  | 8,357 |  | 7,656 |
|  | 1,821,721 |  | 1,649,349 |
Creditors: amounts falling due within one year | 13 | (581,505) |  | (439,168) |
Net current assets |  |  | 1,240,216 |  | 1,210,181
Total assets less current liabilities |  |  | 1,374,997 |  | 1,379,967
Creditors: amounts falling due after more than one year | 14 |  | (89,959) |  | (124,085)
Net assets |  |  | 1,285,038 |  | 1,255,882
Capital and reserves |  |  |  |  |
Called up share capital | 17 |  | 1,000,000 |  | 1,000,000
Profit and loss account | 18 |  | 285,038 |  | 255,882
|  |  | 1,285,038 |  | 1,255,882
The notes on pages 17 to 33 form part of these financial statements. The financial statements were approved and authorised for issue by the Board and were signed on its behalf by:
R A Hansen
Director
Date: 9 April 2025
Page 16
PRESTEL PUBLISHING LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 1 January 2023 | 1,000,000 | 235,810 | 1,235,810
Comprehensive income for the year |  |  |
Profit for the year | - | 20,072 | 20,072
At 1 January 2024 | 1,000,000 | 255,882 | 1,255,882
Comprehensive income for the year |  |  |
Profit for the year | - | 29,156 | 29,156
At 31 December 2024 | 1,000,000 | 285,038 | 1,285,038
| The notes on pages 18 to 34 form part of these financial statements.
Page 17
PRESTEL PUBLISHING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
1. | General information
Prestel Publishing Limited (“the Company”) sells books on art, architecture, photography and design. It operates from offices in central London and sells primarily to the UK and other world markets (excluding the Americas). The Company also provides services to its immediate parent company, being editorial and marketing services and coordinating US sales activity. The Company is a private company limited by shares and is incorporated and domiciled in the United Kingdom, and is a wholly owned subsidiary of Penguin Random House Verlagsgruppe GmbH, and part of the larger Bertelsmann SE & Co. KGaA group. Its registered office is at 15 Adeline Place, London, WC1B 3AJ. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' and the Companies Act 2006. In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of UK-adopted international accounting standards (“UK-adopted IFRS”), but makes amendments where necessary in order to comply with Companies Act 2006 and has set out below where advantage of the FRS 101 disclosure exemptions has been taken. The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 3. The following principal accounting policies have been applied:
| 2.2 | Financial Reporting Standard 101 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions under FRS 101: ∙the requirements of IFRS 7 Financial Instruments: Disclosures ∙the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement ∙the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of: - paragraph 79(a)(iv) of IAS 1; - paragraph 73(e) of IAS 16 Property, Plant and Equipment; - paragraph 118(e) of IAS 38 Intangible Assets; ∙the requirements of the following paragraphs of IAS 1, 'Presentation of financial statements': - 10(d) statement of cash flows; - 10(f) statement of financial position as at the beginning of the preceding period when retrospective restatement or reclassifications apply; - 16 statement of compliance with all IFRS; - 38A requirement for minimum of two primary financial statements, including cash flow statements; - 38B, 38C, 38D additional comparative information; - 40A, 40B, 40C, 40D requirements to provide additional statements in respect of retrospective restatements and reclassifications; - 111 statement of cash flows information; and Page 18
PRESTEL PUBLISHING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.2 | Financial Reporting Standard 101 - reduced disclosure exemptions (continued)
- 134 - 136 capital management disclosures. ∙the requirements of IAS 7 Statement of Cash Flows ∙the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors ∙the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures ∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member This information is included in the consolidated financial statements of Bertelsmann SE & Co KGaA as at 31 December 2024 and these financial statements may be obtained from Bertelsmann SE & Co KGaA, Corporate Communications, Carl Bertelsmann Strasse 270, Postfach 111, D-33311, Gütersloh, Germany.
| 2.3 | Going concern
In preparing these financial statements, the directors have assessed the ability of the Company to continue to operate for a period of at least twelve months from the date of signing the financial statements. The Company has undertaken a risk assessment and forecasting exercise to assess the Company’s liquidity position. The forecast for the going concern period has been prepared using the three year plan approved by the Board and takes account of prior trends and expected titles to be published in the future and key cost drivers such as commodity prices and inflation. For the purposes of the Company’s going concern assessment, the directors have performed sensitivity analysis on cashflows based on unforeseen changes in demand and the potential impact of increased inflationary pressures. In addition, reverse stress testing has been performed to establish the levels of performance where cash availability would be breached. The results of the analysis demonstrated that there was sufficient cash availability within the current intra group cash pooling facility to deal with all of the identified plausible scenarios. Based on the Company’s current trading performance, the sensitivity and reverse stress testing scenarios performed, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future, being a period of no less than twelve months from the date of approval of these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
| 2.4 | New standards, amendments and IFRIC interpretations
There are no amendments to accounting standards or IFRIC interpretations that are effective for the year ended 31 December 2024 that have had a material impact on the Company’s financial statements. Page 19
PRESTEL PUBLISHING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.5 | Revenue
Revenue is measured at the fair value of the consideration received or receivable, net of value added tax, trade discounts and customer returns, of sales of publications and the provision of editorial and marketing services. The Company recognises revenue when performance obligations have been satisfied and for the Company this is when the sale of publication is made to the customer. Revenue from providing editorial and marketing services is recognised in the accounting period in which the services are rendered. The Company assesses whether it controls the specified good prior to the transfer to the end customer. The Company directs and fulfills the service of distribution of the specified good, and acts as the principal party in these transactions. Revenue represents the gross consideration receivable for the good transferred. Other operating income is revenue not derived from the principal activity of the business. This income consists of cost recharges to third party publishers.
| 2.6 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is GBP. Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates. The financial statements are presented in pound sterling, which is also the functional currency of the Company. Transactions and balances At each period end foreign currency monetary items are translated using the closing rate. Management assess the underlying asset and liability in the transaction to determine the nature of the foreign exchange gains and losses. As this results from operating activities gains and losses resulting from the settlement of transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies, are recognised in the profit and loss account within ‘Administrative expenses’. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency at foreign exchange rates ruling at the dates the fair value was determined. Foreign exchange differences arising on translation are recognised in the profit and loss account under administrative expenses. Page 20
PRESTEL PUBLISHING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.7 | Current and deferred taxation
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years. Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: the initial recognition of goodwill; the initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business combination, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised.
| 2.8 | Tangible fixed assets
Tangible fixed assets are stated at historical purchase cost less accumulated depreciation. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. The estimated useful lives are as follows:
|  |  |  | Long-term leasehold property | - | 5 | years
|  |  |  | Fixtures and fittings | - | 4 | years
|  |  |  | Computer equipment | - | 3 | years
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss. Page 21
PRESTEL PUBLISHING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.9 | Provisions for liabilities
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
| 2.10 | Financial assets
The Company classifies its financial assets in the following categories ∙Amortised Cost ∙Fair Value through profit or loss (FVTPL) ∙Fair value through other comprehensive income (FVOCI) The classification depends on the purpose for which the financial assets were acquired i.e. the entity’s business model for managing the financial assets and/or the contractual cash flow characteristics of the financial asset. Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model. A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL: ∙it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and ∙its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Subsequent to initial recognition these are measured at amortised cost using the effective interest method. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other (expenses)/income together with foreign exchange gains and losses. Impairment losses are presented as a separate line item in the profit or loss under ‘net impairment losses on financial and contract assets’. On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in OCI. This election is made on an investment-by-investment basis. All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. The Company does not have any assets classified at FVOCI nor FVTPL. Page 22
PRESTEL PUBLISHING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued) The Company assesses at the end of each reporting period whether there is objective evidence that one or more event has occurred which has impacted on the estimated cash flows of the financial asset. Financial assets are impaired and impairment losses are incurred only if such objective evidence of impairment can be reliably measured.
| 2.11 | Trade debtors and amounts owed by group undertakings
Trade debtors and amounts owed by group undertakings are stated at amortised cost after provision for bad and doubtful debts. The Company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for insignificant trade debtors and a risk score on an individual basis for significant trade debtors. To measure the expected credit losses, trade debtors are grouped based on shared credit risk characteristics and the balance of uninsured debt across the Company.
| 2.12 | Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short- term highly liquid investments with original maturities of three months or less, and bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.
| 2.13 | Creditors and amounts owed to group undertakings
Trade and other creditors and amounts owed to group undertakings are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers or a commitment to provide goods and services where monies have been receipted.
| 2.14 | Leases
The Company assesses whether a contract is or contains a lease, at inception of a contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: ∙Fixed payments (including in-substance fixed payments), less any lease incentives receivable; ∙Variable lease payments that are based on an index or a rate, initially measured using the index or rate as at the commencement date; ∙Amounts expected to be payable by the Company under residual value guarantees; Page 23
PRESTEL PUBLISHING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.14 | Leases (continued)
∙The exercise price of a purchase option if the Company is reasonably certain to exercise that option; and ∙Payments of penalties for terminating the lease, if the lease term reflects the Company exercising that option. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Company, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. The Company is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets are measured at cost comprising the following: ∙The amount of the initial measurement of lease liability; ∙Any lease payments made at or before the commencement date less any lease incentives received; ∙Any initial direct costs; and ∙Restoration cost Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. If the Company is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life. While the Company revalues its land and buildings that are presented within property, plant and equipment, it has chosen not to do so for the right-of-use buildings held by the Company Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.
| 2.15 | Interest receivable and similar income
Interest income is recognised in profit or loss using the effective interest method. Page 24
PRESTEL PUBLISHING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.16 | Employee benefits
The Company operates a defined contribution pension plan for certain employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. The Company has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. For defined contribution plans, the Company pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Company has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.
3. | Critical accounting judgements and estimation uncertainty
In the application of the Company’s accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates, underlying assumptions and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable and relevant under the circumstances, however, there are no significant accounting judgements and estimates applicable to this entity. Page 25
PRESTEL PUBLISHING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  |  | As restated
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Sales of publications | 2,732,255 | 2,774,127
| Editorial & marketing services and coordination of US sales activity for immediate parent company | 245,143 | 243,789
|  | 2,977,398 | 3,017,916
Analysis of turnover by country of destination:
|  |  |  |  |  | As restated
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| United Kingdom | 2,608,306 | 2,551,395
| Rest of Europe | 366,610 | 463,140
| Rest of World | 2,482 | 3,381
|  | 2,977,398 | 3,017,916
| Prior year balances have been restated as detailed in note 19.
Page 26
PRESTEL PUBLISHING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
5. | Employees
| Staff costs were as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Wages and salaries | 290,047 | 238,352
| Social security costs | 31,740 | 28,170
| Other pension costs | 8,104 | 5,766
|  | 329,891 | 272,288
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2024 | 2023
|  |  | No. | No.
|  | Marketing staff | 6 | 6
|  | Editorial staff | 1 | 1
|  |  | 7 | 7
6. | Directors
|  | 2024 | 2023
|  | £ | £
| Directors' remuneration | 94,000 | 87,109
| Directors' pension contributions | 1,761 | 1,761
|  | 95,761 | 88,870
7. | Operating profit/(loss)
| Operating profit/(loss) is stated after charging:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Depreciation of tangible fixed assets | 4,772 | 3,397
| Depreciation of right-of-use assets | 32,340 | 31,436
| Foreign exchange differences | 2,735 | 5,946
| Auditors remuneration (audit services) | 26,523 | 25,163
| No other services were provided by the Company's auditor in 2024 (2023: none).
Page 27
PRESTEL PUBLISHING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
8. | Interest receivable and similar income
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Interest receivable on cash pooling | 33,712 | 29,464
|  | 33,712 | 29,464
9. | Interest payable and similar expenses
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Interest on lease liabilities | 7,649 | 1,586
|  | 7,649 | 1,586
10. | Tax on profit
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Corporation tax |  |
| UK corporation tax | 11,461 | 2,181
| Adjustments in respect of prior years | 378 | 726
|  | 11,839 | 2,907
| Total current tax | 11,839 | 2,907
| Deferred tax |  |
| Origination and reversal of timing differences | 1,056 | 4,569
| Adjustments in respect of prior years | 2,516 | (1,492)
| Total deferred tax | 3,572 | 3,077
| Tax on profit | 15,411 | 5,984
Page 28
PRESTEL PUBLISHING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 10.Tax on profit (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25.0% (2023 - 23.5%). The differences are explained below:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 44,567 | 26,056
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25.0% (2023 - 23.5%) | 11,142 | 6,123
| Effects of: |  |
| Expenses not deductible for tax purposes | 1,375 | 353
| Impact of tax rate changes | - | 274
| Adjustments in respect of prior years - current tax | 378 | 726
| Adjustments in respect of prior years - deferred tax | 2,516 | (1,492)
| Total tax charge for the year | 15,411 | 5,984
Page 29
PRESTEL PUBLISHING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
11. | Tangible fixed assets
|  | Leasehold improvements | Fixtures and fittings | Computer equipment | Right-of-use assets | Total
|  | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |
| At 1 January 2024 | 9,613 | 61,756 | 38,571 | 161,698 | 271,638
| Additions | 2,107 | - | - | - | 2,107
| At 31 December 2024 | 11,720 | 61,756 | 38,571 | 161,698 | 273,745
| Depreciation |  |  |  |  |
| At 1 January 2024 | 320 | 61,732 | 34,500 | 5,300 | 101,852
| Charge for the year | 2,384 | 24 | 2,364 | 32,340 | 37,112
| At 31 December 2024 | 2,704 | 61,756 | 36,864 | 37,640 | 138,964
| Net book value |  |  |  |  |
| At 31 December 2024 | 9,016 | - | 1,707 | 124,058 | 134,781
| At 31 December 2023 | 9,293 | 24 | 4,071 | 156,398 | 169,786
12. | Debtors
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Amounts owed by group undertakings | 1,746,470 | 1,571,309
| Other debtors | 11,693 | 10,212
| VAT | 8,446 | 7,210
| Deferred tax asset | 5,286 | 8,858
| Prepayments and accrued income | 41,469 | 44,104
|  | 1,813,364 | 1,641,693
Page 30
PRESTEL PUBLISHING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 12.Debtors (continued)
| Amounts owed by group undertakings (excluding amounts owed by Bertelsmann UK Limited) are unsecured, interest free and repayable on demand. Included in amounts owed by group undertakings is a receivable of £1,193,657 (2023: £1,166,747) from The Book Service Limited, a fellow member of the Bertelsmann SE & Co. KGaA group. Repayment of the receivable is at varying dates between 30 and 120 days in accordance with the distribution agreement between the parties. The balance due does not carry any interest nor is it secured. Also included within amounts owed to group undertakings is £617,058 (2023: £464,931) owed by Bertelsmann UK Limited in respect of a cash pooling facility of £1m which is unsecured and has no fixed repayment date but can be terminated by either party giving three days notice. These amounts incur interest on a monthly basis; the average interest rate for the year was 4.66% (2023: 7.36%).
13. | Creditors: Amounts falling due within one year
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Trade creditors | 127,704 | 124,889
| Amounts owed to group undertakings | 312,230 | 164,318
| Corporation tax | 11,461 | 2,181
| Tax and social security | - | 3,790
| Lease liabilities | 34,126 | 39,018
| Accruals and deferred income | 95,984 | 104,972
|  | 581,505 | 439,168
| Amounts owed to group undertakings are primarily amounts due to Penguin Random House Verlagsgruppe GmbH, the immediate parent company, which has no fixed date for repayment but are repayable on demand. They do not carry any interest nor are they secured on the assets of the Company. The Company has agreements in place to allow customers to return books. As a result the Company makes an estimate of future returns based on historic data, the ageing of sales and business experience. The returns liability of £15,476 (2023: £12,563) for the current year is included in accruals and deferred income.
14. | Creditors: Amounts falling due after more than one year
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Lease liabilities | 89,959 | 124,085
|  | 89,959 | 124,085
Page 31
PRESTEL PUBLISHING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
15. | Leases
The amounts recognised in the financial statements in relation to leases are as follows:
| Right-of-use assets
|  | 2024 | 2023
|  | £ | £
| Buildings | 124,058 | 156,398
|  | 124,058 | 156,398
|  | 2024 | 2023
|  | £ | £
| Current | 34,126 | 39,018
| Non-current | 89,959 | 124,085
|  | 124,085 | 163,103
| Amounts recognised in the Statement of Comprehensive Income
|  | 2024 | 2023
|  | £ | £
| Depreciation charge of right of use assets | 32,340 | 31,436
| Interest expense on lease liabilities (included in finance cost) | 7,649 | 1,586
| Future minimum lease payments as at 31 December 2024 are as follows: | 2024 | 2023
|  | £ | £
| Less than one year | 40,000 | 46,667
| Between one and two years | 40,000 | 40,000
| Between two and three years | 33,333 | 40,000
| Between three years and four years | 23,333 | 33,333
| Between four years and five years | - | 23,333
| Total gross payments | 136,666 | 183,333
| Impact of finance expenses | (12,581) | (20,230)
| Carrying amount of liability | 124,085 | 163,103
The total cash outflow for leases during the year was £46,667 (2023: £22,275). Page 32
PRESTEL PUBLISHING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
16. | Deferred taxation
Movement in recognised deferred tax during the year:
|  | 1 January 2024 | Statement of Comprehensive Income movement | 31 December 2024
|  | £ | £ | £
| Property plant and equipment | 8,858 | (3,572) | 5,286
|  | 8,858 | (3,572) | 5,286
At 31 December 2024 a deferred tax asset has been recognised for the tax base in relation to property, plant and equipment, the future benefit is expected not to be utilised by the Company within 12 months. Deferred tax assets have been recognised within debtors (note 12). The deferred tax assets have been calculated at 25%. Movement in recognised deferred tax during the previous period:
|  | 1 January 2023 | Statement of Comprehensive Income movement | 31 December 2023
|  | £ | £ | £
| Property plant and equipment | 11,420 | (2,562) | 8,858
| Other temporary differences | 515 | (515) | -
|  | 11,935 | (3,077) | 8,858
17. | Called up share capital
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 1,000,000 (2023: 1,000,000) Ordinary Shares shares of £1.00 each | 1,000,000 | 1,000,000
| There is a single class of ordinary shares. There are no restrictions on dividends and the repayment of capital. The called up share capital account records the nominal value of shares issued.
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PRESTEL PUBLISHING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
18. | Reserves
Profit and loss account This includes all current and prior period retained profits and losses. All reserves in respect of profit and loss are distributable reserves.
19. | Prior year adjustment
The Company has restated certain prior year balances relating to the following matter identified during the course of preparing the financial statements. Statement of comprehensive income gross up The Company makes an adjustment to its statement of comprehensive statement to gross up revenue and cost of sales is in line with IFRS 15. An incorrect figure was used for the adjustment in the comparative period. To correct the comparative year, the Company has restated prior year balances by decreasing revenue and cost of the sales by £136,496. There is no impact on the Company's net assets or profit after tax at 31 December 2023.
20. | Related party transactions
| As the Company is a wholly owned subsidiary of Penguin Random House Verlagsgruppe GmbH, who is ultimately wholly owned within the Bertelsmann SE & Co KGaA group, the Company is exempt from the requirement, under International Accounting Standard 24 ‘Related party disclosures’, to disclose transactions with other entities that are wholly owned subsidiaries within the Bertelsmann SE & Co KGaA group. The Company has taken advantage of this exemption.
21. | Controlling party
The immediate parent company is Penguin Random House Verlagsgruppe GmbH which is incorporated in Germany. The Company’s ultimate parent company is Bertelsmann SE & Co KGaA, which is incorporated in Germany. Copies of Bertelsmann SE & Co KGaA’s consolidated financial statements (the smallest and largest financial statements in which the Company is consolidated) can be obtained from: Bertelsmann SE & Co KGaA, Corporate Communications, Carl Bertelsmann Strasse, 270 33311,Gütersloh, Germany
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