Pen & Sword Books Limited - Accounts to registrar (filleted)

REGISTERED NUMBER: 02527258 (England and Wales)

PEN & SWORD BOOKS LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Sir N C J Hewitt

Mr M J Hewitt

Mr C E J Hewitt

REGISTERED OFFICE:

47 Church Street

Barnsley

South Yorkshire

S70 2AS

REGISTERED NUMBER:

02527258 (England and Wales)

AUDITORS:

Harrison & Co Accountants Limited

Chartered Accountants

& Statutory Auditors

531 Denby Dale Road West

Calder Grove

Wakefield

West Yorkshire

WF4 3ND

FIXED ASSETS

Intangible assets

4

173,127

218,122

Tangible assets

5

142,239

167,714

Investments

6

55,128

370,494

440,964

CURRENT ASSETS

Stocks

1,939,415

2,144,608

Debtors

7

2,086,272

1,995,199

Cash at bank

207,721

87,131

4,233,408

4,226,938

CREDITORS

Amounts falling due within one year

8

3,127,575

3,214,498

NET CURRENT ASSETS

1,105,833

1,012,440

TOTAL ASSETS LESS CURRENT
LIABILITIES

1,476,327

1,453,404

CAPITAL AND RESERVES

Called up share capital

100,000

Retained earnings

1,376,327

1,353,404

1,476,327

1,453,404

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2025 and were signed on its behalf by:

Sir N C J Hewitt - Director

1.	STATUTORY INFORMATION

Pen & Sword Books Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

- Section 7 'Statement of Cash Flows': Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues': Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 26 'Share based Payment': Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

- Section 33 'Related Party Disclosures': Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Acredula Group Limited. These consolidated financial statements are available from its registered office, 47 Church Street, Barnsley, S70 2AS.

At the time of approving the financial statements, with the continued financial support of the parent undertaking, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements estimates and assumptions about the carrying 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 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 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 material adjustment to the carrying amount of assets and liabilities are as follows.

Stock write down policy

Stock is written down to 50% of the original cost 6 months after publication, a further 50% of the written down balance is written down 12 months after publication and a further 50% of the written down balance is written down 24 months after publication. Stock is fully written down 90 months after publication. The directors believe that the policy remains valid under current trading conditions.

Authors Advances

All book publishers pay advances to authors against future royalties on sales and sales of sub-rights which may become due to them. The amount of the advances carried forward in the balance sheet are stated at the lower of the amount paid to them and the expected earning potential of each title.

Author advances provision

Author advances are written down by 50% of the contracted advance 6 months after publication, a further 50% of the unearned balance is written down 12 months after publication and 100% of the unearned balance is written down 24 months after publication. Contracted advances exceeding £30,000 are individually reviewed and written down where appropriate. The directors believe that the policy remains valid under current trading conditions.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2020, is being amortised evenly over its estimated useful life of five years.

Intangible 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.

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 and digital documents 3-10 years straight line

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Office equipment

-

33% on cost and 10% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are stated at the lower of cost and estimate selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, outsourced labour costs incurred in order to produce and bring the stock to its current condition.

Stock cost per item is calculated as total costs to produce, allocated evenly across the number of items per product run.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in our profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Authors' advances

All book publishers pay advances to authors against future royalties on sales and sales of sub-rights which may become due to them. The amount of the advances carried forward in the balance sheet are stated at the lower of the amount paid and the expected earning potential of each title.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 56 (2023 - 60 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

Goodwill

assets

Totals

£

COST

At 1 January 2024

28,220

343,302

371,522

Additions

-

5,525

At 31 December 2024

28,220

348,827

377,047

AMORTISATION

At 1 January 2024

16,932

136,468

153,400

Charge for year

5,644

44,876

50,520

At 31 December 2024

22,576

181,344

203,920

NET BOOK VALUE

At 31 December 2024

5,644

167,483

173,127

At 31 December 2023

11,288

206,834

218,122

5.	TANGIBLE FIXED ASSETS

Motor

Office

vehicles

equipment

Totals

£

COST

At 1 January 2024

18,935

495,367

514,302

Additions

-

14,097

Disposals

(12,470

)

(1,048

)

(13,518

)

At 31 December 2024

6,465

508,416

514,881

DEPRECIATION

At 1 January 2024

18,935

327,653

346,588

Charge for year

-

38,851

Eliminated on disposal

(12,470

)

(327

)

(12,797

)

At 31 December 2024

6,465

366,177

372,642

NET BOOK VALUE

At 31 December 2024

-

142,239

At 31 December 2023

-

167,714

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2024

and 31 December 2024

55,128

NET BOOK VALUE

At 31 December 2024

55,128

At 31 December 2023

55,128

Shares in group undertakings and participating interest.

7.

DEBTORS

2024

2023

£

Amounts falling due within one year:

Trade debtors

1,309,247

1,199,357

Other debtors

627,846

656,367

VAT

46,244

45,687

Prepayments

71,435

62,288

2,054,772

1,963,699

Amounts falling due after more than one year:

Deferred tax asset

31,500

Aggregate amounts

2,086,272

1,995,199

Relates to a deferred tax asset provision.

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

Trade creditors

555,182

680,465

Amounts owed to group undertakings

2,488,914

2,434,531

Other creditors

2,553

21,020

Accrued expenses

80,926

78,482

3,127,575

3,214,498

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Suzanne Harrison ACA (Senior Statutory Auditor)

for and on behalf of Harrison & Co Accountants Limited