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Registered number: 03120147
PROFILE BOOKS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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PROFILE BOOKS LIMITED
COMPANY INFORMATION
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C Beaumont (appointed 5 September 2024)
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D A Bracken (appointed 6 February 2025)
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C J Engle (resigned 10 October 2024)
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F A Ford (resigned 10 October 2024)
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M I Franklin (appointed 4 July 2024, resigned 10 October 2024)
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U A Mackenzie (resigned 10 October 2024)
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K McFarlan (resigned 10 October 2024)
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D Mardolka (resigned 10 October 2024)
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J Stanley (resigned 4 July 2024)
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N P Viner (resigned 10 October 2024)
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Chartered Accountants & Statutory Auditor
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PROFILE BOOKS LIMITED
CONTENTS
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Independent Auditors' Report
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Statement of Comprehensive Income
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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PROFILE BOOKS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their strategic report for the Company for the year ended 31 March 2025.
Following the exceptional performance in 2024 the year to March 2025 was another successful year, marked by a continuing excellent performance across both frontlist and backlist titles. In particular the Murdle series by G.T.Karber and titles by Robert Green and Ryan Holiday continued to sell strongly, with export sales holding up particularly well.
In June 2024 there was a restructuring of the ownership of the company in order to ensure the long term future stability of the business and allow minority shareholders to exit. Consequently a new holding company Profile Books Holdings Limited (PBH) acquired the company for a mixture of shares in the new company and cash. The non-executive Directors of Profile Books Ltd were appointed to the Board of Profile Books Holdings Ltd and resigned from the Board of Profile Books Ltd in October 2024. There was no change to the trading arrangements for Profile Books Ltd which remains as the trading company for the newly formed group.
A dividend of £7,646,737 was paid by the company to PBH on 7 June. On 26 June a further dividend of £86,030 was declared and paid to PBH and a final dividend of £243,992 was paid in December 2024.
Principal risks and uncertainties
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Credit Risk
Debt is uninsured and is managed by regular review of credit and consultation with credit controllers at the distributor.
Changes in the UK Retail Trade
Online purchasing of physical and ebooks is largely controlled by a single retailer. Audio books have grown in popularity and the majority are sold by a single retailer, which is part of the same group. The continued pressure on high street bookshops, both chain and independents, is a major factor affecting the company’s ability to sell books to readers.
Operational Risk, including systems failures and disaster
The company has extensive plans for disaster recovery including recovery from systems collapse, and the Company annually assesses the appropriate level of insurance cover against business interruption.
Libel litigation
The company has insurance cover against libel, the level of which is assessed annually, and has a system of pre-publication review of new titles for potential libels.
Security of Bank Deposits
Cash is mainly deposited with the company’s bankers Lloyds Banking Group. The directors keep this under regular review.
Foreign Exchange risk
Where possible the company deals in sterling. Foreign currency accounts are held and the company endeavours to manage the balances so as to reduce the risk.
Inflation
Where possible, the company attempts to limit future cost increases by entering into contracts for services and goods for a period of years. Book prices are kept under review whenever books are printed or reprinted.
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PROFILE BOOKS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Financial key performance indicators
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Management use a range of performance measures to monitor and manage the business. The performance measures are financial key performance indicators as set out below:
2025 2024
Decrease in Turnover against prior year -8.5% 27%
Operating Profit as a percentage of turnover 13.9% 17%
Number of new books published in a paper format 112 103
Directors' statement of compliance with duty to promote the success of the Company
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The directors consider, both individually and collectively, that the manner in which they have acted and the
decisions that they have made during the year ended 31 March 2025 have been those most likely to promote
success for the benefit of its members.
The directors engage in setting, approving and executing the agreed strategic vision, and regularly review
business performance, risk and compliance, health and safety and corporate responsibility matters at both board
and informal meetings.
The company seeks to build long-term, trusted and mutually beneficial relationships with both customers and
suppliers. Employees are encouraged to recommend strategic and operational improvements and the company
seeks at all times to prioritise the safety and welfare of its staff.
Wherever possible, the company aims to positively impact upon the environment and to make as constructive a
contribution as possible to the local community. To that end the company has established an environmental staff
group to monitor and suggest improvements to working practices.
This report was approved by the board and signed on its behalf.
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PROFILE BOOKS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their report and the financial statements for the year ended 31 March 2025.
Directors' responsibilities statement
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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 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements 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 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.
The principal activity of the Company is book publishing.
The profit for the year, after taxation, amounted to £2,285,492 (2024 - £2,955,560).
Dividends totalling £7,976,759 (2024: £376,583) were paid during the year.
The directors who served during the year were:
C Beaumont (appointed 5 September 2024)
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D A Bracken (appointed 6 February 2025)
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C J Engle (resigned 10 October 2024)
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F A Ford (resigned 10 October 2024)
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M I Franklin (appointed 4 July 2024, resigned 10 October 2024)
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U A Mackenzie (resigned 10 October 2024)
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K McFarlan (resigned 10 October 2024)
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D Mardolka (resigned 10 October 2024)
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PROFILE BOOKS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
J Stanley (resigned 4 July 2024)
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N P Viner (resigned 10 October 2024)
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The company remains open to new opportunities for acquisitions but at present has no specific targets.
Disclosure of information to auditors
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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 auditors are 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 auditors are aware of that information.
The auditors, BKL Audit LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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PROFILE BOOKS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROFILE BOOKS LIMITED
We have audited the financial statements of Profile Books Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, 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 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 Company's affairs as at 31 March 2025 and of its profit 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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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
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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.
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PROFILE BOOKS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROFILE BOOKS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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
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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 by exception
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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.
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.
Responsibilities of directors
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As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.
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PROFILE BOOKS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROFILE BOOKS LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
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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 Auditors' 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:
∙Enquiring of management around actual and potential litigation and claims;
∙Reviewing minutes of meetings of those charged with governance;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Performing audit work over the risks of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
∙Conclude 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 Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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PROFILE BOOKS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROFILE BOOKS LIMITED (CONTINUED)
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 Auditors' 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.
Myfanwy Neville (FCA) (Senior Statutory Auditor)
for and on behalf of
BKL Audit LLP
Chartered Accountants
Statutory Auditor
London
15 October 2025
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PROFILE BOOKS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
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Interest receivable and similar income
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Profit for the financial year
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The notes on pages 14 to 31 form part of these financial statements.
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PROFILE BOOKS LIMITED
REGISTERED NUMBER: 03120147
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
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Debtors: amounts falling due after more than one year
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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PROFILE BOOKS LIMITED
REGISTERED NUMBER: 03120147
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 31 form part of these financial statements.
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PROFILE BOOKS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
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Exercise of share options
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Total comprehensive income for the year
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Dividends: Equity capital
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Shares issued during the year
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Total transactions with owners
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Total comprehensive income for the year
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Dividends: Equity capital
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Total transactions with owners
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The notes on pages 14 to 31 form part of these financial statements.
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PROFILE BOOKS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
Cash flows from operating activities
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Profit for the financial year
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Amortisation of intangible assets
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Depreciation of tangible assets
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Decrease/(increase) in stocks
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(Increase)/decrease in debtors
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(Decrease)/increase in creditors
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Increase/(decrease) in provisions
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Net cash from investing activities
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Cash flows from financing activities
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Net cash used in financing activities
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Net (decrease)/increase in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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The notes on pages 14 to 31 form part of these financial statements.
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PROFILE BOOKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
The principal activity of Profile Books ("the Company") is book publishing.
The Company is a private company limited by shares and is incorporated in England and Wales.
The Registered Office and principal place of business address is 29 Cloth Fair, London, EC1A 7JQ.
2.Accounting policies
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Basis of preparation of financial statements
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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 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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Exemption from preparing consolidated financial statements
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The Company is exempt from the requirement to prepare consolidated financial statements as all of its subsidiaries are required to be excluded from consolidation by section 402 of the Companies Act 2006.
The financial statements of the Company have been prepared on a going concern basis.
The Company has net current assets of £10,035,944 (2024: £15,627,008) with cash at bank and in hand of £5,207,822 (2024: £11,760,983). This conclusion that going concern is the most appropriate basis follows the detailed modelling of the Company's future trading prospects, its working capital requirements and cashflows.
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PROFILE BOOKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange 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 profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Turnover from the sale of books is recognised when title passes. A provision for anticipated returns is made based primarily on historical return rates. If these estimates do not reflect actual returns in future periods, then turnover could be understated or overstated for that particular period.
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
On certain contracts, where the Company acts as agent, turnover includes commissions and fees receivable for services rendered.
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PROFILE BOOKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Advances of royalties paid to authors are included as a prepaid expense until titles are published, at which date they are written off. Where a paperback version is to be published following the first edition, the directors may allocate a proportion of the advance to be treated as a prepaid expense until publication of the paperback edition.
At each reporting date, advances on unpublished titles are assessed for impairment. If the value is impaired, the carrying amount is reduced to any amounts deemed to be recoverable. The impairment loss is recognised immediately in profit or loss.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Interest income is recognised in profit or loss using the effective interest method.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the Statement of Comprehensive Income over the vesting period. Non market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest.
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to the Statement of Comprehensive Income over the remaining vesting period.
Where equity instruments are granted to persons other than employees, the Statement of Comprehensive Income is charged with fair value of goods and services received.
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PROFILE BOOKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Comprehensive Income over its useful economic life.
Other intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. The estimated useful life of the Goodwill and Intellectual Property is five years.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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PROFILE BOOKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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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.
Depreciation is provided on the following basis:
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 the Statement of Comprehensive Income.
Investments in subsidiaries are measured at cost less accumulated impairment.
Stocks comprises finished goods and paper stock at the printers, and are stated at the lower of cost and net realisable value. Cost is determined using the 'first in first out' method.
Stock held by distributors are valued on a title by title basis at the lower of manufacturing cost and net realisable value.
Cost includes the direct costs of paper, printing and binding incurred on a title by title basis. Plant costs which do not vary with the number of copies printed (for example typesetting, origination and illustration), are charged to the Statement of Comprehensive Income in full, on publication.
A provision is made for excess, obsolete and slow moving stocks. Net realisable value is calculated as the estimated selling price in the ordinary course of business less applicable variable selling expenses.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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PROFILE BOOKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
The Company sells books to some customers on a 'sale or return' basis. During the course of succeeding periods some of those books will be returned, and some sales made in one accounting period will be returned in the next. The Company has an enforceable obligation to make a full refund against those returns and, in accordance with the requirements of FRS102, provisions are made for the costs involved based on the historical trend of returns, modified where necessary, by the directors' evaluation of each title, and after taking into consideration actual returns received after the year end.
The Company only enters into basic financial instruments and transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans to and from related parties.
(i) Financial assets
Basic financial assets, including trade and other debtors, and amounts due from related companies, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Statement of Income and Retained Earnings.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions
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PROFILE BOOKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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Financial instruments (continued)
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(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Statement of Financial Position date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Estimates 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 under the circumstances.
(i) Provision for Returns
The Company has agreements in place to allow some customers to return books on a 'sale or return' basis. An estimated provision is made for post year end returns based upon the pattern of returns for the previous completed year, excluding exceptional titles. See note 20 for further details.
(ii) Stock provision
Judgement is required in determining whether there is any allowance for slow-moving or obsolete items. This involves evaluating the likelihood of the further sales of particular stock items. See note 15 for further details.
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PROFILE BOOKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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An analysis of turnover by class of business is as follows:
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Analysis of turnover by country of destination:
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The operating profit is stated after charging:
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Depreciation charge in the year
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Other operating lease rentals
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Amortisation charge for the year
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PROFILE BOOKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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During the year, the Company obtained the following services from the Company's auditors:
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Fees payable to the Company's auditors in respect of:
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The auditing of accounts of associates of the Company
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Taxation compliance services
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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Directors (not including Non-Executive directors)
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PROFILE BOOKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Company contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to 4 directors (2024 - 2) in respect of defined contribution pension schemes.
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The highest paid director received remuneration of £220,555 (2024 - £147,674).
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Other interest receivable
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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PROFILE BOOKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
10.Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is the same as (2024 - the same as) the standard rate of corporation tax in the UK of 25% (2024 - 25%) as set out below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Adjustments to tax charge in respect of prior periods
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Short-term timing difference leading to an increase (decrease) in taxation
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Other differences leading to an increase (decrease) in the tax charge
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Movement in deferred tax not recognised
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Total tax charge for the year
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Factors that may affect future tax charges
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There were no factors that may affect future tax charges.
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PROFILE BOOKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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In October 2018, the Company purchased the publishing rights to the titles published by Souvenir Press Limited. The acquisition included goodwill and the trademarks relating to the titles acquired.
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PROFILE BOOKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Charge for the year on owned assets
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Investments in subsidiary companies
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PROFILE BOOKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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The following were subsidiary undertakings of the Company:
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Third Millennium Publishing Limited
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The aggregate of the share capital and reserves as at 31 March 2025 and the profit or loss for the year ended on that date for the subsidiary undertakings was as follows:
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Third Millennium Publishing Limited
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Finished goods and goods for resale
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An impairment loss of £254,870 (2024: £265,337) was recognised in the Statement of Comprehensive Income.
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PROFILE BOOKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Due after more than one year
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Prepayments, advance royalties and accrued income
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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Accruals and deferred income
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PROFILE BOOKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Charged to profit or loss
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The deferred taxation balance is made up as follows:
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Accelerated capital allowances
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Expenses allowable when realised
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Charged to profit or loss
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The provision has been made for books sold in the current year which will be returned in subsequent years in accordance with the accounting policy set out in note 2.18.
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Allotted, called up and fully paid
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313,819 (2024 - 313,819) Ordinary shares of £0.10 each
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PROFILE BOOKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Share premium account
The share premium reserve includes all amounts paid over and above par value for shares issued in the
Company.
Profit and loss account
Comprises current year and accumulated profits, less any dividends paid.
The Company operated an Enterprise Management Incentive Share Option Scheme which expired in 2024. At the year end there was no scheme in place.
Each employee's Share Options converts into one Ordinary Share of Profile Books Limited on exercise. No amounts are paid, or payable, by the recipient on receipt of the option and the options carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry.
The Options issued in 2013 are exercisable at a price equal to market value at the date of grant and those issued in 2014 have an exercise price based on a value expected to prevail at the end of the vesting period. All Options have a service condition attached that requires the employee to remain with the Company for a period equal to the vesting period.
The Options are forfeited if the employee leaves the Company before the options vest. The fair value of the Share Options has been determined by applying a Black-Scholes-Merton Model.
No share options were granted during the year (2024: Nil share options), and no share options were exercised during the year (2024: 2500 options exercised).
There were a total of £nil Share Options outstanding at 31 March 2025 (2024: nil).
The value of the Options was reduced by the present value of dividends expected to be paid during the vesting period.
Expected volatility, measured at the annualised standard deviation of net assets, was determined by calculating the historical volatility of the Company's net assets over the previous 5 years.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £300,306 (2024: £245,826). Employer contributions totalling £34,449 (2024: £20,728) were payable to the fund at the reporting date and are included in creditors.
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PROFILE BOOKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Commitments under operating leases
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At 31 March 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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26.Other financial commitments
The Company operates a credit facility to cover the clearance of foreign cheques for which the Company are allowed to withdraw funds, this facility is secured via fixed and floating charges over the assets of the Company.
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Related party transactions
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During the year the Company received professional services of £nil (2024: £3,392) from a director.
During the year total dividends of £7,976,759 (2024: £328,798 to directors) were paid to the parent company.
Directors' remuneration is disclosed in note 8, the directors of the Company are the key management personnel.
During the year nil options were exercised by a director of the Company to purchase ordinary shares in the Company (2024: 2,500).
The group has taken advantage of the exemption provided by Section 33 Related Party Disclosures paragraph 33.1A of Financial Reporting Standard 102 from disclosing related party transactions entered into between the Company and other group companies, where the subsidiary undertaking is wholly owned by a member of the group.
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The immediate and ultimate parent company of Profile Books Limited is Profile Books Holdings Limited, a company incorporated in the United Kingdom.
During the financial year, Profile Books Holdings Limited acquired all issued share capital of Profile Books Limited from its previous shareholders. As a result, Profile Books Holdings Limited became the sole shareholder and controlling party of the company.
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