Registration number:
for the Year Ended 31 December 2024
Mediamonks London Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Income Statement |
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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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Statement of Cash Flows |
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Notes to the Financial Statements |
Mediamonks London Limited
Company Information
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Directors |
V O Knaap J M Draude C Salter |
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Registered office |
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Solicitors |
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Auditors |
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Mediamonks London Limited
Strategic Report for the Year Ended 31 December 2024
The directors present their strategic report for the year ended 31 December 2024.
Principal Activity
The principal activity of the company is creative digital production services.
Fair review of the business
The results for the year and financial position of the Company are shown in the annexed financial statements.
Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.
In total, the activities of the company declined to £24.96m (2023: £30.01m) from new and existing clients. Gross profit decreased from 75.74% to 74.50% with a gross profit of £18.59m (2023: £22.73m). Profit before tax increased to £1,026,918 from £1,010,466 in 2023.
The company's net assets have increased by £1,076,101 (2023: £820,773).
The company’s accumulated reserves are now £6.05m at the balance sheet date.
2024 was a challenging year with continued uncertainty around global macroeconomic conditions, high interest rates and lower marketing spend from technology clients, which account for lower revenue. The first half saw a mixed performance with slower growth and an expected second half seasonal uplift did not materialise amidst continuing client caution and further economic challenges. Overall, we have seen clients very much focused on the short term, particularly in relation to larger transformation projects, which has resulted in longer sales cycles, along with lower regional and local opportunities, and we have found it harder to convert new business opportunities.
Also, in 2024 our focus is to have a more disciplined approach on tight management of costs, aligning headcount more closely with activity levels and working capital management and cash, resulting in improved margins and lower net debt as the S4 Group level. Continued control on hiring and reorganisation of the practice has reduced the number of headcounts at the year end. This strong cost discipline has temporarily tempered the declining net revenue. We continue to focus on improving the operating model, integration and forecasting.
On the other hand, we are seeing our AI initiatives improve visualisation and copywriting productivity, deliver considerably more effective and economic hyper-personalisation (better targeted content at greater scale), delivering more automated and integrated media planning and buying, improving general client and agency efficiency and democratisation of knowledge. Monks.Flow is our AI product solution that automates marketing workflows, and we are continuing to add applications and expand its capabilities. Our end-to-end suite of Monks.Flow products orchestrates and helps enable our clients to more easily implement AI solutions, particularly in visualisation and copywriting, in hyper-personalisation at scale, in real time focus groups and linking media planning and buying. We are seeing significant opportunities for new business, particularly driven by our AI tools and capability. Moreover, we are also winning multiple exploratory assignments worldwide, as clients experiment and explore AI applications and develop AI use cases. AI capability is becoming more central to the agency’s way of working and new business efforts.
Mediamonks London Limited
Strategic Report for the Year Ended 31 December 2024
Principal risks and uncertainties
1. Macroeconomic headwinds
Macroeconomic headwinds could result in existing clients reducing spend and potentially limiting new business opportunities. This could result in the company being unable to meet financial targets or deliver growth expectations
Response:
o Strengthening the go-to-market proposition to increase the pipeline of potential clients.
o Improved planning processes for all clients.
o Business transformation programme to improve profitability, enhance delivery and increase accountability
2. Operational decision making
Limits to market visibility and changing client budgets, combined with a complex internal budgeting and forecasting process, may create volatility in forecasts and results, which with a complicated data landscape, could lead to internal
inefficiencies and slow down operational decision making.
Response:
o More detailed analysis being performed of addressable markets, as well as more discussion of Go-To-Market propositions as part of monthly performance reviews
o Formalised accountabilities for delivery between relevant client, growth and operations teams through regular performance reviews.
o Enhanced billability and utilisation reporting being adopted in the company.
3. Artificial intelligence (AI)
AI is a disruptive technology that can impact the standard commercial models in our industry, as well as scale up and down the need for specific teams and talent in the business. AI is also considered to be a business opportunity as well as a risk, as the company considers AI to have considerable upsides to its commercial offering and support processes.
Response:
o Weekly calls on the use of AI across all teams and functions of the business to embed its use on workflow and showcase successes
o Continuing to forge strong relationships with key technology companies on utilisation and execution of AI tools.
o Ongoing training and enablement programmes on use of AI.
Mediamonks London Limited
Strategic Report for the Year Ended 31 December 2024
Future Outlook
As we navigate the complexities of 2024 and the year ahead, we should acknowledge the shifts impacting ESG, our people, our industry and the world at large. The convergence of technological advancements, geopolitical changes and economic pressures demands that we accelerate change and act quickly. Simultaneously, the rapid advancement of AI is reshaping our ways of working - and our industry. Public awareness around AI reached a tipping point in 2024. It transformed our engagement with clients and, as the recognised leaders in AI, our positioning in the industry. In just one short year, the brand marketing organisation has become more complex, making previous playbooks obsolete. Brands now need real-time engagement and connections moving at the speed of culture.
Also, given the wider market uncertainty and the priority shown by technology clients to AI-related capital expenditure rather than operational expenditure, such as marketing, we target net revenue to increase. We will continue to focus on our cost base and will take further action to support profitability and therefore expect operational EBITDA to improve. Our tagline ‘faster, better, cheaper and more’ or ‘speed, quality, value and more’ and a unitary structure both appeal strongly, even more so in challenging economic times.
We are seeing more and more clients seeking agility and rapid execution. Their focus is on tackling elusive top-line growth and inflation-induced pricing adjustments, with an emphasis on advertising that drives activation and performance. Consumer behaviour has evolved, marked by shorter attention spans and fickleness towards brands. This shift necessitates a focus on immediate activation and performance, rather than long-term brand awareness.
Furthermore, AI is going to have a huge impact in the sectors we serve. Generative tools like ChatGPT and Bard are enhancing productivity and capability across all departments, facilitating the creation of AI-driven brand experiences for clients. These advancements might lead big tech platforms to bypass media agencies, directly serving clients without requiring massive manpower for media plan execution. In such scenarios, our new role would be ensuring algorithm optimization for clients' benefits. While AI's impact can be seen as either a threat or opportunity, we view it unequivocally as the latter and are committed to leveraging our early mover advantage.
Change is happening rapidly every day, and we need to acknowledge that by constantly re-inventing ourselves and becoming the change makers. That’s how industries move forwards, and that’s the measure by which we should judge ourselves.
Summary
The directors are pleased with the overall financial performance of the company for the year ended 31 December 2024.
Approved by the Board on 29 December 2025 and signed on its behalf by:
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V O Knaap |
Mediamonks London 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.
Directors' of the company
The directors, who held office during the year, was as follows:
The following directors were appointed after the year end:
Principal activity
The principal activity of the company is creative digital production services.
Disclosure of information to the auditor
The directors have taken steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the
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Mediamonks London Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with UK adopted International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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 apply them consistently; |
• | make judgements and accounting estimates that are reasonable and prudent; |
• | state whether applicable UK adopted International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• | 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 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.
Mediamonks London Limited
Independent Auditor's Report to the Members of Mediamonks London Limited
Opinion
We have audited the financial statements of Mediamonks London Limited (the 'company') for the year ended 31 December 2024, which comprise the Income Statement, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, 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 UK adopted International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.
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; |
• | have been properly prepared in accordance with UK adopted IFRSs; and |
• | 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 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
In auditing the financial statements, we have concluded that the director's 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 original financial statements were 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.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Mediamonks London Limited
Independent Auditor's Report to the Members of Mediamonks London Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report has been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where 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
As explained more fully in the Statement of Directors' Responsibilities set out on page 6, 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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Mediamonks London Limited
Independent Auditor's Report to the Members of Mediamonks London Limited
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. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the advertising sector;
• we focused on specific laws and regulations which we considered may have a direct material affect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, and health and safety legislation;
• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;
• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
• performed analytical procedures to identify any unusual or unexpected relationships;
• tested journal entries to identify unusual transactions;
• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
• investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation;
• enquiring of management as to actual and potential litigation and claims.
Mediamonks London Limited
Independent Auditor's Report to the Members of Mediamonks London Limited
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may
involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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.
For and on behalf of
Silks Way
Braintree
Essex
CM7 3GB
Mediamonks London Limited
Income Statement for the Year Ended 31 December 2024
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Note |
2024 |
2023 |
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Revenue |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Other operating income |
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Operating profit |
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Finance income |
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Finance costs |
( |
( |
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Net finance cost |
( |
( |
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Profit before tax |
|
|
|
|
Tax expense |
( |
( |
|
|
Profit for the year |
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The above results were derived from continuing operations.
Mediamonks London Limited
Statement of Comprehensive Income for the Year Ended 31 December 2024
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2024 |
2023 |
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Profit for the year |
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Total comprehensive income for the year |
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Mediamonks London Limited
(Registration number: 08333698)
Statement of Financial Position as at 31 December 2024
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Note |
31 December |
31 December |
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Assets |
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Non-current assets |
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Property, plant and equipment |
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Right of use assets |
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Trade and other receivables |
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Deferred tax assets |
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Current assets |
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Trade and other receivables |
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Cash and cash equivalents |
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10,770,412 |
8,771,413 |
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Total assets |
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Current liabilities |
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Trade and other payables |
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Corporation tax liability |
- |
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Right of use liability |
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6,974,815 |
6,165,594 |
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Net current assets |
3,795,597 |
2,605,819 |
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Total assets less current liabilities |
8,816,525 |
8,564,729 |
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Non-current liabilities |
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Provisions |
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Deferred tax provision |
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Right of use liability |
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Net assets |
6,045,251 |
4,969,150 |
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Mediamonks London Limited
(Registration number: 08333698)
Statement of Financial Position as at 31 December 2024
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Note |
31 December |
31 December |
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Equity |
|||
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Share capital |
100 |
100 |
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Share premium |
2,000,000 |
2,000,000 |
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Capital contribution |
248,136 |
93,893 |
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Retained earnings |
3,797,015 |
2,875,157 |
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Total equity and liabilities |
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Approved by the
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Mediamonks London Limited
Statement of Changes in Equity for the Year Ended 31 December 2024
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Share capital |
Share premium |
Capital contribution |
Retained earnings |
Total |
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At 1 January 2024 |
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Profit for the year |
- |
- |
- |
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Total comprehensive income |
- |
- |
- |
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Share based payment transactions |
- |
- |
154,243 |
- |
154,243 |
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At 31 December 2024 |
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Share capital |
Share premium |
Capital contribution |
Retained earnings |
Total |
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At 1 January 2023 |
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Profit for the year |
- |
- |
- |
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Total comprehensive income |
- |
- |
- |
|
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Share based payment transactions |
- |
- |
57,274 |
- |
57,274 |
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At 31 December 2023 |
100 |
2,000,000 |
93,893 |
2,875,157 |
4,969,150 |
Mediamonks London Limited
Statement of Cash Flows for the Year Ended 31 December 2024
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2024 |
2023 |
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Cash flows from operating activities |
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Profit for the year |
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Adjustments to cash flows from non-cash items |
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Depreciation and amortisation |
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Depreciation on right of use assets |
970,064 |
3,401,236 |
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Profit on disposal of property plant and equipment |
( |
( |
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Finance income |
( |
( |
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Finance costs |
|
|
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Share based payment transactions |
154,243 |
57,274 |
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Tax expense |
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|
|
|
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Working capital adjustments |
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(Increase)/decrease in trade and other receivables |
( |
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Increase/(decrease) in trade and other payables |
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( |
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Cash generated from operations |
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|
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Income taxes paid |
- |
( |
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Net cash flow from operating activities |
|
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Cash flows from investing activities |
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Interest received |
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|
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Acquisitions of property plant and equipment |
( |
( |
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Proceeds from sale of property plant and equipment |
|
- |
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Payments made on leased assets during the year |
(1,022,117) |
(4,379,174) |
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Payments for group tax loss relief |
(364,387) |
- |
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Net cash flows from investing activities |
( |
( |
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Cash flows from financing activities |
||
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Interest paid |
( |
( |
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
Cash and cash equivalents at 1 January |
839,384 |
2,052,282 |
|
Cash and cash equivalents at 31 December |
2,696,757 |
839,384 |
Mediamonks London Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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General information |
The company is a private company limited by share capital, incorporated and domiciled in England and Wales.
The address of its registered office is:
England
These financial statements were authorised for issue by the
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Accounting policies |
Statement of compliance
The company financial statements have been prepared in accordance with International Financial Reporting Standards and its interpretations adopted by the UK ("adopted IFRS's").
Summary of material accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Basis of preparation
The financial statements have been prepared in accordance with adopted IFRSs and under historical cost accounting rules.
The preparation of financial statements, in compliance with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies.
These financial statements are presented in Sterling (£), which is the company's functional currency.
Mediamonks London Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Changes in accounting policy
New standards, interpretations and amendments effective
The following have been applied for the first time from 1 January 2024 and have had an effect on the financial statements:
IAS 1 - Classification of Liabilities as Current or Non-current and Non-current Liabilities
In January 2020 and October 2022, the Board issued amendments to IAS 1 Presentation to Financial Statements to specify the requirements for classifying liabilities as current or non-current. The Board decided that if an entity’s right to defer settlement of a loan arrangement is subject to the entity complying with the required covenants only at a date subsequent to the reporting period (‘future covenants’), the entity has a right to defer settlement of the liability even if it does not comply with those covenants at the end of the reporting period.
The amendment further clarifies that the classification of a liability is unaffected by the likelihood that the entity will exercise its right to defer settlement for at least twelve months after the reporting period.
Disclosure is required when a liability arising from a loan covenant is classified as non-current and the entity’s right to defer settlement is contingent on compliance with the future covenants within twelve months.
The adoption of this amendment on 1 January 2024 had no material impact on the company’s financial statements.
IFRS 16 - Lease Liability in a Sale and Leaseback
In September 2022, the Board issued Lease Liability in a Sale and Leaseback (Amendments to IFRS 16). The amendment to IFRS 16 Leases specifies the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain or loss that relates to the right of use it retains.
The adoption of this amendment on 1 January 2024 had no material impact on the company's financial statements
IAS 7 & IFRS 7 - Disclosures: Supplier Finance Arrangements
In May 2023, the Board issued amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures. The amendments specify disclosure requirements to enhance the current requirements, which are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity’s liabilities, cash flows and exposure to liquidity risk.
The adoption of this amendment on 1 January 2024 had no material impact on the company's financial statements.
None of the other standards, interpretations and amendments effective for the first time from 1 January 2024 have had a material effect on the financial statements.
New standards, interpretations and amendments not yet effective
The following newly issued but not yet effective standards, interpretations and amendments, which have not been applied in these financial statements, will or may have an effect on the company financial statements in future:
IFRS 18 - Presentation and Disclosure in Financial Statements
This will become effective in the company's financial statements for the year ending 31 December 2027, subject to endorsement from UK Endorsement Board.
None of the other standards, interpretations and amendments which are effective for periods beginning after 1 January 2024 and which have not been adopted early, are expected to have a material effect on the financial statements.
Mediamonks London Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Revenue recognition
The company produces digital campaigns, films, creative content, platforms and E- commerce for home grown and international brands. The company has three principal operating segments which are assets at scale, platform and E- commerce and creative content and innovation. Projects in the assets at scale have, on average a one to two month duration and have a mix of fixed pricing and projects on an actual time spend basis. The focus of the platform and E-commerce pillar is on retaining repeat work with longer lasting characteristics with prices that are mostly based on actual time spent. The characteristics of the projects on the creative content and innovation pillar include a life cycle of two to four months and fixed prices.
Revenue is recognised as a performance obligation is satisfied in accordance with terms of the contractual agreement. Typically, performance obligations are satisfied over time as services are rendered. Revenue recognised over time is based on the proportion of level of service performed.
The company determines all the separate performance obligations within the customer's contract at contract inception. The company determines at contract inception whether each performance obligation will be satisfied (that is when control will be transferred) over time or at a point in time. In general, the company satisfies a performance obligation and recognises revenue over time, as the asset has no alternative use to the company and the company is entitled to payment for performance to date. The asset for each project is produced to the customer's specification and the asset can only be used by the customer.
For each performance obligation that is satisfied over time, revenue is recognised by measuring progress towards completion of that performance obligation. Revenue recognised over time is based on the proportion of the level of services performed. For most contracts, costs incurred are used as an objective input measure of performance. The primary input of substantially all work performed under these contracts is labour.
If profit on the project can be determined reliably, revenue is recognised in proportion to the services provided at reporting date. Otherwise, revenue is recognised based on the cost incurred.
Where the total project costs exceed the project revenue, the loss is recognised in the cost of sales in the income statement.
For projects which are sold on a time and material basis and meet the criteria of recognising revenue over time, the revenue is recognised as the service is performed at the rate contracted on a time and material basis.
Accrued income and deferred income arising on contracts is included in trade and other receivables as accrued income and in trade and other payables as deferred income as appropriate.
Revenue is recognised net of Value added tax when the revenue criteria as disclosed above for each contract has been met.
Foreign currency transactions and balances
Mediamonks London Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Tax
Current Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
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 taxable income.
Deferred tax is recognised on material temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Property, plant and equipment is stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Office equipment |
33% Straight Line Method |
|
Fixtures and fittings |
20% Straight Line Method |
|
Improvements to property |
Over the term of the lease |
Right of use asset
Leases are accounted for by recognising a right of use asset and a lease liability.
Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the bank borrowings offered by the company's bankers.
Right of use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for:
· lease payments made at or before commencement of the lease;
· initial direct costs incurred; and
Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset if, rarely, this is judged to be shorter than the lease term.
Mediamonks London Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits.
Cash flow statement
The cash flow statement is prepared using the indirect method. The cash and cash equivalents in the cash flow statement comprise cash and cash equivalents. Cash flows denominated in foreign currencies are converted based on average exchange rates.
Income taxes paid and received are included in cash flows from operating activities. Principal elements of lease payments are included in cash flows from financing activities. Transactions not resulting in inflow or outflow of cash are not included in the cash flow statement.
Trade receivables
Trade receivables are amounts due from customers for digital services performed in the ordinary course of business.
Trade receivables are recognised initially at the transaction price. A provision for the impairment of trade receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Trade payables
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the payable for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade payable are recognised initially at the transaction price.
Provisions
Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Provisions are measured at the directors’ best estimate of the expenditure required to settle the obligation at the reporting date and are discounted to present value where the effect is material.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the company’s financial statements in the period in which the dividends are approved by the company’s shareholders.
Mediamonks London Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a separate entity and 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 contributions are paid publicly or privately administered pension insurance plans on a mandatory or contractual basis. The contributions are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as an asset.
Share based payments
The company operates an equity-settled, share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the entity. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated using the Black Scholes option pricing model. The total amount expensed is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.
The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.
Financial instruments
Initial recognition
Financial assets and financial liabilities comprise all assets and liabilities reflected in the statement of financial position, although excluding property, plant and equipment, investment properties, intangible assets, deferred tax assets, prepayments, deferred tax liabilities and employee benefits plan.
The company recognises financial assets and financial liabilities in the statement of financial position when, and only when, the company becomes party to the contractual provisions of the financial instrument.
Financial assets are initially recognised at fair value. Financial liabilities are initially recognised at fair value, representing the proceeds received net of premiums, discounts and transaction costs that are directly attributable to the financial liability.
Subsequent to initial measurement, financial assets and financial liabilities are measured at either amortised cost or fair value.
Classification and measurement
Financial instruments are classified at inception into one of the following categories, which then determine the subsequent measurement methodology:-
Financial assets are classified into one of the following three categories:-
· financial assets at amortised cost;
· financial assets at fair value through other comprehensive income (FVTOCI); or
· financial assets at fair value through the profit or loss (FVTPL).
Financial liabilities are classified into one of the following two categories:-
· financial liabilities at amortised cost; or
· financial liabilities at fair value through the profit or loss (FVTPL).
The classification and the basis for measurement are subject to the company’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets, as detailed below:-
Mediamonks London Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Financial liabilities at amortised cost
All financial liabilities, other than those classified as financial liabilities at FVTPL, are measured at amortised cost using the effective interest rate method.
Impairment of financial assets
Measurement of Expected Credit Losses
For trade receivables, the company applies the simplified approach, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
The expected loss rates are based on the payment profiles of sales over a period before 31 December 2024 and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables.
|
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of the Company's financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of asset or liability affected in future periods.
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The company based its assumptions and estimates on parameters when the financial statements were prepared. Existing circumstances and assumptions about future developments, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
Provision for expected credit losses of trade receivables
The company applies the IFRS 9 simplified approach to measure expected credit losses. The company exercises judgement in determining credit losses. In this judgement the company has considered credit losses and has included a provision as necessary.
A credit impairment is recognised when there is objective evidence that the company will not be able to collect all amounts due according to original terms of the receivables.
Evidence of impairment includes significant financial difficulties of the receivable balances, probability that the receivable will enter bankruptcy or financial reorganisation.
The carrying amount of the asset is either reduced through the use of a credit allowance or directly written off when there is no expectation of future recoverability. Should an expense need to be recognised for any credit allowance it would be recognised in the Income statement.
Mediamonks London Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Work in progress and revenue recognition
The company applies IFRS 15 Revenue from contracts with customers. The company exercises judgement in determining the amount of work completed at the balance sheet date. As at 31 December 2024 the project managers assess the percentage complete on each contract in progress to determine the level of revenue to be reported within the income statement and accrued/ deferred income in the statement of the financial position.
Further details regarding revenue recognition are included in the accounting policy for revenue recognition.
There are no other critical accounting estimates and judgements leading to material impact to the financial statements.
|
Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
Sale of creative digital production services |
|
|
|
Finance income and costs |
|
2024 |
2023 |
|
|
Finance income |
||
|
Interest income on bank deposits |
|
|
|
Finance costs |
||
|
Interest on bank overdrafts and borrowings |
2,814 |
5,016 |
|
Interest expenses on other liabilities |
- |
6,854 |
|
Interest expenses on right of use assets |
242,024 |
578,937 |
|
Total finance costs |
|
|
|
Net finance costs |
( |
( |
|
Staff costs |
The aggregate payroll costs (including director's remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Share-based payment expenses |
|
|
|
Other employee expense |
|
|
|
|
|
Mediamonks London Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Sales, support and production |
|
|
|
Directors |
|
|
|
|
|
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of the financial statements |
|
|
Mediamonks London Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Property, plant and equipment |
|
Improvements to property |
Office Equipment |
Fixtures and fittings |
Total |
|
|
Cost or valuation |
||||
|
At 1 January 2023 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
( |
- |
- |
( |
|
At 31 December 2023 |
|
|
|
|
|
At 1 January 2024 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
( |
- |
- |
( |
|
Transfers |
|
- |
( |
- |
|
At 31 December 2024 |
|
|
|
|
|
Depreciation |
||||
|
At 1 January 2023 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
Eliminated on disposal |
( |
- |
- |
( |
|
At 31 December 2023 |
|
|
|
|
|
At 1 January 2024 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Transfers |
|
- |
( |
- |
|
At 31 December 2024 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 December 2024 |
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
At 1 January 2023 |
|
|
|
|
Mediamonks London Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Right of use assets |
|
Property |
Total |
|
|
Cost or valuation |
||
|
At 1 January 2023 |
|
|
|
Additions |
|
|
|
Disposals |
( |
( |
|
At 31 December 2023 |
|
|
|
At 1 January 2024 |
|
|
|
Additions |
|
|
|
At 31 December 2024 |
|
|
|
Depreciation |
||
|
At 1 January 2023 |
|
|
|
Charge for year |
|
|
|
Eliminated on disposal |
( |
( |
|
At 31 December 2023 |
|
|
|
At 1 January 2024 |
|
|
|
Charge for the year |
|
|
|
At 31 December 2024 |
|
|
|
Carrying amount |
||
|
At 31 December 2024 |
|
|
|
At 31 December 2023 |
|
|
Mediamonks London Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Lease liabilities
|
Property |
Total |
|
|
At 1 January 2023 |
15,461,041 |
15,461,041 |
|
Additions |
4,461,652 |
4,461,652 |
|
Disposals |
(12,131,072) |
(12,131,072) |
|
Interest expense |
571,939 |
571,939 |
|
Lease payments |
(4,379,173) |
(4,379,173) |
|
At 31 December 2023 |
3,984,387 |
3,984,387 |
|
At 1 January 2024 |
3,984,387 |
3,984,387 |
|
Additions |
28,049 |
28,049 |
|
Interest expense |
242,024 |
242,024 |
|
Lease payments |
(1,022,117) |
(1,022,117) |
|
At 31 December 2024 |
3,232,343 |
3,232,343 |
|
2024 |
2023 |
|
|
Due within one year |
834,504 |
773,382 |
|
Due in more than one year |
2,397,839 |
3,211,005 |
|
3,232,343 |
3,984,387 |
A maturity analysis of lease liabilities based on undiscounted gross cash flow is reported in the table below:
|
31 December |
31 December |
|
|
Less than one year |
1,024,617 |
676,408 |
|
1-2 years |
1,024,617 |
1,014,613 |
|
2-5 years |
1,778,907 |
2,536,531 |
|
Total lease liabilities (undiscounted) |
|
|
Mediamonks London Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Trade and other receivables |
|
Current assets |
31 December |
31 December |
|
Trade receivables |
|
|
|
Receivables from related parties |
|
|
|
Prepayments & Accrued Income |
|
|
|
Other receivables |
|
|
|
|
|
|
Non-current assets |
31 December |
31 December |
|
Other receivables |
|
|
The company's exposure to credit and market risks, including maturity analysis, relating to trade and other receivables is disclosed in note 21 "Financial risk review".
|
Cash and cash equivalents |
|
31 December |
31 December |
|
|
Cash at bank |
|
|
|
Provisions |
|
Provisions |
Total |
|
|
At 1 January 2024 |
|
|
|
At 31 December 2024 |
|
|
|
|
||
Leasehold dilapidations relate to the estimated cost of returning the leasehold properties to its original state at the end of the lease in accordance with the lease terms. The cost is recognised as depreciation of leasehold improvements over the remaining term of the lease. The main uncertainty relates to estimating the cost that will be incurred at the end of the lease.
Mediamonks London Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Trade and other payables |
|
Current liabilities |
31 December |
31 December |
|
Trade payables |
|
|
|
Accrued expenses |
|
|
|
Amounts due to related parties |
|
|
|
Social security and other taxes |
|
|
|
Other payables |
|
|
|
|
|
The company's exposure to market and liquidity risks, including maturity analysis, related to trade and other payables is disclosed in note 21 "Financial risk review".
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £494,600 (2023 - £559,572).
Mediamonks London Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Income tax |
Tax charged/(credited) in the income statement
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
( |
- |
|
( |
|
|
|
Payments for group relief |
|
- |
|
Total current income tax |
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of temporary differences |
( |
( |
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK of 25% (2023 - 23.52%).
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Over provision in prior periods |
( |
- |
|
Increase/(decrease) from effect of capital allowances in excess of depreciation |
|
( |
|
Increase from effect of expenses not deductible in determining taxable profit (tax loss) |
|
|
|
Increase arising from group relief payments |
|
- |
|
Decrease from group relief |
( |
- |
|
Increase from effects of withholding tax |
|
- |
|
Movement in Deferred tax |
( |
( |
|
Total tax charge |
|
|
Mediamonks London Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Deferred tax assets and liabilities |
Deferred tax assets and liabilities
Deferred tax movement during the year:
|
At 1 January 2024 |
Recognised in income |
At |
|
|
Accelerated tax depreciation |
( |
|
( |
|
Provisions |
|
|
|
|
( |
|
|
Deferred tax movement during the prior year:
|
At 1 January 2023 |
Recognised in income |
At |
|
|
Accelerated tax depreciation |
( |
|
( |
|
Provisions |
|
( |
|
|
( |
|
( |
|
Share capital |
Allotted, called up and fully paid shares
|
31 December |
31 December |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
100 |
|
100 |
Rights, preferences and restrictions
|
Ordinary £1 shares have the following rights, preferences and restrictions: |
Mediamonks London Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Reserves |
Share Capital
Called up share capital represents the nominal value of the shares issued.
Share premium
Amount subscribed for share capital in excess of nominal value.
Capital contribution
Amounts transferred on redemption of share options.
Accumulated profit
All other net gains and losses and transactions with owners (e.g. dividends) not recognised elsewhere.
|
Share-based payments |
Scheme details and movements
The movements in the number of share options during the year were as follows:
|
31 December |
31 December |
|
|
Outstanding, start of period |
|
|
|
Granted during the period |
|
|
|
Forfeited during the period |
( |
|
|
Outstanding, end of period |
|
|
|
|
||
The movements in the weighted average exercise price of share options during the year were as follows:
|
31 December |
31 December |
|
|
Outstanding, start of period |
|
|
|
Granted during the period |
- |
|
|
Outstanding, end of period |
|
|
|
|
||
Mediamonks London Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Outstanding share options
Details of share options outstanding at the end of the year are as follows:
|
31 December |
31 December |
|
|
Weighted average exercise price (£) |
0.69 |
0.87 |
|
Number of share options outstanding |
570,854 |
238,915 |
|
Expected weighted average remaining life (years) |
0.74 |
1.50 |
|
|
||
The option pricing model used was is based upon fair value on grant date, which is determined by the market price on that date or the application of a Black-Scholes model, depending upon the characteristics of the scheme concerned. The assumptions underlying the Black-Scholes model are detailed below.
- Market price on any given day is obtained from external, publicly available sources.
- Expected life is the weighted average life across all shares granted.
- Expected volatility is sourced from external market data and represents the historical volatility of share prices of comparable company datasets over a period equivalent to the expected option life.
|
Contingent liabilities |
The company is party to a cross guarantee with its parent company, S4 Capital Plc, and its sister companies for debt relating to its parent entity. Borrowings of €375m were covered by this guarantee.
|
Financial risk review |
The company is exposed through its operations to the following financial risks:
- Credit risk
- Liquidity risk
- Market risk
In common with all other businesses, the company is exposed to risks from its use of financial instruments. This note describes the objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements.
There have been no substantive changes in the exposure to financial instrument risks, its objectives, policies and processes for managing those risk.
The principal financial instruments used by the company, from which financial instruments risk arises, are as follows:
- Trade receivables
- Cash and cash equivalents
- Trade and other payables
Mediamonks London Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Credit risk
The company's definition of credit risk is the risk of default on a debt due from a customer. This risk is mainly associated with the accounts receivable resulting from the Company's operations. This risk is monitored on a regular basis by the Company with the aim of:
- Ensure compliance with defined payment policy;
- Evaluation of credit granted to each customer;
- Analyse the financial conditions of its customers on a regular basis.
An impairment analysis is performed at each reporting date on an individual basis. The Company evaluates the collectability and recognises an impairment on a case by case basis.
The Company evaluates the concentration of risk with respect to trade receivables as low.
Liquidity risk
The company's definition of liquidity risk is the risk that the company cannot afford to pay its debts as they fall due. The Company's policy to manage liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stress conditions.
Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two main types of risk: currency risk and interest rate risk.
Foreign exchange risk
Transactional currency exposure arise when supply of services or purchases to/ from subsidiaries, clients and suppliers, are being settled in currencies other than the functional currency of the group. The company is part of a group which operates internationally and is therefore exposed to currency risk. The rates of exchange are dependent on market conditions.
Interest rate risk
Interest rate risk is the risk that the value of a financial instrument or cash flow associated with a financial instrument will fluctuate due to changes in market interest rates. Interest rate risk arises from interest bearing financial assets and liabilities that the company uses. The company is not exposed to any significant interest rate risk.
Mediamonks London Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Related party transactions |
Loans to related parties
|
2024 |
Entities with joint control or significant influence |
|
At start of period |
|
|
Rendering of services |
|
|
Acquisition of services |
( |
|
Settlement of balances and loans |
(3,612,485) |
|
Foreign Exchange |
(67,489) |
|
At end of period |
( |
|
|
|
|
2023 |
Entities with joint control or significant influence |
|
At start of period |
( |
|
Rendering of services |
|
|
Acquisition of services |
( |
|
Settlement of balances and loans |
(14,033,291) |
|
At end of period |
|
|
|
|
|
Parent and ultimate parent undertaking |
Relationship between entity and parents
The parent of the largest group in which these financial statements are consolidated is
The address of S4 Capital PLC is: