REGISTERED NUMBER: 02572212 (England and Wales)

WARNERS GROUP PUBLICATIONS PLC

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

Page

Company Information

1

Group Strategic Report

2

to

3

Report of the Directors

4

Report of the Independent Auditors

5

to

8

Consolidated Statement of Comprehensive Income

9

Consolidated Statement of Financial Position

10

Company Statement of Financial Position

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Statement of Cash Flows

14

Notes to the Consolidated Statement of Cash Flows

15

Notes to the Consolidated Financial Statements

16

to

27

DIRECTORS:

S A Warner

P A Warner

Mrs L M Warner

SECRETARY:

S A Warner

REGISTERED OFFICE:

The Maltings

Manor Lane

Bourne

Lincolnshire

PE10 9PH

REGISTERED NUMBER:

02572212 (England and Wales)

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

Enterprise Way

Pinchbeck

Spalding

Lincolnshire

PE11 3YR

The directors present their strategic report of the company and the group for the year ended 30 September 2025.

REVIEW OF BUSINESS

Inform, ENTERTAIN, Inspire

Our business focus of Inform, Entertain and Inspire within our chosen markets is delivering significant improvements in profitability and revenue growth. We continue to pivot the business away from magazines and towards ‘total’ media and in particular events. We are increasingly becoming a data, events, content marketing business.

As our results demonstrate we have been extremely successful in replacing the revenue and profit with ‘new’ activity, as magazines have continued to decline. The year-on-year 10% revenue decline we have seen from magazines has been more than replaced! Overall, I am pleased to report total revenue is up 1%. This is also despite us not benefitting from any activity on our Bi-Annual British Potato event.

I am pleased to report that Profit after Tax for the Group increased by 10.9% with no revenue or activity from our subsidiary BP2023 Ltd (British Potato). The Company’s profit after tax increasing by 20% on the previous year.

The Group’s EBITDA improved by 20.9%. At the same-time we saw a 406k increase in our cash reserves. This was after continued investment in our office environment, software development and strategic brand acquisition.

As highlighted, we continue to invest in acquiring new brands and services, but a key focus area has been to drive organic growth from our existing markets by developing new services and launching new products. Our ongoing investment in the development of websites, e-commerce and digital marketing also being a key part of our strategy.

During the year we launched a new model railway show at the NEC and enjoyed our first year of the previously acquired RetroFest. I am pleased to report both events exceeded our expectations.

People, as a highly creative and fast-moving business, remain key to our success. We continue to invest in development and recruitment to ensure our skill sets are on point with the changes in the market. The recent continued investment in offices and training delivering significant benefits for the business and all stakeholders.

With the considerable improvements we have made to the business over the past few years, we are in a very positive position to deliver a further profit uplift in the 2025-26 financial year.

PRINCIPAL RISKS AND UNCERTAINTIES

The board regularly reviews the risks and uncertainties facing the business and the various markets it operates within.

Inflation and Government policies remain key risk areas. The increase in Employers National Insurance has had a significant impact on employment costs. The pending changes in employment laws are also likely to have an impact on confidence to employ new staff.

Similarly, we believe inflationary and taxation pressures are likely to persist in both increasing operating costs but also diminishing customer’s disposable income.

We also foresee continued threats from the use of AI to replace the revenue stream from curated content such as magazines. Again, increasing the need to move away from this delivery method. We still believe, within the age demographic we operate, we will continue to see some protection. The need to continue to evolve and develop new products and services will only increase.

SECTION 172(1) STATEMENT

As both directors and shareholders, we remain extremely proud of our family business status. We believe that these factors and values ensure we remain highly focused in applying high ethical standards and prudence in all decision making to the benefit of all our stakeholders.

The hurdles that continue to confront the world and economy highlight the businesses resilience to factors outside of our control. As a family business, with a long-term vision and excellent staff, we have been able to adjust and modify quickly to the opportunities and threats that have been presented. Our business plan constantly evolves to both short-and-long term challenges and opportunities that our markets present.

Our business operates within highly competitive, creative and fast-moving environments. As such, the directors and senior management recognise the need to encourage and invest in all areas of the business from our teams to new products and services. As part of our ongoing commitment to invest in our employees we have invested further in our staff and training. This further seeks to safeguard the future of the business for all of our stakeholders by developing the future skills and environment the business needs to survive and prosper.

The group continually assesses the impact of our activities on both the community and the environment to ensure we minimise any adverse effects from our operations. This is constantly reviewed to ensure we are adopting best known practice to ensure we continue to operate efficiently and responsibly. This approach, is also reflected in our adoption of the very highest ethical standards and conduct in all of our business dealings. The directors act fairly for all shareholders.

As a long-standing family business, the directors constantly review strategy to ensure that the business remains relevant and viable in the both the short and long term. This often takes into account the need to offset short-term profitability from the longer-term success and prosperity of the business for the benefit of all stakeholders.

KEY PERFORMANCE INDICATORS

Management use a range of performance measures to monitor and manage the business. The performance measures are split into financial and non-financial key performance indicators. Given the straightforward nature of the business, the group's directors are of the opinion that using KPls is not necessary for an understanding of the development, performance or position of the business.

ON BEHALF OF THE BOARD:

S A Warner - Director

10 December 2025

The directors present their report with the financial statements of the company and the group for the year ended 30 September 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of publishing, advertising sales, magazine distribution and exhibitions.

DIVIDENDS

An interim dividend of £15 per share was paid on 2 October 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 30 September 2025 will be £ 750,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2024 to the date of this report.

S A Warner

P A Warner

Mrs L M Warner

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

S A Warner - Director

10 December 2025

Opinion

We have audited the financial statements of Warners Group Publications PLC (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 2025 and of the group's 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.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as depreciation of fixed assets, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome of prior year estimates.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, and Employment laws.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management, and inspection. This inspection included a review of the external audits conducted within the year for any evidence of non-compliance, in addition to an assessment of the company's employment and health and safety controls. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Alistair Main FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

Enterprise Way

Pinchbeck

Spalding

Lincolnshire

PE11 3YR

10 December 2025

TURNOVER

3

19,244,326

19,047,660

Cost of sales

11,867,310

11,665,098

GROSS PROFIT

7,377,016

7,382,562

Distribution costs

1,524,949

1,869,299

Administrative expenses

5,184,254

4,974,989

6,709,203

6,844,288

667,813

538,274

Other operating income

1,751

3,571

OPERATING PROFIT

5

669,564

541,845

Interest receivable and similar income

282,089

361,169

PROFIT BEFORE TAXATION

951,653

903,014

Tax on profit

6

289,144

306,158

PROFIT FOR THE FINANCIAL YEAR

662,509

596,856

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

662,509

596,856

Profit attributable to:

Owners of the parent

662,509

596,856

Total comprehensive income attributable to:

Owners of the parent

662,509

596,856

FIXED ASSETS

Intangible assets

9

1,433,335

1,480,989

Tangible assets

10

934,646

881,445

Investments

11

-

-

2,367,981

2,362,434

CURRENT ASSETS

Stocks

12

5,619

9,929

Debtors

13

1,882,904

1,770,227

Cash at bank and in hand

6,929,707

6,523,203

8,818,230

8,303,359

CREDITORS

Amounts falling due within one year

14

3,496,879

3,333,607

NET CURRENT ASSETS

5,321,351

4,969,752

TOTAL ASSETS LESS CURRENT LIABILITIES

7,689,332

7,332,186

CREDITORS

Amounts falling due after more than one year

15

(647,580

)

(222,758

)

PROVISIONS FOR LIABILITIES

17

(82,520

)

(62,705

)

NET ASSETS

6,959,232

7,046,723

CAPITAL AND RESERVES

Called up share capital

18

50,000

50,000

Other reserves

19

21,677

21,677

Retained earnings

19

6,887,555

6,975,046

SHAREHOLDERS' FUNDS

6,959,232

7,046,723

The financial statements were approved by the Board of Directors and authorised for issue on 10 December 2025 and were signed on its behalf by:

S A Warner - Director

FIXED ASSETS

Intangible assets

9

1,177,188

1,188,786

Tangible assets

10

934,646

881,446

Investments

11

548,128

548,128

2,659,962

2,618,360

CURRENT ASSETS

Stocks

12

5,619

9,929

Debtors

13

1,739,380

1,766,999

Cash at bank and in hand

6,734,790

6,270,439

8,479,789

8,047,367

CREDITORS

Amounts falling due within one year

14

4,036,397

3,530,753

NET CURRENT ASSETS

4,443,392

4,516,614

TOTAL ASSETS LESS CURRENT LIABILITIES

7,103,354

7,134,974

CREDITORS

Amounts falling due after more than one year

15

(600

)

(600

)

PROVISIONS FOR LIABILITIES

17

(82,520

)

(62,705

)

NET ASSETS

7,020,234

7,071,669

CAPITAL AND RESERVES

Called up share capital

18

50,000

50,000

Retained earnings

19

6,970,234

7,021,669

SHAREHOLDERS' FUNDS

7,020,234

7,071,669

Company's profit for the financial year

698,565

582,328

The financial statements were approved by the Board of Directors and authorised for issue on 10 December 2025 and were signed on its behalf by:

S A Warner - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 October 2023

50,000

6,878,190

21,677

6,949,867

Changes in equity

Dividends

-

(500,000

)

-

(500,000

)

Total comprehensive income

-

596,856

-

596,856

Balance at 30 September 2024

50,000

6,975,046

21,677

7,046,723

Changes in equity

Dividends

-

(750,000

)

-

(750,000

)

Total comprehensive income

-

662,509

-

662,509

Balance at 30 September 2025

50,000

6,887,555

21,677

6,959,232

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2023

50,000

6,939,341

6,989,341

Changes in equity

Dividends

-

(500,000

)

(500,000

)

Total comprehensive income

-

582,328

582,328

Balance at 30 September 2024

50,000

7,021,669

7,071,669

Changes in equity

Dividends

-

(750,000

)

(750,000

)

Total comprehensive income

-

698,565

698,565

Balance at 30 September 2025

50,000

6,970,234

7,020,234

Cash flows from operating activities

Cash generated from operations

1

1,795,867

599,747

Tax paid

(267,373

)

(32,302

)

Net cash from operating activities

1,528,494

567,445

Cash flows from investing activities

Purchase of intangible fixed assets

(436,270

)

(596,792

)

Purchase of tangible fixed assets

(217,809

)

(491,037

)

Sale of tangible fixed assets

-

36,142

Interest received

282,089

361,169

Net cash from investing activities

(371,990

)

(690,518

)

Cash flows from financing activities

Equity dividends paid

(750,000

)

(500,000

)

Net cash from financing activities

(750,000

)

(500,000

)

Increase/(decrease) in cash and cash equivalents

406,504

(623,073

)

Cash and cash equivalents at beginning of year

2

6,523,203

7,146,276

Cash and cash equivalents at end of year

2

6,929,707

6,523,203

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

951,653

903,014

Depreciation charges

675,106

548,484

Profit on disposal of fixed assets

-

(36,142

)

Finance income

(282,089

)

(361,169

)

1,344,670

1,054,187

Decrease in stocks

4,310

5,936

Increase in trade and other debtors

(112,677

)

(22,237

)

Increase/(decrease) in trade and other creditors

559,564

(438,139

)

Cash generated from operations

1,795,867

599,747

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30 September 2025

30.9.25

1.10.24

£

£

Cash and cash equivalents

6,929,707

6,523,203

Year ended 30 September 2024

30.9.24

1.10.23

£

£

Cash and cash equivalents

6,523,203

7,146,276

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.10.24

Cash flow

At 30.9.25

£

£

£

Net cash

Cash at bank and in hand

6,523,203

406,504

6,929,707

6,523,203

406,504

6,929,707

Total

6,523,203

406,504

6,929,707

1.	STATUTORY INFORMATION

Warners Group Publications PLC ('the company') is a public company limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Basis of consolidation

The consolidated accounts comprise those of Warners Group Publications PLC and its subsidiaries for the year ended 30 September 2025. The consolidation has been accounted for using the equity accounting method.

Significant judgements and estimates

In the application of the company's accounting policy, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experiences and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are describe below.

Intangible asset impairment

The estimation and assumptions used to assess that intangible assets are valued in line with the applicable accounting framework are the future economic resource generated by the asset. The forecast data is estimated by senior management using standardised methodology and is regularly reviewed.

Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

Revenues are recognised as follows:

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Advertising revenue is recognised at the date of publication.

Subscription revenue is recognised in proportion to the number of issues covered by the subscription published in the accounting period.

Shows and exhibition revenues are recognised on the date of the show or exhibition.

Goodwill

Goodwill arising on the acquisition of subsidiary undertakings represents the excess of the fair value of the consideration over the fair value of the identifiable assets and liabilities acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Intangible assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Magazine titles 10% - 20% per annum on cost

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery between 10% and 33.3% per annum on cost

Fixtures, fittings & equipment between 8% and 25% per annum on cost

Motor vehicles between 15% and 33% per annum on cost

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement .

Stocks

Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell and after making due allowance for obsolete and slow moving items.

Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events

that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities, including creditors and loans from fellow group companies that are classified as debt, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs.

Dividends payable on equity instruments are recognised as liabilities once they are no longer at the