Registered number: 08411447
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors present their Strategic report for the year ended 31 December 2025.
The Company’s principal activity is media representation services which it undertakes on behalf of Dentsu International Limited (DIL), of which the Company is a subsidiary. The Company earns revenue from management recharges and contracts with customers. Management recharges relate to services provided to other group entities, whereas contract revenue relates to services provided under service level agreements with customers. The immediate parent company is Dentsu International Holdings Limited and the ultimate parent company is Dentsu Group Inc.
The Balance Sheet on page 11 of the financial statements shows the Company’s financial position. At 31 December 2025 the Company was in a net current asset position of £5,157,000 (2024: £5,653,000) and a net asset position of £5,214,000 (2024: £5,502,000).
The results of Amplifi Global Limited (“the Company”) for the year are set out in the Profit and Loss Account and Other Comprehensive Income on page 10. The Company generated gross profit of £16,420,000 (2024: £12,599,000). The profit / (loss) before tax was £(383,000) (2024: £190,000) with the average number of employees during the year being 98 (2024: 75).
The Balance Sheet on page 11 of the financial statements shows the Company’s financial position. At 31 December 2025 the Company was in a net current asset position of £5,157,000 (2024: £5,653,000) and a net asset position of £5,214,000 (2024: £5,502,000).
The results of Amplifi Global Limited (“the Company”) for the year are set out in the Profit and Loss Account and Other Comprehensive Income on page 10. The Company generated gross profit of £16,420,000 (2024: £12,599,000). The profit / (loss) before tax was £(383,000) (2024: £190,000) with the average number of employees during the year being 98 (2024: 75).
The management team monitors various key performance indicators including revenue and profitability compared with prior years.
∙Revenue increased by 45% in 2025 (2024: 2% decrease)
∙Profit before tax moved from a profit of £190,000 to a loss of £383,000
Due to the nature of the Company’s business and the assets and liabilities contained within the Company’s balance sheet, the financial risks the Directors consider relevant to this Company are currency risk for sales and purchases denominated in currency other than GBP and credit risk for receivables.
During 2025, there was a continued focus on management of the above key risks, through:
(i) Regular reporting to senior management on the company’s financial position and exposures
(ii) Regular review of foreign currency exposures to mitigate currency risk; and
(iii) Monthly review meetings on the Company’s trade debtors position.
The Company continually reviews the key risks and strives to improve the internal control framework to help mitigate them, where possible.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
A description of how the Directors have performed their Section 172 duties during the financial year through stakeholder engagement is included below. These activities are generally undertaken at either a UK or Group-wide level within Dentsu Group Inc (“the Group”).
Employees
The Company depends on the commitment, talent, creative abilities and technical skills of its people. Engagement and clear communication are particularly important.
Engagement with the workforce is achieved through:
∙The systematic provision of information covering matters that concern both the business in general, and employees specifically. This is done through event-specific electronic communications (e.g. Dentsu International’s quarterly and year-end results); regular UK and Group-wide emails and practice or business unit-specific emails; and several electronic platforms for employee reference, including an intranet;
∙Annual employee satisfaction surveys;
∙Regular Townhall events;
∙Consultation with specific groups/individual employees regularly so that their views can be considered in making decisions about matters which affect them;
∙Disclosure of gender pay gap and pay comparison; and
∙The establishment of a Diversity, Equity and Inclusions Council, that is employee led.
Customers
The Company engages with its customers through dedicated client relationship teams, as well as global client management teams established in regional offices to maintain strong customer relationships. The Company develops various services, with an emphasis on innovation for clients and managing any conflicts of interest with multiple agencies. Due diligence is undertaken for all new clients and written contracts must be in place before commencing any significant work.
Shareholders
The Company is a 100% subsidiary of Dentsu International Holdings Limited, and the smallest group in which the results of the Company are consolidated is Dentsu Group Inc. The Directors consider engagement with the Group to be strong, and the flow of information regarding the Company’s activities transparent. Dentsu International Limited is kept informed about the Company’s performance through various management forums, which assists the Group in making decisions and reviewing performance as “One Dentsu”.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
The directors who served during the year were:
The Company uses derivative financial instruments to mitigate currency risk.
The loss for the year, after taxation, amounted to £365k (2024 - profit £62k).
There were no dividends paid or declared in 2025 (2024: Nil).
It is the policy of the Company that there should be no unfair discrimination in considering applications for employment, including those from disabled persons. Should any employee become disabled, every practical effort is made to provide continued employment.
The Directors are committed to maintain and develop communication and consultation procedures with employees, who in turn are encouraged to become aware of and involve themselves in the performance of their own division and the Company as a whole.
The Directors are committed to maintain and develop communication and consultation procedures with employees, who in turn are encouraged to become aware of and involve themselves in the performance of their own division and the Company as a whole.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors continue to adopt the going concern basis in preparing the financial statements.
The Company has net assets of £5,214,000 (2024: £5,502,000) and net current assets of £5,157,000 (2024: £5,653,000). The financial statements are prepared on a going concern basis, which the directors consider to be appropriate.
The Company is part of a cash pooling facility headed by Dentsu International Treasury Limited. The cash-pooling facility involves the daily closing cash position, whether positive or negative, being cleared to £nil via daily bank transfers to / from Dentsu Global a trading division of Dentsu UK Limited which in turn transfers to Dentsu International Treasury Limited. The Company can draw down on the cash pool to enable it to pay its obligations as they fall due, where required. As part of this facility, the Company had deposits of £2,329,000 (2024: £5,249,000).
The directors have performed a going concern assessment for the period of not less than 12 months from the date of approval of these financial statements (“the going concern assessment period”), which indicates that the Company will have sufficient funds from its operations and deposits in the cash-pooling facility to meet its liabilities as they fall due for that period.
Consequently, the directors are confident that the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
The Company has net assets of £5,214,000 (2024: £5,502,000) and net current assets of £5,157,000 (2024: £5,653,000). The financial statements are prepared on a going concern basis, which the directors consider to be appropriate.
The Company is part of a cash pooling facility headed by Dentsu International Treasury Limited. The cash-pooling facility involves the daily closing cash position, whether positive or negative, being cleared to £nil via daily bank transfers to / from Dentsu Global a trading division of Dentsu UK Limited which in turn transfers to Dentsu International Treasury Limited. The Company can draw down on the cash pool to enable it to pay its obligations as they fall due, where required. As part of this facility, the Company had deposits of £2,329,000 (2024: £5,249,000).
The directors have performed a going concern assessment for the period of not less than 12 months from the date of approval of these financial statements (“the going concern assessment period”), which indicates that the Company will have sufficient funds from its operations and deposits in the cash-pooling facility to meet its liabilities as they fall due for that period.
Consequently, the directors are confident that the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
No other significant events have occurred since the end of the financial year and the Company’s principal activities remain unchanged.
The auditor, Menzies LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AMPLIFI GLOBAL LIMITED
We have audited the financial statements of Amplifi Global Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AMPLIFI GLOBAL LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AMPLIFI GLOBAL LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:
The Companies Act 2006;
Financial Reporting Standard 101;
UK employment legislation;
UK health and safety legislation; and
General Data Protection Regulations.
We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
We understood how the Company are complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of board minutes.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
∙Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
∙Challenging assumptions and judgments made by management in its significant accounting estimates; and
∙Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
∙Posting of journals to the accounting software which are of a non-routine nature in terms of timing and amount;
∙Timing of revenue recognition; and
∙The use of management override of controls to manipulate results.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AMPLIFI GLOBAL LIMITED (CONTINUED)
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
Chartered Accountants
Statutory Auditor
2nd Floor, Midas House
62 Goldsworth Road
Surrey
GU21 6LQ
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STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 10
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 26 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Amplifi Global Limited (“the Company”) is a private company limited by shares domiciled and registered in England and Wales. The registered number is 08411447 and the registered office is 10 Triton Street, Regent's Place, London, United Kingdom, NW1 3BF.
In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of International Accounting Standards in conformity with the requirements of the Companies Act 2006 (“Adopted IFRSs”), but makes amendments where necessary in order to comply with Companies Act 2006 and has set out below where advantage of the FRS 101 disclosure exemptions have been taken.
The Company’s ultimate parent undertaking, Dentsu Group Inc., includes the Company in its consolidated financial statements. The consolidated financial statements of Dentsu Group Inc. are prepared in accordance with International Financial Reporting Standards and are available to the public and may be obtained from The Secretary, Dentsu Group Inc., 1-8-1 Higashi-shimbashi, Minato-ku, Tokyo 105-7050. This is the smallest group in which the results of the Company are consolidated
These financial statements were prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (“FRS 101”).
In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of International Accounting Standards in conformity with the requirements of the Companies Act 2006 (“Adopted IFRSs”), but makes amendments where necessary in order to comply with Companies Act 2006 and has set out below where advantage of the FRS 101 disclosure exemptions have been taken.
The Company’s ultimate parent undertaking, Dentsu Group Inc., includes the Company in its consolidated financial statements. The consolidated financial statements of Dentsu Group Inc. are prepared in accordance with International Financial Reporting Standards and are available to the public and may be obtained from The Secretary, Dentsu Group Inc., 1-8-1 Higashi-shimbashi, Minato-ku, Tokyo 105-7050. This is the smallest group in which the results of the Company are consolidated
These financial statements were prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (“FRS 101”).
2.Significant accounting policies
The principal accounting policies applied in the preparation of these Financial Statements are set out below. These policies have been consistently applied to all years presented, unless otherwise stated.
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
In these financial statements, the Company has applied the exemptions available under FRS 101 in respect of the following disclosures:
∙The requirements of IAS 7 Statement of Cash Flows
∙The requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers
∙The requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases. The requirements of paragraph 58 of IFRS 16, provided that the disclosure of details in indebtedness relating to amounts payable after 5 years required by company law is presented separately for lease liabilities and other liabilities, and in total
∙The requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement
∙Disclosures in respect of capital management;
∙The effects of new but not yet effective IFRSs;
∙The requirements in IAS 24, Related party disclosures' to disclose related party transactions entered into between two or more members of a wholly owned group
As the consolidated financial statements of Dentsu Group Inc. include the equivalent disclosures, the Company has also taken the exemptions under FRS 101 available in respect of the following disclosures:
∙Certain disclosures required by IFRS 13 Fair Value Measurement and the disclosures required by IFRS 7 Financial Instrument Disclosures.
∙The requirements of paragraphs 45(b) and 46-52 of IFRS 2 Share-based payment
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Significant accounting policies (continued)
The Company has net assets of £5,214,000 (2024: £5,502,000) and net current assets of £5,157,000 (2024: £5,653,000). The financial statements are prepared on a going concern basis, which the directors consider to be appropriate.
The Company is part of a cash pooling arrangement headed by Dentsu International Treasury Limited. The cash-pooling facility involves the daily closing cash position, whether positive or negative, being cleared to £nil via daily bank transfers to / from Dentsu Global a trading division of Dentsu UK Limited which in turn transfers to Dentsu International Treasury Limited.
The Company can draw down on the cash pool to enable it to pay its obligations as they fall due, where required. As part of this facility, the Company had deposits of £2,329,000 (2024: £5,249,000).
The directors have performed a going concern assessment for the period of not less than 12 months from the date of approval of these financial statements (“the going concern assessment period”), which indicates that the Company will have sufficient funds from its operations and deposits in the cash-pooling facility to meet its liabilities as they fall due for that period.
Consequently, the directors are confident that the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
The Company is part of a cash pooling arrangement headed by Dentsu International Treasury Limited. The cash-pooling facility involves the daily closing cash position, whether positive or negative, being cleared to £nil via daily bank transfers to / from Dentsu Global a trading division of Dentsu UK Limited which in turn transfers to Dentsu International Treasury Limited.
The Company can draw down on the cash pool to enable it to pay its obligations as they fall due, where required. As part of this facility, the Company had deposits of £2,329,000 (2024: £5,249,000).
The directors have performed a going concern assessment for the period of not less than 12 months from the date of approval of these financial statements (“the going concern assessment period”), which indicates that the Company will have sufficient funds from its operations and deposits in the cash-pooling facility to meet its liabilities as they fall due for that period.
Consequently, the directors are confident that the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
Functional and presentation currency
The Company does not apply hedge accounting of foreign exchange risks in its Company financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Significant accounting policies (continued)
However, when there are contracts with activities which are capable of being distinct, these are recognised as separate performance obligations. Where there are contracts with multiple performance obligations, the transaction price is allocated to the separate transaction prices based on relative stand-alone selling prices. Payments are typically received either at the outset of the contract or at specified milestones, depending on the nature and complexity of the performance obligations.
Contract assets primarily relate to the company’s rights to consideration for work completed but not billed at the reporting date. These are presented within trade receivables and accrued income and mainly represent accrued income where a performance obligation has been satisfied but the right to consideration is conditional and has not yet been billed. Deferred income balances presented within Creditors in the balance sheet are considered contract liabilities.
Classification and measurement of financial assets
All financial assets are initially measured at fair value. Management determines the classification and subsequent measurement of the financial asset based on the contractual terms at the initial recognition date.
Financial assets at amortised cost
The Company classifies its financial assets as measured at amortised cost only if both of the following criteria are met.
• the asset is held within a business model whose objective is to collect the contractual cash flows, and
• the contractual terms give rise to cash flows that are solely payments of principal and interest.
All receivables and cash are categorised and valued at amortised cost. The amortised cost is reduced by
All financial assets are initially measured at fair value. Management determines the classification and subsequent measurement of the financial asset based on the contractual terms at the initial recognition date.
Financial assets at amortised cost
The Company classifies its financial assets as measured at amortised cost only if both of the following criteria are met.
• the asset is held within a business model whose objective is to collect the contractual cash flows, and
• the contractual terms give rise to cash flows that are solely payments of principal and interest.
All receivables and cash are categorised and valued at amortised cost. The amortised cost is reduced by
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Significant accounting policies (continued)
impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.
Financial assets at fair value through profit or loss
Financial assets at FVTPL include derivatives, and subsequent to initial recognition these are measured at fair value with net gains and losses, including any interest expense, recognised in profit or loss.
Impairment of financial assets
The Company considers evidence of impairment for these assets at both an individual asset and a collective level at each reporting date. All individually significant assets are individually assessed for impairment. Those found not to be impaired are then collectively assessed for any impairment that has been incurred but not yet individually identified.
The Company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade and other receivables.
Offsetting of balances within financial assets
In line with IAS 32, the Company has a legally enforceable right, through signed legal agreements, to offset cash deposits and overdrafts that are in cash-pool arrangements with relationship banks, and there is an intention to settle on a net basis. The balances are included net in note 13 as part of “Amounts owed by group undertakings”. The Company does not offset other financial assets and liabilities where there is no legally enforceable right to do so.
Financial liabilities and equity
Classification and measurement
Management determines the classification of its financial liabilities as either debt or equity at initial recognition according to the substance of the contractual arrangements entered in to. All financial liabilities are measured subsequently at amortised cost using the effective interest method or at fair value through profit or loss (“FVTPL”) as described below:
Financial liabilities measured at amortised cost using the effective interest method
Financial liabilities measured at amortised cost using the effective interest method are non-derivative financial liabilities which are not designated on initial recognition as liabilities at FVTPL. Any subsequent interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.
Financial liabilities at fair value through profit or loss
Financial liabilities at FVTPL include derivatives, and subsequent to initial recognition these are measured at fair value with net gains and losses, including any interest expense, recognised in profit or loss.
Financial assets at fair value through profit or loss
Financial assets at FVTPL include derivatives, and subsequent to initial recognition these are measured at fair value with net gains and losses, including any interest expense, recognised in profit or loss.
Impairment of financial assets
The Company considers evidence of impairment for these assets at both an individual asset and a collective level at each reporting date. All individually significant assets are individually assessed for impairment. Those found not to be impaired are then collectively assessed for any impairment that has been incurred but not yet individually identified.
The Company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade and other receivables.
Offsetting of balances within financial assets
In line with IAS 32, the Company has a legally enforceable right, through signed legal agreements, to offset cash deposits and overdrafts that are in cash-pool arrangements with relationship banks, and there is an intention to settle on a net basis. The balances are included net in note 13 as part of “Amounts owed by group undertakings”. The Company does not offset other financial assets and liabilities where there is no legally enforceable right to do so.
Financial liabilities and equity
Classification and measurement
Management determines the classification of its financial liabilities as either debt or equity at initial recognition according to the substance of the contractual arrangements entered in to. All financial liabilities are measured subsequently at amortised cost using the effective interest method or at fair value through profit or loss (“FVTPL”) as described below:
Financial liabilities measured at amortised cost using the effective interest method
Financial liabilities measured at amortised cost using the effective interest method are non-derivative financial liabilities which are not designated on initial recognition as liabilities at FVTPL. Any subsequent interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.
Financial liabilities at fair value through profit or loss
Financial liabilities at FVTPL include derivatives, and subsequent to initial recognition these are measured at fair value with net gains and losses, including any interest expense, recognised in profit or loss.
Interest income and interest payable is recognised in profit or loss as it accrues, using the effective interest method. Foreign currency gains and losses are reported on a net basis.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Significant accounting policies (continued)
A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the periods during which services are rendered by employees.
Short Term Benefits
Short-Term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit sharing plans if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
Termination Benefits
Termination benefits are recognised as an expense when the Company is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expense if the Company has made an offer of voluntary redundancy, it is probably that the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits are payable more than 12 months after the reporting date, then they are discounted to their present value.
Deferred incentives
Liabilities are held in respect of deferred incentive payments to certain employees in relation to the Group's long-term incentive schemes. The payment of these incentives is conditional on continued employment for specific periods and, in certain cases, on business performance.
The incentive is discounted to determine its present value and is recognised on a straight-line basis in profit or loss over the specified period. Any remeasurements are recognised in profit or loss in the period which they arise.
Share-based payments
Share-based payments are transactions where the company receives goods or services in exchange for consideration in the form of equity instruments of Dentsu Group Inc (equity-settled), or cash or other assets for amounts that are based on the price of equity instruments of the Group (cash-settled).
Equity-settled arrangements are measured at fair value (excluding the effect of non-market based vesting conditions) at the date of the grant. The fair value is expensed on a straight-line basis over the vesting period, with a corresponding increase in equity. The amount recognised as an expense is adjusted to reflect the actual number of shares that are expected to vest.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Significant accounting policies (continued)
A change in the classification of the share-based payment from equity-settled to cash-settled may occur due to change in settlement approach. Such a modification leads to a reclassification, at the date of modification, of an amount equal to the fair value of the liability from equity to liabilities.
Any subsequent remeasurement of the liability from the date of modification until settlement date is recognised in profit or loss.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years. Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted orsubstantively enacted at the balance sheet date. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Significant accounting policies (continued)
Separately acquired intangible assets, such as format rights, are capitalised at cost and subsequently stated at historical cost less amortisation. The cost of the asset includes expenditure that is directly attributable to the acquisition of the rights.
Impairment of non-financial assets
The carrying amounts of the Company’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit” or “CGU”).
An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in profit or loss. Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
Amortisation
Impairment of non-financial assets
The carrying amounts of the Company’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit” or “CGU”).
An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in profit or loss. Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
Amortisation
The estimated useful lives are as follows:
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the income statement.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Revenue recognition
Judgement is required in selecting the appropriate timing and amount of revenue recognised, particularly where the Company recognises variable consideration. Revenue is only recognised to the extent that it is not highly probable to result in significant reversal and, where there is a performance related element, to the extent to which the performance criteria have been met.
Provisions
A provision is recognised in the balance sheet when the Company has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the liability.
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
In 2021, the Group introduced a new Dentsu Share Plan which entitles key management personnel and senior
employees to equity in Dentsu Group Inc. as compensation for performance of their duties while in office. The share
plan is expected to run annually with awards vesting over a 3-year service period. The number of shares to vest will
depend on the achievement of performance conditions including: three-year Total shareholder return (TSR) vs Tokyo
Stock Price Index, three-year TSR vs peer group and Compound annual growth rate of consolidated underlying
operating profit of the Dentsu Group over three years.
At the end of each reporting period, the Company revises its estimates of the number of options that are expected to
vest based on the non-market vesting conditions. It recognises the impact of the revision to original estimates, if any,
in the income statement. Two Amplifi Global Limited employees have been granted shares as part of this scheme in
the year, the cost relating to share-based payments included in the profit and loss was £77,000 (2024 gain:
£75,000). The corresponding balance has been recognised in the share-based payments reserve and non-current
liabilities.
employees to equity in Dentsu Group Inc. as compensation for performance of their duties while in office. The share
plan is expected to run annually with awards vesting over a 3-year service period. The number of shares to vest will
depend on the achievement of performance conditions including: three-year Total shareholder return (TSR) vs Tokyo
Stock Price Index, three-year TSR vs peer group and Compound annual growth rate of consolidated underlying
operating profit of the Dentsu Group over three years.
At the end of each reporting period, the Company revises its estimates of the number of options that are expected to
vest based on the non-market vesting conditions. It recognises the impact of the revision to original estimates, if any,
in the income statement. Two Amplifi Global Limited employees have been granted shares as part of this scheme in
the year, the cost relating to share-based payments included in the profit and loss was £77,000 (2024 gain:
£75,000). The corresponding balance has been recognised in the share-based payments reserve and non-current
liabilities.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
There were no factors that may affect future tax charges
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Share-based payment reserve
Profit and loss account
The Company is a wholly owned subsidiary of Dentsu International Holdings Limited, whose registered address is 10 Triton Street, Regent’s Place, London, United Kingdom, NW1 3BF. The results of the Company are consolidated in that of the ultimate parent company and controlling party, Dentsu Group Inc., a company incorporated in Tokyo and registered in Japan. The consolidated financial statements can be obtained from: The Secretary, Dentsu Group Inc., 1-8-1 Higashi-shimbashi, Minato-ku, Tokyo 105-7050.
There were no significant events subsequent to 31 December 2025.
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