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

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

The Art Newspaper Limited is a private company limited by shares incorporated in England and Wales. The registered office is 40 Furnival Street, London, EC4A 1JQ. The company's accounting reference date is 28 December. However, as permitted by Companies Act 2006, the director has elected to prepare financial statements to 31 December.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

The financial statements have been prepared on a going concern basis.

Management has prepared cash flow forecasts covering a period of at least twelve months from the date of approval of these financial statements. These forecasts indicate that while the Company generates revenue from its trading activities, it will require ongoing financial support to meet its day-to-day working capital requirements and obligations as they fall due.

The Company's parent undertaking, The Generation Essentials Group ("TGE") has provided a formal letter of support confirming its intention to provide financial assistance as required for a period of at least twelve months from the date of approval of the financial statements. TGE has reviewed the Company's forecast funding requirements and confirmed that sufficient resources are available to provide the necessary support.

After considering the forecasts, the support available from TGE, and the financial position of the wider group, the directors have concluded that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing these financial statements.

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer.

Revenue from the sale of subscriptions to newspapers is recognised over the period of the subscription.

Revenue from the provision of advertising services in recognised in the month in which the advertising service is provided, or over the the contractual period in which advertising services are provided.

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.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets 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 20 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.

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:

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 credited or charged to profit or loss.

The assets’ residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. 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 which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials have been incurred in bringing the stocks to their present location and condition.

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

Cash and cash equivalents are basic financial assets and include cash in hand.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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, which include debtors and cash and bank balances, 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.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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.

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 company after deducting all of its liabilities.

Basic financial liabilities, including creditors and bank loans 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.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company 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 discretion of the company.

The tax expense represents the sum of the tax currently payable.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The Company holds a significant intercompany debtor balance of £1,678,958 owed by its subsidiary, The Art Newspaper USA Inc. Management is required to assess the recoverability of this balance at each reporting date. In making this judgement, the director have considered the subsidiary's current financial position, its future cash flow forecasts, and its ability to repay the loan on demand.

Furthermore, the directors have factored in a formal guarantee provided by The Generation Essentials Group, a common intermediate parent, which mitigates the credit risk associated with this balance. Based on this assessment and the guarantee in place, management has concluded that no impairment provision is required against this intercompany receivable as at 31 December 2023.

The average monthly number of persons (including directors) employed by the company during the year was:

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss 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.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

At the year end, the company owed £287,418 (2022: £393,268) to its immediate parent company, The Art Newspaper S.A. in respect of an interest free loan which is repayable on demand.

At the year end, the company owed £311,553 (2022: Nil) to AMTD Group Inc, in respect of an interest free loan which is repayable on demand.

At the year end, the company was owed £1,678,958 (2022: £1,870,475) by The Art Newspaper USA Inc, the company's subsidiary, in respect of an interest free loan which is receivable on demand.

At the year end, the company was owed £2,241 (2022: £1,150) by TAN France SAS, in respect of an interest free loan which is receivable on demand. In addition, the company was owed £61,755 (2022: £60,786) by TAN France SAS in respect of a trade balance.

AMTD IDEA Group, a company incorporated in the Cayman Islands, is the ultimate parent undertaking.

The smallest group and largest group to consolidate these financial statements was AMTD IDEA Group. Consolidated financial statements for AMTD IDEA Group are available to the public by writing to 66 rue Jean-Jacques, Rousseau, 75001 Paris, France or from https://www.amtdinc.com.

The Directors consider that there is no ultimate controlling party.

During the year, the company reviewed its accounting policy in relation to development expenditure. Historically, development costs that met the criteria for recognition as an intangible asset were capitalised and amortised over their estimated useful economic lives.

Following this review, management concluded that recognising development expenditure as an expense when incurred provides more relevant and reliable information to users of the financial statements. This reflects the inherent uncertainty associated with the successful completion and commercial exploitation of development projects and the difficulty in reliably demonstrating future economic benefits attributable to individual projects.

Accordingly, from 1 January 2023, the company has changed its accounting policy and now expenses all development expenditure as incurred.

Development costs previously capitalised at 31 December 2021 of £171,456 were written off against opening reserves. During 2022 amortisation of £16,480 previously charged was reversed as part of the retrospective application of the revised accounting policy. The net reduction in reserves at 31 December 2022 was £187,936.

The change has been applied retrospectively in accordance with FRS 102 Section 10 and comparative information has been restated as if the new policy had always been applied.

During the year, management identified that certain subscription and advertising revenues received in advance during the prior year had been incorrectly recognised in full within the profit and loss account, rather than being deferred over the period in which the performance obligations were satisfied.

To correct this error, a prior year adjustment has been processed to defer the relevant income. The impact of this correction on the prior year is a decrease in turnover and a corresponding increase in creditors (deferred income) of £57,490. Consequently, the previously reported equity as at 31 December 2022 has been reduced by £57,490, and the loss for the prior financial period has been increased by the same amount.

During the current year, the company identified an error relating to the presentation of an R&D tax credit recognised in the year ended 31 December 2022. Review of HMRC records confirmed that the R&D tax credit receivable of £54,915 had been applied against the company's outstanding PAYE liabilities prior to the year end. This offset had not been recorded in the accounting records at the time the 2022 financial statements were prepared.

As a result, both debtors and creditors at 31 December 2022 were overstated by £54,915. The comparative figures have therefore been restated to reflect the settlement of the R&D tax credit receivable against PAYE liabilities. The adjustment has no impact on profit, retained earnings or net assets.