Glamorgan Gem Limited
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Independent auditor's report |
to the member of Glamorgan Gem Limited |
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We have audited the financial statements of Glamorgan Gem Limited for the year ended 31 March 2015 which comprise the Profit and Loss Account, the Balance Sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). |
This report is made solely to the company's member, 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 member those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member as a body, for our audit work, for this report, or for the opinions we have formed. |
Respective responsibilities of directors and auditor |
As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors.
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Scope of the audit of the financial statements |
A description of the scope of an audit of financial statements is provided on the Financial Reporting Council's website at www.frc.org.uk/auditscopeukprivate
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Opinion on the financial statements |
Glamorgan Gem Limited
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Notes to the Accounts |
for the year ended 31 March 2015
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with applicable United Kingdom Accounting Standards. The company has taken advantage of the exemption in Financial Reporting Standard No 1 from the requirement to produce a cash flow statement on the grounds that it is a wholly-owned subsidiary whose results are included in the publicly available consolidated accounts of the ultimate parent company.
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Turnover |
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Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Turnover is attributable to the company's main activity, the publication of weekly newspapers and is comprised mainly of advertising and circulation income. Advertising revenue is recognised upon publication and circulation revenue is recognised at the time of sale.
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Tangible assets and depreciation |
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Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Fixtures, fittings and equipment |
over 5 years
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The charge to depreciation commences in the month following the month of acquisition. Where there is evidence of impairment, fixed assets are written down to the recoverable amount and fair value adjustments are made on acquisitions as required. |
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Leasing and hire purchase commitments |
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Rentals paid under operating leases are charged to income on a straight line basis over the lease term.
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Deferred taxation |
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Full provision is made for deferred taxation resulting from timing differences between the recognition of gains and losses in the accounts and their recognition for tax purposes. Deferred tax is calculated at the tax rates which are expected to apply in the periods when the timing differences will reverse, and discounted to reflect the time value of money using rates based on the post-tax yields to maturity that could be obtained at the balance sheet date on government bonds with similar maturity dates.
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Pensions |
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The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme. The company is a member of the Farnham Castle Newspapers Limited Pension and Life Assurance Scheme, a defined benefit scheme operated by Tindle Newspapers Limited. The company has continued to account for the defined benefit scheme as if it were a defined contribution scheme, as permitted under FRS 17, as the defined benefit scheme is a multi-employer scheme where the assets of the scheme relating to the company cannot be separately identified on a reasonable basis.
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2 |
Analysis of turnover |
2015 |
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2014 |
£ |
£ |
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By activity: |
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Newspaper publishing
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976,132 |
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871,716 |
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By geographical market: |
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UK |
976,132 |
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871,716 |
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3 |
Operating profit |
2015 |
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2014 |
£ |
£ |
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This is stated after charging: |
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Depreciation of owned fixed assets |
3,554 |
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513 |
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Operating lease rentals - other assets |
7,763 |
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8,196 |
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Operating lease rentals - land buildings |
22,958 |
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17,000 |
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Auditor's remuneration for audit services |
3,250 |
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3,100 |
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4 |
Staff costs |
2015 |
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2014 |
£ |
£ |
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Wages and salaries |
300,661 |
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271,053 |
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Social security costs |
25,836 |
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22,425 |
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Other pension costs (see below) |
10,429 |
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10,287 |
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336,926 |
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303,765 |
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Pension costs |
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Payments to defined contribution scheme |
924 |
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927 |
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Payments to defined benefit scheme |
9,505 |
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9,360 |
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10,429 |
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10,287 |
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Average number of employees during the year |
Number |
Number |
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Management and administration |
5 |
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7 |
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Distribution |
1 |
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1 |
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Editorial and production |
9 |
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8 |
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Sales and marketing |
5 |
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4 |
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20 |
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20 |
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Directors' remuneration is borne by another group undertaking.
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5 |
Taxation |
2015 |
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2014 |
£ |
£ |
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Analysis of charge in period |
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Current tax: |
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UK corporation tax on profits of the period |
31,500 |
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29,500 |
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Adjustments in respect of previous periods |
(2,870) |
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(77) |
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28,630 |
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29,423 |
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Deferred tax: |
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Origination and reversal of timing differences |
3,984 |
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- |
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Tax on profit on ordinary activities |
32,614 |
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29,423 |
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Factors affecting tax charge for period |
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The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
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2015 |
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2014 |
£ |
£ |
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Profit on ordinary activities before tax |
159,514 |
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127,681 |
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Standard rate of corporation tax in the UK |
21% |
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23% |
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£ |
£ |
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Profit on ordinary activities multiplied by the standard rate of corporation tax |
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33,498 |
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29,367 |
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Effects of: |
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Expenses not deductible for tax purposes |
60 |
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112 |
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Capital allowances for period in excess of depreciation |
(2,129) |
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(510) |
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Provision based tax charge |
71 |
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531 |
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Adjustments to tax charge in respect of previous periods |
(2,870) |
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(77) |
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Current tax charge for period |
28,630 |
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29,423 |
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Factors that may affect future tax charges |
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There are no known factors that would affect the future tax charges. |
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6 |
Tangible fixed assets |
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Fixtures, fittings and equipment |
£ |
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Cost |
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At 1 April 2014 |
39,619 |
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Additions |
13,194 |
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At 31 March 2015 |
52,813 |
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Depreciation |
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At 1 April 2014 |
27,083 |
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Charge for the year |
3,554 |
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At 31 March 2015 |
30,637 |
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Net book value |
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At 31 March 2015 |
22,176 |
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At 31 March 2014 |
12,536 |
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7 |
Debtors |
2015 |
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2014 |
£ |
£ |
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Trade debtors |
72,661 |
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64,743 |
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Amounts owed by parent and fellow subsidiary undertakings |
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16,720 |
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12,691 |
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Other debtors |
1,446 |
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1,255 |
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Prepayments and accrued income |
10,407 |
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12,844 |
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101,234 |
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91,533 |
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8 |
Creditors: amounts falling due within one year |
2015 |
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2014 |
£ |
£ |
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Trade creditors |
27,135 |
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34,261 |
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Amounts owed to parent and fellow subsidiary undertakings |
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1,044 |
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17,435 |
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Corporation tax |
31,500 |
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29,500 |
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Other taxes and social security costs |
44,860 |
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35,404 |
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Other creditors |
- |
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18,757 |
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Accruals and deferred income |
11,544 |
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13,233 |
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116,083 |
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148,590 |
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9 |
Deferred taxation |
2015 |
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2014 |
£ |
£ |
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Accelerated capital allowances |
3,984 |
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- |
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Undiscounted provision for deferred tax |
3,984 |
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- |
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2015 |
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2014 |
£ |
£ |
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Deferred tax charge in profit and loss account |
3,984 |
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- |
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At 31 March |
3,984 |
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- |
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10 |
Share capital |
Nominal |
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2015 |
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2015 |
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2014 |
value |
Number |
£ |
£ |
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Allotted, called up and fully paid: |
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Ordinary shares
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£1 each |
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100 |
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100 |
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100 |
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11 |
Profit and loss account |
2015 |
£ |
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At 1 April 2014 |
86,980 |
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Profit for the financial year |
126,900 |
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Dividends |
(100,000) |
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At 31 March 2015 |
113,880 |
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12 |
Dividends |
2015 |
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2014 |
£ |
£ |
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Dividends for which the company became liable during the year: |
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Dividends paid |
100,000 |
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150,000 |
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13 |
Reconciliation of movement in shareholder's funds |
2015 |
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2014 |
£ |
£ |
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At 1 April |
87,080 |
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138,822 |
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Profit for the financial year |
126,900 |
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98,258 |
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Dividends |
(100,000) |
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(150,000) |
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At 31 March |
113,980 |
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87,080 |
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14 |
Financial commitments |
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At the year end the company had annual commitments under non-cancellable operating leases as set out below: |
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Land and buildings |
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Land and buildings |
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Other |
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Other |
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2015 |
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2014 |
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2015 |
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2014 |
£ |
£ |
£ |
£ |
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Operating leases which expire: |
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within one year |
- |
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- |
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2,780 |
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1,164 |
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within two to five years |
- |
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- |
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2,445 |
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5,080 |
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in over five years |
22,500 |
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22,500 |
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- |
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- |
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22,500 |
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22,500 |
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5,225 |
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6,244 |
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15 |
Related party transactions |
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Tindle Press Holdings Group
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Group company
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The company has taken advantage of the exemption in Financial Reporting Standard No 8 from the requirement to disclose transactions with wholly owned group undertakings.
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16 |
Ultimate controlling party |
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The ultimate parent company is Tindle Press Holdings Limited, a company registered in England and Wales. The ultimate controlling party of that company is Sir Ray Tindle by virtue of his 100% interest, direct and indirect, in the ordinary shares of that company. The parent company is Tindle Newspapers Limited, a company registered in England and Wales. Tindle Press Holdings Limited and Tindle Newspapers Limited prepare group financial statements, copies of which can be obtained from the Registrar of Companies, Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.
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