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KOCH MEDIA LIMITED |
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Strategic Report, Directors' Report and |
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Audited Financial Statements |
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for the Year Ended 31 March 2020 |
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KOCH MEDIA LIMITED |
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Strategic Report, Directors' Report and |
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Audited Financial Statements |
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for the Year Ended 31 March 2020 |
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KOCH MEDIA LIMITED (REGISTERED NUMBER: 02925650) |
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Contents of the Financial Statements |
for the year ended 31 March 2020 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Directors' Report | 4 |
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Independent Auditors' Report | 5 |
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Statement of Comprehensive Income | 7 |
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Balance Sheet | 8 |
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Statement of Changes in Equity | 9 |
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Notes to the Financial Statements | 10 |
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KOCH MEDIA LIMITED |
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Company Information |
for the year ended 31 March 2020 |
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Directors: |
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Registered office: |
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Registered number: |
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Auditors: |
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Chartered Accountants and Statutory Auditor |
Sterling House |
177-181 Farnham Road |
Slough |
Berkshire |
SL1 4XP |
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Bankers: |
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314 Chiswick High Road |
Chiswick |
London |
W4 5TB |
KOCH MEDIA LIMITED (REGISTERED NUMBER: 02925650) |
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Strategic Report |
for the year ended 31 March 2020 |
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The directors present their strategic report for the year ended 31 March 2020. |
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Review of business |
We aim to provide a balanced summary review of the development of our business during the year and its position at |
year end. Our review is consistent with the size of our business and is written in the context of the risks and |
uncertainties we face. |
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As a distributor within the entertainment sector we represent third party companies who have a combination of video |
games, video games accessories and DVD's or related products and who wish us to market and deliver these products |
to high street retailers, online retailers, and supermarkets in the United Kingdom, Scandinavia and Benelux economic |
areas. Additionally we act as international sales agent and distributor for our parent company when representing our |
own published games (under the label Deep Silver amongst others) in geographic areas where we do not have an own |
operation (such as Middle East, Russia, and India). |
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Principal risks and uncertainties |
The company is a subsidiary of Koch Media GmbH, in which risks are managed at both group and local company |
level. The management of the business and the nature of the group's strategy are subject to a number of risks, which |
are monitored at both levels. |
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The directors set out below the principal risks facing the business. Where possible, processes are in place to monitor |
and mitigate such risks. |
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Competition - The market in which the company operates is highly competitive. Both from the point of view of securing |
distribution contracts against other distributor/publishers as well as from publishers who may prefer to perform the |
publishing of their own game rather than outsourcing it to a partner such as Koch Media. |
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Consumer Choice - On a product level where there is downwards pressure on price and the additional risk of being |
unable to meet customers' expectations with quality and or innovation. Policies of constant price monitoring, forward |
weeks cover risk monitoring of stock with retailers and ongoing market research are in place to mitigate such risks. |
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Product Obsolescence - The majority of sales are secured on consoles from Sony, Microsoft and Nintendo. Historically |
these consoles have been upgraded in cycles of between 6 and 8 years. This means that the games are subject to both |
the installed base (number of the consoles sold in each country) and the age of the console (whereas the older a |
console is the more likely the consumer may delay new video game purchasing decisions to wait for the new console). |
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New Technologies - Digital downloading of games as a purchasing option is often reserved by the game publisher |
themselves, and even for own published games these are performed at a head quarter level. The other newer risk os |
that of streaming of games, and subscription models both of which together would challenge the historic convention of |
games ownership. |
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Covid-19 Pandemic - At the time of writing this report, the UK was starting the fourth week of "lockdown", which has |
severely restricted the populations free movement to go about their normal business. Specifically, non-essential high |
street stores are closed, and the market for physical video games is restricted to online retailers and supermarkets. By |
working closely with both our supply chain, and our customers, we have implemented a plan that looks to ensure that |
the we can both comply with safe distancing guidelines in our warehouse, as well as seek to deliver our normal |
commercial objectives. Generally speaking, the enforced "stay at home" messaging has resulted in a surge of demand |
for entertainment, of which we as a group have benefitted, because of exponential growth in our digital sales, and to a |
lesser extent the same has occurred in our physical selling of video games. This as a result of higher sales at retail |
level, and the resulting demand for us to replenish those retailers. We consider the current cash in bank together with |
future cash inflows into our business to be such that trading whilst administratively challenging (as employees work |
from home) will otherwise result in financial performance that will see no material impact on the business with the |
caveat that should the pandemic worsen this guidance would have to reviewed. At the time of writing though other |
countries in Europe were easing their restrictions with the expectation that the UK would follow suit in a matter of |
weeks. |
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Policies on financial risks such as currency exposure are set out in the financial notes later in the audited accounts. |
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KOCH MEDIA LIMITED (REGISTERED NUMBER: 02925650) |
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Strategic Report |
for the year ended 31 March 2020 |
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Trading update |
During the trading year the company has had a number of items of strategic importance that it needs to highlight. |
The company has benefitted from strong new releases of video games notably from Football Manager 2020, F1 2019, |
Team Sonic Racing, Final Fantasy VII Remake, and Turtle Beach gaming headsets. However compared to the prior |
year the number of major new releases was less in number resulting in a decline of sales and related gross profit |
contribution in the financial year. |
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Catalogue performed stronger than the year before as the commercial and sales teams worked closely to deliver |
promotions to retailers that ensured exposure and increased sales performance to retailers. |
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Deep Silver did not have a major release during the financial year, however it has been disclosed by our ultimate |
holding entity Embracer Group AB that major games from our IP are in development for release in future years. |
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Operating in multiple industries in different geographic regions allows the company to realign resource in times of |
adverse economic cycles. Creating a northern European hub for the UK, Scandinavian and Benelux regions. |
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The company also looks forward to the new releases coming from its in house studios and its globally renowned video |
game titles that the company has responsibility for in its International distribution network. The network is as follows: |
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Russia/CIS, The Balkans (Slovenia, Croatia, Bosnia, Serbia), Greece, Turkey, Cyprus, Israel, Middle East, South |
Africa, India, Japan, Korea, South East Asia, Hong Kong (China). |
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Key performance indicators |
We consider our key performance indicators are those that communicate our stock and debtor efficiency as well as |
those that illustrate our sales and gross margin result. |
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2020 | 2019 |
£ | £ |
Turnover | 59,874,996 | 70,785,989 |
Gross profit | 8,052,399 | 12,602,121 |
Gross profit margin | 13.4% | 17.8% |
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Debts and stocks |
Trade Debtors at the end of the year were £10.5m (2019: £9.8m) representing a DSO of 53 (2019: 61) which is an |
efficient collection cycle. |
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Stocks at the end of the year were £0.43m (2019: £2.2m) which is an average stock holding in days of 3 days (2019: |
12 days) which represents excellent stock efficiency and a good improvement on prior year. |
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We consider these to be in line or lower than the industry average. |
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Results |
The profit for the year, after taxation, was ahead of expectations and was consistent with the year before. |
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On behalf of the board: |
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KOCH MEDIA LIMITED (REGISTERED NUMBER: 02925650) |
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Directors' Report |
for the year ended 31 March 2020 |
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The directors present their report with the financial statements of the company for the year ended 31 March 2020. |
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Principal activity |
The principal activity of the company in the year under review was that of a producer and distributor of video games |
and filmed entertainment. The company operates in the United Kingdom and Ireland as its principal market but |
additionally through its branch offices in Sweden for the Nordic region and Breda for the Benelux region it covers what |
is described as “Northern Europe” on behalf of its parent company. The company additionally exports its parent |
companies own products to distribution partners around the world where a group office is not present. |
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Dividends |
The total distribution of dividends for the period ended 31 March 2020 will be £6,000,000 (2019: £nil). |
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Directors |
The directors shown below have held office during the whole of the period from 1 April 2019 to the date of this report. |
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Statement of directors' responsibilities |
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in |
accordance with applicable law and regulations. |
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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 of the profit or loss of the company for that period. In preparing these financial statements, |
the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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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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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the |
company's transactions and disclose with reasonable accuracy at any time the financial position of the company and |
enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible |
for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of |
fraud and other irregularities. |
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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 company'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 company's auditors are aware of that information. |
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On behalf of the board: |
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Independent Auditors' Report to the Members of |
Koch Media Limited |
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Opinion |
We have audited the financial statements of Koch Media Limited (the 'company') for the year ended 31 March 2020 |
which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes |
to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework |
that has been applied in their preparation is applicable law and 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). |
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In our opinion the financial statements: |
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give a true and fair view of the state of the company's affairs as at 31 March 2020 and of its 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. |
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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 company in accordance with the ethical |
requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, |
and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit |
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to |
you where: |
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the directors' use of the going concern basis of accounting in the preparation of the financial statements is not
appropriate; or |
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the directors have not disclosed in the financial statements any identified material uncertainties that may cast
significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
However, not all future events or conditions can be predicted. The COVID-19 viral pandemic is one of the most |
significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to |
evaluate all of the potential implications on the company's trade, customers, suppliers and wider economy. The |
Directors' view on the impact of COVID-19 is disclosed within the accounting policies. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the |
Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report |
thereon. |
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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. |
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In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing |
so, consider whether the other information is materially inconsistent with the financial statements or our knowledge |
obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or |
apparent material misstatements, we are required to determine whether there is a material misstatement in the |
financial statements or a material misstatement of the other information. If, based on the work we have performed, we |
conclude that there is a material misstatement of this other information, we are required to report that fact. We have |
nothing to report in this regard. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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the information given in the Strategic Report and the Directors' Report for the financial year for which the financial
statements are prepared is consistent with the financial statements; and |
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the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal
requirements. |
Independent Auditors' Report to the Members of |
Koch Media Limited |
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Matters on which we are required to report by exception |
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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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: |
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from
branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities, 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. |
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In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a |
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of |
accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic |
alternative but to do so. |
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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 an Auditors' 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. |
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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 Auditors' Report. |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the |
Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those |
matters we are required to state to them in an 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 members as |
a body, for our audit work, for this report, or for the opinions we have formed. |
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for and on behalf of
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Chartered Accountants and Statutory Auditor |
Sterling House |
177-181 Farnham Road |
Slough |
Berkshire |
SL1 4XP |
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KOCH MEDIA LIMITED (REGISTERED NUMBER: 02925650) |
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Statement of Comprehensive Income |
for the year ended 31 March 2020 |
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2020 | 2019 |
Notes | £ | £ |
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Turnover | 3 |
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Cost of sales |
( |
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( |
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Gross profit |
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Administrative expenses | ( |
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( |
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(949,266 | ) | 1,542,026 |
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Other operating income |
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Operating profit |
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Interest receivable and similar income |
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2,179,191 | 7,275,974 |
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Interest payable and similar expenses | 7 | ( |
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Profit before taxation | 8 |
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Tax on profit | 9 | ( |
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Profit for the financial year |
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Other comprehensive income | - | - |
Total comprehensive income for the year |
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KOCH MEDIA LIMITED (REGISTERED NUMBER: 02925650) |
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Balance Sheet |
31 March 2020 |
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2020 | 2019 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 11 |
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Current assets |
Stocks | 12 |
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Debtors | 13 |
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Cash in hand |
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Creditors |
Amounts falling due within one year | 14 |
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Net current assets |
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Total assets less current liabilities |
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Provisions for liabilities | 16 |
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Net assets |
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Capital and reserves |
Called up share capital | 17 |
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Retained earnings | 18 |
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Shareholders' funds |
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The financial statements were approved by the Board of Directors and authorised for issue on
signed on its behalf by: |
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KOCH MEDIA LIMITED (REGISTERED NUMBER: 02925650) |
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Statement of Changes in Equity |
for the year ended 31 March 2020 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 April 2018 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 March 2019 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 31 March 2020 |
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KOCH MEDIA LIMITED (REGISTERED NUMBER: 02925650) |
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Notes to the Financial Statements |
for the year ended 31 March 2020 |
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1. | Statutory information |
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Koch Media Limited is a
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registered number and registered office address can be found on the Company Information page. |
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2. | Accounting policies |
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Basis of preparing the financial statements |
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Going concern |
The financial statements have been prepared on a going concern basis. The Directors have reviewed and |
considered relevant information, including the annual budget and future cash flows in making their assessment. |
In particular, in response to the COVID-19 pandemic, the Directors have tested their cash flow analysis to take |
into account the impact on their business of possible scenarios brought on by the impact of COVID-19, |
alongside the measures that they can take to mitigate the impact. Based on these assessments, given the |
measures that could be undertaken to mitigate the current adverse conditions, and the current resources |
available, the Directors have concluded that they can continue to adopt the going concern basis in preparing |
the annual report and accounts |
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Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial |
statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of |
Ireland": |
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• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of Section 33 Related Party Disclosures paragraph 33.7. |
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Turnover |
Turnover comprises revenue recognised by the company in respect of distribution within the entertainment |
sector and distribution of computing and technology products during the year, exclusive of Value Added Tax |
and trade discounts. |
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Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful |
life. |
Office equipment | - 4-13 years on cost |
Fixtures and fittings | - 4-13 years on cost |
Computer equipment | - 33% on cost |
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Stocks |
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and |
slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable |
overheads. |
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Consignment stock is held on behalf of suppliers and is excluded from stocks. Under the contracts the |
company must typically: |
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- promote and sell the products with exclusive and non-exclusive rights under the supplier's name; |
- not sell any other products of similar content; |
- seek agreement with the supplier to sell at a lower than previously agreed price. |
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No deposit is due to suppliers for consignment stock. |
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KOCH MEDIA LIMITED (REGISTERED NUMBER: 02925650) |
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Notes to the Financial Statements - continued |
for the year ended 31 March 2020 |
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2. | Accounting policies - continued |
Deferred tax |
Full provision is made for deferred tax assets and liabilities arising from all timing differences between the |
recognition of gains and losses in the financial statements and recognition in the tax computation. |
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A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be |
suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. |
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Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing |
differences are expected to reverse. |
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Deferred tax assets and liabilities are not discounted. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the |
balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling |
at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension |
scheme are charged to profit and loss in the period to which they relate. |
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Operating leases |
Rentals under operating leases are charged to the Profit and loss account on a straight line basis over the lease |
term. |
KOCH MEDIA LIMITED (REGISTERED NUMBER: 02925650) |
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Notes to the Financial Statements - continued |
for the year ended 31 March 2020 |
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2. | Accounting policies - continued |
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Financial instruments |
Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a |
party to the contractual provisions of the instrument. |
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Trade and other debtors and creditors are classified as basic financial instruments and measured at initial |
recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the |
effective interest rate method. A provision is established when there is objective evidence that the company will |
not be able to collect all amounts due. |
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Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank |
and bank overdrafts which are an integral part of the company's cash management. |
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Financial liabilities and equity instruments issued by the company are classified in accordance with the |
substance of the contractual arrangements entered into and the definitions of a financial liability and an equity |
instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company |
after deducting all of its liabilities. |
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Key sources of estimation uncertainty and judgements |
Preparation of the financial statements requires management to make significant judgements and estimates in |
determining the carrying amounts of certain assets and liabilities. Management makes assumptions of the |
effects of uncertain future events on those assets and liabilities at the balance sheet date. The management's |
estimates and assumptions are based on historical experience and expectation of future events and are |
reviewed periodically. This disclosure excludes uncertainty over future events and judgement in respect of |
measuring financial instruments. |
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Bad debt provision |
A full line by line review of trade debtors is carried out at the end of each month ensuring the provision is |
accurate. The provision accrued is calculated dependant on the age of the debt, whether it is being pursued by |
a solicitor or if the Customer is insolvent. Also, taken into consideration is if the debt is Credit Insured. |
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Depreciation |
The company's tangible assets are depreciated on a straight line basis over their useful economic lives. |
Management reviews the appropriateness of assets' useful economic lives at least annually and any changes |
could affect prospective depreciation rates and asset carrying values. |
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Stock provision |
There is estimation uncertainty in calculating finished goods stock provisions. A full line by line review of stocks |
is carried out at the end of each month. Whilst every attempt is made to ensure the finished goods stock |
provisions are as accurate as possible, there remains a risk that the provisions do not match the level of stock |
which ultimately proves to be unsaleable. |
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Provision for returns |
There are two estimates made each month, both are on the level of analysing the disclosed stocks that a |
retailer has acquired but remains unsold to the retailers customers (i.e. retail customer/product). First a |
provision is made for the actual authorised actions (but as yet unclaimed) for promotions and returns and then |
an assessment beyond that the actual additional risks by what of us being required to issue further credit notes |
to ensure that each retailer has no more than 8 weeks forward cover based on the most recent weeks sales of |
that retailer. |
KOCH MEDIA LIMITED (REGISTERED NUMBER: 02925650) |
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Notes to the Financial Statements - continued |
for the year ended 31 March 2020 |
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3. | Turnover |
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The turnover and profit before taxation are attributable to the one principal activity of the company. |
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An analysis of turnover by class of business is given below: |
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2020 | 2019 |
£ | £ |
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An analysis of turnover by geographical market is given below: |
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2020 | 2019 |
£ | £ |
United Kingdom |
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Europe |
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Rest of the world | (129,223 | ) | 266,485 |
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4. | Employees and directors |
2020 | 2019 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
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The average number of employees during the year was as follows: |
2020 | 2019 |
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Finance and administration | 17 | 16 |
Sales & Marketing | 41 | 39 |
Development | 9 | 8 |
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5. | Directors' emoluments |
2020 | 2019 |
£ | £ |
Directors' remuneration |
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The number of directors to whom retirement benefits were accruing was as follows: |
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Defined benefit schemes |
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KOCH MEDIA LIMITED (REGISTERED NUMBER: 02925650) |
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Notes to the Financial Statements - continued |
for the year ended 31 March 2020 |
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5. | Directors' emoluments - continued |
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Information regarding the highest paid director is as follows: |
2020 | 2019 |
£ | £ |
Emoluments etc |
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The value of the company's contributions paid to a defined contribution pension scheme in respect of the |
directors amounted to £14,520 (2019: £12,743). |
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The value of the company's contributions paid to a defined contribution pension scheme in respect of the |
highest paid director amounted to £8,939 (2019: £8,791). |
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No one other than directors are deemed to be key management personnel. |
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6. | Exceptional items |
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2019 | 2018 |
£ | £ |
Exceptional item included in administrative expenses | 889,000 | - |
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The exceptional cost relates to the UK proportion of a group -wide fine levied by the European Union |
Commission in relation to an action brought over Geoblocking infringements of the competition rules within the |
European Union. |
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Koch Media Limited was found by the Commission to be jointly and severally liable with two other group |
companies for an anticipated fine of 3,000,000€. The group has determined that of this overall expected |
penalty, an amount of 1,000,000€ (£889,000) will be borne by the UK company. In the event of the other |
impacted group companies not fulfilling their responsibility over this judgement, Koch Media UK Limited will be |
liable to pay of the balance of the fine not otherwise paid by the other parties to the judgement, but the |
directors believe any non-payment is highly unlikely, hence provision has only been made for the porportion of |
the fine allocated to it. |
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7. | Interest payable and similar expenses |
2020 | 2019 |
£ | £ |
Other interest payable |
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8. | Profit before taxation |
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The profit is stated after charging/(crediting): |
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2020 | 2019 |
£ | £ |
Depreciation - owned assets |
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Auditors' remuneration |
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Foreign exchange differences | ( |
) | ( |
) |
KOCH MEDIA LIMITED (REGISTERED NUMBER: 02925650) |
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Notes to the Financial Statements - continued |
for the year ended 31 March 2020 |
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9. | Taxation |
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Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2020 | 2019 |
£ | £ |
Current tax: |
UK corporation tax |
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Under provision in prior |
year | - | (39,106 | ) |
Other taxes | 48,040 | 90,130 |
Total current tax |
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Deferred tax |
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( |
) |
Tax on profit |
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Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is |
explained below: |
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2020 | 2019 |
£ | £ |
Profit before tax |
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Profit multiplied by the standard rate of corporation tax in the UK of
(2019 - |
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Effects of: |
Expenses not deductible for tax purposes |
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Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
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Adjustments to tax charge in respect of previous periods |
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( |
) |
Additional overseas tax payable | 48,040 | 90,130 |
Movement in deferred tax | 18,206 | (6,030 | ) |
Total tax charge | 644,043 | 1,429,303 |
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10. | Dividends |
2020 | 2019 |
£ | £ |
Ordinary shares of £1.00 each |
Interim |
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KOCH MEDIA LIMITED (REGISTERED NUMBER: 02925650) |
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Notes to the Financial Statements - continued |
for the year ended 31 March 2020 |
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11. | Tangible fixed assets |
Fixtures |
Office | and | Computer |
equipment | fittings | equipment | Totals |
£ | £ | £ | £ |
Cost |
At 1 April 2019 |
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Additions |
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At 31 March 2020 |
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Depreciation |
At 1 April 2019 |
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Charge for year |
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At 31 March 2020 |
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Net book value |
At 31 March 2020 |
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At 31 March 2019 |
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12. | Stocks |
2020 | 2019 |
£ | £ |
Goods for resale | 430,441 | 2,224,914 |
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13. | Debtors: amounts falling due within one year |
2020 | 2019 |
£ | £ |
Trade debtors | 10,529,881 | 9,843,135 |
Amounts owed by group undertakings |
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Other debtors |
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VAT |
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Prepayments and accrued income |
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14. | Creditors: amounts falling due within one year |
2020 | 2019 |
£ | £ |
Trade creditors |
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Amounts owed to group undertakings |
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Tax |
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Social security and other taxes |
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Other creditors |
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Accruals and deferred income |
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Included in accruals and deferred income is the provision for returns of £1,744,023 (2019: £2,443,536). |
KOCH MEDIA LIMITED (REGISTERED NUMBER: 02925650) |
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Notes to the Financial Statements - continued |
for the year ended 31 March 2020 |
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15. | Leasing agreements |
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Minimum lease payments under non-cancellable operating leases fall due as follows: |
2020 | 2019 |
£ | £ |
Within one year |
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Between one and five years |
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In more than five years |
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16. | Provisions for liabilities |
2020 | 2019 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
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Deferred tax |
£ |
Balance at 1 April 2019 |
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Provided during year |
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Balance at 31 March 2020 |
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17. | Called up share capital |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £ | £ |
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Ordinary | £1.00 | 200,000 | 200,000 |
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18. | Reserves |
Retained |
earnings |
£ |
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At 1 April 2019 |
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Profit for the year |
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Dividends | ( |
) |
At 31 March 2020 |
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19. | Related party disclosures |
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The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The |
Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party |
transactions with wholly owned subsidiaries within the group. |
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During the year, the company paid £272,511 (2019: £222,615) for internet marketing services to |
Fancensus.com Ltd, a related party. |
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There are no other transactions with related parties or key management that require disclosure. |
KOCH MEDIA LIMITED (REGISTERED NUMBER: 02925650) |
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Notes to the Financial Statements - continued |
for the year ended 31 March 2020 |
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20. | Ultimate controlling party |
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The immediate parent company is Koch Media Holdings GmbH, a company incorporated in Austria. |
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The ultimate controlling party is Mr. L Wingefors, owner of Embracer Group |
AB (publ.). the ultimate controlling parent company incorporated in Sweden |
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Copies of the consolidated financial statements of Embracer Group AB (publ.). are publicly available and can |
be obtained from the company website at the following address: |
https://embracer.com/investors/reports-presentations/ |