Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2021
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RED VENTURES INTERACTIVE LIMITED
CONTENTS
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RED VENTURES INTERACTIVE LIMITED
COMPANY INFORMATION
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RED VENTURES INTERACTIVE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2021
Red Ventures Interactive connects with people, community, and places to deliver premium content and support on what matters most. Spanning the entertainment, gaming and business sectors, we deliver premium and original content across market-leading brands including CNET, Gamespot and ZDNet.
Red Ventures has a global team of editors, reporters, and photographers, experts with a reputation for best-in-class content that provide the news, tools and advice that empower its audiences to make decisions about what to do or buy next. From technology, wellness, money, climate, culture, gaming, home, and cars, Red Ventures anticipates what is next and acts first on the topics both consumer and business care about. Combined with Red Ventures’ digital marketing, technology, and data science capabilities, our brands help millions of people discover information and seamlessly make important decisions. We measure our impact in our ability to positively change the trajectory of the people and communities we touch. With hundreds of millions of unique visitors from around the world each month, Red Ventures is a global force in the digital advertising market and is one of the largest premium content networks online. Red Ventures Interactive Limited access to the unparalleled global collection of sites are extremely powerful vehicles for advertisers to reach highly attractive, targeted demographics.
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RED VENTURES INTERACTIVE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31ST DECEMBER 2021
The Company has generated an operating loss for the year to 31 December 2021 of £ (1,968,351) (2020: profit of £352,160. The loss for the year following interest obligations of £0 (2020: £19,724) was £ (1,968,351) (2020: profit of £371,884). The loss after tax for the year was £ (1,838,083) (2020: profit of £ 274,098). As of 31 December 2021, net assets were £4,835,002 (2020: £6,673,085).
Although 2021 saw a satisfactory performance from the TechRepublic associated revenue streams, display advertising together with lead generation business it was decided that to secure a focus on building the business of informing, advising, and connecting buyers and sellers of business technology, that Red Ventures would sell to Technology Advice who they believed was the best partner for TechRepublic to help realise its next chapter of its growth. The sale included a global team of dynamic technology and media professionals from Red Ventures Interactive teams in the US, the UK, Singapore, and Australia. The sale concluded in July 2021. The industry body for digital advertising reported that the UK’s Digital Adspend showed that the digital advertising market grew by 41% in 2021. Much of the growth was driven from Search as for the first time, Digital Adspend captured advertisers’ investment in search shopping ads, which was reflected in the blossoming ecommerce market. Video too continued to drive most of the display growth, up 58%. Spend on banner ads surged by 60%, suggesting that advertisers are revaluating the value of standard display formats as part of their campaigns. Mobile performance was also impressive as it accounted for 60% of total spend, up 43% year-on. Contrary to the industry performance Red Ventures Interactive saw a drop of 45% across the media portfolio net of TechRepublic revenues. There are several influences resulting in the local underperformance but the most notable the decision by Red Ventures to commit to grow CNET and invest both in talent and CNET Media Group brands primarily domestically in the US rather than globally. This reorganisation of the non-domestic CMG (CNET Media Group) business directly impacted Red Ventures Interactive. The most significant being the redistributing of marketing, sales, and revenue operational resources from Europe to Red Ventures US entities in H2 2021. With the decision to downside local operations, Red Ventures Interactive served notice on the leased offices and exited on December 31, 2021. The population of those employees remaining were Accounting, Editorial, Technology development moved to a work from home basis in the main. Their roles identified necessary to support the global business rather than limiting support to UK and Europe. The financial statements have been prepared on a going concern basis on the grounds that Red Ventures Inc.has confirmed it will continue to provide financial and other support to Red Ventures Interactive Limited at least for the next twelve months and thereafter for the near future to enable Red Ventures Interactive Limited to continue to meet its liabilities as they fall due.
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RED VENTURES INTERACTIVE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31ST DECEMBER 2021
Even though the use of the internet continues to grow as does its share of advertising spend, the expectation is that because of the termination of local direct sales and associated support departments revenue delivered locally will continue to decrease and the primary source of revenue will be a programmatic share of global booked deals in the US.
Red Ventures believes in the power of premium content from trusted brands that help people make better life decisions and over the last 25 years CNET Media Group has built a dynamic portfolio of brands with well-earned authority on such topics as consumer tech and gaming that play an increasingly key role in people’s lives. Red Ventures has demonstrated its belief in investing and continuously evaluating its performance, identifying the need for strategic change across the whole organisation if needs be. Currently change is driven by the challenging macro environment – which if anything is becoming more difficult and unpredictable. Red Ventures focuses on its commitment to building a strong portfolio of businesses that can and will excel well into the future. Red Ventures best course of action is to be both proactive and conservative, and we continue to strengthen our core RV-US business groups while evaluating finding the right homes for assets outside of our core areas of strategic focus. We have said before that the goal of this work is not just to survive adversity, but to thrive on the other side of it. We are fortunate that Red Ventures has a diverse portfolio and strong profitability. Our position is enviable, and, with the right strategy and rigor, we will come out from an economic downturn much stronger than others. Red Ventures will adapt and will remain committed to investing in people and communities along the way. Our success is measured not just by what we do but by how we do it, and we will ground ourselves in that belief as we build the path ahead.
From the perspective of the Company, the principal risks and uncertainties are integrated with the principal risks of the group, Red Ventures Inc., and are not managed separately. Accordingly, the principal risks and uncertainties of Red Ventures Inc., which include those of the Company, are discussed in Red Ventures Inc.’s annual report which does not form part of this report.
Given the straightforward nature of the business, the Company’s directors are of the opinion that standard profit and loss measurement techniques such as revenue growth, ebitda, and incremental year on year margin growth, along with the ongoing support of Red Ventures Inc., are sufficient to gain an understanding of the development, performance, or position of the business.
This report was approved by the board on 22 December 2022
and signed on its behalf.
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RED VENTURES INTERACTIVE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2021
The Directors present their report and the financial statements for the year ended 31 December 2021.
The Directors are responsible for preparing the Strategic Report, the Directors' Report and the
financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year
. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the Directors are required to:
∙
select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙
make judgements and accounting estimates that are reasonable and prudent;
∙
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
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 to 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.
The loss for the year, after taxation, amounted to £
1,838,083
(2020 -
profit
£
274,098
)
.
The directors are unable to recommend the payment of a dividend and none was paid during the year (2020: £nil).
The Directors who served during the year were:
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RED VENTURES INTERACTIVE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31ST DECEMBER 2021
The Company's operations expose it to a variety of financial risks that include the effects of credit risk and foreign exchange risk. The Company is reliant on its board of directors to actively manage its risk exposure.
Given the size of the Company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board are implemented by the Companmy's finance department.
Credit risk
The Company has implemented policies that require appropriate credit checks on potential customers before sales are made.
Foreign exchange risk
The Company has foreign currency assets and liabilities. The Company does not currently use financial instruments to manage the risk of fluctuating exchange rates and as such no hedge accounting is applied. The directors keep these measures under constant review.
Information on the development and performance of the business of the Company during the financial year and at the end of that year, the principal risks and uncertainties facing the business and financial risks relating to the Company is not shown in the Directors' report because it is shown in the Strategic report instead.
There have been no significant events affecting the Company since the year end.
The auditors, Alexander Knight & Co Limited, will be proposed for reappointment in accordance with
section 485 of the Companies Act 2006.
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RED VENTURES INTERACTIVE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31ST DECEMBER 2021
This report was approved by the board and signed on its behalf.
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RED VENTURES INTERACTIVE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RED VENTURES INTERACTIVE LIMITED
We have audited the financial statements of Red Ventures Interactive Limited (the 'Company') for the year ended 31st December 2021, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity
and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards,
including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
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RED VENTURES INTERACTIVE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RED VENTURES INTERACTIVE LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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RED VENTURES INTERACTIVE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RED VENTURES INTERACTIVE LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit team:
Obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework; Inquired of management and those charged with governance their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; Discussed matters about non-compliance with laws and regulations and how fraud might occur including an assessment of how and where the financial statements may be susceptible to fraud. As a result of performing the above, our procedures to respond to the risks identified included the following: Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; All engagement team members were informed of the relevant laws and regulations and potential fraud risks at the planning stage and reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify such items. There are inherent limitations in our audit procedures described above. The more removed the laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to inquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. It remains the primary responsibility of management to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
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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RED VENTURES INTERACTIVE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RED VENTURES INTERACTIVE LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.
for and on behalf of
Chartered Accountants & Statutory Auditor
Westgate House
44 Hale Road
Hale
Cheshire
WA14 2EX
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RED VENTURES INTERACTIVE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
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RED VENTURES INTERACTIVE LIMITED
REGISTERED NUMBER:
03851534
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 15 to 33 form part of these financial statements.
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RED VENTURES INTERACTIVE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2021
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RED VENTURES INTERACTIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021
The company is a private company limited by shares, registered in England and Wales (registered number 03851534). The address of the registered office is Cannon Place, 78 Cannon Street, London, EC4N 6AF.
2.
Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax from the proceeds.
Dividends and other distributions to the company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the company's shareholders. These amounts are recognised in the statement of changes in equity.
The financial statements have been prepared on the going concern basis as the ultimate parent undertaking, Red Ventures Holdco LP has formally indicated that it will provide sufficient funding to Red Ventures Interactive Limited to enable it to meet its liabilities as they fall due for at least the twelve months following the approval of the financial statements and for the foreseeable future.
In light of the rapid global spread of the Coronavirus “COVID-19” in early 2020, the directors have reviewed and stress tested projections and budgets for the next twelve months. Following this review, and with the continued support of Red Ventures, the directors consider there to be little impact on the Company’s ability to act as a going concern.
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RED VENTURES INTERACTIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021
2.
Accounting policies (continued)
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Red Ventures Holdco LP which can be obtained from companies House. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:
(a) From the requirement to present a reconciliation of the number of shares outstanding at the beginning and end of the period as required by paragraph 4.12(a)(iv) of FRS 102. (b) From the requirement to prepare a statement of cash flows as required by paragraph 3.17(d) of FRS 102. (c) From the requirement to present certain financial instrument disclosures, as required by sections 11 and 12 of FRS 102. (d) From disclosing share based payment arrangements, required under FRS 102 paragraphs 26.18(c), 26.19 to 26.21 and 26.23, concerning its own equity instruments. The Company financial statements are presented with the consolidated financial statements and the relevant disclosures are included therein; (e) From the requirement to disclose the key management personnel compensation in total as required by paragraph 33.7 of FRS 102. (f) From disclosing related party transactions under paragraph 1.12(e) of FRS 102, on the grounds that it is a wholly owned subsidiary of Red Ventures Holdco LP.
Functional and presentation currency
Transactions and balances
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RED VENTURES INTERACTIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021
2.
Accounting policies (continued)
recognised in line with the discharge of responsibilities of the Company under the terms of the contract of sale. Online advertising is recognised either over the life of the advertisement, on a per-click basis or at the point the advertisement is displayed depending on the terms of the contract. For marketing services, revenue is recognised once the product or service is delivered. Where marketing solutions are traded in exchange for the services of other companies, revenue (referred to as “barter revenue”) is only recognised if there is persuasive evidence of the value at which, if the advertising had not been exchanged, it would have been sold for cash in a similar transaction. In these circumstances, that value is included in revenue and costs. Otherwise, these transactions are not recognised on a gross basis. Operating leased assets Leases that do not transfer all the risk and rewards of ownership are classified as operating leases. Rentals under operating lease are charged to the statement of comprehensive income on a straight line basis over the period of the lease term.
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RED VENTURES INTERACTIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021
2.
Accounting policies (continued)
i) Short term benefits Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received. ii) Defined contribution pension plans The Company operates a defined contribution pension scheme. A defined contribution scheme is a pension plan under which the company pays fixed contributions into a separate entity. The assets of the schemes are held separately from those of the Company in an independently administered fund. Contributions to the schemes are charged to the statement of comprehensive income as they fall due for payment. iii) Share based payments The Company participated in a number of equity-settled, share-based compensation plans operated by its former parent Company, ViacomCBS Corporation. Following the sale of the company this benefit is no longer offered. The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
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RED VENTURES INTERACTIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021
2.
Accounting policies (continued)
Current or deferred taxation assets and liabilities are not discounted. i) Current tax Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. ii) Deferred taxation Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is recognised on all timing differences at the reporting date except for certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. Subsequent costs, including major inspections, are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that economic benefits associated with the item will flow to the Company and the cost can be measured reliably. Repairs, maintenance and minor inspection costs are expensed as incurred. Assets in the course of construction are stated at cost. These assets are not depreciated until they are available for use.
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RED VENTURES INTERACTIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021
2.
Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Goods received or services rendered shall be accrued for when an invoice is not recorded in accounts payable or payment has not been made. Generally, an accrual must be recorded if a liability is known and can be reasonably estimated with supporting documentation.
If there is decrease in the impairment loss arising from an event occurring after the impairment was recognised the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the statement of comprehensive income.
The Company has taken advantage of the exemption as provided by paragraph 33.1A of FRS 102 from disclosing transactions with group companies as it is a wholly owned subsidiary and its results are included in the consolidated financial statements of Red Ventures Holdco LP which are publicly available. There were no other related party transactions.
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RED VENTURES INTERACTIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021
2.
Accounting policies (continued)
i) Provisions
Provisions are recognised when the Company has a present obligation as a result of a past event, it is probable that a transfer of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are discounted where the impact is material to the financial statements. ii) Contingencies Contingent liabilities, arising as a result of past events, are not recognised when: (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date; or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the Company’s control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote. i) Financial assets Basic financial assets, including trade receivables, cash and bank balances are initially recognised at transaction price 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. Such assets are subsequently carried at amortised cost using the effective interest method where applicable. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the statement of comprehensive income. Financial assets are derecognised when (i) the contractual rights to the cash flows from the asset
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RED VENTURES INTERACTIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021
2.
Accounting policies (continued)
ii) Financial Liabilities Basic financial liabilities, including Trade and other payables, bank loans, and loans from fellow group companies, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. The Company does not hold or issue derivative financial instruments. iii) Offsetting Financial assets and liabilities are offset and the net amount 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.
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RED VENTURES INTERACTIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021
Estimates and underlying assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are reasonable under the circumstances. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. (a) Useful economic lives of property, plant and equipment - The annual depreciation and amortisation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of assets. The useful economic lives and residual values are assessed annually. They are amended when necessary to reflect current estimates, based on technological advancements, future investments, economic utilisation and the physical condition of the assets. See note 13 for the carrying amount of property, plant and equipment and note 3 - depreciation for the useful economic lives for each class of asset. (b) Provision for Bad Debts - In the event of receiving notification of a customer no longer trading or entering bankruptcy or administration, Red Ventures Interactive Limited will immediately provide 100% net of VAT as a bad debt provision for all applicable outstanding invoices. The general bad debt provision is reviewed quarterly for accuracy based on the end of quarter aging report. Percentages based on historical experience are applied to the different aging buckets in order to arrive at an appropriate provision.
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RED VENTURES INTERACTIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021
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RED VENTURES INTERACTIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021
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RED VENTURES INTERACTIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021
Page 26
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RED VENTURES INTERACTIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021
Page 27
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RED VENTURES INTERACTIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021
13.
Taxation (continued)
Deferred tax is measured on a non-discounted basis at the tax rate which is expected to apply in the periods in which timing differences reverse, based on tax rates and laws substantively enacted at the balance sheet date. At Budget 2020, the government announced that the Corporation Tax main rate for future years starting 1 April 2020 would remain at 19%, however, Finance Bill 2021 announced in March 2021 set the main rate of corporation tax to be 25% from the current 19% effective 1 April 2023. This new law was substantively enacted on 10 June 2021. As the proposal to increase the rate to 25% had not been substantively enacted at the balance sheet date, its effects are not included in these financial statements. However, it is likely that the overall effect of the change, had it been substantively enacted by the balance sheet date, would be to reduce deferred tax expense, increase deferred tax asset and respective valuation allowance for the period by £190,684.
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RED VENTURES INTERACTIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021
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RED VENTURES INTERACTIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021
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RED VENTURES INTERACTIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021
Share premium account
Profit and loss account
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RED VENTURES INTERACTIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021
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RED VENTURES INTERACTIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021
The amount recognised in profit or loss as an expense in relation to defined contribution plans was
£93,595 (2020: £199,518). Outstanding employer pension accruals at the year-end amounted to £32,414 (2020: £13,604).
In January 2022 Red Ventures Interactive Limited made the decision to terminate direct sales activities and operations effective Jan, significantly reducing revenue in 2022 and future years. This has had no affect on the going concern assumption.
Red Ventures Holdco LP is the parent undertaking of the largest group of undertakings and Red Ventures Holdco LP. is the smallest parent undertaking to consolidate these financial statements at 31 December 2019. The consolidated financial statements for Red Ventures Holdco LP are available from 1101 Red Ventures Drive, Fort Mill, SC 29707 USA.
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