Company Registration No. 06246263 (England and Wales)
The Stylist Group Limited
Annual report and financial statements
for the year ended 31 March 2022
The Stylist Group Limited
Company information
Directors
A R F Hall
E Dolphin
S Robinson
L Smosarski-Woods
Secretary
S Evans
Company number
06246263
Registered office
185 Fleet Street
London
EC4A 2HS
Auditor
Henderson Loggie LLP
The Vision Building
20 Greenmarket
Dundee
DD1 4QB
Bankers
Barclays Bank plc
1 Church Street
Peterborough
PE1 1XE
The Stylist Group Limited
Contents
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
The Stylist Group Limited
Strategic Report
for the year ended 31 March 2022
- 1 -
The directors present the strategic report for the year ended 31 March 2022.
Fair review of the business
The year reflects the start of recovery post COVID-19 with revenues up from £
3.9
m to £6.7m as digital revenues increased and events restarted.
This recovery resulted in a substantial improvement in the operating
loss
before intercompany waivers.
The Stylist Group continues to focus on the strength of the Stylist brand and the ability to create new audience and revenue franchises. The investment in digital scale of Stylist.co.uk continued in 2021/22 with new audience growth in the UK, creating greater digital revenue opportunit
ies
for 2022 onwards.
The events division, which had switched to virtual events in 2020/21 due to C
OVID
-19 restrictions, reinstated live events with Stylist Remarkable Women Awards, Stylist Restival and Stylist Live in 2022.
The print magazine continued with its monthly frequency of circa 400,000 copies and continues to assist the pivot to a digital subscription product.
Strong Women, the fitness brand
,
and The Drop by Stylist launched last year as new digital vertical
s
continue to grow.
The
B
oard continues to see opportunities to develop and grow the brand influence, digital audience scale and revenues, and building outside of the traditional business base.
Principal risks and uncertainties
The principal risks facing the business are:
-
Inflationary pressures. Commodity price increases could significantly impact profitability across all areas of the business and more specifically for the print magazine with exceptional increases in paper, print and distribution costs.
-
The availability and cost of skilled staff.
Key performance indicators
Key financial performance indicators include the monitoring and management of profitability and working capital and review of customer activity levels, audience growth and monetisation.
E Dolphin
Director
27 October 2022
The Stylist Group Limited
Directors' report
for the year ended 31 March 2022
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2022.
Principal activities
The principal activity of the company continued to be that of publishing of journals and periodicals.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
A R F Hall
E A N Watson
(Resigned 1 April 2021)
E Dolphin
S Robinson
O Wyatt
(Resigned 10 April 2021)
L Smosarski-Woods
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
Strategic report
Included within the strategic report is an indication of the principal risks and uncertainties including the risks associated with competitive advantage, environmental compliance and legislative compliance. Also included is the methods adopted to manage these risks where applicable.
On behalf of the board
E Dolphin
Director
27 October 2022
The Stylist Group Limited
Directors' responsibilities statement
for the year ended 31 March 2022
- 3 -
The directors are responsible for preparing the annual 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 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:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
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 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 Stylist Group Limited
Independent auditor's report
to the members of The Stylist Group Limited
- 4 -
Opinion
We have audited the financial statements of The Stylist Group Limited (the 'company') for the year ended 31 March 2022 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 March 2022 and of its loss for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
company
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the 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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
The Stylist Group Limited
Independent auditor's report (continued)
to the members of The Stylist Group Limited
- 5 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport 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.
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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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:
-
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
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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 is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. 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.
Auditor's 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
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The
specific procedures for this engagement and the
extent to
which these
are capable of detecting irregularities, including fraud,
are
detailed below
.
The Stylist Group Limited
Independent auditor's report (continued)
to the members of The Stylist Group Limited
- 6 -
As part of our planning process:
-
We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. Management informed us that there were no instances of known, suspected or alleged fraud;
-
We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, The Data Protection Act 2018, Health and Safety; employment law (including the Working Time Directive); and compliance with the UK Companies Act;
-
We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetrated, and tailored our risk assessment accordingly; and
-
Using our knowledge of the company, together with the discussions held with management at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
-
Enquiries with management about any known or suspected instances of non-compliance with laws and regulations and fraud;
-
Reviewing senior leadership team meeting minutes:
-
Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to the accrual of commission, debtor provisions and recognition of turnover;
-
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness;
-
Testing key revenue lines, in particular cut-off, for evidence of management bias; and
-
Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
The Stylist Group Limited
Independent auditor's report (continued)
to the members of The Stylist Group Limited
- 7 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Gavin Black (Senior Statutory Auditor)
For and on behalf of Henderson Loggie LLP
27 October 2022
Chartered Accountants
Statutory Auditor
The Vision Building
20 Greenmarket
Dundee
DD1 4QB
The Stylist Group Limited
Statement of comprehensive income
for the year ended 31 March 2022
- 8 -
2022
2021
Notes
£
£
Turnover
3
6,706,290
3,946,979
Cost of sales
(6,852,430)
(6,787,907)
Gross loss
(146,140)
(2,840,928)
Distribution costs
(457,229)
(297,645)
Administrative expenses
(1,130,482)
(2,113,412)
Other operating income
493,290
Intercompany waiver
506,709
17,167,193
Operating (loss)/profit
4
(1,227,142)
12,408,498
Interest receivable and similar income
7
821
(Loss)/profit before taxation
(1,227,142)
12,409,319
Tax on (loss)/profit
8
354,469
904,131
(Loss)/profit for the financial year
(872,673)
13,313,450
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
The Stylist Group Limited
Balance sheet
as at 31 March 2022
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
Tangible assets
9
8,246
14,243
Investments
10
1
1
8,247
14,244
Current assets
Stocks
12
41,066
18,435
Debtors
13
2,980,907
2,450,802
Cash at bank and in hand
114,767
3,021,973
2,584,004
Creditors: amounts falling due within one year
14
(1,213,698)
(937,006)
Net current assets
1,808,275
1,646,998
Total assets less current liabilities
1,816,522
1,661,242
Creditors: amounts falling due after more than one year
15
(1,976,493)
(948,540)
Net (liabilities)/assets
(159,971)
712,702
Capital and reserves
Called up share capital
18
1,139,639
1,139,639
Share premium account
19
1,601,548
1,601,548
Profit and loss reserves
20
(2,901,158)
(2,028,485)
Total equity
(159,971)
712,702
The financial statements were approved by the board of directors and authorised for issue on 27 October 2022 and are signed on its behalf by:
E Dolphin
Director
Company Registration No. 06246263
The Stylist Group Limited
Statement of changes in equity
for the year ended 31 March 2022
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2020
1,139,639
1,601,548
(15,341,935)
(12,600,748)
Year ended 31 March 2021:
Profit and total comprehensive income for the year
-
-
13,313,450
13,313,450
Balance at 31 March 2021
1,139,639
1,601,548
(2,028,485)
712,702
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
-
(872,673)
(872,673)
Balance at 31 March 2022
1,139,639
1,601,548
(2,901,158)
(159,971)
The Stylist Group Limited
Notes to the financial statements
for the year ended 31 March 2022
- 11 -
1
Accounting policies
Company information
The Stylist Group Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
185 Fleet Street, London, EC4A 2HS.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
On the basis that the consolidated financial statements of the parent provide disclosures which are equivalent to FRS 102, the financial statements of Shortlist Media Limited have adopted the following disclosure exemptions:
- the requirement to present a statement of cash flows and related notes; and
- related party transaction disclosures for transactions entered into between one or two members of the group on the basis that all parties are wholly owned within the group.
The company has taken advantage of the exemption under section 400 of the
Companies Act 2006 not to prepare consolidated
financial statements
. The
financial statements
present information about the company as an individual entity and not about its group
.
The Stylist Group Limited is a wholly owned subsidiary of D.C. Thomson & Company Limited and the results of The Stylist Group Limited are included in the consolidated financial statements of D.C. Thomson & Company Limited.
1.2
Going concern
The financial statements have been prepared on a going concern basis. The directors have considered relevant information, including the financial projections, forecast future cash flows and the impact of subsequent events in making their assessment. The directors have performed a robust analysis of forecast future cash flows taking into account the potential impact on the business of possible future scenarios arising from rising input costs and the likelihood of the UK falling into economic recession towards the end of 2022. This analysis also considers the effectiveness of available measures to assist in mitigating the impact.
true
Based on these assessments and having regard to the resources available to the company, including the ongoing financial support of its parent company D.C. Thomson & Company Limited, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.
1.3
Turnover
T
urnover
relates to display advertisements, sponsorship, advertorials and events. Turnover in relation to publications is recognised on release of each publication and turnover relating to events is recognised when the event is staged. Turnover is the total amount receivable, excluding VAT and trade discounts.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
The Stylist Group Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
1
Accounting policies (continued)
- 12 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Computer equipment
3-4 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The Stylist Group Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
1
Accounting policies (continued)
- 13 -
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash at bank and in hand
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
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 profit or loss.
If there is a 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 profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
The Stylist Group Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
1
Accounting policies (continued)
- 14 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, 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
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
The Stylist Group Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
1
Accounting policies (continued)
- 15 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Provisions
Provisions are recognised when the
company
has a legal or constructive present obligation as a result of a past event, it is probable that the
company
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i
s
measured at present value
,
the unwinding of the discount is recognised as a finance cost in
profit
or
loss
in the period
in which
it arises.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
The Stylist Group Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
1
Accounting policies (continued)
- 16 -
1.16
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.17
Foreign exchange
Transactions in foreign currencies are translated at the rate ruling at the date of the transaction.
Monetary assets and liabilities in foreign currencies are translated at the rates of
exchange ruling at the balance sheet date.
Any gain or loss arising from a change in exchange rates subsequent to the date of the transaction is included as a gain or loss in the
profit and loss account.
1.18
All share-based payment arrangements are recognised in the financial statements where material. The company operates equity-settled share-based remuneration plans for remuneration of its employees.
All employee services received in exchange for the grant of any share-based payment are measured at their fair values. These are indirectly determined by reference to the fair value of the share options awarded. This fair value is appraised at the grant date and excludes the impact of non-market vesting conditions.
All equity-settled share-based payments are ultimately recognised as an expense in the profit and loss account with a corresponding credit to the share based payment reserve, net of deferred tax where applicable.
If vesting periods or other vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. Non-market vesting conditions are included in assumptions about the number of options that are expected to become exercisable. Estimates are revised subsequently if there is any indication that the number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period. No adjustment is made to any expense recognised in prior periods if share options that have vested are not exercised.
Upon the exercise of share options, the proceeds received net of attributable transaction costs are allocated to share capital with any excess being recorded as share premium.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The Stylist Group Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
2
Judgements and key sources of estimation uncertainty (continued)
- 17 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Commission
Commission is payable to certain customers and is, broadly speaking, based on those customers achieving specified sales levels. Provision is made at the end of each financial year for commission payable based on available information. However, since agreements with customers are not always co-terminous with the financial year end, actual commission payable can change up to the completion of the period covered and so the provisioning process includes an element of estimation.
Bad debts/sales credit notes
In order to resolve a customer account and faciliate payment of debt, it is sometimes necessary to raise a sales credit note. It can take time to reach agreement in such cases which may result in a sales credit note being raised and recognised in a different financial period than the original sales invoice. There is an element of year end debtors which will be resolved post year end by way of sales credit notes. Provision has been made at the year end based on known historic data and assumes that the historic pattern of sales credit notes will continue unchanged.
Turnover
The company has entered into annual agreements with certain customers to provide advertising for no additional consideration over a 12 month period which extends past the financial year end. However, on the basis that there is no further cost to the company in providing this advertising in the future, no adjustment has been made to the financial statements.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2022
2021
£
£
Turnover analysed by class of business
Principal activity
6,706,290
3,946,979
2022
2021
£
£
Turnover analysed by geographical market
United Kingdom
6,706,290
3,946,979
2022
2021
£
£
Other significant revenue
Interest income
-
821
Grants received
409,051
The Stylist Group Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
- 18 -
4
Operating (loss)/profit
2022
2021
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(705)
6,571
Government grants
(409,051)
Fees payable to the company's auditor for the audit of the company's financial statements
21,985
20,940
Depreciation of owned tangible fixed assets
5,141
48,303
Loss on disposal of tangible fixed assets
857
2,251
Operating lease charges
647,012
An intercompany balance was formally waived prior to the year end, resulting in a credit to the profit and loss account of £506,709 (2021 - credit £17,167,193).
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Editorial
35
32
Commercial
15
17
Corporate
14
14
Digital
9
12
Events
3
6
Family
16
15
Video
2
3
Total
94
99
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
4,681,661
5,019,040
Social security costs
498,801
550,920
Pension costs
1,015
4,505
5,181,477
5,574,465
Redundancy payments made or committed
322,220
The Stylist Group Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
- 19 -
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
663,166
804,354
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2021 - 3).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2022
2021
£
£
Remuneration for qualifying services
334,815
334,815
Directors are also key management personnel.
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
821
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
821
8
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
(345,427)
(920,220)
Adjustments in respect of prior periods
543
192
Total current tax
(344,884)
(920,028)
Deferred tax
Origination and reversal of timing differences
19,923
16,068
Changes in tax rates
(29,508)
Adjustment in respect of prior periods
(171)
Total deferred tax
(9,585)
15,897
Total tax credit
(354,469)
(904,131)
The Stylist Group Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
8
Taxation (continued)
- 20 -
The actual credit for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
(Loss)/profit before taxation
(1,227,142)
12,409,319
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19% (2021: 19%)
(233,157)
2,357,771
Tax effect of expenses that are not deductible in determining taxable profit
3,928
Tax effect of income not taxable in determining taxable profit
(156)
Adjustments in respect of prior years
543
192
Effect of change in corporation tax rate
(29,508)
Deferred tax adjustments in respect of prior years
(171)
Intercompany waiver
(96,275)
(3,261,767)
Taxation credit for the year
(354,469)
(904,131)
Deferred tax is not recognised in respect of tax losses totalling £1,171,194 (2021 - £1,171,194) as it is not certain that they will be recovered against future taxable profits.
The Finance (No.2) Act 2015 reduced the main rate of UK corporation tax to 19% and this was effective from 1 April 2017. A further reduction in the UK corporation tax rate to 17% was expected to come into effect from 1 April 2020 (as enacted by the Finance Act 2016 on 15 September 2016). However, legislation introduced in the Finance Act 2020 (enacted on 22 July 2020) repealed the reduction of corporation tax, maintaining the current rate of 19%.
On 3 March 2021, the UK Budget 2021 announcements included measures to support economic recovery as a result of the ongoing COVID-19 pandemic. These included an increase to the UK’s main corporation tax rate to 25%, which is due to be effective from 1 April 2023. The 25% rate was granted Royal Assent on 10 June 2021 and so was substantively enacted at the balance sheet date. As a result the closing deferred tax balances as at 31 March 2022 are recognised at 25% (2021 - 19%).
The Stylist Group Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
- 21 -
9
Tangible fixed assets
Computer equipment
£
Cost
At 1 April 2021
251,513
Disposals
(76,555)
At 31 March 2022
174,958
Depreciation and impairment
At 1 April 2021
237,270
Depreciation charged in the year
5,141
Eliminated in respect of disposals
(75,699)
At 31 March 2022
166,712
Carrying amount
At 31 March 2022
8,246
At 31 March 2021
14,243
10
Fixed asset investments
2022
2021
£
£
Unlisted investments
1
1
In
vestments i
n subsidiary undertakings are held at cost in accordance with FRS 102.
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 April 2021 and 31 March 2022
1
Carrying amount
At 31 March 2022
1
At 31 March 2021
1
The Stylist Group Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
- 22 -
11
Subsidiaries
These financial statements are separate company financial statements for The Stylist Group Limited.
Details of the company's subsidiaries at 31 March 2022 are as follows:
Class of
Name of undertaking
Country of incorporation
Nature of business
shareholding
% Held
Urban Media Europe Limited
UK
Non-trading
Ordinary
100.00
12
Stocks
2022
2021
£
£
Raw materials and consumables
41,066
18,435
13
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,340,402
491,267
Corporation tax recoverable
1,265,104
1,627,012
Amounts due from group undertakings
24,093
Other debtors
20,000
Prepayments and accrued income
252,448
175,062
2,857,954
2,337,434
Deferred tax asset (note 16)
122,953
113,368
2,980,907
2,450,802
Amounts due from group undertakings have no fixed repayment terms and no interest applies.
14
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans and overdrafts
89,373
Trade creditors
238,329
264,532
Taxation and social security
304,877
231,001
Other creditors
6,635
33,487
Accruals and deferred income
574,484
407,986
1,213,698
937,006
The Stylist Group Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
- 23 -
15
Creditors: amounts falling due after more than one year
2022
2021
£
£
Other creditors
1,976,493
948,540
Other creditors represent an intercompany balance which is unsecured and no interest applies.
16
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Assets
Assets
2022
2021
Balances:
£
£
Accelerated capital allowances
122,953
113,368
2022
Movements in the year:
£
Asset at 1 April 2021
(113,368)
Charge to profit or loss
19,923
Effect of change in tax rate - profit or loss
(29,508)
Asset at 31 March 2022
(122,953)
17
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,015
4,505
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
113,954,000
113,954,000
1,139,540
1,139,540
''E' ordinary shares of 1p each
9,875
9,875
99
99
113,963,875
113,963,875
1,139,639
1,139,639
The Stylist Group Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
18
Share capital (continued)
- 24 -
Each ordinary share carries one vote and is entitled to participate pari passu with other ordinary shares (excluding E shares) in any dividend or capital distribution, except that on liquidation, surplus assets are to be distributed among the ordinary and E shares in the ratio 75:25 until the E shares have received their E share value. The ordinary shares are not redeemable at the option of the company or the holder.
19
Share premium account
Share premium accounts includes any premiums received on issued share capital. Any transactions costs associated with the issuing of shares are deducted from share premium.
20
Profit and loss reserves
Profit and loss reserves include all current and prior period retained profits and losses.
21
Financial commitments, guarantees and contingent liabilities
A fixed and floating charge is in place over the assets of the company.
22
Ultimate controlling party
The company is a wholly owned subsidiary of D.C. Thomson & Company Limited, a company incorporated in Great Britain and registered in Scotland.
There is no individual controlling party of D.C. Thomson & Company Limited.
2022-03-31
2021-04-01
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