Company registration number 06435597 (England and Wales)
INTERACTIVE WORLD WIDE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
PAGES FOR FILING WITH REGISTRAR
INTERACTIVE WORLD WIDE LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 8
INTERACTIVE WORLD WIDE LIMITED
STATEMENT OF FINANCIAL POSITION
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investments
5
1
1
Current assets
Debtors
7
35,070
38,315
Cash at bank and in hand
5,445
5,453
40,515
43,768
Creditors: amounts falling due within one year
8
(4,583,382)
(2,519,314)
Net current liabilities
(4,542,867)
(2,475,546)
Total assets less current liabilities
(4,542,866)
(2,475,545)
Creditors: amounts falling due after more than one year
9
(2,000,000)
(4,010,000)
Net liabilities
(6,542,866)
(6,485,545)
Capital and reserves
Called up share capital
10
21,053
21,053
Share premium account
4,498,947
4,498,947
Profit and loss reserves
(11,062,866)
(11,005,545)
Total equity
(6,542,866)
(6,485,545)
The director of the company has elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 18 December 2023 and are signed on its behalf by:
A LeJune
Director
Company Registration No. 06435597
INTERACTIVE WORLD WIDE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
- 2 -
1
Accounting policies
Company information
Interactive World Wide Limited is a private company limited by shares incorporated in England and Wales. The registered office is Buchanan House, 30 Holborn, London, EC1N 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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
Interactive World Wide Limited is an indirectly wholly owned subsidiary of Global University Systems Holding B.V. and the results of Interactive World Wide Limited are included in the consolidated financial statements of Global University Systems Holding B.V. which are available from Passeerdersgracht 23, 1016 XG Amsterdam, The Netherlands.
1.2
Going concern
The financial statements have been prepared on a going concern basis which the director believes to be appropriate for the following reason. At the year end the company had net liabilities of £6,542,866. The company is reliant on the support of other group companies as a result of the way that the group is financed. Global University Systems Holding B.V. has agreed to continue to provide financial and other support to the company for the foreseeable future to enable it to continue to trade and meet all of its debts as and when they fall due.
As a result, having assessed the response of the directors of Global University Systems Holding B.V., in light of its support and on the basis of the director's assessment of the company's financial position and Global University Systems Holding B.V.´s financial position, the director has a reasonable expectation that the company will be able to continue in operational existence for the foreseeable future and continue to adopt the going concern basis of accounting in preparing the financial statements.
In addition, the company has obtained further comfort from GUS Study Abroad Ltd, a fellow subsidiary of Global University Systems Holding B.V. and the major creditor, that they will not seek repayment of loans and advances within 12 months of the date of approval of these financial statements unless the company has sufficient funds to repay it.
1.3
Turnover
Revenue comprises the fair value of the sales of ebooks, net of discounts. Revenue is recognised in the month in which the ebook was electronically delivered the customer.
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.
INTERACTIVE WORLD WIDE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
1
Accounting policies
(Continued)
- 3 -
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life. The policies have been set out as follows:
Motor vehicles
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 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.
1.6
Cash and cash equivalents
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.
1.7
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 statement of financial position 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.
The company does not enter into any transactions that can be classified as other financial assets, including equity instruments which are not subsidiaries, associates or joint ventures.
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.
INTERACTIVE WORLD WIDE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
1
Accounting policies
(Continued)
- 4 -
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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments and the company did not enter into any such transactions that can be classified as other financial liabilities.
1.8
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.
1.9
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 income statement 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.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
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.
1.11
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
INTERACTIVE WORLD WIDE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
- 5 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The key judgement applied by management is in respect of the company's ability to continue as a going concern which is addressed in Note 1.2.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
1
1
4
Tangible fixed assets
Fixtures, fittings, equipment & platforms
£
Cost
At 1 August 2021
2,209,863
Disposals
(2,184,349)
At 31 July 2022
25,514
Depreciation and impairment
At 1 August 2021
2,209,863
Eliminated in respect of disposals
(2,184,349)
At 31 July 2022
25,514
Carrying amount
At 31 July 2022
At 31 July 2021
INTERACTIVE WORLD WIDE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
- 6 -
5
Fixed asset investments
2022
2021
£
£
Investments
1
1
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 August 2021 & 31 July 2022
1
Carrying amount
At 31 July 2022
1
At 31 July 2021
1
6
Subsidiaries
Separate company financial statements are required to be prepared by law. Consolidated financial statements for Global University Systems Holding B.V. are publicly available.
Details of the company's subsidiary at 31 July 2022 are as follows:
Name of undertaking
Country of incorporation
Nature of business
Class of
% Held
shares held
Direct
Pearl Estate Management Limited
England and Wales
Technical and vocational secondary education
Ordinary share capital
100.00
7
Debtors
2022
2021
Amounts falling due within one year:
£
£
Other debtors
35,070
38,315
8
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
33,356
5,394
Amounts owed to group undertakings
2,377,000
1,448,699
Corporation tax
9,765
Other taxation and social security
114,436
Other creditors
2,048,825
1,065,221
4,583,382
2,519,314
INTERACTIVE WORLD WIDE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
- 7 -
9
Creditors: amounts falling due after more than one year
2022
2021
£
£
Other creditors
2,000,000
4,010,000
10
Called up share capital
2022
2021
£
£
Ordinary share capital
Issued and fully paid
2,000,000 A Ordinary shares and 105,300 B Non-voting ordinary shares of 1p each
21,053
21,053
21,053
21,053
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Joseph Brewer
Statutory Auditor:
Gravita Audit Limited
12
Financial commitments and guarantees
The company acts, along with other group companies, as guarantor on a lease held by Interactive Pro Limited, a group company. The directors consider that no material exposure arises as a result of the guarantee.
13
Contingent liabilities
In 2018 HMRC opened an enquiry into historic VAT treatments applied by certain entities in the Global University Systems group, including Interactive World Wide Limited. The Board are of the view that directives relating to the application of VAT as it applies to education services is open to varying interpretations by HMRC, tax tribunals and courts. As at the year end, appeals were continuing and so no final resolution had been reached in respect of the enquiry. Therefore the Directors consider the outcome of the enquiry, which could include interest and penalties in addition to any assessed VAT liability, to be uncertain.
14
Related party transactions
At the year end, the company was owed £25,508 (2021: £25,508) by senior management of the Global University Systems group, to which the company belongs.
The company has taken advantage of the exemption allowed in FRS 102 and has not disclosed details of related party transactions with 100% owned entities within the group.
INTERACTIVE WORLD WIDE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
- 8 -
15
Events after the reporting date
After the year end, HMRC closed enquiries into certain of the company's tax filings in respect of earlier accounting periods, resulting in the payment of additional taxes of £114,436. This has been reflected as an adjusting event and is reflected in the balance sheet accordingly. The crystallisation of potential associated penalties is uncertain.
The directors are of the opinion that there were no other significant adjusting or non-adjusting events occurring after the reporting date.
16
Parent company
The immediate parent undertaking is Global University Systems Holding B.V., a company incorporated in The Netherlands.
The ultimate controlling party is The Heritage Trust, registered in Guernsey.
The smallest group into which the entity is consolidated is Global University Systems Holding B.V., a company registered in The Netherlands. The largest group into which the entity is consolidated is Academic Bridge B.V., a company registered in The Netherlands. The registered office address of both parent companies is Passeerdersgracht 23, 1016 XG, Amsterdam, the Netherlands.
17
Settlement of commercial dispute
During the year, the company settled a commercial dispute for £5,020,000, which had been recognised as an expense and accrual in the prior period. During the year, £1,010,000 of the settlement was paid (2021: £nil) and outstanding liabilities of £4,010,000 remained at 31 July 2022.
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