Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2020
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BUZZFEED UK LIMITED
CONTENTS
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BUZZFEED UK LIMITED
COMPANY INFORMATION
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BUZZFEED UK LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
The directors present their group strategic report on BuzzFeed UK Limited (“the group”) for the year ended 31 December 2020.
BuzzFeed is a digital media company with social, content-driven publishing technology. The group derives its revenue primarily from social content advertising sold to leading brands. The results for the year and the financial position at the year end are in line with the directors’ expectations of the group.
In addition to its operations in the UK, during the year the group also operated in Brazil, Germany, Japan, Mexico and India. The group’s foreign offices generally include editorial and content creation teams, with a focus on growing their audience in each respective market and generating revenue opportunities. Throughout 2020, the group maintained its commitment to mitigate its losses and preserve its international presence where possible. As part of this strategy to streamline global operations, the group sold its operations in Germany through an asset sale in August 2020 and sold its subsidiary in Brazil through a share sale in October 2020. There was nominal cash consideration received in respect of these two disposals, and a consolidated net loss on disposal of £0.7m (gross loss of £5.3m in the UK parent company) in respect of Brazil.
The COVID-19 pandemic has contributed towards the reduction in group turnover which was £18.9m for the year, a decrease of 16% from £22.4m in 2019 and continued economic and political uncertainty has provided a challenging environment for most of the group entities to operate in. Despite an overall reduction in turnover, the group was able to reduce its operating loss from £7.4m in 2019 to £2.9m in 2020. The primary driver of the reduction in the group’s loss was a significant reduction of its costs including, but not limited to, the divestment of the aforementioned international entities part way through the year. The group’s operations in Japan have performed well and ahead of expectations, with significant sales growth and profit being generated in that particular area of the business.
The group’s net liabilities reduced to £10.1m for the year from £11.3m in 2019, largely due to the elimination of liabilities previously associated with the Brazil entity.
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the group as a whole, as well as the group’s contribution to the wider BuzzFeed organisation and support of the brand. These may include, but are not limited to, turnover from in market customers, operating profit and profit on ordinary activities before taxation as set out in the profit and loss account.
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BUZZFEED UK LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
The directors consider the following to be the principal risks and uncertainties facing the group. The directors and the ultimate parent company BuzzFeed, Inc. actively manage these risks and ensure that there are appropriate policies in place in order to mitigate these risks.
Market risk The group’s exposure to market risk derives from the financial position of companies wanting to engage the BuzzFeed audience. Advertising revenues represent a significant percentage of total revenue for the group therefore changes in advertising strategies, or a reduction in advertising spend, of these companies may adversely affect future revenues and growth. Competitive risk The group operates in a market in which there is significant competition from other publishers and agencies. The continued production and distribution of innovative content, as well as diversification of revenue streams, are essential to maintaining high levels of user engagement and therefore future growth. Supplier risk The distribution of content via a number of third party platforms facilitates the generation of advertising revenue. The unexpected loss of any such platforms could adversely affect the group’s revenues and operating results. Regulatory and economic risk Changes in regulatory environments, local political and economic conditions, fluctuations in foreign currency exchange rates and changes to tariffs or other trade barriers. Due to the group’s activities including but not limited to reporting and investigative journalism, it is subject to inherent litigation risk.
On March 11, 2020, the World Health Organization declared the outbreak of coronavirus (“COVID-19”) a pandemic. The COVID-19 pandemic has created, and may continue to create, significant uncertainty in the macroeconomic conditions which may cause business slowdowns, depress demand for the group’s advertising business and adversely impact its operations. As of the date of signing these financial statements, the group’s management continues to be proactive in its work towards mitigating these effects as far as possible. The effective management of cash and costs continues to be paramount in sustaining international operations.
In February 2021 the group’s parent company, BuzzFeed, Inc., acquired theHuffingtonPost.com and is in the process of integrating its international operations with its own. The directors do not expect any significant impact to the UK group as a result of the acquisition.
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BUZZFEED UK LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
Statement by the directors on performance of their statutory duties in accordance with S172 (1)Companies Act 2006
Section 172 (1)(a) to (f) requires the directors to act in the way they consider would be most likely to promote the success of the company for the benefit of its members, as a whole, with regard to the following matters: a) The likely consequences of any decision in the long-term The directors understand the business and group activities and therefore the evolving digital media environment in which they operate. The long-term strategy set by the directors is to further accelerate turnover by continued innovation of new products in current streams such as native and expanding into new areas such as media sales and affiliate marketing. b) The interests of the company's employees The directors recognise that employees are fundamental to the success of the group. Directors are committed to providing a safe and respectful work environment free of any form of discrimination, harassment and intimidation. The BuzzFeed group has initiatives in place around Diversity, Inclusion and Belonging and continues to be committed to diverse representation among its employees. At current, the majority of the group’s employees continue to work from home due to the COVID-19 pandemic. The directors acknowledge the ongoing lack of a traditional office environment and in-person interactions with colleagues can be isolating. The group’s management keeps employees updated on mental health resources available to them, as well as encouraging employees to take a ‘Self-Care Day’ once a month in addition to their vacation allowance. c) The need to foster the company's business relationships with suppliers, customers and others With whom the group does business is continuously assessed to determine if they comply with BuzzFeed’s guiding principles including but not limited to being ethical and honest, treating others fairly, and law abiding. d) The impact of the company's operations on the community and environment Through its audience-led approach to messaging and distribution, BuzzFeed strives to create content that has a positive impact on people’s lives and empowers communities to highlight crucial issues that affect them. e) The desirability of the company maintaining a reputation for high standards of business conduct The directors periodically review and approve clear frameworks such as BuzzFeed’s Code of Conduct to ensure that its high standards are maintained both within the group and the business relationships it maintains. f) The need to act fairly as between members of the company The directors consider which course of action best enables delivery of the group’s strategy through the long-term, taking into consideration the impact on key stakeholders. The group is a wholly owned subsidiary of BuzzFeed, Inc. and the directors of the group have regular and open dialogue with its representatives. |
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BUZZFEED UK LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
This report was approved by the board
and signed on its behalf.
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BUZZFEED UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
The directors present their report and the financial statements for the year ended 31 December 2020.
The loss for the year, after taxation and minority interests, amounted to £
4,278,248
(2019 -
loss
£
7,939,137
)
.
The directors do not recommend a dividend (2019: £NIL).
The directors who served during the year were:
As permitted by Section 414c(11) of the Companies Act 2006, the directors have elected to disclose information required to be in the directors' report by Schedule 7 of the 'Large and Medium-sized Companies and Group (Accounts and Reports) Regulations 2008', in the strategic report.
This report was approved by the board and signed on its behalf.
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BUZZFEED UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2020
The directors are responsible for preparing the group strategic report, the directors' report and the
consolidated
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), 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 the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙
select suitable accounting policies for the group's financial statements 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 group 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 the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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BUZZFEED UK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BUZZFEED UK LIMITED
FOR THE YEAR ENDED 31 DECEMBER 2020
We have audited the financial statements of BuzzFeed UK Limited (the 'parent company') and its subsidiaries (the 'Group') for the year ended 31 December 2020, which comprise the consolidated profit and loss account, the consolidated statement of comprehensive income, the consolidated and company balance sheets, the consolidated statement of cash flows, the consolidated and company statement of changes in equity,
and notes to the financial statements including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards,
including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 group 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 group's or the parent 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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BUZZFEED UK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BUZZFEED UK LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. 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.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the group 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 group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the group strategic report or the directors' report.
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BUZZFEED UK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BUZZFEED UK LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
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 Group 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:
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
∙
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
∙
we identified the laws and regulations applicable to the parent company and group through discussions with directors and other management, and from our commercial knowledge and experience of the media and technology sector;
∙
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the parent company and group, including the Companies Act 2006 and taxation legislation;
∙
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
∙
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
∙
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
∙
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
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BUZZFEED UK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BUZZFEED UK LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
To address the risk of fraud through management bias and override of controls, we:
∙
performed analytical procedures to identify any unusual movements;
∙
tested journal entries to identify unusual transactions;
∙
assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 were indicative of potential bias; and
∙
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
∙
agreeing financial statement disclosures to underlying supporting documentation;
∙
enquiring of management as to actual and potential litigation and claims; and
There are inherent limitations in our audit procedures described above. The more removed that 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 enquiry 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.
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 auditor's report.
This report is made solely to the company's members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
16 Great Queen Street
Covent Garden
WC2B 5AH
Date: |
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BUZZFEED UK LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2020
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BUZZFEED UK LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2020
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CONSOLIDATED BALANCE SHEET
AS AT
31 DECEMBER 2020
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 21 to 41 form part of these financial statements.
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COMPANY BALANCE SHEET
AS AT
31 DECEMBER 2020
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own profit and loss account in these financial statements. The loss for the year within the accounts of the company was £8,764,102 (2019: £6,596,106).
The financial statements were approved and authorised for issue by the board and were signed on its behalf by :
The notes on pages 21 to 41 form part of these financial statements.
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BUZZFEED UK LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2020
- 16 -
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BUZZFEED UK LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2019
- 17 -
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BUZZFEED UK LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2020
- 18 -
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BUZZFEED UK LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020
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BUZZFEED UK LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
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BUZZFEED UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
BuzzFeed UK Limited is a private company limited by shares incorporated in England and Wales. The address of its registered office is 5 New Street Square, London, EC4A 3TW. The address of its principal place of business is Floor 1, Counting House, 53 Tooley Street, London, SE1 2QN.
The financial statements are prepared in Sterling (£).
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 ('FRS 102') 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 group management to exercise judgment in applying the group's accounting policies (see note 3). The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own profit and loss account in these financial statements. BuzzFeed UK Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its separate financial statements. Exemptions have been taken in relation to share-based payments, financial instruments, presentation of a cash flow statement and remuneration of key management personnel. The following principal accounting policies have been applied:
The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.
The financial statements have been prepared on a going concern basis notwithstanding the fact that the group has recorded a loss of £3.7m in the year and has a deficiency on shareholder's funds of £10.1m at the end of the year. The directors have received assurances of the continued support of the group's ultimate parent and primary debt holder for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. The net amounts owed to group undertakings and related parties amounted to £18.4m at the end of the year.
In making that assessment the directors have also considered the impact of the COVID-19 pandemic on the company's operations, and have assessed the group's growth targets and cashflow forecasts. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements. |
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BUZZFEED UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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BUZZFEED UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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 bases:
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.
The Group has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the Group becomes party to the contractual provisions of the instrument. 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 Group after deducting all of its liabilities.
The Group’s policies for its major classes of financial assets and financial liabilities are set out below.
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BUZZFEED UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances, intercompany working capital balances, and intercompany financing 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Financial liabilities
Basic financial liabilities, including trade and other creditors, 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 payments discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. 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. |
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BUZZFEED UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
Derecognition of financial assets and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.
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.
Functional and presentation currency
Transactions and balances
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BUZZFEED UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
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 group 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 change in the fair value of the options, measured immediately before and after the modification, is also charged or credited to consolidated profit and loss account over the remaining vesting period. Where equity instruments are granted to persons other than employees, the consolidated profit and loss account is charged with fair value of goods and services received. |
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BUZZFEED UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income. 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 the financial statements. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Impairment of investments: In preparing these financial statements, the directors have exercised judgement in determining whether there are indicators of impairment of the parent company's investment in subsidiary entities. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of each subsidiary, and such impairment assessments are inherently judgemental. Provision for bad debts: In preparing these financial statements, the directors have exercised judgement in determining whether there are indicators of irrecoverable debts which require a provision. Factors taken into consideration in reaching such a decision include the age of the debt, the credit terms and the economic viability of the debtor, and such impairment assessments are inherently judgemental. |
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BUZZFEED UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
The whole of the turnover is attributable to the principal activity of the group.
Analysis of turnover by country of destination:
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BUZZFEED UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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BUZZFEED UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
7.
Taxation (continued)
In the Spring Budget 2020 on, the Government announced that from 1 April 2020 the corporation tax rate would remain at 19% (rather than reducing to 17%, as previously enacted). This new law was substantively enacted on 17 March 2020.
As the proposal to keep the rate at 19% had not been substantively enacted at the balance sheet date, its effects are not included in these financial statements. There is a potential deferred tax asset of approximately £3.5m (2019: £4.4m) in respect of carried forward trading losses, which has not been recognised in the financial statements due to the uncertainty concerning the timescale as to its recoverability. |
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BUZZFEED UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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BUZZFEED UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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BUZZFEED UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
9.
Tangible fixed assets (continued)
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BUZZFEED UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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BUZZFEED UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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BUZZFEED UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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BUZZFEED UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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BUZZFEED UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
On 26 October 2020, the company issued one ordinary share with nominal value of £1 for total consideration of £5,366,482.
Share premium account
The share premium reserve includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.
Foreign exchange reserve
The foreign exchange reserve comprises translation differences arising from the conversion of functional currency balances into the presentational currency of the group. Share based payment reserve The shared based payment reserve represents the fair value of unexercised options granted to employees that have been recognised as an expense.
Profit and loss account
The profit and loss account includes all current and prior period retained profits and losses. |
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BUZZFEED UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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BUZZFEED UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £361,625 (2019: £429,842). Contributions totalling £1,428 (2019: £57,016) were payable to the fund at the balance sheet date and are included in creditors.
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BUZZFEED UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
The company has taken advantage of the exemption contained in FRS 102 section 33 "Related Party Disclosures" from disclosing transactions with entities which are a wholly owned part of the group.
Transactions with other related parties are as follows:
Amounts owed are unsecured, interest free and repayable within one year.
At 31 December 2020, the company was owed £791,021 (2019: £743,357) in loan notes with a non-wholly owned subsidiary of the company, of which £219,728 (2019: £nil) is due in more than one year; and the company was owed £668,215 (2019: nil) in intercompany balances with a non-wholly owned subsidiary of the company. Key management compensation
Key management personnel of the group are considered to be the directors of the company. During the year no director received any remuneration from the company or its subsidiaries.
The parent undertaking for the largest group of undertakings for which group financial statements are drawn up and of which the company is a member is
The ultimate controlling party is |