Company Registration No. SC015256 (Scotland)
Aberdeen Journals Limited
Annual report and financial statements
for the year ended 31 March 2022
Aberdeen Journals Limited
Company information
Directors
CHW Thomson
DHE Thomson
Secretary
S Evans
Company number
SC015256
Registered office
The Courier Buildings
2 Albert Square
Dundee
Tayside
DD1 9QJ
Auditor
Henderson Loggie LLP
The Vision Building
20 Greenmarket
Dundee
DD1 4QB
Bankers
Bank of Scotland
2 West Marketgait
Dundee
DD1 1QN
Solicitors
James and George Collie LLP
1 East Craibstone Street
Aberdeen
AB11 6YQ
Aberdeen Journals Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 23
Aberdeen Journals 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 reflected a recovery from the trading conditions resulting from COVID-19 with advertising revenues up by 18%. Circulation revenues however fell by 4% as face price increases did not cover volume falls.
Direct production costs were up as material prices started to increase in line with inflation. This resulted in a small drop in gross margin as revenues were supported by digital subscription and advertising revenues which continue to increase.
Administrative expenses were up marginally year on year.
This led to an operating profit £5.1m (2021: £5.5m).
Principal risks and uncertainties
The outlook for print media remains challenging with inflationary pressures but as part of the DC Thomson Group the priorities are to continue protecting profits as gains in subscription and digital revenues continue.
This is being built from the centre with systems and training activities.
The company continues to devote appropriate resources to manage risks arising but also to exploit opportunities. The main commodity price risk the company faces is that of paper. The company enters into various arrangements at a Group level as appropriate to manage effectively the cost of paper and monitor the effects of potential inflation on all costs.
There is competition in the market in which the company operates. The challenges facing the company and competitors alike is to respond to the change in the industry. The company continues to seek innovative ways of attracting new revenues whilst at the same time ensuring control is exercised over the cost base. The internet offers the company, its competitors and the business segments it operates in a range of opportunities and threats.
The company continues to place considerable emphasis on environmental compliance and not only seeks to ensure on-going compliance with relevant legislation but also strives to ensure that environmental best practice is incorporated into its key processes. Wherever possible we will seek to eliminate use of hazardous chemicals. The company devotes management time to and reports on key environmental matters including specific energy consumption and packaging waste. No chemicals are discharged through the public waste system. Any effluent is removed by environmental recovery specialists.
The company monitors forthcoming legislation regularly and continues to manage proactively the operational and reporting requirements arising from legislation and an increasingly regulatory regime throughout its operations.
Aberdeen Journals Limited
Strategic report (continued)
for the year ended 31 March 2022
- 2 -
Key performance indicators
The key
performance indicators of
revenue, margin and costs are commented on above.
The company's staff resources are vital to its operational success and performance indicators are closely monitored including the number of accidents and time lost from injury, illness and otherwise. The company takes the safety of its staff very seriously and these indicators along with regular safety training and similar initiatives help ensure standards are maintained.
CHW Thomson
Director
28 October 2022
Aberdeen Journals Limited
Directors' report
for the year ended 31 March 2022
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2022.
Principal activities
The company is a wholly owned subsidiary of DC Thomson & Company Limited. The company's principal activities are the printing and publishing of newspapers in Aberdeen and the North of Scotland.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
AF Thomson
(Resigned 31 March 2022)
CHW Thomson
DHE Thomson
E Watson
(Resigned 1 April 2021)
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 the market conditions, competition, foreign currency risk, and legislative and compliance risks.
On behalf of the board
CHW Thomson
Director
28 October 2022
Aberdeen Journals Limited
Directors' responsibilities statement
for the year ended 31 March 2022
- 4 -
The directors are responsible for preparing the Strategic Report, Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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;
and
- 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.
Aberdeen Journals Limited
Independent auditor's report
to the members of Aberdeen Journals Limited
- 5 -
Opinion
We have audited the financial statements of Aberdeen Journals 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 profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
Aberdeen Journals Limited
Independent auditor's report (continued)
to the members of Aberdeen Journals Limited
- 6 -
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
.
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: Data Protection Act 2018; health and safety; employment law (including payroll and pension regulations); 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
Aberdeen Journals Limited
Independent auditor's report (continued)
to the members of Aberdeen Journals Limited
- 7 -
-
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 group board meeting minutes;
-
Inspecting key policies and procedures in place over data protection and health and safety;
-
Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to the carrying value of tangible fixed assets and trade debtors, along with the estimation of accruals; and
-
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
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.
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.
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
28 October 2022
Chartered Accountants
Statutory Auditor
The Vision Building
20 Greenmarket
Dundee
DD1 4QB
Aberdeen Journals Limited
Statement of comprehensive income
for the year ended 31 March 2022
- 8 -
2022
2021
Notes
£
£
Turnover
3
18,976,783
18,441,532
Cost of sales
(2,883,767)
(2,252,577)
Gross profit
16,093,016
16,188,955
Administrative expenses
(11,052,181)
(11,021,621)
Other operating income
46,272
331,473
Operating profit
4
5,087,107
5,498,807
Interest receivable and similar income
6
2,977
Profit before taxation
5,087,107
5,501,784
Tax on profit
7
(953,857)
(1,038,225)
Profit for the financial year
4,133,250
4,463,559
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
Aberdeen Journals Limited
Balance sheet
as at 31 March 2022
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
9
1,992,531
2,233,970
Current assets
Stocks
10
8,022
Debtors
11
13,224,595
9,549,715
Cash at bank and in hand
44,987
757
13,277,604
9,550,472
Creditors: amounts falling due within one year
12
(4,146,180)
(4,793,737)
Net current assets
9,131,424
4,756,735
Net assets
11,123,955
6,990,705
Capital and reserves
Called up share capital
15
10,001
10,001
Profit and loss reserves
16
11,113,954
6,980,704
Total equity
11,123,955
6,990,705
The financial statements were approved by the board of directors and authorised for issue on 28 October 2022 and are signed on its behalf by:
CHW Thomson
Director
Company Registration No. SC015256
Aberdeen Journals Limited
Statement of changes in equity
for the year ended 31 March 2022
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2020
10,001
50,517,145
50,527,146
Year ended 31 March 2021:
Profit and total comprehensive income for the year
-
4,463,559
4,463,559
Dividends
8
-
(48,000,000)
(48,000,000)
Balance at 31 March 2021
10,001
6,980,704
6,990,705
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
4,133,250
4,133,250
Balance at 31 March 2022
10,001
11,113,954
11,123,955
Aberdeen Journals Limited
Notes to the financial statements
for the year ended 31 March 2022
- 11 -
1
Accounting policies
Company information
Aberdeen Journals Limited is a
private
company
limited by shares
incorporated in
Scotland
.
The registered office is
The Courier Buildings, 2 Albert Square, Dundee, Tayside, DD1 9QJ.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash
f
low and related notes and disclosures
;
-
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel
and disclosure of transactions entered into between one or two members of the group on the basis that all parties are wholly owned within the group.
The financial statements of the company are consolidated in the financial statements of
D.C. Thomson & Company Limited
. These consolidated financial statements are available from its registered office
.
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, 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
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of sales related taxes and discounts. Advertising revenue is recognised on the date of publication and sales revenue is recognised at point of sale less provisions for levels of expected returns.
Revenue from interest is recognised as interest accrues using the effective interest method.
Aberdeen Journals Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
1
Accounting policies (continued)
- 12 -
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.
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:
Land and buildings leasehold
25 years straight line
Plant & Machinery
10 years straight line
Fixtures, fittings & equipment
4 to 10 years straight line
Computer equipment
4 to 10 years straight line
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
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.
1.6
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.
Aberdeen Journals Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
1
Accounting policies (continued)
- 13 -
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand
,
deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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.
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.
Aberdeen Journals Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
1
Accounting policies (continued)
- 14 -
Basic financial liabilities
Basic financial liabilities, including
creditors and
loans from
fellow group companies
,
are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
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.
1.9
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.
1.10
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.
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.
Aberdeen Journals Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
1
Accounting policies (continued)
- 15 -
1.11
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.
1.12
Retirement benefits
The pension scheme of which the company is a member is a defined benefit scheme operated by its parent company DC Thomson & Company Limited. As the parent company is legally responsible for the plan, it is accounted for as a defined contribution scheme by the company in accordance with section 28 of FRS 102. The pension cost charge represents contributions payable by the company to the scheme during the year.
1.13
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
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.
1.14
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.
1.15
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.
Aberdeen Journals Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
- 16 -
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Tangible fixed assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect the current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
Trade debtor recovery
Credit control is an important function which requires assessment, on an ongoing basis, of the recoverability of amounts due from debtors. Where recovery is in doubt, the directors will adequately provide against this specific debt and will arrive at such conclusions based on the knowledge of the debtor and their “ability to pay”. Management adopt a prudent approach to credit control.
Accruals
Management estimate requirements for accruals using post year end information and information available from detailed budgets. This identifies cost and income that are expected to be incurred. Accruals are only released where there is a reasonable expectation that these costs will not be invoiced in the future.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2022
2021
£
£
Turnover analysed by class of business
Newspapers
12,613,944
13,148,634
Advertising
5,425,025
4,601,185
Other income
937,814
691,713
18,976,783
18,441,532
Aberdeen Journals Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
3
Turnover and other revenue (continued)
- 17 -
2022
2021
£
£
Turnover analysed by geographical market
United Kingdom
18,800,587
18,340,377
Europe
174,924
66,355
Rest of the World
1,272
34,800
18,976,783
18,441,532
2022
2021
£
£
Other significant revenue
Interest income
-
2,977
Grants received
3,272
287,645
4
Operating profit
2022
2021
Operating 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
1,266
(160)
Government grants
(3,272)
(287,645)
Fees payable to the company's auditor for the audit of the company's financial statements
13,065
12,445
Depreciation of owned tangible fixed assets
241,439
325,869
Operating lease charges
824,231
693,291
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Administration and publishing
199
197
Aberdeen Journals Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
5
Employees (continued)
- 18 -
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
6,358,323
5,684,425
Social security costs
597,983
569,619
Pension costs
4,515
2,799
6,960,821
6,256,843
Redundancy payments made or committed
55,402
594,629
6
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
387
Other interest income
2,590
Total income
2,977
7
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
964,103
1,046,022
Adjustments in respect of prior periods
(8,027)
(9,509)
Total UK current tax
956,076
1,036,513
Foreign current tax on profits for the current period
1,065
Total current tax
956,076
1,037,578
Deferred tax
Origination and reversal of timing differences
4,916
647
Changes in tax rates
(40,734)
Adjustment in respect of prior periods
33,599
Total deferred tax
(2,219)
647
Total tax charge
953,857
1,038,225
Aberdeen Journals Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
7
Taxation (continued)
- 19 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit before taxation
5,087,107
5,501,784
Expected tax charge based on the standard rate of corporation tax in the UK of 19% (2021: 19%)
966,550
1,045,339
Tax effect of expenses that are not deductible in determining taxable profit
1,289
1,330
Adjustments in respect of prior years
(8,027)
(9,509)
Effect of overseas tax rates
1,065
Deferred tax adjustments in respect of prior years
33,599
Effect of change in deferred tax rate
(40,734)
Difference between corporation and deferred tax rates
1,180
Taxation charge for the year
953,857
1,038,225
8
Dividends
2022
2021
£
£
Final paid
48,000,000
Aberdeen Journals Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
- 20 -
9
Tangible fixed assets
Land and buildings leasehold
Plant & Machinery
Fixtures, fittings & equipment
Computer equipment
Motor Vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2021 and 31 March 2022
4,198,325
283,878
585,682
602,617
87,897
5,758,399
Depreciation and impairment
At 1 April 2021
2,042,212
283,878
524,027
586,415
87,897
3,524,429
Depreciation charged in the year
198,806
33,762
8,871
241,439
At 31 March 2022
2,241,018
283,878
557,789
595,286
87,897
3,765,868
Carrying amount
At 31 March 2022
1,957,307
27,893
7,331
1,992,531
At 31 March 2021
2,156,113
61,655
16,202
2,233,970
Investment properties rented to another group entity have been accounted for using the cost model. The carrying value of
these
investment properties included within tangible fixed assets
is £
937,343
(2021 - £
1,043,471
).
10
Stocks
2022
2021
£
£
Raw materials and consumables
8,022
11
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,226,132
1,438,513
Amounts owed by group undertakings
11,295,466
7,820,688
Other debtors
15,649
67,142
Prepayments and accrued income
556,139
94,381
13,093,386
9,420,724
Deferred tax asset (note 13)
131,209
128,991
13,224,595
9,549,715
Aberdeen Journals Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
- 21 -
12
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
46,368
(804)
Corporation tax
2,002,097
2,634,767
Other taxation and social security
179,719
162,281
Other creditors
7,528
16,258
Accruals and deferred income
1,910,468
1,981,235
4,146,180
4,793,737
13
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
117,651
110,461
Provisions
13,558
18,530
131,209
128,991
2022
Movements in the year:
£
Asset at 1 April 2021
(128,991)
Charge to profit or loss
38,516
Effect of change in tax rate - profit or loss
(40,734)
Asset at 31 March 2022
(131,209)
Aberdeen Journals Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
- 22 -
14
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
4,515
2,799
Aberdeen Journals Limited is a participating employer in its parent company scheme. D.C. Thomson & Company Limited is legally responsible for the scheme and there is no contractual agreement or stated policy for charging of costs associated with the scheme to Aberdeen Journals Limited. In accordance with section 28 of FRS 102, the scheme is therefore accounted for as a defined contribution scheme in these financial statements.
Contributions to the scheme are based on triennial valuations undertaken by a qualified actuary. Due to the surplus on the scheme there are currently no contributions required.
Aberdeen Journals Limited has taken advantage of the exemptions in section 28 of FRS 102 not to disclose details of the schemes assets and liabilities on the basis that these disclosures are included in the consolidated financial statements of the parent company D.C. Thomson & Company Limited, a copy of which can be obtained from its registered office.
15
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,001
10,001
10,001
10,001
Each ordinary share carries one vote and is entitled to participate pari passu with other ordinary shares in any dividend or capital distribution.
16
Profit and loss reserves
Profit and loss reserves include all current and prior period retained profits and losses.
17
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2021
£
£
Within one year
733,709
712,235
Between two and five years
2,859,504
2,713,002
In over five years
5,481,954
5,627,883
9,075,167
9,053,120
Aberdeen Journals Limited
Notes to the financial statements (continued)
for the year ended 31 March 2022
- 23 -
18
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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