Company registration number 01736668 (England and Wales)
JOHN LIBBEY EUROTEXT PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
JOHN LIBBEY EUROTEXT PLC
COMPANY INFORMATION
Directors
G Cahn
B Cahn
Secretary
B Cahn
Company number
01736668
Registered office
34 Anyards Road
Cobham
Surrey
KT11 2LA
Auditor
Riches and Company
34 Anyards Road
Cobham
Surrey
KT11 2LA
JOHN LIBBEY EUROTEXT PLC
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
JOHN LIBBEY EUROTEXT PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -
The directors present the strategic report for the year ended 31 December 2022.
Review of the business
The directors are pleased to report that during 2022 the company maintained its increased turnover in all elements of the trading activity, albeit achieving a lower gross profit than the prior year. The company continues to restrict costs where possible and has again achieved a net profit for the year.
Principal risks and uncertainties
The principal risks and uncertainties experienced by the company continue to be the restrictions on revenue streams relating to the sales of books, partly mitigated by the strength of the company in production and sale of medical journals. The directors recognise that increased restrictions in France on advertising revenue in relation to medical publications has had an impact on the total market in France, which represents the majority of the company's customer base. However, the company has maintained its market share in 2022 and the new corporate website went live during the year, which has significantly enhanced the online capabilities going forward.
Development and performance
The directors are of the opinion that the company has had another successful year in 2022 and is well placed to continue improving its market reach and activity levels in the coming years. They do, however, continue to take a cautious view of the company’s trading position and remain vigilant to keep performance under tight review and to making cost savings where possible.
Ukraine war and resulting inflationary pressures
The Ukraine war that started in the early months of 2022 has had wide spread impacts across most business sectors, including implications for the company mainly due to inflationary pressures on its cost base. The directors consider that the company has sufficient financial resources to meet these pressures and will continue to make profits in 2023 and beyond.
B Cahn
Director
26 June 2023
JOHN LIBBEY EUROTEXT PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2022.
Principal activities
The principal activity of the company in the year under review was that of production and distribution of books and magazines in Europe, primarily in France.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were approved amounting to £26,556. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
G Cahn
B Cahn
Auditor
The auditors, Riches and Company, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.
On behalf of the board
B Cahn
Director
26 June 2023
JOHN LIBBEY EUROTEXT PLC
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
JOHN LIBBEY EUROTEXT PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JOHN LIBBEY EUROTEXT PLC
- 4 -
Opinion
We have audited the financial statements of John Libbey Eurotext plc (the 'company') for the year ended 31 December 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows 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 Financial Reporting Standard 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 December 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.
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' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
JOHN LIBBEY EUROTEXT PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JOHN LIBBEY EUROTEXT PLC
- 5 -
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 identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which 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' responsibilities statement, 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is 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.
We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, health and safety and employment law.
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 perpetuated, and tailored our risk assessment accordingly.
Using our knowledge of the company, together with the discussions held with the company 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:
Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to depreciation and impairment of fixed assets.
Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
Testing key revenue lines, in particular cut-off, for evidence of management bias.
Obtaining third-party confirmation of material bank balances.
Reviewing other documentation irregularities including fraud.
JOHN LIBBEY EUROTEXT PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JOHN LIBBEY EUROTEXT PLC
- 6 -
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.
Rebecca White
Senior Statutory Auditor
For and on behalf of Riches and Company
26 June 2023
Chartered Accountants
Statutory Auditor
34 Anyards Road
Cobham
Surrey
KT11 2LA
JOHN LIBBEY EUROTEXT PLC
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
2022
2021
Notes
£
£
Turnover
3
4,302,966
4,391,042
Cost of sales
(3,039,552)
(2,508,171)
Gross profit
1,263,414
1,882,871
Administrative expenses
(619,177)
(1,094,348)
Operating profit
4
644,237
788,523
Interest receivable and similar income
7
116,928
31,651
Interest payable and similar expenses
8
(341)
(831)
Profit before taxation
760,824
819,343
Tax on profit
9
(187,851)
(219,181)
Profit for the financial year
572,973
600,162
The profit and loss account has been prepared on the basis that all operations are continuing operations.
JOHN LIBBEY EUROTEXT PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
2022
2021
£
£
Profit for the year
572,973
600,162
Other comprehensive income
Currency translation gain/(loss) taken to retained earnings
126,650
(119,214)
Total comprehensive income for the year
699,623
480,948
JOHN LIBBEY EUROTEXT PLC
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
12
194,093
200,677
Current assets
Stocks
13
204,572
234,997
Debtors
14
1,477,425
1,433,000
Cash at bank and in hand
3,084,880
3,004,521
4,766,877
4,672,518
Creditors: amounts falling due within one year
15
(2,029,014)
(2,607,199)
Net current assets
2,737,863
2,065,319
Total assets less current liabilities
2,931,956
2,265,996
Creditors: amounts falling due after more than one year
16
(7,107)
Net assets
2,931,956
2,258,889
Capital and reserves
Called up share capital
17
50,000
50,000
Profit and loss reserves
2,881,956
2,208,889
Total equity
2,931,956
2,258,889
The financial statements were approved by the board of directors and authorised for issue on 26 June 2023 and are signed on its behalf by:
B Cahn
Director
Company Registration No. 01736668
JOHN LIBBEY EUROTEXT PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2021
50,000
1,727,941
1,777,941
Year ended 31 December 2021:
Profit for the year
-
600,162
600,162
Other comprehensive income:
Currency translation differences
-
(119,214)
(119,214)
Total comprehensive income for the year
-
480,948
480,948
Balance at 31 December 2021
50,000
2,208,889
2,258,889
Year ended 31 December 2022:
Profit for the year
-
572,973
572,973
Other comprehensive income:
Currency translation differences
-
126,650
126,650
Total comprehensive income for the year
-
699,623
699,623
Dividends
10
-
(26,556)
(26,556)
Balance at 31 December 2022
50,000
2,881,956
2,931,956
JOHN LIBBEY EUROTEXT PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
168,419
1,077,446
Interest paid
(341)
(831)
Income taxes paid
(187,851)
(219,181)
Net cash (outflow)/inflow from operating activities
(19,773)
857,434
Investing activities
Purchase of tangible fixed assets
(74,916)
(51,393)
Proceeds from disposal of subsidiaries
1
Interest received
116,928
31,651
Net cash generated from/(used in) investing activities
42,012
(19,741)
Financing activities
Repayment of bank loans
(41,974)
(48,979)
Dividends paid
(26,556)
Net cash used in financing activities
(68,530)
(48,979)
Net (decrease)/increase in cash and cash equivalents
(46,291)
788,714
Cash and cash equivalents at beginning of year
3,004,521
2,335,022
Effect of foreign exchange rates
126,650
(119,215)
Cash and cash equivalents at end of year
3,084,880
3,004,521
JOHN LIBBEY EUROTEXT PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
1
Accounting policies
Company information
John Libbey Eurotext plc is a company limited by shares incorporated in England and Wales. The registered office is 34 Anyards Road, Cobham, Surrey, KT11 2LA and the principal place of business is 30 rue Berthollet, 94110 Arcueil, Paris, France.
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; the functional currency of the company is the Euro. 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.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
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:
Plant and machinery
25% reducing balance
Motor vehicles
25% reducing balance
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.
JOHN LIBBEY EUROTEXT PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
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.
1.8
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.
JOHN LIBBEY EUROTEXT PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
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.
JOHN LIBBEY EUROTEXT PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is French jurisdiction corporate tax 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 French tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is provided in full in respect of taxation deferred by significant timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
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.
JOHN LIBBEY EUROTEXT PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.13
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All realised foreign exchange differences are charged to the profit and loss account for the year. Exchange differences on re-conversion from functional currency are treated as movements on the statement of total recognised gains and losses.
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.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2022
2021
£
£
Turnover analysed by class of business
Sale of medical publications
4,302,966
4,391,042
2022
2021
£
£
Turnover analysed by geographical market
European Union
3,929,091
4,079,269
Rest of the world
373,875
311,773
4,302,966
4,391,042
2022
2021
£
£
Other revenue
Interest income
116,928
31,651
JOHN LIBBEY EUROTEXT PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(16,259)
13,691
Fees payable to the company's auditor for the audit of the company's financial statements
6,000
4,000
Depreciation of owned tangible fixed assets
81,500
42,352
Operating lease charges
211,027
163,500
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Production
21
19
Administration
7
8
Total
28
27
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
1,742,311
1,664,922
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
152,136
143,567
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
116,928
31,651
2022
2021
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
116,928
31,651
JOHN LIBBEY EUROTEXT PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
8
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
341
831
9
Taxation
2022
2021
£
£
Current tax
Foreign current tax on profits for the current period
187,851
219,181
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
760,824
819,343
Expected tax charge based on the standard rate of corporation tax in France of 26.50% (2021: 26.50%)
201,618
217,126
Tax effect of expenses that are not deductible in determining taxable profit
1,477
1,477
Effect of change in corporation tax rate
(3,680)
(3,680)
Foreign exchange differences
(11,564)
4,258
Tax expense for the year
187,851
219,181
10
Dividends
2022
2021
£
£
Final payable
26,556
JOHN LIBBEY EUROTEXT PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 19 -
11
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2022 and 31 December 2022
16,707
Amortisation and impairment
At 1 January 2022 and 31 December 2022
16,707
Carrying amount
At 31 December 2022
At 31 December 2021
12
Tangible fixed assets
Assets under construction
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2022
73,622
285,561
32,826
392,009
Additions
14,812
60,104
74,916
Transfers
(73,622)
73,622
At 31 December 2022
373,995
92,930
466,925
Depreciation and impairment
At 1 January 2022
175,683
15,649
191,332
Depreciation charged in the year
62,178
19,322
81,500
At 31 December 2022
237,861
34,971
272,832
Carrying amount
At 31 December 2022
136,134
57,959
194,093
At 31 December 2021
73,622
109,878
17,177
200,677
13
Stocks
2022
2021
£
£
Finished goods and goods for resale
204,572
234,997
JOHN LIBBEY EUROTEXT PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
14
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,241,598
1,220,632
Other debtors
82,916
65,425
Prepayments and accrued income
152,911
146,943
1,477,425
1,433,000
15
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans
7,494
42,361
Trade creditors
1,411,248
1,434,181
Other creditors
319,256
808,062
Accruals and deferred income
291,016
322,595
2,029,014
2,607,199
The long-term loans are unsecured.
16
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans
7,107
17
Share capital
2022
2021
£
£
Ordinary share capital
Issued and fully paid
50,000 Ordinary shares of £1 each
50,000
50,000
18
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
£
£
In over five years
403,647
481,210
JOHN LIBBEY EUROTEXT PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
19
Cash generated from operations
2022
2021
£
£
Profit for the year after tax
572,973
600,162
Adjustments for:
Taxation charged
187,851
219,181
Finance costs
341
831
Investment income
(116,928)
(31,651)
Depreciation and impairment of tangible fixed assets
81,500
42,352
Movements in working capital:
Decrease/(increase) in stocks
30,425
(30,661)
(Increase)/decrease in debtors
(44,425)
92,384
(Decrease)/increase in creditors
(543,318)
184,848
Cash generated from operations
168,419
1,077,446
20
Analysis of changes in net funds
1 January 2022
Cash flows
Exchange rate movements
31 December 2022
£
£
£
£
Cash at bank and in hand
3,004,521
(46,291)
126,650
3,084,880
Borrowings excluding overdrafts
(49,468)
41,974
-
(7,494)
2,955,053
(4,317)
126,650
3,077,386
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