Incisive_Business_Media_L - Accounts

The directors present the strategic report for the year ended 31 December 2022.

The Company's principal activity is the provision of information, analysis and events for the asset management, financial services, enterprise technology and sustainability sectors. We deliver this information via a variety of platforms including websites, live and digital events, and both digital and printed editions. Our major brands include Investment Week, Professional Adviser, Professional Pensions, CRN (Computer Reseller News), Computing and Business Green.

In 2022, the Incisive Media group was acquired by Arc Media Holdings Limited and joined the Arc group. The acquisition predicated some changes within the Incisive Media group. In the existing IM structure some historical Intellectual Property (IP) relating to brands trading under IBM were held in Incisive Business Media IP Ltd (IBMIP), the parent of IBM. IBM traded using this IP through license. On 31 May 2022 the right to any IP licenses relating to the Tech brands were transferred from IBMIP to IBM in exchange for a share in IBM. On the same day, IBM sold the trade and assets relating to the Tech division to TCCE in exchange for shares in TCCE. The company TCCE then commenced trading. On 30 June 2022, IBM sold 100% of the share capital in TCCE to The Channel Company International Limited.

From this date on the IM Group owns no trade or assets relating to the Tech division, which comprise of the brands Computing, CRN, and Channel Partner Insight.

The results for the Company show turnover of £18.9m (2021 - £22.5m) and an operating profit of £1.6m (2021 - £2.7m) for the year ended 31 December 2022. The drop in revenue and profits are due to the sale of the tech business as described above. The underlying revenues relating to the financial services and sustainability sectors continued to grow year on year.

The Directors monitor the performance of the business by reference to key financial performance indicators. These indicators include revenue, contribution and earnings before tax, depreciation and amortisation (EBITDA) as shown in the financial statements. In addition to the above KPIs, each division has a managing director responsible for the operation of the division and they use a number of other KPIs to manage and develop the business and achieve the group’s objectives. These include, but are not limited to, yield management analysis, subscription renewal rates, forward bookings and pacing reports each with comparatives versus budget, prior financial year and the last rolling twelve months where appropriate.

The objective of the Board is to manage risk across the Group (Arc Investco Limited and its subsidiaries) of which the Company is a member, in order to enable the Group to achieve its business objectives. Changes to these objectives may result in a change to the risks faced by the Group and this is monitored closely by the Board. The main risks arising from the Group's financial instruments are credit risk and liquidity risk.

Credit risk

In the normal course of business, the Company incurs credit risk associated with cash and trade receivables. The Company follows the Group's credit policy that is used to manage this exposure to credit risk. The company does not have a significant concentration of risk with any single entity.

Liquidity risk

Liquidity risk represents the Company's ability to meet its contractual obligations. The Group evaluates its liquidity requirements on an ongoing basis for all entities within the Group. The Company generates sufficient cash flows from its operating activities to meet its financial obligations.

Interest rate risk

The Company does not have a significant exposure to interest rate fluctuations as it has no significant borrowings or loans that are carried at a floating interest rate. All borrowings are denominated in Sterling.

The Company’s strategic objective is to develop market-leading brands that engage senior, professional audiences in large and growing end-markets by delivering business critical information, analysis and professional networks through digital and live platforms. Our business model is centred on delivering our clients access to these audiences through content focused and performance led marketing services and events.

While the Company is focused on continually improving and growing its products and the solutions that we can offer clients by investing where necessary, we also have a strong focus on the cost base and a key objective of growing the operating margins to improve profitability.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2022.

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £25,874,091 (2021: £nil). The directors do not recommend payment of a final dividend (2021: £nil).

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The auditor, BDO LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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;

•     prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the principal activity of the company and the risks that it faces.

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.

The Company is financially supported by Arc Investco Limited which has confirmed that it will continue to provide ongoing financial support to the Company for the foreseeable future and a period of at least 12 months plus one day from the issuance of the financial statements.

The Directors recognise there are sufficient profits generated by the Company and deem no need for the Company to rely on the financial support of Arc Investco Limited. The directors have made appropriate enquiries of Arc Investco Limited to gain assurance that the group can provide ongoing support if required.

The directors have reviewed the current profits of the Company and results of Incisive Business Media limited and the additional credit facilities available to it and feel confident that its parent will be able to provide the support to the company and will not redact it.

On the basis of the Company’s business activity, together with the available financial support from its parent, the directors have a reasonable expectation that the Company will be able to continue operations for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.

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 have audited the financial statements of Incisive Business Media Limited (“the Company”) for the year ended 31 December 2022 which comprise the Statement of comprehensive income, the Statement of financial position, the 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).

Basis for opinion

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

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.

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.

Other information

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.

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.

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.

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.

Extent to which the audit was capable of detecting irregularities, including fraud

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:

Non-compliance with laws and regulations

Based on:

• Our understanding of the Company and the industry in which it operates;

• Discussion with management and those charged with governance; and

• Obtaining and understanding of the Company’s policies and procedures regarding compliance with laws and regulations.

we considered the significant laws and regulations to be Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice), the Companies Act of 2006, Data Protection Act 2018, General Data Protection Regulation (GDPR), and UK tax legislation.

The Company is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be regulations such as National Insurance and VAT requirements.

Our procedures in respect of the above included:

• Review of minutes of meeting of those charged with governance for any instances of non-compliance with laws and regulations;

• Review of correspondence with tax authorities for any instances of non-compliance with laws and regulations;

• Review of financial statement disclosures and agreeing to supporting documentation;

• Agreed audited financial statement figures to the tax computation prepared by management’s tax preparer and recalculated key tax figures; and

• Review of legal expenditure accounts to understand the nature of expenditure incurred.

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

• Enquiry with management and those charged with governance regarding any known or suspected instances of fraud;

• Obtaining an understanding of the Company’s policies and procedures relating to:

  • Detecting and responding to the risks of fraud; and

  • Internal controls established to mitigate risks related to fraud.

• Review of minutes of meeting of those charged with governance for any known or suspected instances of fraud;

• Discussion amongst the engagement team as to how and where fraud might occur in the financial statements;

• Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and

• Considering remuneration incentive schemes and performance targets and the related financial statement areas impacted by these.

Based on our risk assessment, we considered the areas most susceptible to fraud to be management override of controls and revenue.

Our procedures in respect of the above included:

• Testing a sample of journal entries throughout the year, which met a defined risk criteria, by agreeing to supporting documentation;

• Assessing significant estimates made by management for bias; and

• Reviewing the revenue recognition process per stream and identified potential gaps in the process to identify what could go wrong and how it could result in incorrect revenue recognition. Obtaining an understanding of the processes and controls that the Company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how management monitors processes and controls; and

• Testing on a sample basis revenue to relevant stream-specific support to ascertain appropriate revenue recognition.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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.

Use of our 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.

The income statement has been prepared on the basis that all operations are continuing operations.

There was no other comprehensive income for 2022 (2021: £nil).

The notes on pages 14 to 33 form part of these financial statements.

The notes on pages 14 to 33 form part of these financial statements.

The notes on pages 14 to 33 form part of these financial statements.

Incisive Business Media Limited is a private company limited by shares incorporated in England and Wales. The registered office is New London House, 172 Drury Lane, London, WC2B 5QR. The company's principal activity is set out in the strategic report.

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 pound sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.

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. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

Incisive Business Media Limited is a wholly owned subsidiary of Incisive Business Media (IP) Limited and the results of Incisive Business Media Limited are included in the consolidated financial statements of Arc Investco Limited as at 31 December 2022 which are available from Unit 4 Fulwood Park, Caxton Road, Fulwood, Preston, PR2 9NZ.

The financial statements have been prepared on a going concern basis.  There is no significant impact on the company’s trade after the year end to date and this is expected to continue.  The directors have completed a review of the results of the Company, together with the credit facilities available to it and consider that the company will remain a going concern for the foreseeable future.true

In addition, the directors have comfort over the going concern position from support provided by Arc Investco Limited, its ultimate parent company.  Arc Investco Limited has confirmed that it will continue to provide financial support to the Company, if needed, for the foreseeable future, being a period of at least 12 months plus one day from the issuance of the financial statements. To gain assurance over this support, the directors have made appropriate enquiries of Arc Investco Limited to confirm support would be available if required.

From the above assessment, the directors have a reasonable expectation that the Company will be able to continue operations for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.

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.

The company recognises turnover when (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the company retains no continuing involvement or control over the goods; (c) the amount of turnover can be measured reliably; (d) it is probable that future economic benefits will flow to the entity and (e) when the specific criteria relating to each of the company's sales channels have been met, as described below.

Where payments are received in advance of the turnover being recognised, the turnover is deferred on the statement of financial position as a liability until the turnover is earned.

Turnover for the key services provided by the company is recognised as follows:

(i) Events

The company runs a portfolio of events for businesses including conferences, exhibitions, awards evenings and training. Turnover from the provisions of events, including sponsorship, is recognised in the accounting period when the services are provided to the customer.

(ii) Subscriptions and other content

The company published print and digital content which customers purchase either through annually renewable subscription contracts or through one time purchases. Turnover relating to one time purchases is recognised on sale of the content to the customer, which is considered the point of delivery. Turnover relating to annual subscription contracts is recognised as the company's obligations under the contract are delivered to the customer, which is typically on a straight line basis over the period of the contract.

(iii) Advertising

The company generates advertising turnover from customers from both print and digital platforms. Turnover is recognised in the accounting period in which the services are provided to the customer which, for print, is when the content is published and for digital, over the period of the advertising agreement.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

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:

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.

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.

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.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors, 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.

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.

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, 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 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.

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.

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.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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.

Payments to defined contribution retirement schemes are charged as an expense as they fall due.

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.

Government grants are recognised at the fair value of the asset received 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.

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.

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the company but are presented separately due to their size or incidence.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Determine whether there are indicators of impairment of the company's tangible and intangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

We consider the need for any provision for impairment of the carrying value of amounts owed by group undertakings, based on management's estimate of the prospect of recovering the amounts due, which includes considering the solvency of the counterparty and its future outlook, based on budgets and forecasts prepared by management. No such provisions have been made as at 31 December 2022.

The government grants of £nil (2021 - £18,000) relates to amounts that was received by the group in respect of the Coronavirus Job Retention Scheme ("CJRS").

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2021 - 2).

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:

The company has an unrecognised deferred tax asset of £1,161,958 (2021 - £1,188,963) comprised of capital losses and trading losses which are not expected to be relieved against future profits in the foreseeable period.

Factors that may affect future tax charges

The Finance Act 2021 was substantively enacted in May 2021 and increased the corporation tax rate from 19% to 25% with effect from 1 April 2023. The deferred taxation balances have been measured using the rates expected to apply in the reporting periods when the timing differences reverse.

Intangible fixed assets represent the trade and licences in respect of the group trademarks and websites transferred from other group companies.

On 29 April 2022 a new company was incorporated into the IM group, as a subsidiary of Incisive Business Media Limited (IBM), called The Channel Company EMEA Limited (TCCE).

On 31 May 2022, IBM sold the trade and assets relating to the Tech division to TCCE in exchange for shares in TCCE. This transaction has been accounted for at book value of the assets transferred, resulting in an investment addition of £1,751,922.

On 30 June 2022, IBM sold 100% of the share capital in TCCE to The Channel Company International Limited for consideration of £25,874,091. Profit on sale of the investment has been recognised in the P&L of £23,153,300 after costs of sale totalling £968,869.

The trade debtor balance includes a provision for bad debts of £205,077 (2021: £192,763).

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Contributions totalling £98,087 (2021 - £60,123) were payable to the funds at the year end.

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

On 31 May 2022 the right to any IP licenses relating to the Tech brands were transferred from IBMIP to IBM in exchange for one share in IBM. This transaction was undertaken at book value, resulting in share premium of £318,203 arising on the share issue.

The share premium account includes the premium on issue of equity shares, net of any issue costs.

During the year, the Company undertook a capital reduction which had the impact of transferring brought forward share premium to retained earnings.

The merger reserve represents the difference between the consideration paid and the net book value of the assets transferred of Open Door Media Publishing Limited and The Financial Services Forum Limited as part of a group restructure at 31 December 2019.

On 29 April 2022 a new company was incorporated into the IM group, as a subsidiary of Incisive Business Media Limited (IBM), called The Channel Company EMEA Limited (TCCE).

In the existing IM structure some historical Intellectual Property (IP) relating to brands trading under IBM were held in Incisive Business Media IP Ltd (IBMIP), the parent of IBM. IBM traded using this IP through license. On 31 May 2022 the right to any IP licenses relating to the Tech brands were transferred from IBMIP to IBM in exchange for a share in IBM. On the same day, IBM sold the trade and assets relating to the Tech division to TCCE in exchange for shares in TCCE. The company TCCE then commenced trading.

On 30 June 2022, IBM sold 100% of the share capital in TCCE to The Channel Company International Limited. From this date on the IM Group owns no trade or assets relating to the Tech division, which comprise of the brands Computing, CRN, and Channel Partner Insight.

Included in these financial statements are revenue of £2.5m and EBITDA of £0.5m arising from the company's interests in Tech assets up to the date of its disposal.

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:

In September 2023, Incisive Business Media Limited paid a dividend of £6.0m to its immediate parent company, Incisive Business Media (IP) Limited. The dividend has been settled by way of a cancellation of a loan balance between the Company and Incisive Business Media (IP) Limited.

On 31 December 2021, £28,000 was owed by TrustedReviews Limited to the company. Due to changes in directorships, TrustedReviews Limited ceased to be a related party on 31 March 2022.

The company has taken advantage of the exemption under paragraph 33.1A of the Financial Reporting Standard 102 not to disclose transactions with other wholly owned members of the wider group.

The immediate parent undertaking is Incisive Business Media (IP) Limited, a company incorporated in England and Wales. The ultimate parent company is Arc Investco Limited. This is the only group of which the company is a member for which group financial statements are prepared. Copies of the group financial statements are available from the company's registered office at Unit 4 Fulwood Park, Caxton Road, Fulwood, Preston, England, PR2 9NZ.

There is no ultimate controlling party.