Infinity Media Group Limited - Limited company accounts 20.1

REGISTERED NUMBER: 10961885 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 May 2021

for

INFINITY MEDIA GROUP LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

Directors:

J D Fry

D Simpson

Y Subbotin

M V Kerai

Registered office:

23 Shield Drive

West Cross Industrial Estate

Brentford

Middlesex

TW8 9EX

Registered number:

10961885 (England and Wales)

Auditors:

Haines Watts Birmingham LLP

5-6 Greenfield Crescent

Edgbaston

Birmingham

B15 3BE

The directors present their strategic report of the company and the group for the year ended 31 May 2021.

Review of business

2020/21 summary

During the year to 31 May 2021 the business navigated through the unprecedented global pandemic by making balanced commercial decisions and implementing measures to mitigate risk where possible. The main detrimental effect of the Covid restrictions and lockdowns were experienced by CVP up to August 2020 at which time the sector started to recover as trading resumed back to pre-Covid levels. From early 2021 onwards the levels of trading have exceeded pre-Covid expectations due to a catch-up of paused productions and continued new business wins.

Our investment in technology platforms continued throughout the year to further entrench CVP as a market leader in technology solutions to facilitate the ease of ordering and working with CVP for all customers. This has been further enhanced by the successful participation in the HMRC R&D Tax Credit programme which has enabled the Company to increase even further its investments in innovation and tech-led solutions. The Company is also continuing to further invest in our operational and people resources to enhance our business model with sound and innovative best practices.

The Board is delighted to announce the continued focus and development of customer service delivery has retained all of our existing customer portfolio plus attracted several new customers seeking the CVP service experience both pre-sale and post-sale.

Key performance indicators

We consider that our key performance indicators are those that communicate the financial performance and strength of the group as a whole, these being turnover, gross margin and return on capital employed.

Group turnover increased by 15% to £104.4m compared to £91.1m in the previous period. Gross margin increased to 16.4% (2020: 15.2%).

Group operating profit increased to £6.6m (6.3%) from £4.2m (4.6%) in 2020. Group profit after tax was £7.2m (2020: £3.2m). Dividends of £1.5m (2020: nil) were paid in the year meaning profit of £5.7m was retained and added to group reserves.

Return on capital employed has decreased to 68.7% (2020: 67.8%). Return on capital employed is calculated as operating profit divided by capital employed, which constitutes total assets less current liabilities, less investments, less cash, plus borrowings.

As well as financial KPI's the business also operates several non-financial KPI's including Product Availability; Delivery Lead Times; Customer Satisfaction; Employee Training and Employee Retention; and our Carbon Footprint. The Directors consider the business is performing well against these indicators and will continue to invest resources towards maintaining and improving performance across the entire business.

Principal risks and uncertainties

The directors continually monitor and action the principal risks and uncertainties that the business is faced with.

Brexit

The Brexit deal between the UK Government and the European Union announced in December 2020 had an adverse effect on the Company due to core trading components such as VAT and duties, this in turn adversely affected of our ability to provide the expected levels of service delivery to our EU customers. The Company therefore immediately assessed several options for how to regain our value proposition for our EU customers and after full commercial reviews the decision was made to establish our own wholly-owned trading business in mainland Europe.

CVP Belgium was fully launched in June 2021 and has provided the footprint to not only service our existing EU customers but to also further expand the reach of CVP to other customers throughout the European Union and beyond. The directors are extremely excited with this opportunity and are working closely with suppliers and customers as we scale-up the operations of CVP Belgium.

Currency risk

The Group is exposed to transaction foreign exchange risk, which is mitigated by natural hedging using currency bank accounts.

Interest rate risk

The Group finances its operations through retained profits and existing cash reserves, and also uses loan finance when required. As a result the company is occasionally exposed to interest rate risk but not on a material level.

Credit risk

The main financial assets of the Group are cash, stock and trade debtors. The credit risk associated with cash is limited as the banking counterparties have high credit ratings from the main global credit rating agencies. The principal credit risks arise from stock and trade debtors which are monitored weekly for stock liquidity, total debt levels and debt ageing.

Liquidity and cashflow risk

The Group manages financial risk by ensuring sufficient liquidity and working capital is available to satisfy future requirements.Financial forecasts range from 13 weeks to 3 years to ensure agility and planning is best positioned.

Infinity Media Group maintains a broad and diverse portfolio of clients, but the business still carries an element of risk, if it were to lose key client accounts. As such, the Group is continually evolving to ensure it consistently delivers service excellence to all clients.

Future developments

2021/22 will continue where the previous year finished, with growth in customer focused facilities and resources enabling us to continue to set new standards of service in our industry. As a result, we expect to see a healthy increase in revenue and market share.

Section 172(1) statement

As the Board of Infinity Media Group we have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider, in good faith, would be most likely to promote the Group's success for the benefit of its members as a whole, and to have regard to the long term effect of our decisions on the Group and its stakeholders. This statement summarises the ways in which we as a Board address this responsibility.

Promoting the Group's success for its members

The Board meets regularly to discuss all business operations, and these meetings were increased to daily during the unprecedented pandemic caused by COVID-19. The directors meet to discuss and consider all facets of the business and ensure the best decisions and actions are made to benefit all stakeholders of the business.

The directors consider in good faith that they have acted in the most responsible way possible to deliver sustainable success for the benefit of all stakeholders. Many stakeholders such as employees, customers and suppliers have been employed by CVP or held business relationships with CVP for over 15 years and we are committed to continuing this level of collaborative success.

Stakeholder engagement

Our key stakeholders, and the ways in which we engage with them, include:

Our shareholders

The directors of Infinity Media Group also own 100% of the shareholding so communication and engagement is embedded within their daily directorship duties.

Our people

The Group is fully committed to being a responsible business and has strategic ambitions to become the employer of choice in the sectors in which it operates. Our people are at the very heart of the customer driven services we provide and for the business to succeed we need to attract, engage and retain the best talent in the industry.

Our customers and suppliers

Our strategy is underpinned by controlled and sustainable growth to ensure the core values of Infinity Media Group are maintained and where possible enhanced each year. To achieve this we maintain and develop strong business relationships with our clients and suppliers as these are integral to the operations of our business model. One key action in the latter part of the year was investing more time with our customers and suppliers to help navigate through the Covid-19 crisis which has enabled us to further strengthen our business relationships across the whole organisation.

Our community and environment

Infinity Media Group is committed to leveraging its position to create positive change for the people and communities with which we interact. We want to utilise our resources and expertise to enable our people to support the local communities and we endeavour to conduct our operations as a responsible business.

On behalf of the board:

M V Kerai - Director

14 December 2021

The directors present their report with the financial statements of the company and the group for the year ended 31 May 2021.

Principal activity

The principal activity of the group continued to be that of the sale of equipment and the provision of related services to the broadcast and professional television industry.

Dividends

Dividends of £1,500,000 were paid during the year.

Directors

The directors shown below have held office during the whole of the period from 1 June 2020 to the date of this report.

J D Fry

D Simpson

Y Subbotin

M V Kerai

Other changes in directors holding office are as follows:

M Forth - resigned 29 January 2021

Streamlined energy and carbon reporting

The company fulfils its statutory requirements for Streamlined Energy and Carbon Reporting, which includes disclosure of the company's carbon emissions. Under the Companies Act 2006 / SECR Regulations, 'Large' companies are required to report their annual emissions within the Director's Report.

The company's SECR statement covers the year ended 31 May 2021and has been prepared in line with the requirements of the SECR regulations and the relevant areas of the Greenhouse Gas ('GHG') Protocol Corporate Accounting and Reporting Standard.

Scope of reporting

The scope of this SECR includes all activities and sites controlled by Creative Video Productions Limited. All sites and activities are situated and carried out in the United Kingdom.

Emissions are broken down into three categories by the GHG Protocol, as follows:

Scope 1

All Direct Emissions from the activities of an organisation or under their control. Including fuel combustion on site such as gas boilers, fleet vehicles and air-conditioning leaks;

Scope 2

Indirect Emissions from electricity purchased and used by the organisation. Emissions are created during the production of the energy and eventually used by the organisation; and

Scope 3

All Other Indirect Emissions from activities of the organisation, occurring from sources that they do not own or control. These are usually the greatest share of the carbon footprint, covering emissions associated with business travel, procurement, waste and water.

As this is the company's first year of SECR, the comparative data for 2019/20 has not been recorded and does not need to be reported.

Streamlined energy and carbon reporting

Methodology

A 'Dual Reporting' methodology has been used to indicate emissions using UK electricity grid average emission factors (the 'Location Based' method) and also using specific generation emission factors (the 'Market Based' method).

Energy data has been collected from the following sources:

Activity

Source of data

Electricity consumption

kWh from electricity bills for the year

Gas consumption

kWh from gas bills for the year

Company owned commercial vehicles

Litres purchased from fuel receipts for fleet vehicles

Company car fleet fuel consumption

Litres purchased/mileage from expenses/vehicle log

Energy usage and emissions report

2020/21

UK energy usage (kWh)

291,758

Associated greenhouse gas emissions (tonnes CO2e)

84.9 (61.9 from energy usage and 23.0 from vehicles)

Intensity ratio (tonnes of CO2e per £1m of turnover)

0.813

Disclosure in the strategic report

A number of the disclosures required under the Companies Act reporting requirements for large companies have been dealt with in the Strategic Report.

Statement of directors' responsibilities

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure of information to auditors

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

Auditors

The auditor, Haines Watts Birmingham LLP, is deemed to be reappointed under Section 487(2) of the Companies Act 2006.

On behalf of the board:

M V Kerai - Director

14 December 2021

Opinion

We have audited the financial statements of Infinity Media Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2021 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 May 2021 and of the group's 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.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' 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 Statement of Directors' Responsibilities set out on page six, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory framework applicable to the group and the company and the industry in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and other management. The most significant were identified as the Companies Act 2006, UK GAAP (FRS102) and relevant tax legislation.

We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included:

-

making enquires of directors and management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud;

-

obtaining an understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;

-

assessing the design effectiveness of the controls in place to prevent and detect fraud;

-

assessing the risk of management override including identifying and testing journal entries;

-

challenging the assumptions and judgements made by management in its significant accounting estimates.

Whilst our audit did not identify any significant matters relating to the detection of irregularities including fraud, and despite the audit being planned and conducted in accordance with ISAs (UK), there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity would likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Kevin Hodgetts (Senior Statutory Auditor)

for and on behalf of Haines Watts Birmingham LLP

5-6 Greenfield Crescent

Edgbaston

Birmingham

B15 3BE

20 December 2021

Turnover

4

104,433,884

91,062,254

Cost of sales

(87,322,660

)

(77,228,614

)

Gross profit

17,111,224

13,833,640

Administrative expenses

(11,025,132

)

(9,837,231

)

6,086,092

3,996,409

Other operating income

499,198

210,452

Operating profit

6

6,585,290

4,206,861

Interest receivable and similar income

26

483

6,585,316

4,207,344

Interest payable and similar expenses

8

(68,659

)

(218,734

)

Profit before taxation

6,516,657

3,988,610

Tax on profit

9

644,587

(798,469

)

Profit for the financial year

7,161,244

3,190,141

Other comprehensive income

-

-

Total comprehensive income for the year

7,161,244

3,190,141

Profit attributable to:

Owners of the parent

7,161,244

3,190,141

Total comprehensive income attributable to:

Owners of the parent

7,161,244

3,190,141

Fixed assets

Tangible assets

12

1,432,062

1,387,004

Investments

13

27,134

-

1,459,196

1,387,004

Current assets

Stocks

14

12,428,195

10,066,004

Debtors

15

12,217,383

8,039,247

Cash at bank and in hand

7,375,246

5,579,693

32,020,824

23,684,944

Creditors

Amounts falling due within one year

16

18,119,235

13,191,410

Net current assets

13,901,589

10,493,534

Total assets less current liabilities

15,360,785

11,880,538

Creditors

Amounts falling due after more than one year

17

(390,693

)

(2,581,116

)

Provisions for liabilities

21

(102,953

)

(93,527

)

Net assets

14,867,139

9,205,895

Capital and reserves

Called up share capital

22

300,000

300,000

Retained earnings

23

14,567,139

8,905,895

Shareholders' funds

14,867,139

9,205,895

The financial statements were approved by the Board of Directors and authorised for issue on 14 December 2021 and were signed on its behalf by:

M V Kerai - Director

Fixed assets

Tangible assets

12

-

-

Investments

13

13,999,221

13,972,087

13,999,221

13,972,087

Current assets

Debtors

15

22,500

67,499

Cash at bank

3,414

2,997

25,914

70,496

Creditors

Amounts falling due within one year

16

11,445,214

9,505,061

Net current liabilities

(11,419,300

)

(9,434,565

)

Total assets less current liabilities

2,579,921

4,537,522

Creditors

Amounts falling due after more than one year

17

-

2,137,500

Net assets

2,579,921

2,400,022

Capital and reserves

Called up share capital

22

300,000

300,000

Retained earnings

23

2,279,921

2,100,022

Shareholders' funds

2,579,921

2,400,022

Company's profit for the financial year

1,679,899

107,548

The financial statements were approved by the Board of Directors and authorised for issue on 14 December 2021 and were signed on its behalf by:

M V Kerai - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 June 2019

300,000

6,465,754

6,765,754

Changes in equity

Dividends

-

(750,000

)

(750,000

)

Total comprehensive income

-

3,190,141

3,190,141

Balance at 31 May 2020

300,000

8,905,895

9,205,895

Changes in equity

Dividends

-

(1,500,000

)

(1,500,000

)

Total comprehensive income

-

7,161,244

7,161,244

Balance at 31 May 2021

300,000

14,567,139

14,867,139

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 June 2019

300,000

2,742,474

3,042,474

Changes in equity

Dividends

-

(750,000

)

(750,000

)

Total comprehensive income

-

107,548

107,548

Balance at 31 May 2020

300,000

2,100,022

2,400,022

Changes in equity

Dividends

-

(1,500,000

)

(1,500,000

)

Total comprehensive income

-

1,679,899

1,679,899

Balance at 31 May 2021

300,000

2,279,921

2,579,921

Cash flows from operating activities

Cash generated from operations

1

10,320,037

3,748,898

Interest paid

(68,659

)

(218,734

)

Tax paid

(1,630,634

)

(160,256

)

Net cash from operating activities

8,620,744

3,369,908

Cash flows from investing activities

Purchase of tangible fixed assets

(313,663

)

(292,829

)

Purchase of fixed asset investments

(27,134

)

-

Sale of tangible fixed assets

104,620

-

Interest received

26

483

Net cash from investing activities

(236,151

)

(292,346

)

Cash flows from financing activities

New loans in year

(2,000,000

)

-

Loan repayments in year

(3,068,440

)

(1,717,749

)

Capital repayments in year

(20,600

)

(36,908

)

Equity dividends paid

(1,500,000

)

(750,000

)

Net cash from financing activities

(6,589,040

)

(2,504,657

)

Increase in cash and cash equivalents

1,795,553

572,905

Cash and cash equivalents at beginning of year

2

5,579,693

5,006,788

Cash and cash equivalents at end of year

2

7,375,246

5,579,693

1.	Reconciliation of profit before taxation to cash generated from operations

2021

2020

£

£

Profit before taxation

6,516,657

3,988,610

Depreciation charges

268,605

214,146

Profit on disposal of fixed assets

(104,620

)

-

Finance costs

68,659

218,734

Finance income

(26

)

(483

)

6,749,275

4,421,007

(Increase)/decrease in stocks

(2,362,191

)

10,239

(Increase)/decrease in trade and other debtors

(2,178,136

)

2,518,271

Increase/(decrease) in trade and other creditors

8,111,089

(3,200,619

)

Cash generated from operations

10,320,037

3,748,898

2.	Cash and cash equivalents

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 May 2021

31/5/21

1/6/20

£

£

Cash and cash equivalents

7,375,246

5,579,693

Year ended 31 May 2020

31/5/20

1/6/19

£

£

Cash and cash equivalents

5,579,693

5,006,788

3.	Analysis of changes in net funds

At 1/6/20

Cash flow

At 31/5/21

£

£

£

Net cash

Cash at bank and in hand

5,579,693

1,795,553

7,375,246

5,579,693

1,795,553

7,375,246

Debt

Finance leases

(68,283

)

20,600

(47,683

)

Debts falling due within 1 year

(2,292,017

)

900,000

(1,392,017

)

Debts falling due after 1 year

(2,549,741

)

2,168,440

(381,301

)

(4,910,041

)

3,089,040

(1,821,001

)

Total

669,652

4,884,593

5,554,245

1.	Statutory information

Infinity Media Group Limited (the company) is a private limited company domiciled and incorporated in England and Wales. The registered office is 23 Shield Drive, West Cross Industrial Estate, Brentford, Middlesex, TW8 9EX.

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all periods presented unless otherwise stated.

Going concern

The directors continue to adopt the going concern basis in preparing the financial statements as their belief is that company has adequate resources to continue in operational existence for the foreseeable future. In making this assessment the directors consider a period of at least 12 months from the date of approval of these financial statements, reviewing and considering relevant information including the annual budget and future cash flows.

Basis of consolidation

The consolidated financial statements incorporate those of Infinity Media Group Limited and all of its subsidiaries (i.e.entities that the Group controls through its power to govern the financial and operating policies so as to obtain economic benefits). All financial statements are made up to 31 May 2021.

Subsidiaries are consolidated using the acquisition method, with their results incorporated from the date that control passes.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

Turnover

Revenue is recognised to the extent that the group obtains the right to consideration in exchange for its performance. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, VAT and other sales taxes or duty. Revenue receivable in respect of operating lease rentals is credited to income on a straight line basis over the lease term.

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.

Government grants

Grants which are of a revenue nature are credited to the profit and loss account in the same period as the related expenditure.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Long leasehold

10% on cost

Plant and machinery

15% on cost

Fixtures, fittings & equipment

20 - 33% on cost

Motor vehicles

25% on cost

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.The directors have adopted a policy of accounting for freehold land and buildings at fair value with effect from 31 May 2017. The valuation is based on a report prepared by independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length for similar properties. All other fixed assets are stated at cost.

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.

Investments in subsidiaries

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

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 are included in the profit and loss account for the period.

Hire purchase and leasing commitments

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.