ACCOUNTS - Final Accounts
ACCOUNTS - Final Accounts
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Registered number:
FOR THE YEAR ENDED 31 MARCH 2022
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TSL RESEARCH GROUP LIMITED
CONTENTS
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TSL RESEARCH GROUP LIMITED
COMPANY INFORMATION
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TSL RESEARCH GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2022
TSL Research Group Limited (TSL), trading under the name TS Lombard, is a leading provider of macroeconomic, policy and investment strategy research, offering coverage of the global economy.
The consolidated Profit and Loss Account for the year ended 31 March 2022 on page 11 shows revenues for the period of £5,511,801 (2021: £6,092,866). The Group made an adjusted operating loss of £437,947 (2021: adjusted profit of £116,227), before accounting for non-cash items (amortisation of goodwill and intangible assets resulting from the acquisition, depreciation and share based payments).
The Group incurred a statutory loss before tax for the year ended 31 March 2022 of £1,081,358 (2021: loss of £660,761). Subscription revenue for the year ended 31 March 2022, which accounts for approximately 90% of total Group revenue, was adversely impacted by the lower sales performance in the prior financial year as a result of the pandemic (see Covid 19 below). Subscription revenue is recognised evenly over the period of the contractual term as the performance obligations are satisfied evenly over the term of subscription, as such a deterioration in sales performance will typically take up to a year to flow through to revenue. The Group continued the investment in its research products and IT platforms during the year, spending £18,217 on new intangible fixed assets as the firm completed the migration of its integrated digital platforms across CRM, digital marketing and HTML publishing. Net cash generated from operating activities (see page 18) saw an outflow of £388,549 (2021: outflow 251,531). In combination with net outflows on investing activities of £36,222 (2021: outflow £80,689) and net inflows from financing activities of £609,659 (2021: outflow of £35,393) this led to an increase in cash resources to £862,363 from £677,475 in the previous year. Financing activities undertaken during the year include the issue of new shares for consideration of £339,595 and loans received amounting to £380,000 to strengthen the financial position and liquidity of the group. Subsequent to the year end, on 31 August 2022, TSL Research Group Limited and its subsidiaries was acquired by GlobalData UK Limited, a subsidiary of GlobalData Plc.
Our clients
The Group’s clients are institutional asset managers mostly pursuing active portfolio management strategies. The Group’s clients typically subscribe to an annual subscription contract, this approach drives a visible and recurring revenue stream. A competitive market for the Group’s services will continue to be a feature of the Group’s trading environment. Regulatory risk In prior years the Directors have referred to the negative impact of the MiFID II regulatory shock on our clients’ research budgets. The Directors believe that the impact of this policy change is now behind us and, the business is now back in growth mode after taking necessary actions to reduce costs. Covid 19 The Covid 19 pandemic started to impact the Group’s business in March 2020, initially being positive for the Group given our clients’ needs to be informed on the outlook for global economy and markets. As that year continued, the Group found that its inability to put its sales team and analysts on the road to visit clients and prospects, and the reluctance of clients to receive visitors, did have an impact on new business generation, which fed through to a weaker pipeline than desirable going into 2021/22. From May 2021, the Group encouraged staff back into the office, however the resumption of in-person client marketing and travel did not commence until Summer of 2022.
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TSL RESEARCH GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
The Group’s primary objective is to provide an invaluable research resource for its institutional clients. The Group’s success is dependent on the excellence of our research content. That in turn allows us to attract and develop a deep pool of research talent and therefore strengthen our employee base. By focusing on the commitment of clients and the long-term interests of our employees, as well as the interests of our suppliers, we will ultimately be able to deliver attractive returns for our shareholders as well.
The Board of Directors consisted during the financial year of three executive and six non-executive directors and conducted regular meetings throughout the year in order to review the Group’s performance towards these goals, and in difficult trading environments ensured that the balance sheet and cash resources of the business were more than adequate for the long-term continuing operations of the business. As an electronic publishing business, the Group discourages use of paper and is focused in reducing its carbon footprint over time, recently substituting global travel with new video conferencing capabilities whereby any client may "Book-a-Call" with a research analyst. Our largest supplier remains internal, that is to say our employees. The Board regularly discusses employee issues and the Group now conducts annual 360 style employee appraisals, which facilitate feedback about employee satisfaction. In June 2020 the Group moved to a fully flexible working culture, resulting in greater employee satisfaction, a lower carbon footprint and reduced health risks. Following the acquisition on 31 August 2022 of TSL Research Group Limited by GlobalData UK Limited, a member of the GlobalData Plc Group, the TSL Group and its stakeholders now benefit from being part of a much bigger Group. See page 27 of the GlobalData Plc Annual Report for the Directors’ Section 172(1) Statement.
TS Lombard has a track record in economic forecasting stretching back more than 30 years. One of the objectives of integrating TS Lombard into GlobalData Group is in order to exploit the greater opportunities of being part of a bigger organisation, particularly in relation to sales synergies. This will take the form of offering the TS Lombard macroeconomic research to a wider range of clients, in particular corporate and professional services clients, as well as to use our sales team to market the full range of GlobalData’s data and analytics products to asset managers.
The Group’s investment in people and software was rewarded with significantly higher renewal rates in 2021/22, and this continued in 2022/23. Stronger lead generation in the second half of 2021 led to a strong finish to new business generation in the 2021/22 financial year and this trend has continued into 2022-23. These two factors combined has led to a return to growth in the Group’s subscription sales business by March 2023.
The directors review key performance indicators based on revenue, profitability and cash flow.
This report was approved by the board and signed on its behalf.
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TSL RESEARCH GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
The directors present their report and the financial statements for the year ended 31 March 2022.
The loss for the year, after taxation, amounted to £1,115,211 (2021 -loss £655,479).
The directors have not recommended a dividend for the period.
The directors who served during the year were:
Subsequent to the year-end, M T Danson and G C Lilley were appointed as directors to the company on 31 August 2022.
As permitted by s414c(11) of the Companies Act 2006, the directors have elected to disclose information, required to be in the directors' report by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008', in the strategic report.
Subsequent to the year end, on 31 August 2022, TSL Research Group Limited was acquired by GlobalData UK Limited, a subsidiary of GlobalData Plc. which is publicly traded on the London Stock Exchange and its registered office address is John Carpenter House, John Carpenter Street, London, EC4Y 0AN. There have been no other significant events affecting the company since the year end.
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TSL RESEARCH GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
This report was approved by the board and signed on its behalf.
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TSL RESEARCH GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2022
The directors are responsible for preparing the group strategic report, the directors' report and the consolidated financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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TSL RESEARCH GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TSL RESEARCH GROUP LIMITED
FOR THE YEAR ENDED 31 MARCH 2022
We have audited the financial statements of TSL Research Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2022, which comprise the group profit and loss account, the group statement of comprehensive income, the group and company balance sheets, the group statement of cash flows, the group and company statement of changes in equity and the notes, 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's or the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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TSL RESEARCH GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TSL RESEARCH GROUP LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the group strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the group strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the group strategic report or the directors' report.
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TSL RESEARCH GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TSL RESEARCH GROUP LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
∙we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company's sector;
∙we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection;
∙we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
∙performed analytical procedures to identify any unusual or unexpected relationships;
∙tested a sample of journal entries to identify unusual transactions;
∙assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
∙investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
∙agreeing financial statement disclosures to underlying supporting documentation; and
∙enquiring of management as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they
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TSL RESEARCH GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TSL RESEARCH GROUP LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
16 Great Queen Street
Covent Garden
WC2B 5AH
Date:
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TSL RESEARCH GROUP LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2022
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TSL RESEARCH GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2022
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TSL RESEARCH GROUP LIMITED
CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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TSL RESEARCH GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 20 to 41 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2021
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TSL RESEARCH GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
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TSL RESEARCH GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
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TSL RESEARCH GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
The company is a private limited company limited by shares and incorporated in England and Wales. The address of its registered office is John Carpenter House, John Carpenter Street, London, England, EC4Y 0AN.
The principal activity of the group is set out in the group strategic report. The financial statements are presented in Sterling (£), which is the functional currency of the company and group.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires group management to exercise judgement in applying the group's accounting policies (see note 3).
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own profit and loss account in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102.
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
The group generated a loss in the year of £1.1m and has net liabilities of £2.0m at year-end.
On 31 August 2022, the group that the company forms part of was acquired by GlobalData UK Limited, a subsidiary of GlobalData Plc. The directors of the company have received a letter of financial support from GlobalData Plc confirming that it will provide support for the foreseeable future, being a period of at least twelve months. The directors have made enquires of the group's financial position and ability to provide support to the company. The group has prepared forecasts which indicate that it can continue to meet liabilities of the company as they fall due for a period of not less than twelve months from the approval of these financial statements. While acknowledging there is considerable economic uncertainty at present means that actual performance is more prone to material variance from such forecasts than is normally the case, the directors believe that the forecasts are achievable. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. Accordingly, the directors continue to adopt the going concern basis in the preparation of the financial statements.
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the group keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
Goodwill
Other intangible assets
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Amortisation is provided on the following bases:
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
The group has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the group becomes party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
The group’s policies for its major classes of financial assets and financial liabilities are set out below.
Page 24
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances, intercompany working capital balances, and intercompany financing are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Financial liabilities
Basic financial liabilities, including trade and other creditors, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the group would receive for the asset if it were to be sold at the reporting date.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Page 25
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
Derecognition of financial assets and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Provisions are charged as an expense to profit or loss in the year that the group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the balance sheet.
Ordinary shares are classified as equity.
Page 26
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income. Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Carrying value of intangible assets In light of the on-going economic uncertainty the directors have performed an assessment of the carrying amount of goodwill arising for the acquisition of the Lombard Street Research Group. The cash-generating unit of Lombard Street Research is closely integrated with the overall group. The directors remain confident that significant growth opportunities continue to exist, as have been disclosed in the group strategic report. Following the directors' assessment, there are no indicators of impairment to goodwill in the year ended 31 March 2022. In the year to 31 March 2021, the resulting discounted cash flow assessment performed indicated an impairment of £200,000, which had been recognised in the financial statements as an exceptional cost in that year. The carry value of the customer relationships asset was considered alongside the projections above, including a review of historic customer retention rates against the assumptions in the original fair valuation of the asset. The carrying value of this asset has been fully amortised in the year ended 31 March 2022.
Page 27
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
The directors consider that the group has a single class of business.
Analysis of turnover by country of destination:
Page 28
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 29
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 30
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
8.Taxation (continued)
In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% for companies with profits of over £250,000. A small profits rate will also be introduced for companies with profits of £50,000 or less so that they will continue to pay corporation tax at 19%. From this date companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective corporation tax rate. This new law was substantively enacted on 24 May 2021. Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements.
The company has carried forward tax losses of £5.3m (2021: £4.6m) which may be utilised against future trading profits. The resulting deferred tax asset at 25% of £1.3m has not been recognised due to uncertainties over the timing of the profits against which the asset will reverse.
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own profit and loss account in these financial statements. The profit after tax of the parent company for the year was £
Page 31
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 32
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 33
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
11.Tangible fixed assets (continued)
Page 34
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 35
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 36
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 37
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
16.Loans (continued)
Page 38
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
On 10 May 2018 154,876 Ordinary shares were issued for a total consideration of £1,239,000 as part of the loan note restructuring as detailed in note 16. In addition on this date the company issued 58,438 warrants to subscribe for up to 58,438 ordinary shares. The amount attributable to warrants is immaterial.
Page 39
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 40
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TSL RESEARCH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
As at the year-end, in the opinion of the directors there is no ultimate controlling party.
Subsequent to the year end on 31 August 2022, TSL Research Group Limited was acquired by GlobalData UK Limited, a subsidiary of GlobalData Plc. GlobalData Plc is publicly traded on the London Stock Exchange and its registered office address is John Carpenter House, John Carpenter Street, London, EC4Y 0AN. M Danson is the ultimate controlling party. As at the date of approval of these accounts he owned 63.12% of the shareholding of GlobalData Plc.
Page 41
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