ACCOUNTS - Final Accounts preparation

Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:

FRONTIERS MEDIA LIMITED - Company Information

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Registered number: 09952345

FRONTIERS MEDIA LIMITED

AUDITED

ANNUAL REPORT
AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED
31 DECEMBER 2022

FRONTIERS MEDIA LIMITED

COMPANY INFORMATION

Directors	Mr G Lippi (appointed 28 February 2022)
	Mr P Lustenberger (appointed 1 February 2023)
	Dr K Markram
	Mr M Toral (appointed 1 February 2023)
	Mr R Biggs (resigned 1 February 2023)
	Mr M Kenyon (resigned 1 February 2023)


Company secretary	Mr M Toral


Registered number	09952345


Registered office	Albany House
	Claremont Lane
	Esher
	Surrey
	KT10 9FQ


Independent auditors	Wellden Turnbull Limited
	Chartered Accountants & Statutory Auditors
	Albany House
	Claremont Lane
	Esher
	Surrey
	KT10 9FQ

FRONTIERS MEDIA LIMITED

CONTENTS

	Page
Strategic report	1 - 2
Directors' report	3 - 4
Independent auditors' report	5 - 8
Statement of income and retained earnings	9
Statement of financial position	10
Statement of cash flows	11
Notes to the financial statements	12 - 22

FRONTIERS MEDIA LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

Introduction

The Directors present their strategic report for Frontiers Media Limited ("the Company") for the year ended 31 December 2022.
The principal activity of the Company during the year under review was the provision of support services to its parent company, Frontiers Media SA.

Business review

Frontiers UK operation grew by around 86% in terms of employee growth over the course of 2022. This rate of expansion will likely decelerate slightly into the first half of 2023 as Frontiers looks to profit on this hyper growth in people to further reach their objectives of making science open.
The Company's turnover in 2022 amounted to £41,407,395 (2021 - £19,947,756) and the profit after tax was £1,616,017 (2021 - £723,690).
The Company's balance sheet continues to be strong, with a net current asset figure of £2,296,357 (2021 £883,696). The Company generates a healthy profit margin which is used to finance the Company's growth plans. The net cash generated ensures future growth is internally financed with no external funding required.
Since the lifting of the COVID-19 lockdown restrictions, the Company has continued to implement its "Work-from-home" policy. This has enabled the Company to source new hires from a wider geographical pool which has improved the quality of staff employed. The Company continues to rent office space in London.

Principal risks and uncertainties

The Company provides support services to its Swiss holding company on a cost-plus basis with fees being calculated monthly. This lends itself to a very low-risk business model and a stable environment for Frontiers Media Limited.
The main risk identified for the Company is the possibility of the holding company failing to continue trading as a going concern. However, with the continued growth of the Open Science movement, and with Frontiers' position at the vanguard of this movement, this risk is considered to be remote.
Other risks relating to operational management, employment procedures and corporate governance are managed on a group-wide basis by the Swiss holding company with input from local UK advisors. Insurance policies are taken out by Frontiers Media Limited where these are considered beneficial to mitigate any identified risks.

Financial key performance indicators

As mentioned in the business review, the Company experienced strong organic growth during the year whilst maintaining its profitability. The revenue per employee (average FTE) reduced very slightly to £52,282 fro m£54,502 in 2021 while the average salary cost per head remained fairly constant with just a 1% increase to £44,278 (2021 - £43,878).
The results for the year were not impacted by any extraordinary or exceptional events.
The effective Corporation tax rate on the profit for the year was 18.2% (2021 - 24.0%) which was less (2021 - higher) than the UK corporation tax rate of 19% (2021 - 19%).This was due to a partial release of a deferred tax provision. From 1 April 2023, the UK tax rate has increased from 19% to 25%.

Page 1

FRONTIERS MEDIA LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Equal opportunities

Frontiers actively embraces diversity and prides itself on providing a safe and welcoming workplace for all. This policy permeates throughout our recruitment and selection process, training and development, performance reviews and promotion.
The Company's policy is to promote an environment that is free from discrimination, harassment and victimisation, where everyone will receive equal treatment regardless of their race, national or ethnic origin, age, religion, disability, sex, gender identity or sexual orientation.
With over 1900 employees across the Frontiers Media Group, from more than 50 different nations, our diversity creates vibrant teams and constantly challenges us to appreciate multiple perspectives.

Employees with disabilities
The Company is clear in its policy that people with health conditions, both visible and non-visible, should have full and fair consideration for all vacancies. Frontiers has continued to demonstrate its commitment to interviewing those applicants with disabilities who fulfil the minimum criteria, and endeavours to retain employees in the workforce if they become disabled during their employment. Frontiers will actively retrain and adjust employees' environments where possible to allow them to maximise their potential.

This report was approved by the board and signed on its behalf.

Mr P Lustenberger

Director

Date: 6 July 2023

Page 2

FRONTIERS MEDIA LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

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

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with 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 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 for the Company'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 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £1,616,017 (2021 - £723,690).

No dividends were declared or paid in the current or prior periods.

Directors

The Directors who served during the year were:

Mr G Lippi (appointed 28 February 2022)

Dr K Markram

Mr R Biggs (resigned 1 February 2023)

Mr M Kenyon (resigned 1 February 2023)

Future developments

The Directors do not anticipate any change in the level or nature of the Company's business in the near future and remain focused on enhancing and improving existing operations.

Financial instruments

The Company's operations expose it to a variety of financial risks including the effects of changes in interest rates on debt, liquidity risk and credit risk. The Company's principal financial instruments comprises sterling cash and bank deposits, together with amounts owed to group undertakings that arise directly from its operations.

Page 3

FRONTIERS MEDIA LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Engagement with employees

Frontiers firmly believes that the Company cannot operate and achieve our strategic goals without a fully engaged employee base.
To ensure employee engagement, Frontiers carries out company-wide employee engagement surveys. This allows colleagues to give honest and open feedback and gives an opportunity to establish two way-communication, giving employees a direct voice to the management team. Results from each engagement survey are then presented and actioned according to specific focus areas including improvements and impactfulness with subsequent surveys also measuring the impact of those surveys prior.
In addition, Frontiers also carries-out quarterly reviews to all employees with the leadership team presenting both financial and non-financial updates to give visibility on the overall status and direction of the Company.

Matters covered in the Strategic report

The Company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out within the Company's Strategic Report the Company's Strategic Report information required by Schedule 7 of the Large and Medium Companies and Groups (Accounts and Reports) Regulations 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties.

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' report is approved has confirmed that:

∙so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

This report was approved by the board on 6 July 2023 and signed on its behalf.

Mr P Lustenberger

Director

Page 4

FRONTIERS MEDIA LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRONTIERS MEDIA LIMITED

Opinion

We have audited the financial statements of Frontiers Media Limited (the 'Company') for the year ended 31 December 2022, which comprise the Statement of income and retained earnings, the Statement of financial position, the Statement of cash flows and the related notes, 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 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.

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 Company 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.

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 Auditors' 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.

Page 5

FRONTIERS MEDIA LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRONTIERS MEDIA LIMITED (CONTINUED)

Opinion 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 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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

∙the financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of 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 Directors' responsibilities statement set out on page 3, 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.

Page 6

FRONTIERS MEDIA LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRONTIERS MEDIA LIMITED (CONTINUED)

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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. We have identified the greatest risk of a material impact on the financial statements from irregularities, including fraud, to relate to the timing and recognition of revenue and the override of controls by management. We have obtained an understanding of the legal and regulatory frameworks that the Company operates within including both those that directly have an impact on the financial statements and more widely those for which non-compliance could have a significant impact on the Company’s operations and reputation. The Companies Act 2006, employee legislation, health and safety legislation and data protection are those we have identified in this regard. Auditing standards limit the required procedures as to non-compliance with laws and regulations to enquiries of those charged with governance and review of any applicable correspondence.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

∙Enquiry of management and those charged with governance as to actual and potential litigation and claims;

∙Enquiry of management and those charged with governance to identify any instances of non-compliance with laws and regulations;

∙Assessing the reasonableness and accuracy of turnover in the financial year based on underlying contractual terms and obligations and the requirements of accounting standards, ensuring that sales are recorded in the correct period;

∙Verifying the existence of employees and testing the accuracy of payroll inputs to supporting documentation;

∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and

∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business, and reviewing accounting estimates for bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Auditors' report.

Page 7

FRONTIERS MEDIA LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRONTIERS MEDIA LIMITED (CONTINUED)

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 Auditors' 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.

Robin John, FCA, CTA (Senior Statutory Auditor)

for and on behalf of

Wellden Turnbull Limited

Chartered Accountants

Statutory Auditors

Albany House

Claremont Lane

Esher

Surrey

KT10 9FQ

14 July 2023

Page 8

FRONTIERS MEDIA LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 31 DECEMBER 2022

	2022	2021
Note	£	£


Turnover	4	41,407,395	19,947,756
Gross profit		41,407,395	19,947,756
Administrative expenses		(39,432,908)	(18,995,333)
Operating profit		1,974,487	952,423
Interest receivable and similar income		459	10
Interest payable and similar expenses		(185)	-
Profit before tax		1,974,761	952,433
Tax on profit	7	(358,744)	(228,743)
Profit after tax		1,616,017	723,690



Retained earnings at the beginning of the year	1,565,119	841,429
Profit for the year	1,616,017	723,690
Retained earnings at the end of the year	3,181,136	1,565,119

There were no recognised gains and losses for 2022 or 2021 other than those included in the statement of income and retained earnings.

The notes on pages 12 to 22 form part of these financial statements.

Page 9

FRONTIERS MEDIA LIMITED

REGISTERED NUMBER: 09952345

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2022

		2022		2021
Note		£		£

Fixed assets
Tangible assets	8		1,185,285		900,334
Current assets
Debtors: amounts falling due within one year	9	8,226,710		5,843,625
Bank and cash balances		628,479		115,527
		8,855,189		5,959,152
Creditors: amounts falling due within one year	10	(6,558,832)		(5,075,456)
Net current assets			2,296,357		883,696
Provisions for liabilities
Deferred tax	12	(295,506)		(213,911)
			(295,506)		(213,911)
Net assets			3,186,136		1,570,119

Capital and reserves
Called up share capital	13	5,000	5,000
Profit and loss account	14	3,181,136	1,565,119
Shareholders' funds		3,186,136	1,570,119

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Mr P Lustenberger

Director

Date: 6 July 2023

The notes on pages 12 to 22 form part of these financial statements.

Page 10

FRONTIERS MEDIA LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2022

			2022	2021
			£	£

Cash flows from operating activities
Profit for the financial year	1,616,017	723,690
Adjustments for:
Depreciation of tangible assets	477,982	246,634
Interest paid	185	-
Interest received	(459)	(10)
Taxation charge	358,744	228,743
(Increase) in debtors	(2,383,085)	(3,266,571)
Increase in creditors	1,221,076	2,822,926
Corporation tax (paid)	(14,849)	(110,260)
Net cash generated from operating activities	1,275,611	645,152

Cash flows from investing activities
Purchase of tangible fixed assets	(762,933)	(832,819)
Interest received	459	10
Net cash from investing activities	(762,474)	(832,809)
Cash flows from financing activities
Interest paid	(185)	-
Net cash used in financing activities	(185)	-
Net increase/(decrease) in cash and cash equivalents	512,952	(187,657)
Cash and cash equivalents at beginning of year	115,527	303,184
Cash and cash equivalents at the end of year	628,479	115,527

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	628,479	115,527

Page 11

FRONTIERS MEDIA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

1.	General information

Frontiers Media Limited is a private company, limited by shares and incorporated in England and Wales, registration number 09952345. The registered office is Albany House, Claremont Lane, Esher, Surrey, KT10 9FQ. The principal place of business is 35 New Broad Street, New Broad Street House, London, EC2M 1NH.

2.Accounting policies

2.1

Basis of preparation of financial statements

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 management to exercise judgement in applying the Company's accounting policies (see note 3).

These financial statements are presented in sterling, which is the functional currency of the Company and rounded to the nearest £.

The following principal accounting policies have been applied:

2.2

Compliance with accounting standards

The financial statements have been prepared in accordance to the provisions of FRS 102. There were no material departures from that standard.

2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

The Company's revenue is derived from recharges of its operating expenses to its parent company.

Page 12

FRONTIERS MEDIA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.5

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

2.6

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss 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.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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 reporting date.

2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 13

FRONTIERS MEDIA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

2.7

Tangible fixed assets (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:

				Office equipment	-	33%
				Computer equipment	-	33%

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.

2.8

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.9

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

2.10

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.11

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date.

Page 14

FRONTIERS MEDIA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

2.12

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting 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 Statement of financial position.

Page 15

FRONTIERS MEDIA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

2.13

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are 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 Statement of income and retained earnings.

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

There are no judgements or estimates when applying the accounting policies that have a significant effect on the amounts recognised in the financial statements that are not readily apparently from other sources.

Turnover

The whole of the turnover is attributable to the Company's principal activity and invoiced to the Company's parent undertaking, Frontiers Media SA, located in Switzerland.

Fees payable to the Company's auditors for the audit of the Company's financial statements

10,000

7,350

Page 16

FRONTIERS MEDIA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

6.	Employees
		2022	2021
		£	£

Wages and salaries	30,002,252	14,034,603
Social security costs	3,677,470	1,519,815
Cost of defined contribution scheme	1,388,473	504,987
	35,068,195	16,059,405

The average monthly number of employees, including the Directors, during the year was as follows:

	2022	2021
	No.	No.

Employees	792	366

No Directors were remunerated by the Company in the current or prior year.

Page 17

FRONTIERS MEDIA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

Corporation tax
Current tax on profits for the year	277,149	14,832

Total current tax	277,149	14,832

Deferred tax
Origination and reversal of timing differences	81,595	213,911
Total deferred tax	81,595	213,911


	Taxation on profit on ordinary activities	358,744	228,743

Profit on ordinary activities before tax

1,974,761

952,433

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)	375,205	180,962
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	(428)	56
Capital allowances for year in excess of depreciation	(97,628)	(154,280)
Increase or decrease in pension fund prepayment leading to an increase (decrease) in tax	-	(11,906)
Movement in deferred tax	81,595	213,911
Total tax charge for the year	358,744	228,743

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 18

FRONTIERS MEDIA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

8.	Tangible fixed assets

	Office equipment	Computer equipment	Total
	£	£	£
Cost or valuation
At 1 January 2022	40,675	1,241,207	1,281,882
Additions	-	762,933	762,933
Disposals	(39,523)	(269,927)	(309,450)
At 31 December 2022	1,152	1,734,213	1,735,365
Depreciation
At 1 January 2022	35,820	345,728	381,548
Charge for the year on owned assets	3,973	474,009	477,982
Disposals	(39,523)	(269,927)	(309,450)
At 31 December 2022	270	549,810	550,080
Net book value
At 31 December 2022	882	1,184,403	1,185,285
At 31 December 2021	4,855	895,479	900,334

Debtors

					2022	2021
					£	£


Trade debtors	3,962,000	2,390,000
Other debtors	605,713	815,136
Prepayments and accrued income	3,658,997	2,638,489
	8,226,710	5,843,625

Page 19

FRONTIERS MEDIA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

10.	Creditors: Amounts falling due within one year
		2022	2021
		£	£

Trade creditors	341,079	377,924
Amounts owed to group undertakings	2,223,820	1,753,820
Corporation tax	277,216	14,917
Other taxation and social security	912,926	473,420
Other creditors	8,037	5,698
Accruals and deferred income	2,795,754	2,449,677
	6,558,832	5,075,456

Amounts owed to group undertakings are interest free, repayable on demand and unsecured.

11.	Financial instruments
		2022	2021
		£	£

Financial assets
Financial assets measured at fair value through profit or loss	628,479	115,527
Financial assets that are debt instruments measured at amortised cost	4,268,866	2,889,470
	4,897,345	3,004,997

	Financial liabilities
	Financial liabilities measured at amortised cost	(4,775,721)	(4,330,114)

	Financial assets measured at fair value through profit or loss comprise cash and cash equivalents.
	Financial assets that are debt instruments at amortised cost comprise day to day trading instruments.
	Financial liabilities measured at amortised cost comprise day to day trading instruments and loans from related parties.

Page 20

FRONTIERS MEDIA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

12.	Deferred taxation

		2022
		£

	At beginning of year	(213,911)
	Charged to profit or loss	(81,595)
	At end of year	(295,506)

The provision for deferred taxation is made up as follows:
	2022	2021
	£	£

Accelerated capital allowances

(295,506)

(213,911)

13.	Share capital
		2022	2021
		£	£

Allotted, called up and fully paid

5,000 (2021 - 5,000) Ordinary shares of £1.00 each	5,000	5,000

14.

Reserves

Profit and loss account

The profit and loss account represents cumulative profits and losses net of the dividends and other adjustments.

15.	Analysis of net debt

		At 1 January 2022	Cash flows	At 31 December 2022
		£	£	£

Cash at bank and in hand	115,527	512,952	628,479
Debt	-	-	-
	115,527	512,952	628,479

Page 21

FRONTIERS MEDIA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

Not later than 1 year

1,748,268

881,100

Operating lease payments recognised as an expense in the profit and loss account amounted to £1,314,760 (2021 - £1,804,015).

17.	Related party transactions
	The Company has taken exemption under the FRS102 section 33.1A not to disclose transactions and balances with other group companies, on the basis that it is a wholly owned subsidiary.

18.	Controlling party

The ultimate parent undertaking and controlling party is Frontiers Media SA, a company incorporated in Switzerland located at Avenue du Tribunal Fédéral 34, 1005 Lausanne.
The parent company of the largest group in which the results of the Company are consolidated is Frontiers Media SA.

Page 22