DCD MEDIA PLC
FINANCIAL STATEMENTS
FOR THE FIFTEEN-MONTH PERIOD ENDED 31 MARCH 2020
Company number 03393610
Contents
Audited results for the period ended 31 March 2020
E(cid:91)ec(cid:88)ti(cid:89)e Chairman(cid:182)s re(cid:89)ie(cid:90)
Group strategic report
Group report of the Directors for the period ended 31 March 2020
Board of Directors
Independent a(cid:88)ditor(cid:182)s report to the members of DCD Media Plc
Consolidated income statement for the period ended 31 March 2020
Consolidated statement of comprehensive income for the period ended 31 March 2020
Consolidated statement of financial position as at 31 March 2020
Consolidated statement of cash flows for the period ended 31 March 2020
Consolidated statement of changes in equity for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
Parent company balance sheet as at 31 March 2020
Parent company statement of changes in equity for the period ended 31 March 2020
Notes to the parent company financial statements for the period ended 31 March 2020
Corporate information
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DCD Media Plc
Financial statements for the period ended 31 March 2020
DCD Media Plc
((cid:179)DCD Media(cid:180) or the (cid:179)Compan(cid:92)(cid:180))
Audited results for the period ended 31 March 2020
DCD Media and its subsidiaries, the independent TV distribution and prod(cid:88)ction gro(cid:88)p (the (cid:179)Gro(cid:88)p(cid:180)), toda(cid:92) report res(cid:88)lts
for the fifteen-month period ended 31 March 2020.
Financial Summary
Continuing operations:
(cid:120) Revenue
(cid:120) Gross profit
(cid:120) Operating loss
Group results:
£10.93m (2018: £7.05m)
£2.05m (2018: £1.64m)
£0.15m (2018: £0.07m)
(cid:120) Operating loss
(cid:120) Adjusted EBITDA
(cid:120) Adjusted profit before tax
(cid:120) Net cash
£0.15m (2018: £0.04m)
£0.40m* (2018: loss of £0.03m)
£0.18m (2018: loss of £0.04m)
£2.74m (2018: £2.28m)
* The basis for this figure has changed in the period following implementation of IFRS 16 relating to lease liabilities. If we
were to show this on a like-for-like basis in 2020, we would show an adjusted EBITDA of £0.10m accordingly.
Please refer to the table within the Performance section within the Group Strategic Report for an explanation of the profit
adjustments.
Business highlights
(cid:120)
The fifth series of Penn & Teller: Fool Us in Vegas was transmitted in H1 2019. The highly successful series is
a co-production between 1/17 Productions and September Films for The CW Network in the USA.
(cid:120) DCD Rights announced the sale of the six-part new drama The Secrets She Keeps starring Laura Carmichael
and Jessica De Gouw to BBC One UK, Mediawan France and Digital Store for Sundance Now in America.
(cid:120) DCD Rights announced the sale of two leading Australian drama series, The Hunting and My Life is Murder, to
UK broadcasters Channel 5 and UKTV respectively.
(cid:120) September Films format and WE produced Bridezillas season 12 sold to ITV network as well as A&E for Africa
after successful ratings from the WE TV US premiere. It has subsequently gone into production for season 13
which comprises 11 hours, making the DCD Rights franchise a total of 231 hours of programming in distribution
across the world excluding the USA.
(cid:120) DCD Rights distrib(cid:88)ted dramas garnered se(cid:89)eral prestigio(cid:88)s a(cid:90)ards from the A(cid:88)stralian Writers G(cid:88)ild for the
Andre(cid:90) Knight penned drama Jack I(cid:85)i(cid:86)h, as (cid:90)ell as The A(cid:88)stralian Academ(cid:92) of Cinema and TV A(cid:90)ard for Bes(cid:87)
Screenpla(cid:92) in Tele(cid:89)ision for The H(cid:88)n(cid:87)ing (cid:90)riting team. The H(cid:88)n(cid:87)ing also (cid:90)on Bes(cid:87) S(cid:88)ppor(cid:87)ing Ac(cid:87)or for
A(cid:88)stralian star Richard Ro(cid:91)b(cid:88)rgh.
(cid:120) DCD Rights renewed its output deal with The Open University to distribute its prestigious factual catalogue of 160
hours of diverse and engaging factual programming.
(cid:120) DCD Rights signed pre-sales for three market-tailored factual series with Discovery UK, which combined with
DCD investment against international rights, triggered production for a total of 30 hours for new series Disasters
Engineered, My Life is Murder and The Lady Killers.
(cid:120) DCD Rights anno(cid:88)nced a m(cid:88)lti-titles sale of programmes prod(cid:88)ced b(cid:92) The Open Uni(cid:89)ersit(cid:92) to C(cid:88)riosit(cid:92) Stream
for its (cid:90)orld(cid:90)ide s(cid:88)bscription on-demand ser(cid:89)ice.
(cid:120) DCD Rights acquired the rights to two new series of bestselling Australian factual series Aussie Gold seasons 5
and 6 to deliver a further 40 hours of programming over 2020 and 2021.
(cid:120) DCD Rights catalogue grew from 3,000 to over 3,500 hours of programming continuing its policy to acquire long
running factual series alongside quality drama, high-end documentaries and music programming.
DCD Media Plc
1 Financial statements for the period ended 31 March 2020
Overview
Trading conditions for the latter part of the financial period, as for many businesses in the sector, could best be
characterised as challenging.
Buying habits markedly shifted impacted with the dilution of the overall market and of the advertising markets due to the
growth of the VOD channels. Latterly as the COVID spectre added an additional threat thus an opportunistic shorter-term
market was created in which some content providers fared better than others. DCD Rights has certainly performed well
with its drama genre offerings and this continues to be the case in the current year. Drama though accounts for less than
25% of the library and the general performance of DCD Rights was weaker than anticipated in the period, particularly so
in the final six months of the extended financial year.
Reported Group revenue on continuing operations for the period to March 2020 was £10.93m compared to £7.05m for the
year to December 2018 (during the year the team extended the year end to March resulting in our current reporting period
being for 15 months rather than 12). However, gross profit and gross profit margin for the period was £2.05m and 16.5%
compared to £1.64m and 23.2% for 2018, thus a poorer gross margin to turnover ratio compared to the prior year. Again,
a weaker performance in the first calendar quarter of 2020 has not helped the margin ratio. The Group reports an operating
loss of £0.15m while in 2018 the business delivered a marginal operating loss of £0.04m.
Several factors have contributed to turning what would have been a strong operating profit into an operating loss in the
year, and primarily this is a result of a number of exceptional items which were deemed irrecoverable and discontinuing.
The exceptional items that relate to 2019 and beyond have been rectified and are not likely to recur. As a consequence of
adjustments made we report an adjusted EBITDA profit of £0.40m (2018: loss of £0.03m) and an adjusted profit before tax
of £0.18m (2018: loss of £0.04m). The adjusted EBITDA profit is after making the necessary adjustments to the way we
account for lease liabilities following the implementation of IFRS 16 in the period. This is explained in more detail within
the notes to the financial statements. Without these exceptional items, the business would have reported a healthy
operating profit in the period.
The business continued its investment in programming acquisitions in the DCD Rights catalogue during the period.
Financial commitments of over £3m were made in the period, in respect of programming with gross values of £12m over
their lifetime. The catalogue now totals over 3,500 hours of high-quality drama, factual and entertainment programming.
This compares with previous gross values of £13.4m in 2017 and £13.4m in 2018. Investment spend in those years was
£4.3m and £3.2m respectively.
The DCD Rights team have, despite the obvious disruption from COVID-19 in the last quarter, made significant progress
in developing depth in the catalogue, continuing a policy to acquire long-running factual series alongside quality drama
and high-end documentaries.
Noteworthy achievements in the year for the Drama catalogue include the announced sale of two leading Australian drama
series The Hunting and My Life is Murder to UK broadcasters Channel 5 and UKTV respectively. The edgy four-part
drama The Hunting was also acquired by TV4 in Sweden, Ale kino+ in Poland, and TVNOW in Germany.
And at the end of the period, DCD announced sales of its recently launched drama series to a slew of international
broadcasters. High demand for psychological thriller The Secrets She Keeps starring Laura Carmichael (Downton Abbey)
and Jessica de Gouw (Arrow) saw the six-part drama travel to Mediawan in France and French speaking Europe, TVNZ
in New Zealand, TV4 in Sweden, Hot Telecom Israel, YLE Finland and IVI Russia.
Blackfella Films, producers of DCD-distributed drama Deep Water, won the 2019 Sydney UNESCO City of Film award
recognising them as outstanding New South Wales based screen specialists. Crime series Deep Water, featuring Noah
Taylor and Yael Stone has been hugely popular selling worldwide to major broadcasters. At the Asian Academy Creative
Awards, Find My Killer (cid:90)on in the categor(cid:92) of (cid:181)Best Short Form Content in Australia and New Zealand(cid:182).
In October, DCD returned to MIPCOM with a fresh catalogue of latest releases that featured programming across drama,
entertainment, factual and music. The Secrets She Keeps featured strongly at the international show. Dry Water was a
popular drama while Find My Killer, a story inspired by real life events and follows the investigation into the disappearance
and murder of teenager Mia Bryant, attracted strong interest.
As well as previously announced factual series, DCD Rights also brought to market Ultimate Movers, another series of
Vintage Roads, and the third season of ToyMakerz. DCD Rights also sold Saving The Dinosaur Fish and the second
series of W(cid:82)(cid:85)ld(cid:182)(cid:86) G(cid:85)ea(cid:87)e(cid:86)(cid:87) Shi(cid:83)(cid:86) with Rob Bell. New to music releases was Bush: Live in Tampa, while we were also
thrilled to welcome a range of classic British TV dramas from STV, including: McCallum, Ain(cid:182)(cid:87) Mi(cid:86)beha(cid:89)in(cid:182), Fa(cid:86)(cid:87) F(cid:85)eddie,
The Widow & Me, Forgive & Forget, High Times, Take Me, The Last Musketeer and The S(cid:87)alke(cid:85)(cid:182)(cid:86) A(cid:83)(cid:83)(cid:85)en(cid:87)ice.
DCD Rights started the New Year by launching a new catalogue comprising programming across drama, entertainment,
factual and music including a third series of docudrama Real Detective: North Of The Border, true crime series The Lady
Killers, The Bone Detectives featuring Tori Herridge, A World Without NASA, cookery travelogue Jame(cid:86) Ma(cid:85)(cid:87)in(cid:182)(cid:86)
Islands To Highlands, The Real Prince Philip: A Royal Officer, a new series of Marriage Boot Camp: Reality Stars
and Off Camera with Sam Jones.
DCD Media Plc
2 Financial statements for the period ended 31 March 2020
Ahead of NATPE Miami, DCD also announced presales of Disasters Engineered to Discovery in the UK and Ireland, and
to Danmarks Radio in Denmark. Another new title, Aussie Bull Catchers, was licenced by Viasat World for Scandinavia,
Eastern Europe and CIS.
DCD also welcomed in Spring with a catalogue of brand-new programming featuring well-known talent: Heavenly Gardens
with Alexander Armstrong and Arit Anderson; Top Ten Treasures of Pompeii and Top Ten Treasures: Egyptian
Mummies with Bettany Hughes; How To Make(cid:171) feat(cid:88)ring Zoe La(cid:88)ghlin; The Art Detectives with Dr. Bendor Grosvenor
and Emma Dabiri and multiple series of Penn & Teller: Fool Us hosted by Alyson Hannigan. The catalogue also included
returning hits such as the fifth series of Aussie Gold Hunters and more instalments of Marriage Boot Camp: Reality
Stars and W(cid:82)(cid:85)ld(cid:182)(cid:86) Wilde(cid:86)(cid:87) Wea(cid:87)he(cid:85): Caught On Camera. A third series of Emergency Helicopter Medics, as well as
Emergency Rescue: Air, Land & Sea added to our extensive library of blue light programming. Finally, we explored the
phenomena of strange transmissions in Phantom Signals.
The Directors are, as in previous years, delighted that core formats vesting in the production entities have been
recommissioned under co-production and format arrangements which provides both continued cash flow for the Group
and a gro(cid:90)ing librar(cid:92) of (cid:181)o(cid:90)ned(cid:182) content to complement the third-party rights held under licence.
The fifth series of Penn & Teller: Fool Us successfully aired on the CW Network in the US, as well as an additional one-
hour April Fool Us special, triggering a further 13-part commission for 2020 that was first aired in June of this year. It is
again produced by 1/17 Productions and September Films. DCD Rights concluded a new format deal for season 13 of
long running factual series Bridezillas commissioned by WEtv USA and to be distributed internationally by DCD Rights.
Outlook and COVID-19
The post COVID-19 economy, while at first blush could have been perceived as a boon for content providers, has actually
been a very difficult environment in which to trade. The global pandemic has caused widespread disruption to every
marketplace, including the film and TV markets. We know from recent experience, that the TV marketplace is feeling the
impact of the virus despite many commentators suggesting the events of lockdown and reduced mobility would create the
perfect storm for content aggregators. In reality, all activities related to broadcasting, financing, production, sales, marketing
and distribution, and particularly advertising revenues have come under intense pressure. The DCD Rights team are, like
many of their peers in the industry, resilient and experienced in managing their catalogue acquisitions to ensure these
meet the appetite and expectations of our long-established network of content buyers.
There is though, a reality check around the general economic impact which is having a knock-on effect on the production
industry and its workforce. For many months of 2020 production staff being mostly freelancers have been laid-off and
productions operations have shut down or suspended. We believe the COVID-19 pandemic crisis will significantly change
production business in 2020 and beyond.
While DCD maintains effective relationships with independent producers and has commitments on live productions, if the
effects of the pandemic worsen in the short-term this will have a serious impact on our business moving into the next
financial year. In summary, the market conditions in 2020 continue to be challenging and have been exacerbated by a
global crisis which has touched almost every aspect of working and social living.
David Craven, Executive Chairman and Chief Executive Officer, commented: (cid:179)I first of all (cid:90)ant to pa(cid:92) trib(cid:88)te to and
thank our talented and committed team at DCD Rights who have battled through the early months of the COVID-19
lockdown. While working remotely they have been efficient and effective in seeking to deliver a strong sales performance
for the business.
(cid:179)While (cid:90)e are disappointed (cid:90)ith the o(cid:89)erall performance of the b(cid:88)siness across the period, a number of factors are worthy
of note. We have written down exceptional items, and once adding these back, we present an adjusted profit of £180k. We
do cite the trading months in 2020 as being particularly challenging. Some key drama titles were expected to deliver sales
in the period to March 2020, but those sales have been pushed into the new financial year and we are confident these will
deliver the forecasted results for 2020/21, albeit some months later than expected.
(cid:179)The market is in fl(cid:88)(cid:91) presentl(cid:92) and (cid:90)e e(cid:91)pect more (cid:88)ncertaint(cid:92) aro(cid:88)nd f(cid:88)t(cid:88)re prod(cid:88)ctions, (cid:90)hat DCD Rights can
realistically acquire in the coming months and in particular its continued focus on dramas will be reliant on the production
world being able to kick-start operations.
(cid:179)We can sa(cid:92) that (cid:89)ario(cid:88)s sales negotiations for 2020 look promising, b(cid:88)t obtaining commitment remains an ongoing
challenge for the sales team. We are, of course, delighted we have been able to licence new high-quality drama and factual
content which have added depth to an already impressive catalogue.
(cid:179)So, in spite of e(cid:91)traordinaril(cid:92) challenging market conditions bro(cid:88)ght abo(cid:88)t b(cid:92) the global pandemic, the Directors belie(cid:89)e
the resilience of the experienced team in DCD rights, together with a continued investment into new programming gives
us a sense of optimism as we continue to forge ahead in the global TV markets.(cid:182)(cid:182)
For further information please contact:
Lisa Hale
Investor Relations/ Media Relations, DCD Media Plc
Tel: +44 (0)20 3869 0190 Email: ir@dcdmedia.co.uk
Stuart Andrews / Carl Holmes / Giles Rolls
finnCap
Tel: +44 (0)20 7220 0500
DCD Media Plc
3 Financial statements for the period ended 31 March 2020
E(cid:91)ec(cid:88)(cid:87)i(cid:89)e Chai(cid:85)man(cid:182)(cid:86) (cid:85)e(cid:89)ie(cid:90)
While revenue grew significantly, this is masked by an extended period and a like-for-like comparison suggests the
business would have delivered £8.8m in gross sales revenue compared with £7.05m in 2018, so an improvement on this
basis. The net adjusted basic profit for the period was £0.18m which is up from a loss for the year in 2018 of £0.04m. A
keen focus on driving targeted sales is required by the DCD Rights team to again deliver a positive EBITDA performance
in FY21 given the macro-economic headwinds we face.
Despite the obvious challenges, the core rights business remains viable as the team continues to augment the catalogue
and increase contact and engagement with the acquiring networks. The continued efforts to attract additional third-party
funding remains a focus for the team and this has only been made more challenging by COVID-19.
The year was punctuated with high-profile activity. As well as previously announced factual series, DCD also brought to
market Ultimate Movers, another series of Vintage Roads and the third season of ToyMakerz. Away from the road and
into the water, DCD also sold Saving The Dinosaur Fish and the second series of W(cid:82)(cid:85)ld(cid:182)(cid:86) G(cid:85)ea(cid:87)e(cid:86)(cid:87) Shi(cid:83)s with Rob
Bell. New to music releases was Bush: Live in Tampa, while we were also thrilled to welcome a range of classic British
TV dramas from STV, including: McCall(cid:88)m, Ain(cid:182)(cid:87) Mi(cid:86)beha(cid:89)in(cid:182), Fa(cid:86)(cid:87) F(cid:85)eddie, The Wid(cid:82)(cid:90) & Me, F(cid:82)(cid:85)gi(cid:89)e & F(cid:82)(cid:85)ge(cid:87), High
Times, Take Me, The Last Musketeer and The S(cid:87)alke(cid:85)(cid:182)(cid:86) A(cid:83)(cid:83)(cid:85)en(cid:87)ice.
DCD-distributed Australian dramas The Hunting and On The Ropes collectively received five AACTA nominations, ahead
of the ceremon(cid:92) in December. Both (cid:90)ere nominated for (cid:181)Best Telefeature or Mini Series(cid:182), (cid:90)hile episode 3 of The Hunting
(cid:90)as nominated for (cid:181)Best Screenplay in Television(cid:182) and (cid:181)Best Direction in a Television Drama or Comedy(cid:182). Mean(cid:90)hile,
Richard Ro(cid:91)b(cid:88)rgh recei(cid:89)ed a nomination for (cid:181)Best Guest or Supporting Actor(cid:182) for his performance in The Hunting. The
Secrets She Keeps was sold to multiple broadcasters for transmission later in 2020.
As we continue to forge ahead in these difficult circumstances, the Board would like to thank the management team and
staff at DCD Media for their hard work and dedication and for their support in the financial period and beyond.
D Craven
Executive Chairman and Chief Executive Officer
03 September 2020
DCD Media Plc
4 Financial statements for the period ended 31 March 2020
Group strategic report
Strategic outlook
The ongoing global COVID-19 crisis has led to widespread uncertainty and sapped both acquisition and sales confidence
in our specific market sector. The uncertainly is simply down to how long will the current pandemic persist and what will
the resulting impact be on the economy at large after we recover, both of which are significant unknowns. Furthermore, we
have the added uncertainty in the economy on how post-Brexit trade agreements will look once the deadline of 31
December 2020 is passed, although this seems likely to be extended beyond this date it remains an unknown currently.
As an organisation, DCD Rights has adapted well, the team have worked highly efficiently on conference calls using digital
resources and closing deals without the ability to hold in-person meetings. But it is perhaps the wider economic fallout that
concerns us; the knock-on effect on long-term media consumption habits, the confidence for blue-chip networks to acquire
and the underlying support from capital markets in acquiring content.
Certainly, the Group is reassessing how it operates on an ongoing basis in the hope that the businesses can forge stronger
and more direct relationships with producers and buyers as the confidence returns in the market. We are fortunate to have
highly skilled and committed people working with us and consequently we believe we will grow from strength to strength.
Review of divisions for the fifteen-month period to 31 March 2020
Rights and Licensing
DCD Rights
Three new dramas delivered strong sales during the second half of the year, as well as critical acclaim. The Secrets She
Keeps six-part drama starring Laura Carmichael (Downton Abbey) and Jessica de Gouw (The Crown) was launched at
MIPCOM in Cannes with Laura Carmichael hosting a dinner event for key buyers. Laura also supported the series with
press interviews resulting in strong sales to all key territories, including the BBC TV UK, Mediawan France, and Digital
Store for Sundance Now in North America.
My Life is Murder starring Lucy Lawless (Xena the Warrior Princess) (cid:90)as sold to UK TV(cid:182)s Alibi Channel for la(cid:88)nch in
October following the previously announced sale to Acorn TV in North America. The Hunting premiered on SBS in
Australia as the most successful commissioned drama on the channel and DCD Rights concluded a sale to Channel 5 in
the UK as well as deals to CBC Canada, NPO Netherlands, RTE Eire as well as IVI Russia.
In factual programming, DCD launched a new six-part series fronted by Bettany Hughes, The Top Ten Treasures of
Egypt, Pompeii and Egyptian Mummies, and concluded sales across North America and Australia as well as a world-
wide cable sale to the National Geographic channel. The Secret Nazi Bases series became a best seller with sales
concluded across Europe including with Proseiben in Germany and Discovery in Spain.
In December 2019, DCD agreed a pivotal deal (cid:90)ith 1/17, September Films(cid:182) co-production partners for US series Penn and
Teller: Fool Us. Under this arrangement, DCD Rights acquired the distribution rights for the US seasons 3 onwards,
excluding USA, Philippines, Finland, Bangladesh, Pakistan and India, comprising 39 hours of top-quality, light
entertainment magic competition. DCD Rights already distributes seasons 1 and 2 having acquired the rights to the first
series of the US franchise making a total of 73 hours. Seasons 5 and 6 were acquired by ABC Network in Australia.
The factual catalogue increased with the addition of multiple new series including Ultimate Movers, The Day My Job
Tried to Kill Me, Vintage Roads, Art Detectives, car series Toymakerz, and Aussie Bull Catchers. All were carefully
selected for their viability with key international channels and specialist cable networks.
With the digital markets in mind, DCD struck a deal with STV to distribute classic library titles Taggart, McCallum and
Rebus, as well as several mini-series. DCD Rights subsequently announced substantial sales to Britbox North America,
as well as deals in Australia, along with multiple agreements across all titles to digital channels around the world.
Jame(cid:86) Ma(cid:85)(cid:87)in(cid:182)(cid:86) I(cid:86)land(cid:86) (cid:87)(cid:82) Highland(cid:86) series delivered in January 2020 and transmitted to strong ratings, bringing the
catalogue of James Martin presented cookery shows to a total of 80 hours. The music catalogue continued to grow with
the addition of Bush: Live in Tampa in the new 4K format, adding to the over 50 hours in the library produced in 4K.
The general market caution at the end of the period, and the shift in the industry towards digital distribution combined to
make the final quarter challenging in both acquisitions and sales. However, with an additional 500 hours in the library we
have proceeded steadily and benefit from a focussed team who can compete successfully through speed to market and
access to funds.
DCD Media Plc
5 Financial statements for the period ended 31 March 2020
Group strategic report
Productions
The DCD Media production division comprised the following brands:
September Films UK
Rize Television
London, UK
London, UK
The output of September Films is o(cid:89)erseen b(cid:92) DCD Media and complimented b(cid:92) the Gro(cid:88)p(cid:182)s rights division.
September Films
September Films agreed to co-produce, with US based 1/17 Productions, a further series of the highly successful
entertainment show Penn & Teller: Fool Us. This is the sixth season produced in the US and the seventh season overall
with filming completing before the COVID-19 pandemic took hold. It will consist of 13 episodes and continue to be hosted
by Alyson Hannigan and again feature the world-famous magicians Penn & Teller. The current series was aired in June
2020 on The CW network in the US.
September Films will continue to be involved in the production of future series of Penn & Teller: Fool Us. The company
continues to review its library of formats and titles.
Rize
During the period there was limited activity in Rize and the directors do not foresee commercial activity in the forthcoming
year.
Performance
At a turnover level, the Group delivered £10.9m in revenue over the fifteen-month period, all from continuing operations
compared with £7.1m for the year in 2018. There is currently uncertainty in the market due to the COVID-19 pandemic but
the team remain hopeful of meeting management(cid:182)s e(cid:91)pectations due to the strong library and content that they have
available. While the period to March 2020 was better than trading results in 2018 from a sales perspective, the team are
working hard to improve this further in the current year and deliver sustainable profit for the business.
The Group made an operating loss for the year of £0.15m (2018: £0.04m), which is stated after impairment and amortisation
of intangible assets, including goodwill and trade names.
Adjusted EBITDA and adjusted PBT are key metrics most relevant to the Board, because they most fairly reflect the
underlying business performance by excluding the significant non-cash impacts of goodwill, trade name and programme
rights amortisation and impairments.
The headline adjusted EBITDA in the fifteen months ended 31 March 2020 was a profit of £0.40m (2018: loss of £0.03m),
inclusive of £0.19m of foreign exchange gains (2018: £0.01m) and depreciation of £0.21m (2018: £0.03m). The increase
in depreciation (and related reduction in administrative expenses) is a result of the implementation of IFRS 16 and the way
we are required to account for leases from 1 January 2019, this is detailed more within the notes to the accounts.
Adjusted continuing profit before tax for the Group was £0.18m in 2020 (2018: loss of £0.04m).
The following table represents the reconciliation between the operating loss per the consolidated income statement and
adjusted profit/loss before tax and adjusted Earnings Before Interest Tax Depreciation and Amortisation (EBITDA):
DCD Media Plc
6 Financial statements for the period ended 31 March 2020
Group strategic report
Operating loss per statutory accounts (continuing operations)
Add: Discontinued operations (note 9)
Operating result per statutory accounts
Add: Impairment of programme rights (note 11)
Add: Depreciation (notes 12 and 13)
EBITDA
Add: Loss/(profit) on restructuring
Adjusted EBITDA
Less: Net financial (expense)/income (note 7)
Less: Depreciation (notes 12 and 13)
Adjusted profit/(loss) before tax
Intangible assets
Period ended
31 March
2020
£m
Year ended
31 December
2018
£m
(0.15)
-
(0.15)
0.00
0.21
0.06
0.34
0.40
(0.01)
(0.21)
0.18
(0.07)
0.03
(0.04)
0.01
0.03
0.00
(0.03)
(0.03)
0.02
(0.03)
(0.04)
The Gro(cid:88)p(cid:182)s intangible asset balance, see note 11, is wholly attributable to Goodwill in relation to DCD Rights and
September Films.
The accounting implications, in terms of the effect of reporting impaired intangible assets under International Financial
Standards, are explained below.
Goodwill
The Directors have assessed the carrying value of goodwill attributable to September Films and have booked no
impairment in the period to 31 March 2020 (2018: £Nil). This is in light of the back-end catalogue income expected to be
received within the business. In assessing the future carrying value of Goodwill in Rize TV the Directors have been advised
a write-down of £67k is appropriate in the current period (2018: £Nil) and can be seen in the compan(cid:92)(cid:182)s standalone res(cid:88)lts
at note 4.
Trade names
All trade names were fully amortised before the 2018 year and as such no charge was made in the fifteen-month period to
31 March 2020 (2018: £Nil). Trade names are amortised over ten years on a straight-line basis.
Restructuring costs
Restructuring costs of £0.34m (2018: £0.03m) have been disclosed in the consolidated statement of comprehensive
income. These are in relation to one-off expenditure incurred in the period and in 2018 they related to small charges
incurred within Sequence Post Ltd, the post-production business, that ceased trading in November 2017.
Earnings per share
Basic loss per share in the period was 11p (year ended 31 December 2018: 1p) and was calculated on the loss after
taxation of £0.27m (year ended 31 December 2018: £0.04m) divided by the weighted average number of shares in issue
during the year being 2,541,419 (2018: 2,541,419).
Balance sheet
The Gro(cid:88)p(cid:182)s net cash balance has increased to £2.7m at 31 March 2020 from £2.3m at 31 December 2018. A substantial
portion of the Group(cid:182)s cash balances represent working capital commitment in relation to its rights business and is not
considered free cash. The increase in the year is largely due to temporary movements in receivables and payables in
working capital.
At the period end, the Group had an available gross overdraft facility of £0.30m and a net facility of £0.15m.
DCD Media Plc
7 Financial statements for the period ended 31 March 2020
Group strategic report
Sha(cid:85)eh(cid:82)lde(cid:85)(cid:86)(cid:182) e(cid:84)(cid:88)i(cid:87)(cid:92)
Retained earnings as at 31 March 2020 was a deficit of £60.7m (2018: £60.6m) and total shareholders(cid:182) eq(cid:88)it(cid:92) at that date
was £2.7m (2018: £2.9m).
Current trading
As mentioned in the strategic report the ongoing global COVID-19 crisis has led to widespread uncertainty and sapped
both acquisition and sales confidence in our specific market sector. However, the team have a high-quality library of content
and while currently there is a lag in reaching signature stage and subsequent delivery, the Group has a number of exciting
deals that we are hopeful of converting to closure before the end of the first half of this year. This should enable the
business to perform on target with management(cid:182)s expectations.
Going concern
The Group's business activities, together with the factors likely to affect its future development, performance, financial
position and borrowings are set out above. In addition, note 18 to the consolidated financial statements sets out the Group's
objectives, policies and processes for managing its financial instruments and risk.
The Group's day-to-day operations are funded from cash generated from trading. During the period the Group also had
access to an o(cid:89)erdraft facilit(cid:92) (cid:90)ith Co(cid:88)tts & Co ((cid:179)Co(cid:88)tts(cid:180)) for a net borro(cid:90)ing amo(cid:88)nt of (cid:133)150k. The overdraft facility was
and is repayable on demand. The overdraft facility was due to renew in November 2019. However, it has been extended
as terms towards a new revolving credit facility have been negotiated and agreed for a total gross amount of £500k. While
at the date of signing this is not fully in place the terms and conditions of the facility are agreed and we expect to sign in
early September. This is positive news for the Group giving even more flexible funding options and solidifies the great
relationship it has with its principal bankers. As such the Directors are comfortable that the Group is, and will be, adequately
funded for a period in excess of 12 months from the date of approval of these financial statements.
In considering the going concern basis of preparation of the Gro(cid:88)p(cid:182)s financial statements, the Board has prepared profit
and cash flow projections which incorporate reasonably foreseeable impacts of the ongoing challenging trading
environment. These projections reflect the management of the day-to-day cash flows of the Group which includes
assumptions on the profile of payment of certain existing liabilities of the Group. They show that the day to day operations
will continue to be cash generative.
The Directors(cid:182) forecasts and projections, (cid:90)hich make allo(cid:90)ance for potential changes in its trading performance, show that
with the ongoing support of its principal shareholder and its bank; the Group can continue to generate cash to meet its
obligations as they fall due.
The Directors ha(cid:89)e reg(cid:88)lar disc(cid:88)ssions (cid:90)ith the Gro(cid:88)p(cid:182)s main shareholders and its principal bankers and have a
reasonable expectation that the Company and the Group will have adequate resources to continue in operational existence
for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and
financial statements.
Key Performance Indicators (KPIs)
Revenue from continuing operations
Continuing operating loss from operations
Adjusted EBITDA
Adjusted profit/(loss) before tax
Principal risks and uncertainties
15 months to
31 March
2020
£m
12 months to
31 December
2018
£m
10.93
(0.15)
0.40
0.18
7.05
(0.07)
(0.03)
(0.04)
General commercial risks
The Gro(cid:88)p(cid:182)s management aims to minimise risk of o(cid:89)er-reliance on individual business segments, members of staff,
productions or customers by developing a broad, balanced stable of production and distribution activities and intellectual
property. Clear risk assessment and strong financial and operational management is essential to control and manage the
Gro(cid:88)p(cid:182)s existing business, retain key staff and balance current development with future growth plans. As the Group
operates in overseas markets, it is also subject to exposures on transactions undertaken in foreign currencies.
Production and distribution revenue
Production revenue will remain at current levels or recede given the Group has ceased to pursue productions in
development and will focus on its two current franchises. Distribution revenue is forecast to rise as this division is the prime
focus of the Group going forward.
DCD Media Plc
8 Financial statements for the period ended 31 March 2020
Group strategic report
Funding and liquidity
Securing funding from external parties to grow the catalogue through acquisition is key to the rights and licencing business.
The Board is comfortable given the relationships with current funding partners they have adequate resources to meet their
acquisition plans for the foreseeable future.
The Gro(cid:88)p(cid:182)s cash and cash eq(cid:88)i(cid:89)alents net of o(cid:89)erdraft at the end of the period (cid:90)as £2.7m (2018: £2.3m) including certain
production related cash held to maintain the Group policy. The Group does not currently have any outstanding debt (2018:
£0.5m) having successfully repaid the balance to Timeweave Ltd during the period. Details of interest payable, funding
and risk mitigation are disclosed in notes 7, 17 and 18 to the consolidated financial statements.
Exchange rate risk
Management review expected cash inflows and outflows in source currency and when required, take out forward options
to protect against any short-term fluctuations.
Section 172 statement
From 1 January 2019, legislation was introduced requiring companies to include a statement pursuant to section 172(1) of
the Companies Act 2006. The Board recognises the importance of the Gro(cid:88)p(cid:182)s (cid:90)ider stakeholders (cid:90)hen performing their
duties under Section 172(1) of the Companies Act and their duties to act in the way they consider, in good faith, would be
most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard
(among other matters) to:
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
The likely consequences of any decision in the long-term, the Board are given access to management papers
which set out the potential outcome of decisions and regular discussion between the Board and management on
decision consequences are held, both financial and non-financial;
The impact of their decisions in the value for shareholders;
The interests of the compan(cid:92)(cid:182)s emplo(cid:92)ees, the Directors actively consider the interest of employees in all major
decisions. The Directors hold regular feedback sessions with employees and people is a key area of discussion
in every board meeting;
The need to foster the compan(cid:92)(cid:182)s b(cid:88)siness relationships (cid:90)ith s(cid:88)ppliers, c(cid:88)stomers and partner, the Directors
have identified the key stakeholders (employees, customers and suppliers of content) of the Group and regularly
review their interests, concerns and expectations to ensure adequate communication and engagement is ongoing;
The impact of the compan(cid:92)(cid:182)s operations on the comm(cid:88)nit(cid:92) and the en(cid:89)ironment.
The desirability of the company maintaining a reputation for high standards of business conduct, the Group has
fully adopted the Quoted Companies Alliance Corporate Governance Code and take their responsibility seriously.
The Group will seek guidance from legal experts when required with regards to its corporate governance and
business undertakings; and
The need to act fairly as between members of the company.
D Craven
Executive Chairman and Chief Executive Officer
03 September 2020
DCD Media Plc
9 Financial statements for the period ended 31 March 2020
Group report of the Directors for the period ended 31 March 2020
The Directors present their report together with the audited financial statements for the fifteen-month period ended 31
March 2020.
Principal activities
The main activities of the Group in the period continued to be distribution and rights exploitation. The main activity of the
Company continued to be that of a holding company, providing support services to its subsidiaries.
Business review
A detailed re(cid:89)ie(cid:90) of the Gro(cid:88)p(cid:182)s b(cid:88)siness incl(cid:88)ding ke(cid:92) performance indicators and likel(cid:92) f(cid:88)t(cid:88)re de(cid:89)elopments is contained
in the E(cid:91)ec(cid:88)ti(cid:89)e Chairman(cid:182)s Re(cid:89)ie(cid:90) and Group Strategic Report on pages 4 to 9, which should be read in conjunction with
this report.
Results
The Gro(cid:88)p(cid:182)s loss before taxation for the period ended 31 March 2020 was £0.16m (2018: £0.02m). The result for the period
post-taxation was £0.16m (2018: £0.04m) and has been carried forward in reserves.
The Directors do not propose to recommend the payment of a dividend (2018: £Nil).
Directors and their interests
At 31 March 2020
Ordinary
shares of
£1 each
Deferred
shares of
£1 each
At 31 December 2018
Ordinary
shares of
£1 each
Deferred
shares of
£1 each
N Davies Williams
D Craven
N McMyn
A Lindley*
J P Rohan**
781
-
-
-
-
(cid:120)
(cid:120)
Resigned 13 August 2020
Appointed 27 August 2020
69,317
-
-
-
-
781
-
-
-
-
69,317
-
-
-
-
Mr Lindley, prior to his resignation was a non-executive director during the period. At the date of signing Mr McMyn and
Mr Rohan were Non-E(cid:91)ec(cid:88)ti(cid:89)e Directors. Biographies of the Compan(cid:92)(cid:182)s directors can be found on page 15.
Other than as disclosed in note 21 to the consolidated financial statements, none of the Directors had a material interest
in any other contract of any significance with the Company and its subsidiaries during or at the end of the financial year.
Substantial shareholdings
The Company has been notified, as at 03 September 2020, of the following material interests in the voting rights of the
Company under the provisions of the Disclosure Guidance and Transparency Rules:
Name
Timeweave Ltd
Lombard Odier Investment Managers
No. of £1 ordinary shares
1,818,377
664,328
%
71.55
26.14
Share capital
Details of share capital are disclosed in note 19 to the consolidated financial statements.
Employee involvement
The Gro(cid:88)p(cid:182)s polic(cid:92) is to enco(cid:88)rage emplo(cid:92)ee in(cid:89)ol(cid:89)ement at all le(cid:89)els as it belie(cid:89)es this is essential for the s(cid:88)ccess of the
business. There is significant competition for experienced and skilled creative staff and administrators. The Directors are
aware of this and have looked to encourage and develop internal resources and to put in place succession plans. In
addition, the Group has adopted an open management style to encourage communication and give employees the
opportunity to contribute to future strategy discussions and decisions on business issues.
The Group does not discriminate against anyone on any grounds. Criteria for selection and promotion are based on
suitability of an applicant for the job. Applications for employment by disabled persons are always fully considered, bearing
in mind the respective aptitudes of the applicants concerned. In the event of members of staff becoming disabled, every
effort will be made to ensure that their employment with the Group continues and that appropriate training is arranged. It
is the policy of the Group that the training, career development and promotion of disabled persons should, as far as
possible, be at least comparable with that of other employees.
DCD Media Plc
10 Financial statements for the period ended 31 March 2020
Group report of the Directors for the period ended 31 March 2020
Financial instruments
Details of the use of financial instruments by the Company are contained in note 18 to the consolidated financial statements.
CORPORATE GOVERNANCE
Statement of compliance
The Group has adopted a framework for corporate governance which it believes is suitable for a company of its size with
reference to the ke(cid:92) points (cid:90)ithin the UK Corporate Go(cid:89)ernance Code iss(cid:88)ed b(cid:92) the Financial Reporting Co(cid:88)ncil ((cid:179)the
Combined Code(cid:180)).
DCD Media Plc's shares are quoted on AIM, a market operated by the London Stock Exchange Plc. From the 28 September
2018 there was a requirement for AIM listed entities to explain how they adhere to a recognised Corporate Governance
policy.
The corporate governance framework which the group operates, including board leadership and effectiveness, board
remuneration, and internal control is based upon practices which the Board believes are proportional to the size, risks,
complexity and operations of the b(cid:88)siness and is reflecti(cid:89)e of the gro(cid:88)p(cid:182)s (cid:89)al(cid:88)es. Of the t(cid:90)o (cid:90)idel(cid:92) recognised formal
codes, the Board decided to adhere to the Q(cid:88)oted Companies Alliance(cid:182)s (QCA) Corporate Go(cid:89)ernance Code for small
and mid-size quoted companies (revised in April 2018 to meet the new requirements of AIM Rule 26). The full code and
ho(cid:90) the Compan(cid:92) adheres to this can be fo(cid:88)nd on the Gro(cid:88)p(cid:182)s (cid:90)ebsite at www.dcdmedia.co.uk/investors/corporate-
governance .
The QCA Code is constructed around ten broad principles and a set of disclosures. The QCA has stated what it considers
to be appropriate arrangements for growing companies and asks companies to provide an explanation about how they are
meeting the principles through the prescribed disclosures.
We have considered how we apply each principle to the extent that the board judges these to be appropriate in the
circumstances, and below we provide an explanation of the approach taken. A full explanation for each principle can be
seen on the website accordingly. Consideration to the ownership of the business is key in where the board deviate from
any QCA code directives. The company is owned 97.69% by two institutional investors with the four board members made
up of two directors from Timeweave Ltd, its majority shareholder. Timeweave Ltd owns 71.55% accordingly.
The Directors confirm that the annual report and accounts, taken as a whole, is fair, balanced and understandable while
providing the information necessary for shareholders to assess the Gro(cid:88)p(cid:182)s position and performance, b(cid:88)siness model
and strategy.
Board composition and compliance
The Board recognises its collective responsibility for the long-term success of the Group. It assesses business opportunities
and seeks to ensure that appropriate controls are in place to assess and manage risk.
The Board of DCD Media currently comprises two executive Directors and two non-executive Directors. During a normal
year there are a number of scheduled board meetings with other meetings being arranged at shorter notice as necessary.
The Board agenda is set by the Chairman in consultation with the other Directors.
The Board has a formal schedule of matters reserved to it for decision which is reviewed on an annual basis.
Under the pro(cid:89)isions of the Compan(cid:92)(cid:182)s Articles of Association, all Directors are required to offer themselves for re-election
at least once every three years. In addition, under the Articles, any Director appointed during the year will stand for election
at the next annual general meeting, ensuring that each Board member faces re-election at regular intervals.
The Directors are entitled to take independent professional advice at the expense of the Company and all have access to
the advice and services of the Company Secretary. The Company will take all reasonable steps to ensure compliance by
Directors and applicable employees with the provisions of the AIM Rules relating to dealings in securities.
DCD Media Plc
11 Financial statements for the period ended 31 March 2020
Group report of the Directors for the period ended 31 March 2020
Board evaluation
While there is no formal e(cid:89)al(cid:88)ation of the board on an ann(cid:88)al basis in place the director(cid:182)s and the committees do e(cid:89)al(cid:88)ate
the contribution of each on an ongoing basis. The board recognise the importance of evaluating the performance of each
individual member but also recognise that for the size of company this form of self-evaluation is sufficient currently. Going
forward as the company grows we will look to utilise external facilitators in future board evaluations.
The Board has established an Audit, Nomination and Remuneration Committee. All are formally constituted with written
terms of reference. The terms of reference are available on request from the Company Secretary.
Audit Committee
During the financial period under review, the members of the Audit Committee were Neil McMyn (Chairman) and Andrew
Lindley. Andrew Lindley resigned after the period end on 13 August 2020. He was replaced by Jean-Paul Rohan on 27
August once approved by the existing Board and was subsequently assigned to the remuneration committee.
The responsibilities of the committee include the following:
ens(cid:88)ring that the financial performance of the Gro(cid:88)p is properl(cid:92) monitored, controlled and reported on;
re(cid:89)ie(cid:90)ing acco(cid:88)nting policies, acco(cid:88)nting treatment and disclos(cid:88)res in the financial reports;
(cid:120)
(cid:120)
(cid:120) meeting the a(cid:88)ditors and re(cid:89)ie(cid:90)ing reports from the a(cid:88)ditors relating to acco(cid:88)nts and internal control s(cid:92)stems;
(cid:120)
and
o(cid:89)erseeing the Gro(cid:88)p(cid:182)s relationship (cid:90)ith e(cid:91)ternal a(cid:88)ditors, incl(cid:88)ding making recommendations to the Board as to
the appointment or re-appointment of the e(cid:91)ternal a(cid:88)ditors, re(cid:89)ie(cid:90)ing their terms of engagement, and monitoring
the e(cid:91)ternal a(cid:88)ditors(cid:182) independence, objecti(cid:89)it(cid:92) and effecti(cid:89)eness.
During the period, the committee met to review audit planning and findings with regard to the Annual Report. In addition, it
reviewed the appointment of auditors, and agreed unanimously to re-elect SRLV Audit Limited.
Remuneration Committee
During the financial period under review, the members of the Remuneration Committee were Neil McMyn (Chairman) and
Andrew Lindley. Andrew Lindley resigned after the period end on 13 August 2020. He was replaced by Jean-Paul Rohan
on 27 August once approved by the existing Board and was subsequently assigned to the remuneration committee.
The responsibilities of the committee include the following:
(cid:120)
(cid:120)
re(cid:89)ie(cid:90)ing the performance of the E(cid:91)ec(cid:88)ti(cid:89)e Directors and setting the scale and str(cid:88)ct(cid:88)re of their rem(cid:88)neration
(cid:90)ith d(cid:88)e regard to the interest of shareholders; and
o(cid:89)erseeing the e(cid:89)al(cid:88)ation of the E(cid:91)ec(cid:88)ti(cid:89)e Directors.
Shareholder engagement
The Directors of the Company are open for discussion with shareholders at any point. Furthermore, they seek to keep
shareholders informed through detailed full year and interim results notices, the AGM, RNS releases, an up to date and
detailed website as well as through more modern platforms such as Twitter and LinkedIn. The Company promotes the
AGM as a chance to ask questions and discuss issues face to face with the board. Given that only 2% of shares are in the
public domain (outside of the two major institutional investors) there has been little shareholder engagement in the past
few years at the AGM. However, in light of the COVID-19 pandemic and the social distancing measures in place,
shareholders will not be able to attend the 2020 AGM in person and arrangements for the AGM may also need to change
at short notice. The Company will continue to update shareholders in the usual way, via the Regulatory News System.
Strategy and business model
We aim to deliver original, inspiring and popular television programmes and media content for clients around the world,
enabling them to achieve high audience satisfaction and ratings. We strive to become one of the (cid:90)orld(cid:182)s leading
independent TV rights distributor.
Staff and corporate culture
We encourage a collaborative, innovative and respectful culture across our workforce. We aim to empower our staff as
much as possible and to ensure they feel involved with the business and its overall strategy. The business has a minimal
level of staff turnover, and while the team is only small, we believe this is testament to the fact that the business is so
connecting from top down. We have regular one-to-one meetings with key management personnel to ensure staff are
engaged. These, along with team meetings allow for corporate culture to be encouraged and to allow staff to see how they
affect it and how they can impact it.
DCD Media Plc
12 Financial statements for the period ended 31 March 2020
Group report of the Directors for the period ended 31 March 2020
Internal control
The Board has overall responsibility for ensuring that the Group maintains a sound system of internal control to provide it
with reasonable assurance that all information used within the business and for external publication is adequate, including
financial, operational and compliance control and risk management.
It should be recognised that any system of control can provide only reasonable and not absolute assurance against material
misstatement or loss, as it is designed to manage rather than eliminate those risks that may affect the Group achieving its
business objectives.
Going concern
For the reasons set o(cid:88)t in the E(cid:91)ec(cid:88)ti(cid:89)e Chairman(cid:182)s Re(cid:89)ie(cid:90), the Directors consider it is appropriate to continue to adopt
the going concern basis in preparing the annual report and financial statements.
Supplier payment policy
The Compan(cid:92) and Gro(cid:88)p(cid:182)s polic(cid:92) is to agree terms of pa(cid:92)ment (cid:90)ith s(cid:88)ppliers (cid:90)hen agreeing the o(cid:89)erall terms of each
transaction, to ensure that suppliers are aware of the terms of payment and that Group companies abide by the terms of
the payment.
Share capital
Details of the Compan(cid:92)(cid:182)s share capital and changes to the share capital are sho(cid:90)n in note 19 to the consolidated financial
statements.
Resolutions at the Annual General Meeting
The Compan(cid:92)(cid:182)s AGM will be held on Tuesday 29 September 2020. Accompanying this Report is the Notice of AGM which
sets out the resolutions to be considered and approved at the meeting together with some explanatory notes. The
resolutions cover such routine matters as the renewal of authority to allot shares, to dis-apply pre-emption rights and to
purchase own shares.
S(cid:87)a(cid:87)emen(cid:87) (cid:82)f Di(cid:85)ec(cid:87)(cid:82)(cid:85)(cid:86)(cid:182) (cid:85)e(cid:86)(cid:83)(cid:82)n(cid:86)ibili(cid:87)ie(cid:86)
The Directors are responsible for preparing the annual report and the financial statements in accordance with applicable
law and regulations.
Company law requires the Directors to prepare financial statements for each financial period. Under that law the Directors
have elected to prepare the consolidated financial statements in accordance with International Financial Reporting
Standards (IFRSs) as adopted by the European Union, and the parent company financial statements in accordance with
United Kingdom Generally Accepted Accounting Practice (Financial Reporting Standard 102 (cid:179)The Financial Reporting
Standard applicable in the United Kingdom and Rep(cid:88)blic of Ireland(cid:182) 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 Group and Company 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;
(cid:135)
(cid:135) make judgements and accounting estimates that are reasonable and prudent;
(cid:135)
state whether IFRSs as adopted by the European Union and applicable UK accounting standards have been
followed, subject to any material departures disclosed and explained in the consolidated and parent company
financial statements respectively; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company
will continue in business.
(cid:135)
The Directors are responsible for keeping adequate accounting records that are sufficient to show and e(cid:91)plain the Gro(cid:88)p(cid:182)s
and the Compan(cid:92)(cid:182)s transactions and disclose (cid:90)ith reasonable acc(cid:88)rac(cid:92) at an(cid:92) time the financial position of the Gro(cid:88)p and
of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are
also responsible for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the compan(cid:92)(cid:182)s (cid:90)ebsite. Legislation in the United
Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other
jurisdictions.
DCD Media Plc
13 Financial statements for the period ended 31 March 2020
Group report of the Directors for the period ended 31 March 2020
Website publication
The Directors are responsible for ensuring the annual report and the financial statements are made available on a website.
Financial statements are published on the Company's website (www.dcdmedia.co.uk) in accordance with legislation in the
United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in
other jurisdictions. The maintenance and integrity of the Company's website is the responsibility of the Directors. The
Directors' responsibility also extends to the on-going integrity of the financial statements contained therein.
Charitable and political donations
Group donations to charities worldwide were £Nil (2018: £Nil). No donations were made to any political party in either
period.
Auditor
A resolution to re-appoint SRLV A(cid:88)dit Limited as the Compan(cid:92)(cid:182)s a(cid:88)ditor (cid:90)ill be p(cid:88)t for(cid:90)ard at the AGM to be held on 29
September 2020.
Disclosure of information to the auditors
In the case of each of the persons who are Directors at the time when the annual report is approved, the following applies:
(cid:120)
(cid:120)
so far as that Director is aware, there is no relevant audit information of which the Company's auditor is unaware;
and
that Director has taken all the steps that they ought to have taken as a Director in order to be aware of any relevant
audit information and to establish that the Company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies
Act 2006.
Directors(cid:182) Report appro(cid:89)ed b(cid:92) the Board on 03 September 2020 and signed on its behalf by:
D Craven
Executive Chairman and Chief Executive Officer
03 September 2020
DCD Media Plc
14 Financial statements for the period ended 31 March 2020
Board of Directors
David Craven (Executive Chairman & CEO)
David Craven was appointed CEO of DCD Media in October 2012 and Executive Chairman in January 2014. He is also
CEO and a Director of Timeweave Ltd, which he joined in April 2011. David brings significant sector-specific and broad
commercial experience to the Group, having held senior roles with News Corporation, UPC Media and Trinity Newspapers.
He was also joint MD of the Tote for six years and was closely involved in its privatisation, and has held senior executive
roles at UK Betting Plc and Wembley Plc. David was also a co-founder of broadband and interactive TV media group, UPC
Chello, and was a co-founder of the Gaming Media Group.
Nicky Davies Williams (Executive Director)
Nick(cid:92) Da(cid:89)ies Williams (cid:90)as appointed CEO of DCD Rights, DCD Media(cid:182)s distribution and licencing division, in December
2005 when she sold NBD TV, a company she founded and ran successfully for over 22 years, to the Group. An English
Literature graduate from Leeds University, she began her career in the music business, moving into film and television
distribution at Island Pictures, where she rose to the post of Sales Director, prior to founding her own company in 1983.
She has managed DCD Rights(cid:182) gro(cid:90)th into one of the (cid:90)orld(cid:182)s leading independent distrib(cid:88)tors. Her e(cid:91)perience includes
non-executive directorships on the Board of The Channel Television Group from 1991-1998, and as a founding non-
executive of the Women in Film and Television in the UK. With primary responsibility as CEO for DCD Rights, in her role
as a DCD Media Director she continues to oversee the Penn and Teller Fool US 1/17 co-production in the US for
September Films as well as acting as Executive Producer across the Bridezillas US format productions alongside
numerous factual series where DCD Rights are co-production partners.
Neil McMyn (Non-Executive Director)
Neil McMyn is a chartered accountant and European Chief Financial Officer of Tavistock Group, an international private
investment organisation. Previously Neil spent nine years with Arthur Andersen Corporate Finance in Edinburgh and six
years in advisory and funds management roles at Westpac Institutional Bank in Sydney. Neil was also appointed as Chief
Financial Officer of Ultimate Finance Group in July 2015 and director of Timeweave Ltd in June 2017. He became a Non-
Executive Director of DCD Media in September 2012.
Jean-Paul Rohan (Non-Executive Director)
A highly experienced commercial and business development executive, Jean-Paul Rohan has hands-on experience of
building businesses in sports, media, games, wireless, broadband and digital TV markets on a European and global basis.
Jean-Paul spent over 10 years in the games industry at a senior level for companies including Activision, Mindscape
International and BMG Interactive International. Having worked within the UK and Europe, developing broadband, wireless
and interactive TV strategies as well as brokering many of the deals necessary to deliver end applications, together with
operators including Sky, UPC, NTL, Telewest BT and mobile network owners, Jean-Paul has considerable experience in
understanding the complexities of developing commercial opportunities in this continually converging media and content
space. His extensive experience in the creation, commercialisation and protection of IPR across a number of sectors has
helped to build some of the strongest and commercially valuable gaming and media businesses in the market today.
DCD Media Plc
15 Financial statements for the period ended 31 March 2020
Inde(cid:83)enden(cid:87) a(cid:88)di(cid:87)(cid:82)(cid:85)(cid:182)(cid:86) (cid:85)e(cid:83)(cid:82)(cid:85)(cid:87) (cid:87)(cid:82) (cid:87)he membe(cid:85)(cid:86) (cid:82)f DCD Media Plc
We ha(cid:89)e a(cid:88)dited the financial statements of DCD Media Plc (the (cid:181)parent compan(cid:92)(cid:182)) and its s(cid:88)bsidiaries (the (cid:181)Gro(cid:88)p(cid:182)) for
the period ended 31 March 2020 which comprise the consolidated income statement, the consolidated statement of
comprehensive income, the consolidated statement of financial position, the consolidated statement of cash flows, the
consolidated statement of changes in equity, the notes to the consolidated financial statements, the parent company
balance sheet, the statement of changes in equity and the notes to the parent company financial statements, including a
summary of significant accounting policies. The financial reporting framework that has been applied in the preparation of
the Group financial statements is applicable law and International Financial Reporting Standards (IFRSs) as adopted by
the European Union. The financial reporting framework that has been applied in the preparation of the parent company
financial statements is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard
102 (cid:181)The Financial Reporting Standard applicable in the United Kingdom and Rep(cid:88)blic of Ireland(cid:182) (United Kingdom
Generally Accepted Accounting Practice).
In our opinion:
(cid:120)
(cid:120)
(cid:120)
(cid:120)
the financial statements give a true and fair (cid:89)ie(cid:90) of the state of the Gro(cid:88)p(cid:182)s and of the parent compan(cid:92)(cid:182)s affairs
as at 31 March 2020 and of the Gro(cid:88)p(cid:182)s res(cid:88)lt for the period then ended;
the consolidated financial statements have been properly prepared in accordance with IFRSs as adopted by the
European Union;
the parent company financial statements have been properly prepared in accordance with United Kingdom
Generally Accepted Practice; and
the financial statements 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 (cid:88)nder those standards are f(cid:88)rther described in the a(cid:88)ditor(cid:182)s responsibilities for the a(cid:88)dit of the financial
statements section of our report. We are independent of the Group and the parent company in accordance with the ethical
req(cid:88)irements that are rele(cid:89)ant to o(cid:88)r a(cid:88)dit of the financial statements in the UK, incl(cid:88)ding the FRC(cid:182)s Ethical Standard as
applied to listed public interest entities, 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you
where:
(cid:135)
the Directors(cid:182) (cid:88)se of the going concern basis of acco(cid:88)nting in the preparation of the financial statements is not
appropriate; or
the Directors have not disclosed in the financial statements any identified material uncertainties that may cast significant
do(cid:88)bt abo(cid:88)t the Gro(cid:88)p(cid:182)s or the parent compan(cid:92)(cid:182)s abilit(cid:92) to contin(cid:88)e to adopt the going concern basis of accounting for
a period of at least twelve months from the date when the financial statements are authorised for issue.
(cid:135)
Key audit matters
Ke(cid:92) a(cid:88)dit matters are those matters that, in the a(cid:88)ditors(cid:182) professional j(cid:88)dgement, were of most significance in the audit of
the financial statements of the current period and include the most significance in the audit of the financial statements of
the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud)
identified by the auditors, including those which had the greatest effect on: the overall audit strategy; the allocation of
resources in the audit; and directing the efforts of the engagement team. These matters, and any comments we make on
the results of our procedures thereon, were addressed in the context of our audit of the financial statements as a whole,
and in forming our opinion thereon, and we do not provide a separate opinion on these matters. This is not a complete list
of all risks identified by our audit.
Valuation of intangibles, rights and licences
In line (cid:90)ith the Gro(cid:88)p(cid:182)s acco(cid:88)nting polic(cid:92), management is req(cid:88)ired to perform an ann(cid:88)al impairment assessment b(cid:92)
comparing the carrying value of intangible assets to the net present value of forecast future cash flows generated from the
(cid:88)nderl(cid:92)ing b(cid:88)sinesses ((cid:179)Cash Generating Unit or CGU(cid:180)) or specific cash flo(cid:90)s (for programme rights).
Management has developed two separate models for this purpose, one to assess the carrying value of goodwill and trade
names, and the other to assess the carrying value of programme rights. At the period end, the Group held goodwill, trade
names and programme rights.
Our response
We reviewed the capitalisation policy adopted b(cid:92) management, the method of determining amortisation and management(cid:182)s
impairment assessment, plus allocation of items to the consolidated income statement where matched to related income.
The trade names and programme rights have been fully impaired/amortised. Goodwill is impaired in line with policies
adopted by management and the determination of discount factors utilised in management calculations supporting
impairment assessments were considered reasonable.
DCD Media Plc
16 Financial statements for the period ended 31 March 2020
Inde(cid:83)enden(cid:87) a(cid:88)di(cid:87)(cid:82)(cid:85)(cid:182)(cid:86) (cid:85)e(cid:83)(cid:82)(cid:85)(cid:87) (cid:87)(cid:82) (cid:87)he membe(cid:85)(cid:86) (cid:82)f DCD Media Plc
Revenue recognition
Distribution revenue arises from the licensing of programme rights which have been obtained under distribution
agreements. Distribution revenue is recognised in the statement of comprehensive income on signature of the licence
agreement and represents amounts receivable from such contracts. In line (cid:90)ith the Gro(cid:88)p(cid:182)s acco(cid:88)nting polic(cid:92), revenue
represents amounts receivable from producing programme/production content and is recognised over the period of the
production in accordance with the milestones within the underlying signed contract.
Our response
Revenue is recognised appropriately in line with the stated consolidated or parent company financial statements accounting
policy, IFRS requirements and the principles for revenue recognition contained within UK GAAP respectively.
Our application of materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality.
These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and
extent of our audit procedures on the individual financial statement line items and disclosures and in evaluating the effect
of misstatements, both individually and in aggregate on the financial statements as a whole.
Based upon our professional judgement, we determined materiality for the financial statements as a whole as follows:
(cid:120)
(cid:120)
For the consolidated financial statements, o(cid:89)erall materialit(cid:92) (cid:90)as (cid:133)129,569 (2018 - (cid:133)109,130). We calc(cid:88)lated this
(cid:88)sing 1.5% of re(cid:89)en(cid:88)e, pro-rated for 12 months (2018 (cid:177) 1.5% of re(cid:89)en(cid:88)e).
For the parent compan(cid:92) financial statements, o(cid:89)erall materialit(cid:92) (cid:90)as (cid:133)103,097 (2018 - (cid:133)100,000). We calc(cid:88)lated
this (cid:88)sing 2% of total assets.
For each component in the scope of our Group audit, we allocated a materiality that is less than our overall Group
materiality. The range of materiality allocated across the components was between £6,024 and £129,569. Certain
components were audited to a local statutory audit materiality that was also less than our overall Group materiality.
We agreed with the audit committee that we would report to them misstatements identified during our audit above £6,478
(Group audit) (2018 - £5,456) £5,155 (parent company audit) (2018 - £5,000) as well as misstatements below those
amounts that, in our view, warranted reporting for qualitative reasons.
An overview of the scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial
statements, including those that required significant auditor consideration at the component and Group level. In particular,
we looked at where the Directors made subjective judgements, for example in respect of significant accounting estimates
that involved making assumptions and considering future events that are inherently uncertain. As in all our audits, we also
addressed the risk of management override of internal controls, including estimates whether there was evidence of bias
by the Directors that represented a risk of material misstatement due to fraud. The Group engagement team performed all
of the audit procedures. Procedures were performed to address the risks identified and for the most significant assessed
risks of material misstatement. The procedures performed are outlined in the key audit matters section of this report.
Other information
The Directors are responsible for the other information. The other information comprises the information included in the
ann(cid:88)al report, other than the financial statements and o(cid:88)r a(cid:88)ditor(cid:182)s report thereon. O(cid:88)r 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 there is a material
misstatement in the financial statements or a material misstatement of the other information. 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:
(cid:120)
(cid:120)
the information gi(cid:89)en in the strategic report and the Directors(cid:182) report for the financial period for (cid:90)hich the financial
statements are prepared is consistent with the financial statements; and
the strategic report and the Directors(cid:182) report have been prepared in accordance with applicable legal
requirements.
DCD Media Plc
17 Financial statements for the period ended 31 March 2020
Inde(cid:83)enden(cid:87) a(cid:88)di(cid:87)(cid:82)(cid:85)(cid:182)(cid:86) (cid:85)e(cid:83)(cid:82)(cid:85)(cid:87) (cid:87)(cid:82) (cid:87)he membe(cid:85)(cid:86) (cid:82)f DCD Media Plc
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
co(cid:88)rse of the a(cid:88)dit, (cid:90)e ha(cid:89)e not identified material misstatements in the strategic report or the Directors(cid:182) 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:
(cid:135) 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
(cid:135)
(cid:135) certain disclos(cid:88)res of directors(cid:182) rem(cid:88)neration specified b(cid:92) la(cid:90) are not made; or
(cid:135) we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As e(cid:91)plained more f(cid:88)ll(cid:92) in the Directors(cid:182) responsibilities statement on page 13, 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 Gro(cid:88)p(cid:182)s and the parent compan(cid:92)(cid:182)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.
A(cid:88)di(cid:87)(cid:82)(cid:85)(cid:182)(cid:86) (cid:85)e(cid:86)(cid:83)(cid:82)n(cid:86)ibili(cid:87)ie(cid:86) f(cid:82)(cid:85) (cid:87)he a(cid:88)di(cid:87) (cid:82)f (cid:87)he financial (cid:86)(cid:87)a(cid:87)emen(cid:87)(cid:86)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, (cid:90)hether d(cid:88)e to fra(cid:88)d or error, and to iss(cid:88)e an a(cid:88)ditor(cid:182)s report that incl(cid:88)des o(cid:88)r 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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting
Co(cid:88)ncil(cid:182)s (cid:90)ebsite at: (cid:90)(cid:90)(cid:90).frc.org.(cid:88)k/a(cid:88)ditorsresponsibilities. This description forms part of o(cid:88)r a(cid:88)ditor(cid:182)s report.
Other matters which we are required to address
SRLV Audit Limited was appointed by the audit committee on 14 February 2018 to audit the financial statements for the
year ended 31 December 2018, and for the period ended 31 March 2020. SRLV Audit Limited is associated with the
previous auditor, SRLV and therefore the total uninterrupted period of engagement is eight years, covering the periods
ending 31 December 2012 to 31 March 2020.
The non-a(cid:88)dit ser(cid:89)ices prohibited b(cid:92) the FRC(cid:182)s Ethical Standard (cid:90)ere not pro(cid:89)ided to the Gro(cid:88)p or the parent compan(cid:92)
and we remain independent of the Group and the parent company in conducting our audit.
Our audit opinion is consistent with the additional report to the audit committee.
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.
Karen Atkinson (Senior Statutory Auditor)
for and on behalf of
SRLV Audit Limited
Chartered Accountants
Statutory Auditor
Elsley Court
20-22 Great Titchfield Street
London
W1W 8BE
3 September 2020
DCD Media Plc
18 Financial statements for the period ended 31 March 2020
Consolidated income statement for the period ended 31 March 2020
Revenue
Cost of sales
Impairment of programme rights
Gross profit
Administrative expenses:
- Other administrative expenses
Operating loss
Finance (costs)/income
Loss before taxation
Taxation
Loss after taxation from continuing operations
Profit on discontinued operations net of tax
Loss for the financial year
Loss attributable to:
Owners of the parent
Note
4
5,11
7
8
9
15 months to
31 March
2020
(cid:133)(cid:182)000
12 months to
31 December
2018
(cid:133)(cid:182)000
10,934
(8,882)
-
(9,882)
2,052
(2,198)
(2,198)
(146)
(10)
(156)
-
(156)
-
(156)
(156)
(156)
7,051
(5,392)
(19)
(5,411)
1,640
(1,715)
(1,715)
(75)
17
(58)
(13)
(71)
35
(36)
(36)
(36)
Earnings per share attributable to the equity holders of the Company during the year (expressed as pence per
share)
Basic loss per share from continuing operations
Basic earnings per share from discontinued operations
Total basic loss per share
Diluted loss per share from continuing operations
Diluted earnings per share from discontinued operations
Total diluted loss per share
9
10
9
10
(6p)
-
(6p)
(6p)
-
(6p)
(2p)
1p
(1p)
(2p)
1p
(1p)
The notes on pages 24 to 49 are an integral part of these consolidated financial statements.
DCD Media Plc
19 Financial statements for the period ended 31 March 2020
Consolidated statement of comprehensive income for the period ended 31 March 2020
Loss for the financial year
Total comprehensive income
Total comprehensive income attributable to:
Owners of the parent
15 months to
31 March
2020
(cid:133)(cid:182)000
12 months to
31 December
2018
(cid:133)(cid:182)000
(156)
(156)
(156)
(156)
(36)
(36)
(36)
(36)
DCD Media Plc
20 Financial statements for the period ended 31 March 2020
Consolidated statement of financial position as at 31 March 2020
Non-current assets
Goodwill
Property, plant and equipment
Right of use assets
Trade and other receivables
Current assets
Trade and other receivables
Cash and cash equivalents
Total assets
Current liabilities
Trade and other payables
Lease liabilities
Taxation and social security
Total liabilities
Net assets
Equity
Equity attributable to owners of the parent
Share capital
Share premium account
Own shares held
Retained earnings
Equity attributable to owners of the parent
Total equity
Note
11
12
13
14
14
23
15
16
15
19
19
Company number 03393610
As at
31 March
2020
(cid:133)(cid:182)000
As at
31 December
2018
(cid:133)(cid:182)000
1,017
19
144
379
1,559
8,137
2,735
10,872
12,431
(9,546)
(146)
(36)
(9,728)
(9,728)
2,703
12,272
51,215
(37)
(60,747)
2,703
2,703
1,017
27
-
279
1,323
9,071
2,276
11,347
12,670
(9,769)
-
(42)
(9,811)
(9,811)
2,859
12,272
51,215
(37)
(60,591)
2,859
2,859
The notes on pages 24 to 49 are an integral part of these consolidated financial statements.
The consolidated financial statements were approved and authorised for issue by the Board of Directors on 03 September
2020.
D Craven
Director
DCD Media Plc
21 Financial statements for the period ended 31 March 2020
Consolidated statement of cash flows for the period ended 31 March 2020
Cash flow from operating activities including discontinued operations
15 months to
31 March
2020
(cid:133)(cid:182)000
12 months to
31 December
2018
(cid:133)(cid:182)000
Net loss before taxation
Adjustments for:
Depreciation of tangible assets
Amortisation and impairment of intangible assets
Net bank and other interest charges/(income)
Corporation tax
Net cash flows before changes in working capital
Decrease in trade and other receivables
Decrease in trade and other payables
Cash from continuing operations
Cash flow from discontinued operations
Net profit before taxation
Adjustments for:
Profit on discontinued operations
Net cash flows before changes in working capital
Cash from discontinued operations
Cash from operations
Interest paid
Net cash flows from operating activities
Investing activities
Purchase of property, plant and equipment
Net cash flows used in investing activities
Financing activities
Repayment of finance leases
Settlement of convertible loans
Net cash flows from financing activities
Net increase in cash
Cash and cash equivalents at beginning of period
12
11
7
14
15
12
Cash and cash equivalents at end of period
23
The notes on pages 24 to 49 are an integral part of these consolidated financial statements.
(156)
208
-
10
-
62
834
(229)
667
-
-
-
-
667
(10)
657
(20)
(20)
(178)
-
(178)
459
2,276
2,735
(23)
29
19
(17)
(14)
(6)
1,650
(651)
993
35
(35)
-
-
993
-
993
(21)
(21)
-
(19)
(19)
953
1,323
2,276
DCD Media Plc
22 Financial statements for the period ended 31 March 2020
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Notes to the consolidated financial statements for the period ended 31 March 2020
During the period, the principal activity of DCD Media Plc and subsidiaries (the Group) was the worldwide distribution of
programmes for television and other media. The Group also distributes programmes on behalf of third-party producers and
broadcasters as well as DCD Media formats and productions.
DCD Media Plc is the Group's ultimate parent company and it is incorporated and registered in England and Wales. The
address of DCD Media Plc(cid:182)s registered office is 9th Floor, Winchester House, 259 - 269 Old Marylebone Road, London,
NW1 5RA, and its principal place of business is London. DCD Media Plc(cid:182)s shares are listed on the Alternati(cid:89)e In(cid:89)estment
Market of the London Stock Exchange.
DCD Media Plc(cid:182)s consolidated financial statements are presented in Po(cid:88)nds Sterling ((cid:133)), (cid:90)hich is also the f(cid:88)nctional
currency of the parent company. Amounts are presented in rounded thousands. The accounts have been drawn up to the
date of 31 March 2020.
1
Principal accounting policies
The principal accounting policies adopted in the preparation of the consolidated financial statements are set out below.
The policies have been consistently applied to all the years presented, unless otherwise stated. The Group financial
statements have been prepared in accordance with International Financial Reporting Standards, International Accounting
Standards and Interpretations (collectively IFRSs) issued by the International Accounting Standards Board (IASB) as
adopted by European Union ("Adopted IFRSs"), and with those parts of the Companies Act 2006 applicable to companies
preparing their financial statements under Adopted IFRSs.
Basis of preparation (cid:177) going concern
The Group's business activities, together with the factors likely to affect its future development, performance and position
are set o(cid:88)t in the E(cid:91)ec(cid:88)ti(cid:89)e Chairman(cid:182)s Review and the Strategic Report. The financial position of the Group, its cash
position and borrowings are set out in the performance section of the Strategic Report. In addition, note 18 sets out the
Group's objectives, policies and processes for managing its financial instruments and risk.
The Group's day-to-day operations are funded from cash generated from trading and the use of an overdraft facility of
£0.15m (£0.15m at 31 December 2018) with other activities funded from a combination of equity and short and medium
term debt instruments. As mentioned in the Strategic Report the overdraft facility is currently in the process of being
replaced with a revolving credit facility with a gross value of £500k which we expect to be in place at the start of September
2020. At the date of signing, however, the Gro(cid:88)p(cid:182)s o(cid:89)erdraft facilit(cid:92) remains available but is repayable on demand.
In considering the going concern basis of preparation of the Gro(cid:88)p(cid:182)s financial statements, the Board ha(cid:89)e prepared profit
and cash flow projections which incorporate reasonably foreseeable impacts of the ongoing challenging market
environment.
The Directors(cid:182) forecasts and projections, which make allowance for reasonably possible changes in its trading
performance, show that, with the ongoing support of its lenders and its bank, the Group can continue to generate cash to
meet its obligations as they fall due.
The Directors, after making enquiries, have a reasonable expectation that the Company and the Group will have adequate
resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going
concern basis in preparing the annual report and financial statements.
The financial statements do not include the adjustments that would result if the Group or Company were unable to continue
as a going concern.
Changes in accounting policies
A number of amendments to standards issued by IASB become effective from 1 January 2020. These have been reviewed
and no adjustments deemed necessary. Those becoming effective from 1 January 2020 have not been adopted early by
the Group. Management have reviewed these standards and believe none are expected to have a material effect on the
Gro(cid:88)p(cid:182)s f(cid:88)t(cid:88)re financial statements.
DCD Media Plc
24 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
1
Principal accounting policies (continued)
IFRS 16
In the period the company has adopted IFRS 16 Leases, requiring companies to recognise assets and liabilities of leases
on the balance sheet accordingly. The group has applied IFRS16 using the modified retrospective approach, under which
the cumulative effect of initial application is recognised in retained earnings at 1 January 2019.
On transition to IFRS16 the group elected to apply the following practical expedients:
For leases previously classified as operating leases under IAS17:
-
-
the compan(cid:92) has applied a single disco(cid:88)nt rate to a portfolio of leases (cid:90)ith similar characteristics
the gro(cid:88)p has e(cid:91)cl(cid:88)ded initial direct costs from meas(cid:88)ring the right of (cid:88)se asset at the date of initial application.
On transition to IFRS16, the group recognised an additional £323,877 right of use asset and £323,877 of lease liabilities.
When measuring these lease liabilities, the company discounted lease payments using its incremental borrowing rate at 1
January 2019. The borrowing rate applied is 3.5%.
Application of new and revised International Financial Reporting Standards (IFRSs)
New and revised IFRSs in issue but not yet effective
The Group has not applied the following new and revised IFRSs that have been issued but are not yet effective:
Standard
Description
Issued
date
Effective
date
IAS 1 Presentation of Financial
Statements
IAS 1 Presentation of Financial
Statements
IAS 16 Property, Plant and
Equipment
IAS 37 Provisions, Contingent
Liabilities and Contingent Assets
IAS 41 Agriculture
IFRS 1 First-time Adoption of
International Financial Reporting
Standards
IFRS 3 Business Combinations
IFRS 4
IFRS 7
IFRS 9 Financial Instruments
IFRS 9 Financial Instruments
IFRS 16 Leases
IFRS 17 Business Combinations
Amendments regarding the classification of liabilities
Jan-20
Jan-22
Amendment to defer the effective date of the January
2020 amendments
Amendments prohibiting a company from deducting from
the cost of property, plant and equipment amounts
received from selling items produced while the company
is preparing the asset for its intended use
Amendments regarding the costs to include when
assessing whether a contract is onerous
Amendments resulting from Annual Improvements to
IFRS Standards 2018(cid:177)2020 (taxation in fair value
measurements)
Amendments resulting from Annual Improvements to
IFRS Standards 2018(cid:177)2020 (subsidiary as a first-time
adopter)
Amendments updating a reference to the Conceptual
Framework
Amendments regarding the expiry date of the deferral
approach
Amendments regarding pre-replacement issues in the
context of the IBOR reform
Amendments regarding pre-replacement issues in the
context of the IBOR reform
Amendments resulting from Annual Improvements to
IFRS Standards 2018(cid:177)2020 (fees in the (cid:181)10 per cent(cid:182) test
for derecognition of financial liabilities)
Amendment to provide lessees with an exemption from
assessing whether a COVID-19-related rent concession
is a lease modification
Amendments to address concerns and implementation
challenges that were identified after IFRS 17 was
published (includes a deferral of the effective date to
annual periods beginning on or after 1 January 2023)
Jul-20
Jan-23
May-20
Jan-22
May-20
Jan-22
May-20
Jan-22
May-20
Jan-22
May-20
Jan-22
Jun-20
Jan-23
Sep-19
Jan-20
Sep-19
Jan-20
May-20
Jan-22
May-20
Jan-22
Jun-20
Jan-23
No early adoption has been taken up where permitted on any of the above revisions, amendments and original issue
IFRSs.
DCD Media Plc
25 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
1
Principal accounting policies (continued)
Revenue and attributable profit
Production revenue represents amounts receivable from producing programme/production content and is recognised over
the period of the production in accordance with the milestones within the underlying signed contract. Profit attributable to
the period is calculated by capitalising all appropriate costs up to the stage of production completion, and amortising
production costs in the proportion that the revenue recognised in the year bears to estimated total revenue from the
programme. The carrying value of programme costs in the statement of financial position is subject to an annual impairment
review.
Where productions are in progress at the year end and where billing is in advance of the completed work per the contract,
the excess is classified as deferred income and is shown within trade and other payables.
Distribution revenue arises from the licensing of programme rights which have been obtained under distribution agreements
with either external parties or Group companies. Distribution revenue is recognised in the statement of comprehensive
income on signature of the licence agreement and represents amounts receivable from such contracts.
Determining the transaction price
Most of the Gro(cid:88)p(cid:182)s re(cid:89)en(cid:88)e is deri(cid:89)ed from fi(cid:91)ed price contracts and therefore the amount of revenue to be earned from
each contract is determined by reference to those fixed prices.
Allocating amounts to performance obligations
There is generally limited judgment involved in allocating amounts to performance obligations as there is one activity driven
by each contract. The tasks required to complete that activity are individually valued to prepare the pricing structure.
Practical exemptions
The Group has taken advantage of the practical exemptions:
(cid:120)
(cid:120)
not to acco(cid:88)nt for significant financing components (cid:90)here the time difference bet(cid:90)een recei(cid:89)ing consideration
and transferring control of goods (or ser(cid:89)ices) to its c(cid:88)stomer is one (cid:92)ear or less; and
to e(cid:91)pense the incremental costs of obtaining a contract (cid:90)hen the amortisation period of the asset other(cid:90)ise
recognised (cid:90)o(cid:88)ld ha(cid:89)e been one (cid:92)ear or less.
All revenue excludes value added tax.
Basis of consolidation
The Group financial statements consolidate those of the Company and of its subsidiary undertakings drawn up to 31 March
2020. Subsidiaries are entities over which the Group has the power to control the financial and operating policies so as to
obtain benefits from its activities. The Group obtains and exercises control through voting rights.
Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency
with the accounting policies adopted by the Group.
Non-controlling interests
For business combinations completed prior to 1 July 2009, the Group initially recognised any non-controlling interest in the
acquiree at the non-controlling interest(cid:182)s proportionate share of the acq(cid:88)iree(cid:182)s net assets. For b(cid:88)siness combinations
completed on or after 1 July 2009 the Group has the choice, on a transaction by transaction basis, to initially recognise
any non-controlling interest in the acquiree which is a present ownership interest and entitles its holders to a proportionate
share of the entit(cid:92)(cid:182)s net assets in the e(cid:89)ent of liq(cid:88)idation at either acq(cid:88)isition date fair value or, at the present ownership
instr(cid:88)ments(cid:182) proportionate share in the recognised amo(cid:88)nts of the acq(cid:88)iree(cid:182)s identifiable net assets. Other components of
non-controlling interest such as outstanding share options are generally measured at fair value. The Group has not elected
to take the option to use fair value in acquisitions completed to date.
From 1 July 2009, the total comprehensive income of non-wholly owned subsidiaries is attributed to owners of the parent
and to the non-controlling interests in proportion to their relative ownership interests. Before this date, unfunded losses in
such subsidiaries were attributed entirely to the Group. In accordance with the transitional requirements of IAS 27 (2008),
the carrying value of non-controlling interests at the effective date of the amendment has not been restated.
DCD Media Plc
26 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
1
Principal accounting policies (continued)
Goodwill
Goodwill represents the excess of the cost of a business combination over, in the case of business combinations completed
prior to 1 Jan(cid:88)ar(cid:92) 2010, the Gro(cid:88)p(cid:182)s interest in the fair (cid:89)al(cid:88)e of identifiable assets, liabilities and contingent liabilities
acquired and, in the case of business combinations completed on or after 1 July 2009, the total acquisition date fair value
of the identifiable assets, liabilities and contingent liabilities acquired. For business combinations completed prior to 1 July
2009, cost comprises the fair value of assets given, liabilities assumed and equity instruments issued, plus any direct costs
of acquisition. Changes in the estimated value of contingent consideration arising on business combinations completed by
this date are treated as an adjustment to cost and, in consequence, result in a change in the carrying value of goodwill.
For business combinations completed on or after 1 July 2009, cost comprised the fair value of assets given, liabilities
assumed and equity instruments issued, plus the amount of any non-controlling interests in the acquiree plus, if the
business combination is achieved in stages, the fair value of the existing equity interest in the acquiree. Contingent
consideration is included in cost at its acquisition date fair value and, in the case of contingent consideration classified as
a financial liability, re-measured subsequently through profit or loss. For business combinations completed on or after 1
January 2010, direct costs of acquisition are recognised immediately as an expense.
Goodwill is capitalised as an intangible asset with any impairment in carrying value being charged to the consolidated
statement of comprehensive income. Where the fair value of identifiable assets, liabilities and contingent liabilities exceed
the fair value of consideration paid, the excess is credited in full to the consolidated statement of comprehensive income
on the acquisition date.
Property, plant and equipment
Property, plant and equipment are stated at cost net of depreciation and any provision for impairment. Depreciation is
calculated to write down the cost less estimated residual value by equal annual instalments over their expected useful
lives. The rates generally applicable are:
Motor vehicles
Office and technical equipment
25% on cost
25%-33% on cost
The assets(cid:182) resid(cid:88)al (cid:89)al(cid:88)es and (cid:88)sef(cid:88)l li(cid:89)es are re(cid:89)ie(cid:90)ed at each statement of financial position date and adj(cid:88)sted if
appropriate.
Other intangible assets
Trade names
Trade names acquired through business combinations are stated at their fair value at the date of acquisition. They are
amortised through the statement of comprehensive income, following a periodic impairment review, on a straight-line basis
over their useful economic lives, such periods not to exceed 10 years.
Programme rights
Internally developed programme rights are stated at the lower of cost, less accumulated amortisation, or recoverable
amount. Cost comprises the cost of all productions and all other directly attributable costs incurred up to completion of the
programme and all programme development costs. Where programme development is not expected to proceed, the related
costs are written off to the statement of comprehensive income. Amortisation of programme costs is charged in the ratio
that actual revenue recognised in the current year bears to estimated ultimate revenue. At each statement of financial
position date, the Directors review the carrying value of programme rights and consider whether a provision is required to
reduce the carrying value of the investment in programmes to the recoverable amount. The expected life of these assets
is not expected to exceed 7 years.
Purchased programme rights are stated at the lower of cost, less accumulated amortisation, or recoverable amount.
Purchased programme rights are amortised over a period in-line with expected useful life, not exceeding 7 years.
Amortisation and any charge in respect of writing down to recoverable amount during the year are included in the statement
of comprehensive income within cost of sales.
DCD Media Plc
27 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
1
Principal accounting policies (continued)
Leased assets
The Group has applied IFRS 16 to each of the periods reported in the consolidated historical financial information.
All leases are accounted for by recognising a right-of-use asset and a lease liability except for:
(cid:120)
(cid:120)
Leases of lo(cid:90) (cid:89)al(cid:88)e assets; and
Leases (cid:90)ith a d(cid:88)ration of t(cid:90)el(cid:89)e months or less.
Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with
the discount rate determined by reference to the rate inherent in the lease unless (as is typically the case) this is not readily
determinable, in (cid:90)hich case the Gro(cid:88)p(cid:182)s incremental borro(cid:90)ing rate on commencement of the lease is (cid:88)sed. Variable lease
payments are only included in the measurement of the lease liability if they depend on an index or rate. In such cases, the
initial measurement of the lease liability assumes the variable element will remain unchanged throughout the lease term.
Other variable lease payments are expensed in the period to which they relate.
On initial recognition, the carrying value of the lease liability also includes:
(cid:120) Amo(cid:88)nts e(cid:91)pected to be pa(cid:92)able (cid:88)nder an(cid:92) resid(cid:88)al (cid:89)al(cid:88)e g(cid:88)arantee;
(cid:120)
The e(cid:91)ercise price of an(cid:92) p(cid:88)rchase option granted in fa(cid:89)o(cid:88)r of the Gro(cid:88)p if it is reasonabl(cid:92) certain to e(cid:91)ercise
that option; and
(cid:120) An(cid:92) penalties pa(cid:92)able for terminating the lease, if the term of the lease has been estimated on the basis of
termination option being e(cid:91)ercised.
Right-of-use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received,
and increased for:
(cid:120)
(cid:120)
Lease pa(cid:92)ments made at or before commencement of the lease; and
Initial direct costs inc(cid:88)rred.
Subsequent to initial measurement, lease liabilities increase as a result of interest charged at a constant rate on the balance
outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the
remaining term of the lease or over the remaining economic life of the asset if, rarely, this is judged to be shorter than the
lease term.
When the Group revises its estimate of the term of any lease (because, for example, it re-assesses the probability of a
lessee extension or termination option being exercised), it adjusts the carrying amount of the lease liability to reflect the
payments to make over the revised term, which are discounted at the same discount rate that was applied on lease
commencement. The carrying value of lease liabilities is similarly revised when the variable element of future lease
payments dependent on a rate or index is revised. In both cases an equivalent adjustment is made to the carrying value
of the right-of-use asset, with the revised carrying amount being amortised over the remaining (revised) lease term.
Nature of leasing activities (in the capacity as lessee)
The Group leases properties in the UK, being the jurisdiction from which it operates. The lease agreements are signed for
a fixed amount for the life of the lease after which the lease is reviewed and terms renegotiated.
Programme distribution advances
Advances paid in order to secure distribution rights on third party catalogues or programmes are included within current
assets. Distribution rights entitle the Company to license the programmes to broadcasters and DVD labels for a sales
commission, whilst the underlying rights continue to be held by the programme owner. The advances are stated at the
lower of the amounts advanced to the rights' owners less actual amounts due to rights owners based on sales to date.
DCD Media Plc
28 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
1
Principal accounting policies (continued)
Impairment of non-current assets
For the purposes of assessing impairment, assets are grouped into separately identifiable cash-generating units. Goodwill
is allocated to those cash-generating units that have arisen from business combinations.
At each statement of financial position date, the Group reviews the carrying amounts of its non-current assets, to determine
whether there is any indication those assets have suffered an impairment loss. If any such indication exists the recoverable
amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Goodwill is tested for
impairment annually. Goodwill impairment charges are not reversed.
An impairment loss is recognised for the amount by which the asset's or cash-generating unit's carrying amount exceeds
its recoverable amount. The recoverable amount is the higher of fair value and value in use based on an internal discounted
cash flow evaluation.
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and demand deposits. Bank overdrafts that are repayable on demand
are included as a component of cash and cash equivalents. Bank overdrafts are shown in current liabilities on the statement
of financial position. Overdrafts are included in cash and cash equivalents for the purpose of the cash flow statement. At
the period end there was no overdraft balance in use.
Discontinued operations
The results of operations disposed during the year are included in the consolidated statement of comprehensive income
up to the date of disposal.
A discontinued operation is a component of the Group's business that represents a separate major line of business or
geographical area of operations or is a subsidiary acquired exclusively with a view to resale, that has been disposed of,
has been abandoned or that meets the criteria to be classified as held for sale.
Discontinued operations are presented in the consolidated statement of comprehensive income as a single line which
comprises the post-tax profit or loss of the discontinued operation along with the post-tax gain or loss recognised on the
re-measurement to fair value less costs to sell or on disposal of the assets or disposal groups constituting discontinued
operations.
Equity
Equity comprises the following:
(cid:120) Share capital represents the nominal value of issued Ordinary shares and Deferred shares;
(cid:120) Share premium represents the excess over nominal value of the fair value of consideration received for equity
shares, net of expenses of the share issue;
(cid:120) Equity element of convertible loan represents the part of the loan classified as equity rather than liability;
(cid:120)
Translation reserve represents the exchange rate differences on the translation of subsidiaries from a functional
currency to Sterling at the period end;
(cid:120) Own shares held represents shares in employee benefit trust;
(cid:120) Retained earnings represents retained profits and losses; and
(cid:120) Non-controlling interest represents net assets owed to non-controlling interests.
Foreign currency
Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets
and liabilities in foreign currencies are translated at the rates of exchange ruling at the statement of financial position date.
Exchange differences arising on the settlement and retranslation of monetary items are taken to the statement of
comprehensive income.
For the purposes of presenting consolidated financial statements, the assets and liabilities of the Gro(cid:88)p(cid:182)s foreign operations
are translated at the exchange rate ruling at the statement of financial position date. Income and expense items are
translated at the average exchange rates for the year. Exchange differences arising are classified as equity and transferred
to the Gro(cid:88)p(cid:182)s retained earnings reser(cid:89)e.
DCD Media Plc
29 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
1
Principal accounting policies (continued)
Deferred taxation
Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the statement of
financial position differs from its tax base, except for differences arising on:
(cid:120)
(cid:120)
(cid:120)
the initial recognition of goodwill;
the initial recognition of an asset or liability in a transaction which is not a business combination and at the time
of the transaction affects neither accounting or taxable profit; and
investments in subsidiaries and jointly controlled entities where the Group is able to control the timing of the
reversal of the difference and it is probable that the difference will not reverse in the foreseeable future.
Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available
against which the difference can be utilised.
The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the
statement of financial position date and are expected to apply when the deferred tax liabilities/(assets) are
settled/(recovered).
Deferred tax assets and liabilities are offset when the Group has a legally enforceable right to offset current tax assets and
liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority on either:
(cid:120)
(cid:120)
the same taxable Group company; or
different Group entities which intend either to settle current tax assets and liabilities on a net basis, or to realise
the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred
tax assets or liabilities are expected to be settled or recovered.
Financial instruments
The Group has applied IFRS 9 across all reporting periods in its consolidated financial statements.
Financial assets
The Group classifies its financial assets into one of the categories discussed below, depending on the purpose for which
the asset was acquired. The Group's accounting policy for each category is as follows:
Fair value through profit or loss
The Group does not have any assets held for trading nor does it voluntarily classify any financial assets as being at fair
value through profit or loss.
Amortised cost
These assets arise principally from the provision of goods and services to customers (e.g. trade receivables), but also
incorporate other types of financial assets where the objective is to hold these assets in order to collect contractual cash
flows and the contractual cash flows are solely payments of principal and interest. They are initially recognised at fair value
plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortised
cost using the effective interest rate method, less provision for impairment.
Impairment provisions for current and non-current trade receivables are recognised based on the simplified approach within
IFRS 9 using a provision matrix in the determination of the lifetime expected credit losses. During this process the
probability of the non-payment of the trade receivables is assessed. This probability is then multiplied by the amount of the
expected loss arising from default to determine the lifetime expected credit loss for the trade receivables. For trade
receivables, which are reported net, such provisions are recorded in a separate provision account with the loss being
recognised within administrative expenses in the consolidated statement of comprehensive income. On confirmation that
the trade receivable will not be collectible, the gross carrying value of the asset is written off against the associated
provision.
Impairment provisions for receivables from related parties and loans to related parties are recognised based on a forward
looking expected credit loss model. The methodology used to determine the amount of the provision is based on whether
there has been a significant increase in credit risk since initial recognition of the financial asset. For those where the credit
risk has not increased significantly since initial recognition of the financial asset, twelve month expected credit losses are
recognised. For those for which credit risk has increased significantly, lifetime expected credit losses are recognised. For
those that are determined to be credit impaired, lifetime expected credit losses on a net basis are recognised.
The Group's financial assets measured at amortised cost comprise trade and other receivables and cash and cash
equivalents in the consolidated statement of financial position.
DCD Media Plc
30 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
1
Principal accounting policies (continued)
Financial liabilities
The Group classifies its financial liabilities into one of two categories, depending on the purpose for which the liability was
acquired. The accounting policy for each category is as follows:
Fair value through profit or loss
The Group does not have any liabilities held for trading nor has it designated any financial liabilities as being at fair value
through profit or loss.
Other financial liabilities
Other financial liabilities include the following items:
Convertible loan notes are regarded as compound instruments, consisting of a liability component and an equity
component. At the date of issue, the fair value of the liability component is estimated using the prevailing market interest
rate for similar non-convertible debt. The difference between the proceeds of issue of the convertible loan note and the fair
value assigned to the liability component, representing the embedded option to convert the liability into equity of the Group,
is included in equity. Issue costs are apportioned between the liability and equity components of the convertible loan notes
based on their relative carrying amounts at the date of issue. The portion relating to the equity component is charged
directly against equity. The interest expense of the liability component is calculated by applying the effective interest rate
to the liability component of the instrument. The difference between this amount and the interest paid is added to the
carrying amount of the convertible loan note.
Bank borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of the
instrument. Such interest-bearing liabilities are subsequently measured at amortised cost using the effective interest rate
method, which ensures that any interest expense over the year to repayment is at a constant rate on the balance of the
liability carried in the consolidated statement of financial position. Finance charges are accounted for on an effective
interest method and are added to the carrying amount of the instrument to the extent that they are not settled in the year
in which they arise.
Trade payables and other short-term monetary liabilities, which are initially recognised at fair value and subsequently
carried at amortised cost using the effective interest method.
Equity instruments issued by the Group are recorded as the proceeds received, net of direct costs.
Retirement benefits
The Group contributes to the personal pension plans for the benefit of a number of its employees. Contributions are charged
against profits as they accrue.
2
Critical accounting judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the date of
the financial statements. If in the f(cid:88)t(cid:88)re s(cid:88)ch estimates and ass(cid:88)mptions (cid:90)hich are based on management(cid:182)s best
judgement at the date of the financial statements, deviate from the actual circumstances, the original estimates and
assumptions will be modified as appropriate in the year in which the circumstances change. Where necessary, the
comparatives have been reclassified or extended from the previously reported results to take into account presentational
changes.
C(cid:85)i(cid:87)ical j(cid:88)dgeme(cid:81)(cid:87)(cid:86) i(cid:81) a(cid:83)(cid:83)l(cid:92)i(cid:81)g (cid:87)he G(cid:85)(cid:82)(cid:88)(cid:83)(cid:182)(cid:86) acc(cid:82)(cid:88)(cid:81)(cid:87)i(cid:81)g (cid:83)(cid:82)licie(cid:86)
In the process of appl(cid:92)ing the Gro(cid:88)p(cid:182)s acco(cid:88)nting policies, (cid:90)hich are described in note 1, management has made the
following judgements that have the most significant effect on the amounts recognised in the financial statements (apart
from those involving estimations, which are dealt with below).
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the statement of financial
position date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial year are discussed below.
DCD Media Plc
31 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
2
Critical accounting judgements and key sources of estimation uncertainty (continued)
Revenue recognition
Production revenue represents amounts receivable from producing programme/production content and is recognised over
the period of the production in accordance with the milestones within the underlying signed contract.
Recoverability of programmes in the course of production
During the year, management reviewed the recoverability of its programmes in the course of production which are included
in its statement of financial position. The projects continue to progress satisfactorily, and management continue to believe
that the anticipated revenues will enable the carrying amount to be recovered in full.
Carrying value of goodwill and trade names
Determining whether goodwill and trade names are impaired requires an estimation of the value in use of the cash-
generating unit to which the goodwill has been allocated. The value in use calculation requires the entity to estimate the
future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate present
value. The carrying amount of goodwill and trade names at the statement of financial position date was £1.0m. Details
relating to the allocation of goodwill to cash-generating units and potential impairment calculations are given in note 11.
Carrying value of programme rights
Determining whether programme rights are impaired requires an estimation of the value in use of the cash-generating unit
to which the rights have been allocated. The value in use calculation requires the entity to estimate the future cash flows
expected to arise from the cash-generating unit and a suitable discount rate in order to calculate present value. The carrying
amount of programme rights at the statement of financial position date was £Nil. Details of the impairment review
calculations are given in note 11.
Adequacy of accruals and provisions
Determining whether accruals and provisions are adequate requires an estimate to be made of the likelihood of a liability
crystallising and the potential amount. Management has reviewed each provision and, where considered necessary, has
taken external advice to ensure adequacy.
Determining the discount factor for right-of-use asset and lease liabilities
The discount rate used in the calculation of the lease liability involves estimation. Discount rates are calculated on a lease
b(cid:92) lease basis. For the propert(cid:92) leases that make (cid:88)p s(cid:88)bstantiall(cid:92) all of the Gro(cid:88)p(cid:182)s lease portfolio this res(cid:88)lts in 2
approaches. For the majorit(cid:92) of the Gro(cid:88)p(cid:182)s propert(cid:92) leases, the implicit rate in the lease can be calc(cid:88)lated and is therefore
adopted. Otherwise, for other leases the rate used is based on estimates of incremental borrowing costs. These will
depend on the territory of the relevant lease and hence the currency used, the date of lease inception, and the lease term.
IFRS 16 defines the lease term as the non-cancellable period of a lease together with the options to extend or terminate a
lease, if the lessee were reasonably certain to exercise that option. Where a lease includes the option for the Group to
extend the lease term, the Group makes a judgement as to whether it is reasonably certain that the option will be taken.
This will take into account the length of time remaining before the option is exercisable; current trading; future trading
forecasts as to the ongoing profitability of the attraction; and the level and type of planned future capital investment. At this
point it is not reasonabl(cid:92) certain the Gro(cid:88)p(cid:182)s leases will be renewed, taking into account the factors noted above. This
judgement is reassessed at each reporting period. A reassessment of the remaining life of the lease could result in a
recalculation of the lease liability and a material adjustment to the associated balances.
DCD Media Plc
32 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
3
Segment information
Under IFRS 8 the accounting policy for identifying segments is based on the internal management reporting information
that is regularly reviewed by the senior management team.
The Group has two main reportable segments:
(cid:120) Righ(cid:87)(cid:86) a(cid:81)d Lice(cid:81)(cid:86)i(cid:81)g (cid:177) This is the primar(cid:92) di(cid:89)ision and is in(cid:89)ol(cid:89)ed (cid:90)ith the sale of distrib(cid:88)tion rights, DVDs,
m(cid:88)sic and p(cid:88)blishing deals thro(cid:88)gh DCD Rights.
(cid:120) P(cid:85)(cid:82)d(cid:88)c(cid:87)i(cid:82)(cid:81) - This smaller di(cid:89)ision is in(cid:89)ol(cid:89)ed in the prod(cid:88)ction of tele(cid:89)ision content.
The Gro(cid:88)p(cid:182)s reportable segments are strategic b(cid:88)siness di(cid:89)isions that offer different prod(cid:88)cts to different markets, (cid:90)hile
its Other division is its head office function which manages activities that cannot be reported within the other reportable
segments. They are managed separately because each business requires different management and marketing strategies.
Uniform accounting policies are applied across the entire Group. These are described in note 1 of the financial statements.
The Group evaluates performance of the basis of profit or loss from operations but excluding exceptional items such as
goodwill impairments. The Board considers the most important KPIs within its business segments to be revenue, segmental
adjusted EBITDA and adjusted profit before tax.
Inter-segmental trading occurs between the Rights and Licensing division and the Production divisions where sales are
made of distribution rights. Royalties and commissions paid are governed by an umbrella agreement covering the Group
that applies an appropriate rate that is acceptable to the local tax authorities.
Segment assets include all trading assets held and used by the segments for their day to day operations. Goodwill and
trade-names are allocated to their respective segments. Segment liabilities include all trading liabilities incurred by the
segments. Loans and borrowings incurred by the Group are not allocated to segments. Details of these balances are
provided in the reconciliations below:
2020 Segmental analysis (cid:177) income statement
Total revenue
Inter-segmental revenue
Total revenue from external customers
G(cid:85)(cid:82)(cid:88)(cid:83)(cid:182)(cid:86) revenue per consolidated statement of
comprehensive income
n
o
i
t
c
u
d
o
r
P
d
n
a
s
t
h
g
R
i
g
n
i
s
n
e
c
i
L
r
e
h
t
O
0
2
0
2
l
a
t
o
T
(cid:133)(cid:182)000
(cid:133)(cid:182)000
(cid:133)(cid:182)000
(cid:133)(cid:182)000
362
(160)
202
10,731
-
10,731
43
(42)
1
11,136
(202)
10,934
202
10,731
1
10,934
Operating profit/(loss) before tax (cid:177) continuing operations
309
(501)
Operating profit/(loss) before interest and tax
309
(501)
Depreciation
Segmental EBITDA
Continuing adjusted EBITDA
Discontinued adjusted EBITDA
Net finance (expense)/income
Depreciation
Segmental adjusted profit/(loss) before tax
Continuing segmental adjusted profit/(loss) before tax
Discontinuing segmental adjusted loss before tax
-
208
309
340
(31)
-
(293)
20
(313)
(10)
(208)
309
(511)
340
(31)
(198)
(313)
46
46
-
46
46
-
-
46
46
-
(146)
(267)
208
62
406
(344)
(10)
(208)
(156)
188
(344)
DCD Media Plc
33 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
2020 Segmental analysis (cid:177) financial position
n
o
i
t
c
u
d
o
r
P
d
n
a
s
t
h
g
R
i
g
n
i
s
n
e
c
i
L
r
e
h
t
O
0
2
0
2
l
a
t
o
T
(cid:133)(cid:182)000
(cid:133)(cid:182)000
(cid:133)(cid:182)000
(cid:133)(cid:182)000
Non-current assets
-
542
-
542
Reportable segment assets
117
11,179
118
11,414
Goodwill
Total Group assets
393
624
-
1,017
510
11,803
118
12,431
Reportable segment liabilities
(45)
(9,615)
(68)
(9,728)
Total Group liabilities
(45)
(9,615)
(68)
(9,728)
2018 Segmental analysis (cid:177) income statement
n
o
i
t
c
u
d
o
r
P
d
n
a
s
t
h
g
R
i
g
n
i
s
n
e
c
i
L
t
s
o
P
n
o
i
t
c
u
d
o
r
P
r
e
h
t
O
8
1
0
2
l
a
t
o
T
(cid:133)(cid:182)000
(cid:133)(cid:182)000
(cid:133)(cid:182)000
(cid:133)(cid:182)000
(cid:133)(cid:182)000
Total revenue
Inter-segmental revenue
Total revenue from external customers
G(cid:85)(cid:82)(cid:88)(cid:83)(cid:182)(cid:86) (cid:85)e(cid:89)en(cid:88)e (cid:83)e(cid:85) consolidated statement of
comprehensive income
Operating profit/(loss) before tax (cid:177) continuing operations
Operating profit before tax (cid:177) discontinued operations
534
(200)
334
6,716
-
6,716
334
6,716
440
(572)
Operating profit/(loss) before interest and tax
440
(572)
Impairment of programme rights
Depreciation
Segmental EBITDA
Continuing adjusted EBITDA
Discontinued adjusted EBITDA
Net finance (expense)/income
Depreciation
Segmental adjusted profit/(loss) before tax
Continuing segmental adjusted profit/(loss) before tax
Discontinuing segmental adjusted profit before tax
19
-
459
459
-
(1)
-
-
29
(543)
(543)
-
-
(29)
458
(572)
458
-
(572)
-
-
-
-
-
-
35
35
-
-
35
-
35
-
-
35
-
35
49
(48)
1
1
58
-
58
-
-
58
58
-
18
-
76
76
-
7,299
(248)
7,051
7,051
(74)
35
(39)
19
29
9
(26)
35
17
(29)
(3)
(38)
35
DCD Media Plc
34 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
2018 Segmental analysis (cid:177) financial position
Non-current assets
Reportable segment assets
Goodwill
Total Group assets
Reportable segment liabilities
Total Group liabilities
n
o
i
t
c
u
d
o
r
P
d
n
a
s
t
h
g
R
i
g
n
i
s
n
e
c
i
L
t
s
o
P
n
o
i
t
c
u
d
o
r
P
r
e
h
t
O
8
1
0
2
l
a
t
o
T
(cid:133)(cid:182)000
(cid:133)(cid:182)000
(cid:133)(cid:182)000
(cid:133)(cid:182)000
(cid:133)(cid:182)000
-
27
82
11,425
393
624
475
12,049
(48)
(9,197)
(48)
(9,197)
-
-
-
-
-
-
-
27
146
11,653
-
1,017
146
12,670
(566)
(9,811)
(566)
(9,811)
4 Revenue from contracts with customers
The Group's headquarters is based in the United Kingdom. Outside the United Kingdom, sales are generally denominated
in US dollars.
Revenue, which excludes value added tax and transactions between Group companies, represents the sale of television
production services, commissions on television and film distribution rights and the sale of television and film distribution
rights on behalf of third-party producers.
Disaggregation of revenue
The Group has disaggregated revenue into various categories in the following table which is intended to:
(cid:120)
(cid:120)
depict ho(cid:90) the nat(cid:88)re, amo(cid:88)nt, timing and (cid:88)ncertaint(cid:92) of re(cid:89)en(cid:88)e and cash flo(cid:90)s are affected b(cid:92) economic date;
and
enable (cid:88)sers to (cid:88)nderstand the relationship (cid:90)ith re(cid:89)en(cid:88)e segment information pro(cid:89)ided in note 3.
The following table provides an analysis of the Group's revenue from continuing operations by geographical market,
irrespective of the origin of the goods or services:
United Kingdom
Rest of Europe
North and South America, including Canada
Rest of the World
15 months to
31 March
2020
(cid:133)(cid:182)000
Year ended
31 December
2018
(cid:133)(cid:182)000
1,529
2,234
3,452
3,719
10,934
568
1,348
2,774
2,361
7,051
Due to the significant change in the way in which television programming can be viewed, more towards VOD platforms,
deals are becoming increasingly multi-territory ones. This has res(cid:88)lted in man(cid:92) sales being classed as (cid:179)Rest of the World(cid:180)
where previously they would have been more easily assessed under one of the other categories.
DCD Media Plc
35 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
4 Revenue from contracts with customers (continued)
Contract balances
The following table provides information about contract assets (included as accrued income) and contract liabilities
(included as deferred income) from contracts with customers:
31 March
2020
(cid:133)(cid:182)000
31 December
2018
(cid:133)(cid:182)000
Contract assets (accrued income)
Contract liabilities (deferred income)
1,421
-
1,421
The movement in the contract assets and liabilities during the year is set out below:
At 1 January 2019
Transfers in the period from contract assets to trade receivables
Excess of revenue recognised over cash (or rights to cash)
At 31 March 2020
At 1 January 2019
Amounts included in contract liabilities recognised as revenue in the period
Cash received in advance of performance and not recognised as revenue during
the period
At 31 March 2020
2,309
-
2,309
Contract
assets
(cid:133)(cid:182)000
2,309
(2,309)
1,421
1,421
Contract
liabilities
(cid:133)(cid:182)000
-
-
-
-
Contract assets (accrued income) and contract liabilities (deferred income) are included within trade and other receivables
and trade and other pa(cid:92)ables respecti(cid:89)el(cid:92) on the face of the statement of financial position. The(cid:92) arise from the Gro(cid:88)p(cid:182)s
revenue contracts where work has been performed in advance of invoicing customers and where revenue is received in
advance of work performed. Cumulatively, payments received from customers at each balance sheet date do not
necessarily equate to the amount of revenue recognised on the contracts.
5
Expenses by nature
Auditor(cid:182)(cid:86) remuneration:
Fees payable to the Company's auditor:
For the audit of the Company's annual accounts
For the audit of other Group companies
Operating lease rentals:
Other
Gain on foreign exchange fluctuations
Depreciation, amortisation and impairment:
Intangible assets - programme impairment in cost of sales (note 11)
Property, plant and equipment (note 12)
Right-of-use assets (note 13)
15 months to
31 March
2020
(cid:133)(cid:182)000
Year ended
31 December
2018
(cid:133)(cid:182)000
30
19
-
37
-
28
180
25
25
173
-
19
29
-
Staff costs (note 6)
1,379
1,032
DCD Media Plc
36 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
6
Directors and employees
Staff costs during the year, including Directors, were as follows:
Wages and salaries
Social security costs
Other pension costs (note 22)
Redundancy costs
The average number of employees of the Group during the year were as follows:
Sales and distribution
Directors and administration
15 months to
31 March
2020
(cid:133)(cid:182)000
Year ended
31 December
2018
(cid:133)(cid:182)000
1,192
143
28
16
1,379
905
113
14
-
1,032
15 months to
31 March
2020
No.
Year ended
31 December
2018
No.
9
8
17
12
6
18
Remuneration in respect of the Directors, who are the key management personnel of the Group was as follows for the
period:
Emoluments
£'000
Pension
Contributions
£'000
Money value
of non-cash
benefits
received
£'000
15 months to
31 March 2020
Total
£'000
125
200
13
4
342
-
6
-
-
6
Emoluments
£'000
Pension
Contributions
£'000
100
159
25
-
284
-
3
-
-
3
-
20
-
-
20
Money value
of non-cash
benefits
received
£'000
-
15
-
-
15
125
226
13
4
368
2018
Total
£'000
100
177
25
-
302
D Craven
N Davies Williams
N McMyn
A Lindley
D Craven
N Davies Williams
N McMyn
A Lindley
Employee Benefit Trust
In 2012, 7,218,750 shares, that had been held by the directors of Done and Dusted Ltd, were transferred into an employee
benefit trust. After the share consolidation in 2013, the number of shares reduced to 7,218 and following a transfer of 4,000
to an ex-director in 2013, the number of shares at 31 March 2020 was 3,218 (31 December 2018: 3,218).
DCD Media Plc
37 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
7
Finance costs
Convertible loan interest charge
Interest charged on operating leases
Other interest charges
8
Taxation on ordinary activities
Recognised in the statement of comprehensive income:
Current tax expense:
Continuing operations
UK corporation tax
Total tax charge in statement of comprehensive income
Tax charge/(credit) represents:
Loss on ordinary activities (cid:177) continuing operations
Profit on ordinary activities (cid:177) discontinued operations
Loss on ordinary activities multiplied by standard rate of corporation tax in the UK
of 19.00% (2018: 19.00%)
Effects of:
Expenses not deductible for tax purposes (amortisation and impairment of
intangibles)
Depreciation in excess of capital allowances
Brought forward losses utilised
Adjustment for prior years
Total tax charge/(credit)
15 months to 31
March 2020
(cid:133)(cid:182)000
12 months to
31 December
2018
(cid:133)(cid:182)000
-
13
(3)
10
(18)
-
1
(17)
15 months to
31 March
2020
(cid:133)(cid:182)000
Year ended
31 December
2018
(cid:133)(cid:182)000
-
-
(13)
(13)
15 months to
31 March
2020
(cid:133)(cid:182)000
12 months to
31 December
2018
(cid:133)(cid:182)000
(156)
-
(156)
(29)
36
25
(32)
-
-
(58)
35
(23)
(4)
9
(15)
10
13
13
A deferred tax asset of approximately £2.2m (2018: £2.3m) arising principally from losses in the Group has not been
recognised. The Directors believe that it is prudent not to recognise the deferred tax asset within the financial statements.
The asset has been calculated based upon the 2020 tax rate of 19% (2018: 19%).
DCD Media Plc
38 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
9
Discontinued operations
In November 2017, the Board made the decision to cease trading within Sequence Post Ltd. The business had been loss
making and following a notification to increase rental charges the business was no longer viable. The staff were made
redundant in November 2017. The business did not trade in the period ending 31 March 2020 or during the prior period
end, with only a small number of accounting adjustments occurring.
Result of discontinued operations
Profit from discontinued operations before tax
Tax expense
Profit from discontinued operations after tax
Basic earnings per share (pence)
10 Earnings per share
15 months to
31 March
2020
(cid:133)(cid:182)000
Year ended
31 December
2018
(cid:133)(cid:182)000
-
-
-
-
35
-
35
1p
The calculation of the basic profit per share is based on the profit attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the period. The calculation of diluted profit per share is based on the
basic profit per share, adjusted to allow for the issue of shares and the post-tax effect of dividends and interest, on the
assumed conversion of all other dilutive options and other potential ordinary shares.
Weighted
average
number
of shares
2020
Per share
amount
pence
Loss
£'000
Weighted
average
number of
shares
2018
Per share
amount
pence
Loss
£'000
Basic and diluted loss per share
Loss attributable to ordinary shareholders
(156) 2,541,419
(6)
(36)
2,541,419
(1)
DCD Media Plc
39 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
11 Goodwill and intangible assets
Cost
At 1 January 2018
At 31 December 2018
At 1 January 2019
At 31 March 2020
Amortisation and impairment
At 1 January 2018
Goodwill
£'000
Trade
Names
£'000
Programme
Rights
£'000
Total
£'000
17,388
8,036
36,946
62,370
17,388
8,036
36,946
62,370
17,388
8,036
36,946
62,370
17,388
8,036
36,946
62,370
16,371
8,036
36,927
61,334
Impairment provided in year in cost of sales
-
-
19
19
At 31 December 2018
At 31 March 2020
Net book value
At 31 March 2020
At 31 December 2018
Goodwill and trade names
16,371
8,036
36,946
61,353
16,371
8,036
36,946
61,353
1,017
1,017
-
-
-
-
1,017
1,017
Goodwill acquired in a business combination is allocated, at acquisition, to the cash-generating units (CGUs) that are
expected to benefit from that business combination.
Details of goodwill allocated to cash generating units for which the amount of goodwill so allocated is as follows:
Cash generating units (CGU):
DCD Rights Ltd
September Films Ltd
Segment (note 3)
Rights and Licensing
Production
Goodwill carrying amount
31 March
2020
(cid:133)(cid:182)000
31 December
2018
(cid:133)(cid:182)000
624
393
624
393
1,017
1,017
DCD Media Plc
40 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
11 Goodwill and intangible assets (continued)
Goodwill and trade names (continued)
Goodwill and trade names are allocated to CGUs for the purpose of the impairment review. The recoverable amounts of
the CGUs are determined from value in use calculations. The key assumptions for the value in use calculations are those
regarding the discount rates and expected profitability of the CGUs over the future seven years. Management estimates
discount rates using pre-tax rates that reflect current market assessments of the time value of money and the risks inherent
in the CGUs.
The Board performs an annual impairment review of all intangible assets, including goodwill and trade names. The
recoverable amounts of all the above CGUs have been determined from value in use calculations. Detailed budgets and
forecasts cover a two-year period to March 2022. The forecasts are then extrapolated for a further five years using models
that estimate the distrib(cid:88)tion income profile of the GGU(cid:182)s librar(cid:92). The Board uses this seven-year period of projection as it
believes it is reasonably aligned with the expected lifespan of a TV production. There has been no impairment arising from
this value in use calculation for the current period or the year to December 2018.
The key assumption used for value in use calculations is the discount factor applied to the forecasts.
The rate used to discount the forecast cash flows is 5.0% for all CGUs. If the discount rates used were increased by 3%
to 8.0%, the carrying value of goodwill would still not be impaired.
Cash generating units (CGU):
DCD Rights Ltd
September Films Ltd
Programme rights
Discount factor
31 March
2020
%
31 December
2018
%
5.0
5.0
4.1
4.1
Any programme rights held were fully impaired as at the end of 31 December 2018 and nothing has been added in the
period to 31 March 2020, so no impairment charge has been recognised in this period.
DCD Media Plc
41 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
12 Property, plant and equipment
Cost
At 1 January 2018
Additions
At 31 December 2018
At 1 January 2019
Additions
At 31 March 2020
Depreciation
At 1 January 2018
Provided in year
At 31 December 2018
At 1 January 2019
Provided in period
At 31 March 2020
Net book value
At 31 March 2020
At 31 December 2018
13 Right-of-use assets
Office and
technical
equipment
£'000
106
21
127
127
20
147
71
29
100
100
28
128
19
27
On 1 January 2019, the Group adopted IFRS 16 Leases. The breakdown of changes in right-of-use assets for the period
ended 31 March 2020 is as follows:
Cost
At 31 December 2018
First application IFRS 16
At 1 January 2019 and 31 March 2020
Depreciation
At 31 December 2018
Provided in period
At 31 March 2020
Net book value
At 31 March 2020
At 31 December 2018
Leasehold
property
(cid:133)(cid:182)000
-
324
324
-
180
180
144
-
As noted previously, the Group adopted IFRS 16 in the period. As such the Group has recognised assets that are right-of-
use and held under finance leases in the period totalling £324k in cost and £180k in depreciation. As part of this adoption
no prior period restatement is required, nothing was recognised in the 2018 year for this change in accounting policy as it
was not adopted early.
The total amo(cid:88)nt abo(cid:89)e relates to b(cid:88)ildings. The Gro(cid:88)p(cid:182)s normal lease d(cid:88)ration is 5 (cid:92)ears. The liabilities recognised as a
conseq(cid:88)ence of the IFRS 16 first application as of 1 Jan(cid:88)ar(cid:92) 2019 are incl(cid:88)ded in the heading (cid:179)Lease liabilities(cid:180) (cid:90)ithin note
15 and a breakdown of changes in lease liabilities for the period to 31 March 2020 is also detailed at note 16.
DCD Media Plc
42 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
13 Right-of-use assets and lease liabilities (continued)
The total amo(cid:88)nt abo(cid:89)e relates to b(cid:88)ildings. The Gro(cid:88)p(cid:182)s normal lease d(cid:88)ration is 5 (cid:92)ears and the c(cid:88)rrent lease is d(cid:88)e to
end on 31 March 2021.
14 Trade and other receivables
Due after one year
Trade receivables
Other receivables
Total trade and other receivables due after one year
Due within one year
Trade receivables
Less: expected credit loss
Trade receivables (cid:177) net
Taxation and social security
Other receivables
Contract assets
Prepayments
Total trade and other receivables due within one year
Total financial assets other than cash and cash equivalents classified as
loans and receivables
31 March
2020
(cid:133)(cid:182)000
31 December
2018
(cid:133)(cid:182)000
361
19
379
233
46
279
31 March
2020
(cid:133)(cid:182)000
31 December
2018
(cid:133)(cid:182)000
5,501
-
5,501
274
640
1,421
301
8,137
8,137
5,313
-
5,313
250
662
2,309
537
9,071
9,071
The average credit period taken on sales of goods is 245 days (2018: 287 days). No interest is charged on receivables
within the agreed credit terms. Thereafter, interest may be charged.
An allowance for impairment is made in accordance with expected credit loss method. The Group considers historic, current
and forward looking information including macroeconomic conditions, in order to assess an appropriate provision. The
Group provides, in full, for any debts it believes have become non-recoverable. The directors have reviewed their customer
portfolio and marketplace and do not consider the risk of bad debt to be material to the business.
The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable set out above.
The ageing of trade receivables that have not been provided for are:
Not due yet
0-29 days
Overdue
30-59 days
60-89 days
90-119 days
120+ days
Trade debtors in current assets
Trade debtors in non-current assets
31 March
2020
(cid:133)(cid:182)000
31 December
2018
(cid:133)(cid:182)000
3,071
3,193
116
356
622
1,697
5,862
5,501
361
5,862
152
538
105
1,558
5,546
5,313
233
5,546
DCD Media Plc
43 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
15 Trade and other payables
Trade payables
Other payables
Accruals
Taxation and social security
Amount owed to related parties (note 21)
Lease liabilities (note 16)
Total trade and other payables
Total financial liabilities, excluding loans and borrowings, classified as
financial liability measured at amortised cost
16 Lease liabilities
31 March
2020
(cid:133)(cid:182)000
31 December
2018
(cid:133)(cid:182)000
310
219
8,889
36
128
146
9,728
9,692
140
365
7,925
42
1,339
-
9,811
9,769
The liabilities recognised as a consequence of the IFRS 16 first application as of 1 January 2019 are included in the
heading (cid:179)Lease liabilities(cid:180) within trade and other payables in relation to the Gro(cid:88)p(cid:182)s head office. The breakdown of changes
in lease liabilities for the period to 31 March 2020 is as follows.
Balance at 31 December 2018
First application IFRS 16
At 1 January 2019
Interest expense
Lease payments
At 31 March 2020
Lease
liabilities
(cid:133)(cid:182)000
-
324
324
13
(191)
146
The Group maintains property, plant and equipment on operating leases. The total future value of minimum lease payments
are due as follows:
Not later than one year
Later than one year and not later than five years
31 March
2020
£'000
31 December
2018
£'000
152
-
152
144
170
314
On 13 April 2016, the group entered into a property lease obligation for a five-year period to 31 March 2021 and with annual
rent of £132,000 plus shared service costs for the building.
DCD Media Plc
44 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
17
Interest bearing loans and borrowings
Due within one year
Bank overdraft (secured)
31 March
2020
(cid:133)(cid:182)000
31 December
2018
(cid:133)(cid:182)000
-
-
The principal terms and the debt repa(cid:92)ment sched(cid:88)le for the Gro(cid:88)p(cid:182)s loans and borro(cid:90)ings are as follo(cid:90)s as at 31 March
2020:
Bank overdraft (secured)
Bank borrowings
Currency Nominal rate %
Sterling
3.5 over Base
Rate
Year of
maturity
2019
The bank overdraft is currently operating on a rolling basis, as it was due for renewal in November 2019, and is repayable
on demand. As mentioned previously the Group and Coutts have been working to replace the overdraft with a revolving
facility with a gross value of £500k and the Directors expect this to be in place following countersignature at the start of
September 2020. As such, the Directors expect the Group to have access, if required, to sufficient funds for the foreseeable
future. Bank o(cid:89)erdrafts are sec(cid:88)red b(cid:92) a fi(cid:91)ed charge o(cid:89)er the Gro(cid:88)p(cid:182)s intangible programme rights and a floating charge
over the remaining assets of the Group. The new facility will be secured against a floating charge over the assets of the
Group and will replace the current charge held by the overdraft.
18 Financial risk management
Financial risk factors
The Group's financial assets and liabilities comprise cash, including short term deposits, trade and other receivables and
trade and other payables that arise directly from its operations, overdrafts, bank loans and convertible debt. The main risks
arising from the Group's financial assets and liabilities are interest rate risk, liquidity risk, credit risk and currency risk. The
Board has reviewed and agreed policies for managing each of these risks and they are summarised below. The Group has
no financial assets other than trade receivables and cash at bank. The values in the Consolidated Statement of Financial
Position for the financial assets and liabilities are not materially different from their fair values.
Interest rate risk
The Group finances its operations at present through equity, bank overdraft, convertible debt and working capital. The
Group manages its exposure to interest rate fluctuations by mixing the duration of its deposits and borrowings to reduce
the impact of interest rate fluctuations.
Liquidity risk
The Group seeks to manage financial risk to ensure sufficient liquidity is available to meet foreseeable needs and to invest
cash assets safely and profitably. Some liquidity risk arises from the nature of production income, which does not always
arise in an even manner, and the Group's policy is to ensure there are sufficient cash reserves to meet liabilities during
such periods.
Liquidity risk also arises from the interest charges and repayment terms of convertible debt, which the Group seeks to
manage by means of periodic charges for central administration services and support to each Group entity. These are
incorporated into rolling twelve-month Group cash flow forecasts, which are reviewed by the Board monthly, and the cash
flows are monitored at Group level by weekly cash reports from each operating entity. Short term flexibility is provided
through the availability of a bank overdraft facility, and shortly through a revolving credit facility that replaces the overdraft.
Credit risk
The Gro(cid:88)p(cid:182)s principal financial assets are bank balances, cash and trade and other receivables. The Gro(cid:88)p(cid:182)s credit risk is
primarily attributable to its trade receivables. The Group operates to ensure that the payment terms of customers are
matched to the Group's own contractual obligations in terms of delivery of programmes and rights. The principal source of
Group income is commissioning broadcasters, who are not considered to be a significant credit risk because of their size
and financial resources. Other Group income is derived from distribution sales worldwide, and credit risk is assessed in
relation to knowledge of the customer or by credit references. To minimise credit risk contractual terms may require that
payment is made before delivery of materials.
DCD Media Plc
45 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
18 Financial risk management (continued)
Currency risk
The Group operates in overseas markets and is subject to exposures on transactions undertaken during the year. The
Group's exposure to exchange rate fluctuations is small based on its revenue and cost base and its policy is not to hedge
against foreign currency transactions.
The sterling equivalent of the Group's assets and liabilities denominated in foreign currencies at 31 March 2020 and 31
December 2018 was as follows:
US dollar
Euros
Other
Total assets/(liabilities)
Assets
31 March
2020
£'000
31 December
2018
£'000
Liabilities
31 March
2020
£'000
31 December
2018
£'000
3,691
887
978
5,556
4,339
435
578
5,352
(8)
(20)
-
(28)
(8)
(24)
-
(32)
The main foreign currency that the Group is exposed to is US dollar. Assets include monies due on contracts while above
liabilities exclude the commissions payable, these currently sit as accruals and deferred income than trade and other
payables. Taking the net balance of these two any movement in the exchange rate is not material, while on a stand-alone
basis on either assets or liabilities it would appear to be.
Interest rate and liquidity risk
Interest rate sensitivity
The sensitivity analysis has been based on the average exposure to floating rate debt during the year. It has been assumed
that floating interest rates were 200 basis points higher than those actually incurred. The effect of such a change would
not be material to profit before tax for the year, as was the case in 2018.
Capital risk management
The capital structure of the Group consists of convertible loan note loan financing, bank loan financing and the
shareholders(cid:182) eq(cid:88)it(cid:92) comprising iss(cid:88)ed share capital and reser(cid:89)es.
The capital structure of the Group is reviewed on an ongoing basis with reference to the costs applicable to each element
of capital, future requirements of the Group, flexibility of capital to be drawn down and availability of further capital should
it be required. Management prepare cash flow projections to plan for repayment of loan facilities used. These projections
are reviewed on a regular basis to check that the Group will be able to settle liabilities as they fall due.
The Gro(cid:88)p(cid:182)s objecti(cid:89)es (cid:90)hen maintaining capital are:
(cid:120)
(cid:120)
to safeg(cid:88)ard the entit(cid:92)(cid:182)s abilit(cid:92) to contin(cid:88)e as a going concern, so that it can contin(cid:88)e to pro(cid:89)ide ret(cid:88)rns for
shareholders and benefits for other stakeholders; and
to pro(cid:89)ide an adeq(cid:88)ate ret(cid:88)rn to shareholders b(cid:92) pricing prod(cid:88)cts and ser(cid:89)ices commens(cid:88)ratel(cid:92) (cid:90)ith the le(cid:89)el of
risk.
Liquidity and interest risk tables
The follo(cid:90)ing table details the Gro(cid:88)p(cid:182)s remaining contract(cid:88)al mat(cid:88)rit(cid:92) for its financial liabilities. The tables have been drawn
up based on the undiscounted contractual maturities of the financial liabilities.
DCD Media Plc
46 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
18 Financial risk management (continued)
Weighted
average
effective
interest
rate
%
Less than
1 month
or on
demand
£'000
n/a
250
3.5%
-
Weighted
average
effective
interest rate
%
Less than
1 month
or on
demand
£'000
1-3
months
£'000
3-12
months
£'000
1-5 years
£'000
More than
5 years
£'000
-
-
-
-
-
-
-
-
1-3
months
£'000
3-12
months
£'000
1-5 years
£'000
More than
5 years
£'000
n/a
140
3.5%
-
-
-
-
-
-
-
-
-
Total
£'000
250
-
Total
£'000
140
-
31 March 2020
Fixed rate
Trade payables
Floating rate
Bank overdrafts
31 December 2018
Fixed rate
Trade payables
Floating rate
Bank overdrafts
19 Share capital
Share capital
Share premium
Issued capital comprises:
Allotted, called up and fully paid
2,541,419 ordinary shares of £1 each
9,730,514 deferred shares of £1 each
Fully paid ordinary shares:
31 March
2020
£'000
31 December
2018
£'000
12,272
51,215
63,487
12,272
51,215
63,487
31 March
2020
£'000
31 December
2018
£'000
2,541
9,731
2,541
9,731
12,272
12,272
Ordinary shares have full voting, dividend and capital distribution rights attached to them.
Number of
shares
Share capital
£'000
Share
premium
£'000
Balance at 1 January 2019 and 31 March 2020
12,271,933
12,272
51,215
Pursuant to a resolution passed on 24 July 2012 and in accordance with the provisions of the Companies Act 2006 the
Company ceased to have authorised share capital.
The deferred shares are not entitled to receive a dividend or other distribution, to attend or vote at any General Meeting
and on return of capital on a winding up, shall only be entitled to receive the amount paid up on the shares after holders of
the ordinary shares have received £100,000 for each ordinary share.
DCD Media Plc
47 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
20 Capital commitments
There were no capital commitments at 31 March 2020 or 31 December 2018.
21 Transactions with directors and other related parties
Loans to Directors
At 31 March 2020 and 31 December 2018 there were no loans due to Directors.
Other transactions
During the period the following amounts were charged by companies in which the Directors have an interest or share
directorships:
Company
Director
Timeweave Ltd
D Craven
Ultimate Finance Group Ltd
N McMyn
Amount charged
15 months
to March
2020
£'000
2018
£'000 Description
-
31
Provision of director, finance and
management services
Provision of director, finance and
management services
108
17
The balances outstanding at the year-end were as follows:
Company
Director
Amount payable
15 months
to March
2020
£'000
2018
£'000 Description
Timeweave Ltd
D Craven
Ultimate Finance Group Ltd
N McMyn
-
8
504
(20)
Other related party transactions
director,
of
Provision
management services
Provision
management services
of
director,
finance
and
finance
and
In 2012, DCD Rights Ltd secured a deal with Timeweave Ltd, a shareholder of DCD Media plc, to create a new fund for
the acquisition of third-party distribution rights. At 31 March 2020, DCD Rights Ltd was owed £Nil to Timeweave Ltd (31
December 2018: £835,046).
Compensation of key management personnel of the Group
Short-term employee benefits
Pension benefits
15 months to
31 March
2020
£'000
31 December
2018
£'000
516
10
526
435
6
441
Only directors and employees who attend the monthly executive meetings are deemed to be key management personnel.
The principal operating subsidiary companies are listed below:
Subsidiary
Country of incorporation % owned
Nature of business
DCD Rights Ltd
September Films Ltd
Rize Television Ltd
England & Wales
England & Wales
England & Wales
100%
100%
100%
Distribution of programme rights
Production of programmes for television
Production of programmes for television
DCD Media Plc
48 Financial statements for the period ended 31 March 2020
Notes to the consolidated financial statements for the period ended 31 March 2020
22 Retirement benefit schemes
The Group contributed to the personal pension plans of 18 employees in the period (year to 31 December 2018: 18).
Contributions in the year amounted to £28,084 (2018: £14,555).
23 Notes supporting the cash flow statement
Cash and cash equivalents for the purposes of the cash flow statement comprises:
Cash available on demand
31 March
2020
£'000
31 December
2018
£'000
2,735
2,735
2,276
2,276
24 Ultimate parent company and ultimate controlling party
The immediate parent company is Timeweave Ltd, registered in England and Wales. The smallest and largest group that
consolidates the results of the Company is Mayfair Capital Investments UK Ltd, registered in Scotland. The results of
Mayfair Capital Investments UK Ltd can be obtained from Companies House website at www.companieshouse.gov.uk .
The Directors consider the family interests of Mr Joe Lewis to have ultimate control by virtue of their indirect beneficial
ownership of the issued share capital of Mayfair Capital Investments Ltd, a company incorporated in the Bahamas. The
Directors consider Mayfair Capital Investments Ltd to be the ultimate parent company.
DCD Media Plc
49 Financial statements for the period ended 31 March 2020
Parent company balance sheet as at 31 March 2020
Fixed assets
Intangible assets
Investments
Trade and other receivables
Current assets
Trade and other receivables
Cash at bank and in hand
Total assets
Creditors: amounts falling due within one year
Total liabilities
Net assets
Capital and reserves
Called up share capital
Share premium account
Own shares held
Profit and loss account
Shareholders' funds
Note
3
4
5
5
6
7
Company number 03393610
As at
31 March
2020
(cid:133)(cid:182)000
As at
31 December
2018
(cid:133)(cid:182)000
-
1,608
18
1,626
1,496
45
1,541
3,167
-
1,675
46
1,721
1,497
45
1,542
3,263
(1,505)
(1,580)
(1,505)
(1,580)
1,662
1,683
12,272
51,215
(37)
(61,788)
12,272
51,215
(37)
(61,767)
1,662
1,683
The notes on pages 51 to 56 are an integral part of these parent company financial statements.
The parent company financial statements were approved and authorised for issue by the Board of Directors on 03
September 2020.
D Craven
Director
DCD Media Plc
50 Financial statements for the period ended 31 March 2020
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Notes to the parent company financial statements for the period ended 31 March 2020
During the period, the principal activity of DCD Media Plc was that of a parent company.
DCD Media Plc is the Group's ultimate parent company, and it is incorporated and registered in England and Wales. The
address of DCD Media Plc(cid:182)s registered office is 9th Floor, Winchester Ho(cid:88)se, 259 - 269 Old Marylebone Road, London,
NW1 5RA, and its principal place of b(cid:88)siness is London. DCD Media Plc(cid:182)s shares are listed on the Alternati(cid:89)e In(cid:89)estment
Market of the London Stock Exchange.
DCD Media Plc(cid:182)s financial statements are presented in Po(cid:88)nds Sterling ((cid:133)), (cid:90)hich is also the functional currency of the
Company. Amounts are presented in rounded thousands. The accounts have been drawn up to the date of 31 March 2020.
1
Principal accounting policies
These financial statements are prepared on the going concern basis, under the historical cost convention and in
accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 (cid:177) 'The
Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the
Companies Act 2006.
The Group's business activities, together with the factors likely to affect its future development, performance and position
are set out in the E(cid:91)ec(cid:88)ti(cid:89)e Chairman(cid:182)s re(cid:89)ie(cid:90). The financial position of the Group, its cash position and borrowings are
set out in the financial review section of the statement. In addition, note 18 to the consolidated financial statements sets
out the Group's objectives, policies and processes for managing its financial instruments and risk. The Directors have
adopted the going concern assumption in the preparation of the financial statements; please see note 1 of the consolidated
financial statements for more detail. The Company has taken advantage of the reduced disclosure requirements to not
prepare a statement of cash flows in line with FRS 102 paragraph 1.11 and 1.12.
Judgements in applying accounting policies and key sources of estimation uncertainty
In preparing these financial statements, the Directors have made the following judgements:
(cid:190) Determine (cid:90)hether amo(cid:88)nts reco(cid:89)erable from gro(cid:88)p companies are reco(cid:89)erable and the carr(cid:92)ing (cid:89)al(cid:88)e of
in(cid:89)estments are appropriate. These decisions depend on the financial position of the rele(cid:89)ant gro(cid:88)p compan(cid:92)
and forecasts of f(cid:88)t(cid:88)re cash flo(cid:90)s.
(cid:190) Assess the reco(cid:89)erabilit(cid:92) of other debtors. The Directors ha(cid:89)e assessed the financial position of the rele(cid:89)ant
co(cid:88)nterparties.
(cid:190) Determine (cid:90)hether leases are finance or operating leases. Material leases ha(cid:89)e been re(cid:89)ie(cid:90)ed to assess
appropriateness of classification.
(cid:190) Re(cid:89)ie(cid:90) the carr(cid:92)ing (cid:89)al(cid:88)e of tangible fi(cid:91)ed assets.
(cid:190) Assess the adeq(cid:88)ac(cid:92) of accr(cid:88)als and pro(cid:89)isions. Directors ha(cid:89)e assessed the likelihood and scale of potential
liabilities that (cid:90)ere present at the balance sheet date.
Leasing
Rentals payable under operating leases are charged to the income statement on a straight-line basis over the period of
the lease.
Pension costs
No pension costs were paid in the current or prior year. Pension costs are charged against profits when they are accrued.
Deferred taxation
Deferred tax is recognised on all timing differences where the transactions or events that give the company an obligation
to pay more tax in the future, or right to pay less tax in the future, have occurred by the statement of financial position date.
Deferred tax assets are recognised when it is more likely than not that they will be recovered. Deferred tax is measured
using rates of tax that have been enacted or substantively enacted by the statement of financial position date. Deferred
tax balances are not discounted.
Foreign currency
Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets
and liabilities in foreign currencies are translated at the rates of exchange ruling at the statement of financial position date.
Any differences are taken to the income statement.
Equity
See relevant accounting policy of the consolidated financial statements.
DCD Media Plc
52 Financial statements for the period ended 31 March 2020
Notes to the parent company financial statements for the period ended 31 March 2020
1
Principal accounting policies (continued)
Revenue and attributable profit
Revenue arises from the licensing of programme rights which have been obtained under distribution agreements with
either external parties or Group companies. Distribution revenue is recognised in the statement of comprehensive income
on signature of the licence agreement and represents amounts receivable from such contracts.
All revenue excludes value added tax.
Intangible assets - programme rights
Internally developed programme rights are stated at the lower of cost, less accumulated amortisation, or recoverable
amount. Cost comprises the cost of all productions and all other directly attributable costs incurred up to completion of the
programme and all programme development costs. Where programme development is not expected to proceed, the related
costs are written-off to the income statement. Amortisation of programme costs is charged in the ratio that actual revenue
recognised in the current year bears to estimated ultimate revenue. At each statement of financial position date, the
Directors review the carrying value of programme rights and consider whether a provision is required to reduce the carrying
value of the investment in programmes to the recoverable amount. The expected life of these assets is not expected to
exceed 7 years.
Purchased programme rights are stated at the lower of cost, less accumulated amortisation, or recoverable amount.
Purchased programme rights are amortised over a period in line with expected useful life, not exceeding 7 years.
Amortisation and any charge in respect of writing down to recoverable amount during the year are included in the income
statement within cost of sales.
Financial instruments
Financial assets are recognised in the statement of financial position at the lower of cost and net realisable value. Provision
is made for diminution in value where appropriate. Income and expenditure arising on financial instruments is recognised
on the accruals basis and credited or charged to the income statement in the financial year to which it relates.
Investments
Investments held as fixed assets are stated at cost less any provision for impairment. Investments held as current assets
are stated at the lower of cost or net realisable value.
2
Result for the financial period
DCD Media Plc has taken advantage of section 408 Companies Act 2006 and has not included its own income statement
in these financial statements. The Company's loss for the period after tax was £21,000 (12 months to December 2018:
£218,000). The result for the period includes £25,000 for the audit of the Company as parent of the DCD Media Plc group
(December 2018: £25,000).
3
Intangible assets
Cost
At 1 January 2019
At 31 March 2020
Amortisation and impairment
At 1 January 2019
At 31 March 2020
Net book value
At 31 March 2020
At 31 December 2018
Programme Rights
£'000
6,069
6,069
6,069
6,069
-
-
DCD Media Plc
53 Financial statements for the period ended 31 March 2020
Notes to the parent company financial statements for the period ended 31 March 2020
4
Fixed asset investments
Cost
At 1 January 2019
Disposals
At 31 March 2020
Accumulated amortisation
At 1 January 2019
At 31 March 2020
Net book value
At 31 March 2020
At 31 December 2018
Shares in subsidiary
undertakings
(cid:133)(cid:182)000
25,294
(67)
25,227
23,619
23,619
1,608
1,675
All shares held in subsidiary undertakings are ordinary shares with full voting, dividend and distribution rights.
The principal operating subsidiary companies are listed below. All are 100% owned:
Company name
Place of
incorporation
Principal activity
DCD Rights Ltd
September Films Ltd
Rize Television Ltd
England & Wales
England & Wales
England & Wales
Distribution of programme rights
Production of programmes for television
Production of programmes for television
Net
assets
(cid:133)(cid:182)000
(1,559)
1,074
220
Profit/(loss)
for year
(cid:133)(cid:182)000
(629)
350
(41)
All companies within the group have their registered office at 9th Floor, Winchester House, 259 - 269 Old Marylebone
Road, London, NW1 5RA.
DCD Rights Ltd sells programme rights worldwide to all media.
September Films Ltd and Rize Television Ltd are involved with the production of programmes for television and other
media.
All the subsidiary companies are registered in England and Wales.
5
Trade and other receivables
Non-current assets
Other debtors
Current assets
Amounts owed by group undertakings
VAT recoverable
Other debtors
Prepayments and accrued income
31 March
2020
£'000
31 December
2018
£'000
18
46
31 March
2020
£'000
31 December
2018
£'000
1,441
6
34
15
1,496
1,441
11
20
25
1,497
DCD Media Plc
54 Financial statements for the period ended 31 March 2020
Notes to the parent company financial statements for the period ended 31 March 2020
6
Creditors: amounts falling due within one year
Trade creditors
Amounts owed to group undertakings
Amounts due to related parties
Accruals and deferred income
7
Share capital
See note 19 to the consolidated financial statements.
8
Financial instruments
Financial assets
Financial assets that are debt instruments measured at amortised cost
Financial liabilities
Financial liabilities measured at amortised cost
31 March
2020
£'000
31 December
2018
£'000
2
1,437
8
58
1,505
-
1,014
508
58
1,580
31 March
2020
£'000
31 December
2018
£'000
1,510
1,510
1,505
1,505
1,543
1,543
1,580
1,580
Financial assets measured at amortised cost include trade and other debtors, recoverable VAT, prepayments and accrued
income and amounts owed by group undertakings.
Financial liabilities measured at amortised cost include trade and other creditors, amounts owed to group undertakings
and related parties, accruals and deferred income and convertible debt.
9
Pension costs
During the period the Company made no contributions towards a personal pension scheme (12 months to 31 December
2018: £Nil).
10 Transactions with Directors and other related parties
During the period, the following amounts were charged by companies in which the Directors have an interest:
Company
Director
Amount charged
15 months
to 31 March
2020
£'000
12 months to
December
2018
£'000 Description
Timeweave Ltd
D Craven
Ultimate Finance Group
N McMyn
-
31
Provision of director, finance and
management services
Provision of director, finance and
management services
108
17
At 31 March 2020, £Nil was due to Timeweave Ltd (2018: £508,838) and £7,500 was due to Ultimate Finance Group Ltd
(2018: due from UFG £20,256).
The company has taken advantage of the exemptions available under FRS 102 not to disclose any transactions or balances
with entities that are 100% controlled by DCD Media Plc.
DCD Media Plc
55 Financial statements for the period ended 31 March 2020
Notes to the parent company financial statements for the year ended 31 March 2020
11 Ultimate parent company and ultimate controlling party
The immediate parent company is Timeweave Ltd, registered in England and Wales. The smallest and largest group that
consolidates the results of the Company is Mayfair Capital Investments UK Ltd, registered in Scotland. The results of
Mayfair Capital Investments UK Ltd can be obtained from Companies House website at www.companieshouse.gov.uk .
The Directors consider the family interests of Mr Joe Lewis to have ultimate control by virtue of their indirect beneficial
ownership of the issued share capital of Mayfair Capital Investments Ltd, a company incorporated in the Bahamas. The
Directors consider Mayfair Capital Investments Ltd to be the ultimate parent company.
DCD Media Plc
56 Financial statements for the period ended 31 March 2020
Corporate information
Company secretary and registered offices
Registrars
Link Asset Services Ltd
The Registry
34 Beckenham Road
Beckenham
BR3 4TU
www.linkassetservices.com
Auditor
SRLV Audit Limited
Elsley Court
20-22 Great Titchfield Street
London
W1W 8BE
www.srlv.co.uk
Solicitors
Dickson Minto WS
16 Charlotte Square
Edinburgh
EH2 4DF
www.dicksonminto.com
Deborah Caidou
9th Floor, Winchester House,
259 - 269 Old Marylebone Road,
London, NW1 5RA
Nominated Adviser
finnCap
60 New Broad Street
London
EC2M 1JJ
www.finncap.com
Bankers
Coutts & Co
440 Strand
London
WC2R 0QS
www.coutts.com
Company Headquarters
DCD Media Plc
9th Floor, Winchester House,
259 - 269 Old Marylebone Road,
London, NW1 5RA
+44 (0)20 3869 0190
info@dcdmedia.co.uk
www.dcdmedia.co.uk
DCD Media Plc
57 Financial statements for the period ended 31 March 2020