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One Media iP Group plc

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FY2021 Annual Report · One Media iP Group plc
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Acquiring content, monetising the future

2 0 2 1

Annual Reports
and Accounts
One Media iP Group PLC

For the year ended 31 October 2021

Company Information 

Directors 

  Michael Antony Infante 
  Alice Dyson 
  Steven Gunning 
Claire Blunt 
Brian Berg 

Secretary 

  Steven Gunning 

Registered Office 

Nomads 

Brokers 

Solicitors 

Bankers 

Registrars 

Auditors 

  Pinewood Studios 
  623 East Props Building 
  Pinewood Road, Iver Heath 
  Buckinghamshire  SL0 0NH 

  Cairn Financial Advisers LLP 
  61 Cheapside 
  London EC2V 6AX 

  Cenkos Securities Plc 
  6 7 8 Tokenhouse Yard 
  London EC2R 7AS 

  Orrick, Herrington & Sutcliffe LLP 
  107 Cheapside 
  London EC2V 6DN 

  Coutts & Co 
  440 Strand 
  London WC2R 0QS 

  Barclays Bank Plc 
  Level 27, 1 Churchill Place 
  London E14 5HP 

  Pinnacle Bank 
  150 3rd Avenue South, Suite 900 
  Nashville, TN 37201 USA 

  Share Registrars Ltd 
  9 Lion and Lamb Yard 
  Farnham 
  Surrey GU9 7LL 

  James Cowper Kreston 
  Reading Bridge House 
  George Street 
  Reading, Berkshire RG1 8LS 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contents 

Chairman's Statement 

Chief Executive's Statement 

Strategic Report 

Report of the Directors 

Corporate Governance 

Independent Auditors' Report 

Consolidated Statement of Comprehensive Income 

Consolidated Statement of Changes in Equity 

Consolidated Statement of Financial Position  

Company Statement of Financial Position  

Consolidated and Company Cash Flow Statement 

Principal Accounting Policies 

Notes to the Consolidated Financial Statements  

  Page 

1 

2 - 7 

8 - 11 

12 - 14 

15 - 23 

24 - 28 

29 

30 

31 

32 

33 

34 - 42 

43 - 56 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chairman’s Statement 
For the year ended 31 October 2021 

I am pleased to report, following a busy 12 months, another set of positive results. The Group has posted a 10% 
increase in revenues to £4.4 million and, despite some impact from unfavourable foreign exchange movements 
with  approximately  89%  of  revenues  generated  in  US  dollars,  a  very  healthy  11  %  uplift  in  EBITDA  to  £1.65 
million.   

This year’s strong performance was driven by the continuing active management of the portfolio by the One Media 
team, as well as organic growth propelled by the increased consumer demand on streaming platforms and other 
revenue distributions from digital platforms.  

The organic growth of the portfolio in the period was 4.5%. Over the last five years average organic growth has 
been 10%, reflecting the inherent value of the assets the Group invest in and the positive structural trends driving 
the  music  industry  which  support  the  investment  case.  This  organic  growth  is  further  supplemented  by  the 
proactive  commercialisation  of  the  portfolio  by  the  Company,  where  it  adds  considerable  value, unlocking  the 
latent potential of the kinds of copyrights it acquires.  

The Group retains a healthy cash position with a cash balance of £2.6 million and with £1.9 million in structured 
debt as at 31 October 2021, which puts us in a strong position for the year ahead, with some important investments 
having already been completed post period end.  

Given the positive performance, together with the outlook for the Group and the industry, the Board is pleased to 
confirm a final dividend for the year of 0.055p per share. 

2021 has been an important year strategically, with further capital investment into complementary Group activities 
that will diversify and supplement our revenue streams, while also expediting our overall objective of maximising 
the potential of our intellectual property assets.  

Harmony IP is already proving a hit with composers, writers and performers and has been the main avenue for 
investment in 2021, providing us with an expanded, more flexible route to market and a vehicle through which to 
grow our partnerships with rights owners, while also enhancing revenues.  

Alongside  this,  the  business  plan  for  TCAT  is  progressing  well,  with  a  full  management  team  and  board  with 
expertise across the technology, software and music industries, who are now in place to market the product’s 
capabilities. TCAT is an exciting prospect for the Group and an attractive tool for the music industry, which is 
already clear from the early stage talks and trials that are underway with some of the biggest names in our sector.    

The  year  was  once  again  impacted  by  the  pandemic,  but  we  very  much  hope  that  we,  and  the  industry,  are 
through the other side of this now, albeit to a larger degree in some territories compared to others. 

Attentions have now, sadly, turned to the horrific events in Ukraine. While recent sanctions around supplying the 
Russian Federation via our DSP partners in Russia, such as Apple and Spotify, may slow growth as these stores 
have now partially been suspended, following an audit we are not expecting a material impact on the Group given 
the limited levels of business conducted in these areas.  

We are deeply concerned about Russia’s invasion of Ukraine and stand with all of the people who are suffering 
as a result of the violence. We join all those around the world who are calling for peace. 
I continue to remain excited for the future of One Media and, as always, would like to extend my thanks to the 
experienced  team  of  directors,  staff,  consultants  and  professionals  across  the  Group  who  contribute  to  our 
continued success, as well as our shareholders for their ongoing support.  

Claire Blunt  
Non-Executive Chairman  

21 April 2022 

1 

 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
Chief Executive’s Statement 
For the year ended 31 October 2021 

Strategy overview 

One Media Plc is an owner, publisher and distributor of digital music copyrights, which it actively monetises to 
deliver proven income streams. We derive the majority of our revenue from royalties collected from the use of the 
Company’s  content  internationally,  which  we  enhance  by  improving  its  availability  globally  across  600  digital 
stores (also known as Digital Service Providers (“DSPs”)) including Apple Music, YouTube, Amazon Music and 
Spotify.  

Royalty returns are largely uncorrelated to the performance of the public and private equity markets, making them 
predictable  and  generating  an  annuity-like  income  for  investors,  which  is  at  the  core  of  our  investment  case. 
Additionally,  we  generally  focus  on  more  mature  compositions  with  a  proven  durability,  supporting  reliable 
revenues.  

We are custodians of an expansive catalogue of over 200,000 music tracks, diversified across a range of genres 
including pop, rock, country and classical, which deliver long term, growing and secure income, around 97% of 
which is recurring. Leveraging its expansive industry relationships, the Company is able to identify proven content 
which  it  believes  is  undervalued  or  has  latent  potential,  which  we  then  seek  to  crystallise  on  behalf  of 
shareholders.  

In the last two years we have expanded the Group with the launch of two  wholly complementary entities that 
support the delivery of our core strategy while also providing additional, diversified sources of revenue. 

Harmony IP, a new business division, was established in 2020. It enables composers and master rights owners 
to  release  portions  of  equity  from  their  music,  giving  artists  greater  flexibility  to  access  future  earnings  while 
retaining  majority  ownership  of  their  intellectual  property.  From  a  One  Media  perspective,  it  supplements  our 
existing revenue streams and expands our opportunity to create strongly aligned partnerships and relationships 
with rights owners, putting us in a favourable position to increase our exposure to their assets in the future.  

Our Technical Copyright Analysis Tool business, TCAT Ltd was established as a subsidiary business last year. It 
is a software as a service (“SaaS”) platform – a software licensing and delivery model in which software is licensed 
on a subscription basis and is centrally hosted.  Developed by One Media, it is a proprietary, specialist anti-piracy 
tool which identifies the illegal or unlicensed use of digital music, helping to maximise revenue for record labels 
and also for One Media. It also provides real time data on the past performance and expected future trends of 
content, supporting our acquisition strategy and further de-risking the investment process. 

Financial performance  

The year under review saw revenues grow by 10% to £4,389,581 (2020: £4,005,385) and our EBITDA by 11% to 
£1,648,598 (2020: £1,485,645), driven by increased consumer demand on streaming platforms and other revenue 
distributions from digital platforms, combined with our active asset management, acquisitions and a continuing 
focus on maintaining a low cost, largely fixed cost base. 

Net revenue increased by 13% to £2,780,256 (2020: £2,459,351), reflecting the strong underlying performance 
of our catalogue. Operating profit was also up by 5.5% to £1,075,958.  

At the end of the period, our cash balance was £2,565,813 (2020: £6,766,424), providing a solid balance sheet 
position from which to move forward in 2022, and our net margin increased to 63% (2020: 61%). Admin expenses 
for the year are reported at £1,040,706 (2020: £919,250).  

Profit  after  tax  attributable  to  equity  shareholders  was  £544,575  (2020:  £630,197),  reflecting  the  increase  in 
revenues and the maintenance of strong margins.  

2 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chief Executive’s Statement 
For the year ended 31 October 2021 - continued 

IFRS NAV per Ordinary Share increased to 7p (2020: 6p) and an Operative NAV per Ordinary Share of 17p. The 
Directors are of the opinion that the Operative NAV (Operative NAV is calculated by using the IFRS NAV, adjusting 
for the revaluation of catalogue assets to fair value and then adding back the catalogue amortisation) provides a 
meaningful alternative performance measure and the values of the catalogues are based on fair values produced 
by an independent valuer. 

Development work on TCAT is progressing and has moved to the next phase, including the incorporation of a 
new subsidiary and the appointment of an experienced management team, as detailed below. Circa £1.0 million 
of  capex  was  invested  into  TCAT  during  the  year  to  support  the  next  phase  of  its  growth,  which  we  believe 
presents a significant opportunity for the Group and industry generally.  

The Board continues to review the dividend policy, especially given the current economic climate, but looks to 
maintain  an  equilibrium  between  retention  of  profit  to  finance  long  term  growth  plans  whilst  rewarding 
shareholders for their support. As a result of the positive performance, a final dividend of 0.055p per share has 
been declared. 

We remain confident that our model for steady growth and continual investment in copyrights is a proven, recurring 
cash generative business and the Board and management remains strongly aligned with investors through its 
11.92% shareholding in the Company. 

Operational update 

During  the  year  our  focus  remained  on  actively  creating  value  and  finding  alternative  methods  to  maximise 
revenues  from  our  music  assets.  This  means  curating,  repurposing,  restoring  and,  importantly,  policing  our 
content with all the care that the original writers and performers value and now rely on.  

Working with content from previous decades - often overlooked and undervalued by others in the market - has its 
advantages. The artists generally are well known with an established reputation and the tracks are, to a great 
extent, rooted in much loved music legacies and are often instantly recognisable. Our job is to ensure that a music 
track  is  available  across  every  territory  (currently  over  202)  via  DSPs  and  the  aggregators  that  supply  those 
providers, to maximise exposure, usage and ultimately returns. 

During the year, significant strides have been made with our complementary Group subsidiary TCAT and our 
Harmony IP platform. 

Harmony IP aims to acquire between 10-30% of IP equity on agreed multiples, mainly targeting composers’ rights 
which typically extend to 70 years after the artist’s death, providing long term income streams, expanding and 
further diversifying One Media’s recurring revenues. There are no other known operators offering artists this option 
and  while  banks  offer  artists  the  opportunity  to  borrow  against  their  future  earnings,  the  terms  are  much  less 
favourable and lack the additional value that an aligned partnership with One Media delivers, including access to 
TCAT. 

All of our investments this year were made via Harmony IP, as detailed in the investments section below, and we 
continue  to  build  this  portfolio,  with  significant  interest  from  artists  and  using  TCAT  to  analyse  the  past 
performance and future trends of content, to predict and identify opportunities to maximise future earnings for all 
parties.  

At the start of the year, TCAT Ltd (“TCAT”) was established as a separate, limited company within the Group, a 
decision driven by the growing external interest in its software capabilities.   

3 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chief Executive’s Statement 
For the year ended 31 October 2021 - continued 

TCAT aims to tackle music piracy. Piracy purportedly costs the Global economy alone approximately £9 billion 
per annum in lost revenues, £200 million of which is lost from the UK music industry’s rights holders. 38% of 
global music listeners acquire music through illegal means, often without even knowing it, and TCAT works to 
detect copyright infringement across the legitimate DSPs by alerting rights owners to instances of corrupted data, 
facilitating the removal or monetisation of offending tracks. 

A  business  plan  is  in  place  at  TCAT,  which  is  on  track  and  is  expected  to  be  profitable  over  a  medium-term 
timeframe.  A  dedicated  team  of  recognised  specialists  has  been  appointed  to  drive  TCAT  to  grow  towards 
reaching its full potential, which we believe is significant based on the piracy statistics and the rapid expansion of 
the industry.   

In February 2022 Nick Stewart was appointed TCAT CEO. With over 40 years of experience in the music industry, 
including senior roles at Universal Music and Warner Music among others, Nick is extremely well positioned to 
establish and grow TCAT’s customer base. Nick is exceptionally well connected across the music industry, with 
credits including signing U2 to Island Records and having worked with the Eagles, Neil Diamond and Sir Tim Rice 
among others. Nick will leverage his relationships and profile to grow TCAT’s brand and market its capabilities.  

Dr. Ed Vernon OBE was appointed TCAT’s chairman in November 2020 bringing almost 40 years of experience 
in running tech businesses, his successes resulted in him being awarded an OBE for services to the tech industry. 
Further appointments include Gareth Waller, an experienced technical director with over 15 years’ experience of 
managing large teams of software engineers, to the position of Chief Technology Officer and Robin Abeysinghe 
as COO and CFO.  

One Media retains two seats on the board held by myself and our COO Alice Dyson.  

The new management team is charged with delivering on the opportunity to improve and scale TCAT for wider 
use across the industry and other territories. A fundraise is underway directly into the subsidiary TCAT Ltd to 
support its next phase of growth, building on the initial client base and trials that are ongoing with two major labels, 
the  world’s  largest  digital  aggregator  and  the  BPI,  the  trade  body  whose  members  include  more  than  400 
independent music companies and all of the UK’s major record companies.  

Investments  

While our investment activity was somewhat curtailed over the last two years due to the restrictions imposed by 
the pandemic, our relationships and network, established over many years in the industry, enabled us to make 
some important income accretive acquisitions, leveraging our newly launched Harmony IP platform through which 
all our 2021 investments were undertaken. 

Nine investments were completed during the year for a total of £4.3 million, delivering a blended Net Publisher 
Share  (“NPS”)  multiple  of  11.2.  This  includes  the  largest  acquisition  undertaken  by  One  Media  to  date  –  the 
composition rights to the catalogue of over 200 tracks of country music star Don Williams. Described by Rolling 
Stone Magazine as 'one of the finest singers of the genre', the acquisition covers Williams' 1970s and '80s output, 
during which time he delivered 17 number one hits and became a global superstar, winning fans from all over the 
world, especially in the UK. In 1975, The Who's Pete Townshend covered Don's No.1 hit 'Till the Rivers All Run 
Dry' with Faces legend Ronnie Lane. Don's 1978 hit 'Tulsa Time' was a regular on Eric Clapton's live set and he 
often jammed with contemporary stars such as Jimmy Page and Jeff Beck.  

4 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chief Executive’s Statement 
For the year ended 31 October 2021 - continued 

Acquisitions undertaken during the period were as follows: 

(cid:120) 

(cid:120) 

January 2021: acquired from Ian Levine the producer’s income royalties to Take That’s ‘A Million Love 
Songs', 'Could It Be Magic' and 'I Found Heaven', all from Take That's 1992 debut studio album, Take 
That & Party. This attracted much press and introduced Harmony IP to the market.  

February  2021:  acquired  the  licensor’s  share  of  the  royalties  to  the  21  Vision  catalogue  of  rights, 
comprising  over  2,000  recordings  from  some  of  the  all-time  music  greats  from  over  the  last  seven 
decades. The 21 Vision catalogue had been licensed to One Media on a royalty-sharing basis. As part 
of the deal, One Media has acquired the licensor's royalty share of the catalogue on an in-perpetuity 
basis.  

(cid:120)  May 2021: acquired the writer’s share to the royalties of over 250 tracks performed by Kid Creole and 
the Coconut’s best known music tracks, including chart toppers ‘Annie I’m Not Your Daddy’ and ‘Stool 
Pigeon’. 

(cid:120) 

(cid:120) 

(cid:120) 

June 2021: acquired the award-winning producer, Steve Levine’s rights into music performed by Culture 
Club, including the global hit ‘Karma Chameleon’ and ‘Do you really want to hurt me’, as well as nineties 
stars Louise Redknapp, 911 and the Honeyz. The Honeyz, an English R&B girl group, enjoyed three UK 
top 10 hits produced by Levine – ‘Finally Found’, ‘End of the Line’ and ‘Love of a Lifetime’ - which made 
Levine one of the most sought-after producers in the industry.  

June 2021: acquired the producer royalties to three albums by the 1970s funk/disco band Heatwave, 
produced by the legendary musician, songwriter, producer and artist Barry Blue: ‘Too Hot To Handle’ 
(1976), ‘Central Heating’ (1978) and ‘Current’ (1982). This includes the hits ‘The Groove Line’ (1978), 
‘Always  and  Forever’  (1976),  ‘Mind-Blowing  Decisions’  (1978)  and  the  million-selling  global  smash 
‘Boogie Nights’ (1976), credited as one of the defining songs of the disco age. 

July 2021: secured our largest acquisition to date, comprising the composition rights to the catalogue of 
over 200 tracks of country music star Don Williams. Described by Rolling Stone Magazine as 'one of the 
finest singers of the genre', the acquisition includes Williams's output across the 1970s and 1980s, during 
which time he delivered 17 number one hits and became a global superstar, winning fans from all over 
the world, especially in the UK. In 1975, The Who's Pete Townshend covered Don's number one hit 'Till 
The Rivers All Run Dry' with Faces legend Ronnie Lane and his 1978 hit 'Tulsa Time' was a regular on 
Eric Clapton's live set.  

(cid:120)  August 2021: with 50% already under our ownership, we acquired the remaining 50% of the licensor's 
royalty share of the royalties in the 5868 Ltd catalogues of rights. This added to the Company’s bottom 
line the income derived from over 1,000 recordings supplied by 5868 Ltd and its respective partners.  

(cid:120)  September  2021:  exclusively  signed  a  further  deal  to  include  three  new  recordings  from  multimillion 
selling US artist Evelyn Thomas. Evelyn Thomas has recorded has recorded 48 singles and EPs, four 
albums and has featured on over 1000 compilations and playlists over the years, including the number 
one hit 'High Energy', which charted in the UK in 1984. One Media will represent Evelyn Thomas on her 
publishing and part ownership to the three new tracks.  

(cid:120)  October  2021:  buy  out  of  the licensor's  royalty  share  of  the  income  in  the  Mike  Bennett Productions 
catalogue  of  rights,  containing  the  income  derived  from  over  6,000  recordings  supplied  by  British 
songwriter and producer Mike Bennett and his respective partners. The recordings feature many 'backing 
tracks' and 'karaoke songs' together with some live albums or re-recordings performed by the Rubettes, 
the Stranglers, Wee Papa Girl Rappers and Wishbone Ash.   

5 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chief Executive’s Statement 
For the year ended 31 October 2021 - continued 

Post period end, in March 2022, we announced that we had acquired the licensor's share of the royalty income 
to the Orbital Digital Ltd catalogue of rights, which contains several thousand recordings. The transaction also 
established  a  working  relationship  with  Dutch  content  distributor  FUGA,  which  is  distributor  to  this  catalogue. 
Orbital/Rapier Music features more than 40 branded labels across all the known digital platforms including African 
Lives, All About Blues, Travelscape Records, The Music Shed, Rapier Music, and Sunflash. The catalogue ranges 
from classical through to dance/hip hop and features a wide array of artists such as Jose Carreras, Jo Jo Adams, 
Kool & the Gang, Irish Tenor Trio, Alexandra O'Neal, Joe Strummer, Sid Vicious, Chic, Lee Perry, The Lambrettas, 
Dread Filmstone, Sex Pistols, Suketu, Col Abram, Psy-Co-Billy, Rachel Porter's all female Orchestra and Ebn 
Ozn.  

Catalogue Valuation  

Post period end, the Group engaged YM&U Group, well known in the music industry for its valuation expertise, 
to undertake a detailed assessment and fully independent valuation of the full catalogue of rights.   

As a result of this report, the portfolio of rights has been valued at £34.8 million (as at April 2022), reflecting a 
blended  NPS  multiple  of  12.5.  This  compares  favourably  to  One  Media’s  blended  cost  and  average  historic 
blended multiple over all content acquired since 2006 of 6 times and a content value applied on the Company’s 
asset register (as at 31 October 2021) of £14 million. 

We  believe  that  this  independent  report  provides  a  true  reflection  of  the  value  of  our  underlying  assets  and 
vindicates our very careful and prudent approach to acquisitions over the last 15 years, whereby we consistently 
apply conservative multiples when assessing investment opportunities.  

The report concludes: 

“The Catalogues acquired by One Media IP (including acquisitions over the last three years) are varied and across 
the 7 grouped areas reviewed they have been performing well. There are steady and consistent income streams 
which is what you would like and need to see from a portfolio of catalogues and there is little reliance on one 
‘superstar’ catalogue which dominates the revenue generation.  

The “Pre 2019” catalogues collectively are performing well, and we would expect the collective value to far exceed 
the original purchase price. In future periods, and with a great timescale, we would look to perform a more granular 
review  of  the  individual  catalogues  within  this  group.  Following  on  our  review  we  would  place  an  estimated 
valuation on the catalogue of £34.8m, with a blended multiple of a conservative 12.5x as a method of calculation.” 

We continue  to demonstrate  that  our  catalogue  drives  additional  value  to  the  business  alongside  the  growing 
market values of traded music content. With many music acquisitions reaching 20-25 times earnings, our mission 
of focusing on long term value will continue to differentiate One Media. 

Market backdrop and outlook 

This year we have emerged from the other side of the global pandemic, which had an impact on the industry from 
an entertainment and live music perspective in particular. Sadly, we are now also dealing with the horrors of war 
in Ukraine. For over 75 years Europe has not seen this kind of unrest to both humanity and global resources. It’s 
an ignominy at every level and almost makes writing encouraging and optimistic company reports on business 
activities seem insensitive to the predicament of the suffering.  

While recent sanctions around supplying the Russian Federation and the suspension of access to DSPs may 
hinder growth in affected territories, the Company has undertaken a brief audit of the potential impact and,  

6 

 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Chief Executive’s Statement 
For the year ended 31 October 2021 - continued 

given the very limited levels of business conducted in these areas, does not envisage any material impact on 
revenues.   

The broader market backdrop against which we’re delivering our strategy continues to be strongly supportive. In 
its market analysis Music in the Air, Goldman Sachs has significantly upgraded its forecasts, now predicting that 
music industry revenues are set to double by 2030 to $131 billion, driven by streaming and growing demographic 
trends, including the fact that Millennials and Generation Z are spending more of their annual budgets on music 
than  any  other  age  group.  Goldman  Sachs  expects  global  live  music  revenues  will  reach  $38  billion,  music 
publishing $12.5 billion and the recorded music $80 billion. 

The digital marketplace is still a young forum and the format of monetised streaming is less than 15 years old, so 
there is significant road to run as platforms continue to expand their reach and technology innovations improve 
access and recognition of intellectual property rights.  

The  opportunity  landscape for  royalty collection  is growing far  beyond the  traditional  DSPs, such as  Amazon, 
Apple Music and Spotify. New monetisation avenues are continuing to open up, including Facebook, Peloton, 
Digital Radio Stations (such as iHeart Radio), Rakuten, IMusica and YouTube Subscription. As the world of digital 
TV  music  stations  grows,  supplementing  the  plethora  of  digital  radio  stations,  combined  with  Smart  Speaker 
technology  and  voice  activated  play  listing,  the  future  is  looking  positive.  Moreover,  with  advances  in  the 
Metaverse and the growth of non-fungible tokens (“NFTs”) we are entering the twilight zone of music values being 
used in a variety of ways not imagined five years ago.  

The prospects ahead of us are extremely exciting and One Media is well placed to take advantage of these new 
opportunities on behalf of shareholders, to generate value by developing and promoting its rights and exploiting 
the digital universe, underpinned by a prudent acquisition strategy that ensures secure and growing income.  

Michael Infante 
Chief Executive and Founder 

21 April 2022 

7 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Strategic Report 
For the year ended 31 October 2021 

Business review and future developments 

The results of the Group are shown within the financial statements and a detailed review of the business for the 
year and future developments is given on pages 1 to 7. 

Whilst the Group focus is primarily on the digital market place, traditional routes to market are not being ignored.  

The Group has continued to enter into representative deals with independent record labels and content owners 
to market their rights in the digital arena and to invest in copyrights and intellectual property that are considered 
to attract a suitable and sustainable rate of return. 

A dividend of £122,345 (2020: £74,582) was paid in the year. 

The key financial and non-financial performance indicators the Directors use to monitor the performance of the 
Group are as follows: 

Financial and non-financial key performance indicators 

Cost of catalogue acquisition and number of tracks "ingested" 
Management  are  continually  searching  to  acquire  additional  music,  video,  spoken  word  and  digital  book 
catalogues to exploit through the digital medium and other routes to market. The costs of catalogue acquisition 
“ingestion” are constantly monitored to ensure that a safe and adequate return on investment is made. During the 
year £5,293,027 (2020: £506,919) was spent on catalogue and intangible asset additions. 

Rate of commercialisation of licences and intellectual property 
Measured by the growth in value and volume of digital revenues, license deals and sales contracts signed.  During 
the  year  revenue  rose  to £4,389,581  (2020:  £4,005,385) a 10%  year  on  year  increase.  Progress assessment 
includes regular updates on key partners, distribution outlets and market segments. 

Overhead 
Management closely monitors overheads, carefully balancing the need to reward people properly based on both 
performance and external market factors, and other overhead expenditure. Where a step change in overheads is 
predicted  this  must  be  justified  in  both  financial  and  strategic  terms.  During  the  year  overheads  increased  to 
£1,179,885 (2020: £979,723), a 20% increase which included a realignment in salaries for key management, the 
identified requirement to investment in the royalty reporting systems, as well as the effects of foreign exchange. 

Share price movements and changes in shareholders are constantly monitored as a major contributor to 
long term planning 
The  Board  constantly  review  share  price  movements  both  for  the  impact  of  Regulated  News  Service 
announcements and trading in shares on the AIM Market. Share price as at 31 October 2021 was 7.38p (2020: 
5.90p). 

Management of capital 
The Group’s dividend policy is determined by the availability of profit and reserves from which to pay dividends, 
the Group’s policy and cost of acquiring additional music catalogues and the desire to reward shareholders for 
their investment in the Group. 

Financial reporting 
Financial reporting is monitored monthly against budgets and forecasts, by both the main Board and the Board of 
the principal operating subsidiary. Profit and Loss and Cash Flow projections are updated as significant changes 
to performance and operating conditions occur. 

8 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Strategic Report 
For the year ended 31 October 2021 - continued 

Business risks 

Reliance on key personnel 
The Group is dependent on the knowledge, expertise and experience of its key personnel. In total, the Group 
employs 11 people. In the event that a key member of the team was to leave the employment of the Group this 
could lead to significant disruption and could have a material impact on the future profitability of the Group. 

Reliance on The Orchard – concentration of distribution risk 
In  the  financial  year  ending  31  October  2021  approximately  63%  (2020:  62%)  of  the  Group’s  turnover  was 
channeled via The Orchard, the distribution aggregator that the Group uses to distribute its content to end-user 
download and streaming sites such as Apple Music and Spotify. In the event that The Orchard agreement was 
terminated or that The Orchard ceased to operate, this could have a material impact on the Group’s operations 
and profitability, whilst the Group changed its systems to work either with a new aggregator or trade directly with 
the end-user distribution sites. 

Rights acquired may not be wholly exclusive 
The Group has acquired a large number of catalogues of music, video and spoken word since its formation.  It is 
not uncommon for rights attached to such catalogues to have been previously transferred prior to the Group’s 
acquisition of such rights. A risk exists that the title to such rights may be challenged in which event, the Group 
may have to forego potential revenue and/or incur legal costs whilst securing exclusive title. 

Sales of digital content 
Digital stores may at their discretion delist or remove tracks, albums or content from their store, without any prior 
notice to the Group.  If this was to occur it could have a detrimental effect on the Group’s revenue growth. 

Piracy 
Piracy or the illegal download of  its content from the internet could have a detrimental impact on the Group’s 
growth plans. 

Currency – revenues received in US$ 
In the financial year to 31 October 2021 approximately 89% (2020: 88%) of the Group’s revenue was generated 
in US dollars, whilst the majority of the Group’s costs are denominated in Sterling.  The Group is therefore exposed 
to the US$/£ exchange rate and so any material adverse movement in this exchange rate can have a material 
financial impact on the Group. 

Market dominance of Big 3 
The Group operates in a market dominated by established traditional companies such as Universal, Warner and 
Sony (the “Big 3”). The Big 3 own or have the rights to a vast amount of content, a large amount of which may be 
similar to that owned or exploited by the Group.  There is a risk that the Big 3 could exploit their recognised brands 
and use their marketing budgets to compete with the Group’s targeted market, the consequence of which could 
lead to reduced sales and profitability for the Group. 

Digital retailers’ terms of business 
The Group is dependent upon digital retailers such as Apple Music and Spotify in order to sell its products in the 
digital market place.  Changes in their terms of business and type of content they will distribute, as defined in their 
“style guides”, can affect the performance of the Group. 

Bad Debts 
The traditional risk associated with customer insolvency, and inability or unwillingness to pay debts continues to 
be a threat which the Group constantly monitors.  

Coronavirus (COVID-19) 
The  potential  disruption  caused  by  Covid-19  is  continually  monitored  and  the  Group  is  confident,  and  has 
demonstrated, that business continues as normal and that our services remain uninterrupted. The business has 
a robust recurring income model that lends itself to remote working, much like its major partners. As a result of a 
planned disaster recovery process all of the Group’s business operations continue as normal.

9 

 
 
 
 
 
 
 
 
 
 
 
 
 
Strategic Report 
For the year ended 31 October 2021 - continued 

However, the Group understands that it cannot control the effects on third parties and their business operations. 
In the event of a material drop in revenue the Group has significant cash reserves that enables it to continue to 
operate during this period without any adverse impact on the business. The directors have reviewed the Group’s 
assets and believe this current event will not require any impairment, this is based on a review of the performance 
of  the  Group’s  historical  catalogue  as  well  as  the  detailed  due  diligence  on  the  income  profile  of  recent 
acquisitions. 

Digital route to market 
The  digital  market  place  has  its  own  challenges  with  a  reliance  on  consumers  becoming  internet  literate  and 
homes achieving a decent broadband connection. OMiP is a B2B and B2C supplier. We have no digital site of 
our own but supply over 600 legitimate digital stores worldwide through our key business partner. We are not 
dependent on any one store’s marketing strengths as we supply our content to all. 

Financial risk management objectives and policies 
The Group's principal financial instruments comprise cash and cash equivalents. The Group has various other 
financial instruments such as trade receivables and trade payables, which arise from its operations. 

The Group is exposed to a variety of financial risks which result from its operating activities. The Directors are 
responsible for co-ordinating the Group's risk management and focus on actively securing the Group's short and 
medium term cash flows. Long term financial investments are managed to generate lasting returns.  The Group 
does not actively engage in the trading of financial assets and has no financial derivatives. The most significant 
risks to which the Group is exposed are described below: 

Currency risk 
The  Group  is  exposed  to  foreign  exchange  risk  in  connection  with  its  digital  business  where  the  revenue  is 
transacted  largely  in  US$  and  the  settlement  of  royalty  and  other  liabilities  arising  from  this  revenue  is  partly 
denominated in US$. 

Credit risk 
The Group's credit risk is primarily attributable to its trade receivables and other debtors. The amounts presented 
in the Consolidated Statement of Financial Position are net of any allowances for doubtful receivables. The Group 
has a significant concentration of credit risk associated with its distributor of digital income. 

Liquidity risk 
The  Group  seeks  to  manage risks  to ensure  sufficient  liquidity  is  available  to meet  foreseeable  needs and  to 
invest cash and assets safely and profitably. Short term flexibility is achieved by the use of money markets to 
deposit excess cash which is not required in the short term. The Directors prepare cash flow forecasts on a regular 
basis to identify at an early stage any short term funding difficulties. 

Significant shareholding 
Apart from the Directors’ shareholdings the Company has been notified that there are five holdings in excess of 
3% of the issued share capital of the Company at 21 April 2022. Canaccord Genuity Group Inc is holding 21.40% 
(47,489,230 ordinary shares of 0.5p each), Amati AIM VCT Plc is holding 7.98% (17,714,000 ordinary shares of 
0.5p each), James David Price 6.12% (13,618,086 ordinary shares of 0.5p each), Gresham House Plc 4.65% 
(10,325,500)  ordinary  shares  of  0.5p  each)  and  BGF  Investment  Management  Limited  is  holding  4.51% 
(10,000,000 ordinary shares of 0.5p each). 

Employee involvement 
The Group has continued its practice of keeping employees informed of matters affecting them as employees and 
the financial and economic factors affecting the performance of the Group. This is achieved through regular formal 
and informal updates and open access between all employees of the Group. 

Disabled employees 
Applications  for  employment  by  disabled  persons  are  given  full  and  fair  consideration  for  all  vacancies  in 
accordance with their aptitudes and abilities. In the event of an employee becoming disabled, every effort will be 
made to retain them in order that their employment within the Group may continue. It is the policy of the Group 
that training, career development and promotion opportunities are available to all employees. 

10 

 
 
 
 
 
 
 
 
 
 
 
 
 
Strategic Report 
For the year ended 31 October 2021 - continued 

Technology 
The Group takes a progressive view on the impact of technological developments. Changes to technology and 
related systems are openly embraced with the aim of giving the Group the most up to date platforms to work on 
and exploit its assets. 

Research and development 
The Group, in developing its internal technology based systems, undertakes Research and Development work 
the outcome of which may be uncertain. Work likely to have an on-going value is capitalised all other costs are 
expensed to the Profit and Loss account. 

Key accounting policies 
Principal  accounting  policies  are  included  on  pages  34  to  42,  including  critical  accounting  estimates  and 
judgements on page 39. 

Cash flows 
Full details of cash flows generated by the business are disclosed within the Consolidated Cash Flow Statement 
on page 33. The group generates sufficient cash flows through its ordinary operations, in combination with funds 
generated by company's listing on AIM, to achieve its objectives set out in the Chairman's Report on page 1. 

Gender of Directors and employees 
We recruit individuals who have the skills, experience and integrity needed to perform the roles to make  One 
Media  iP  Group  Plc  a  successful  company.  We  recruit  without  regard  to  sex  or  ethnic  origin,  appointing  and 
thereafter promoting staff based upon merit. The profile of the Group’s employees and directors at 31 October 
2021, was as follows: 

Number of persons who were Directors or officers of the 
Company 
Number  of  persons  who  were  other  employees  of  the 
Company 
Total employees at 31 October 2021 

Male 
3 

2 

5 

Female 
2 

4 

6 

Total 
5 

6 

11 

Directors duties in relation to s172 Companies Act 2006  
The directors consider, that they have acted in the way they believe, in good faith, to promote the success of the 
Group for the benefit of its members as a whole and, in doing so, have regard (amongst other matters) to: 

• the likely consequences of any decisions in the long-term,  
• the interests of the Group’s employees,  
• the need to foster the Group’s business relationships with suppliers, customers and others,  
• the impact of the Group’s operations on the community and environment,  
• the desirability of the Group maintaining a reputation for high standards of business conduct, and  
• the need to act fairly between the shareholders of the Group 

On behalf of the Board 

Michael Infante 
Director 

21 April 2022 

11 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Report of the Directors 
For the year ended 31 October 2021 

The Directors present their annual report together with the audited Consolidated financial statements of the Group 
for the year ended 31 October 2021. 

Principal activities  

The principal activities of the Group throughout the year were the acquisition and exploitation of mixed media 
intellectual property rights including music, video, spoken word and digital books for distribution through the digital 
medium and to a lesser extent through traditional media outlets. The Group also licenses its music content for 
use  in  TV  and  film,  advertising,  video  games  and  corporate  websites.  The  Group  is  a  B2B  and  B2C  content 
supplier. The Group continues to believe that the creation of its own dedicated consumer website is not yet of 
interest as that is the primary activity of its major customers. The Group outsources the supply of its digital content 
to this market primarily through The Orchard, its distributor for digital music and spoken-word services, and for 
video product via YouTube and other emerging visual market places. 

Directors 

The following Directors held office during the year: 

Michael Antony Infante 
Alice Dyson 
Steven Gunning 
Claire Blunt 
Brian Berg 

Directors and their interests 

The Directors' interests (including family interests) in the shares of the Company were as follows: 

                                                                                                                    Ordinary shares of 0.5p each 
At 31 October 2020 

At 31 October 2021 

Michael Antony Infante 
Alice Dyson 
Steven Gunning 
Claire Blunt 
Brian Berg 

Share Options in Ordinary shares of 0.5p each 

Michael Antony Infante 
Alice Dyson 

Nos 

Nos 

26,077,862 
132,023 
50,000 
50,000 
- 

25,577,862 
132,023 
- 
- 
- 

At 31 October 2021 

At 31 October 2020 

at 9p each 
Nos 

500,000  
200,000 

at 9p each 
Nos 

500,000  
200,000 

The options are exercisable at 9p per share on or by 20 April 2025. 

12 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Report of the Directors  
For the year ended 31 October 2021 – continued 

Directors and their interests continued 

Share Options in Ordinary shares of 0.5p each 

At 31 October 2021 

At 31 October 2020 

Michael Antony Infante 
Alice Dyson 
Steven Gunning 

at 9p each 
Nos 

500,000  
500,000  
500,000 

at 9p each 
Nos 

500,000 
500,000 
500,000 

The options are exercisable at 9p per share on or by 21 December 2022. 

Share Options in Ordinary shares of 0.5p each 

Michael Antony Infante 
Alice Dyson 
Steven Gunning 

At 31 October 2021 

At 31 October 2020 

at 6p each 
Nos 

1,000,000  
1,000,000 
500,000 

at 6p each 
Nos 

1,000,000  
1,000,000 
500,000 

The options are exercisable at 6p per share on or by 30 October 2026. 

Share Options in Ordinary shares of 0.5p each 

Claire Blunt 
Brian Berg 
Steven Gunning 

At 31 October 2021 

At 31 October 2020 

at 6p each 
Nos 

750,000  
750,000 
500,000 

at 6p each 
Nos 

750,000  
750,000 
500,000 

The options are exercisable at 6p per share on or by 30 October 2026. 

Share Options in Ordinary shares of 0.5p each 

Michael Antony Infante 
Alice Dyson 
Steven Gunning 
Claire Blunt 
Brian Berg 

At 31 October 2021 

At 31 October 2020 

at 7.31p each 
Nos 

at 7.31p each 
Nos 

500,000  
500,000 
500,000 
250,000 
250,000 

- 
- 
- 
- 
- 

The options are exercisable at 7.31p per share on or by 15 April 2030. 

13 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Report of the Directors  
For the year ended 31 October 2021 - continued 

Statement of Directors' Responsibilities 

The Directors are responsible for preparing the Report of the Directors and the financial statements in accordance 
with applicable law and regulations. 

Company law requires the Directors to prepare financial statements for each financial year. Under that law the 
Directors  have  elected  to  prepare  the  Group  financial  statements  in  accordance  with  International  Financial 
Reporting Standards (IFRS) as adopted for use in the European Union. Under company law the  

Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of 
the state of affairs of the Company and the Group and of the Profit or Loss of the Group for that period. In preparing 
these financial statements, the Directors are required to: 

select suitable accounting policies and then apply them consistently; 

(cid:120) 
(cid:120)  make judgments and estimates that are reasonable and prudent; 
(cid:120) 

state  whether  IFRS  as  adopted  by  the  European  Union  have  been  followed,  subject  to  any  material 
departures disclosed and explained in the financial statements;  
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 
Company and Group will continue in business. 

(cid:120) 

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

Disclosure of information to auditors 

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

So  far  as  that  director  is  aware,  there  is  no  relevant  audit  information  of  which  the company  and  the  group’s 
auditors are unaware, and that director has taken all the steps that ought to have been taken as a director in order 
to  be  aware  of  any  relevant  audit  information  and  to  establish  that  the  company  and  the group’s auditors  are 
aware of that information. 

Auditors 

James Cowper Kreston have expressed their willingness to continue in office. A resolution to re-appoint James 
Cowper  Kreston  in  accordance  with  section  489  of  the  Companies  Act  2006  will  be  proposed  at  the  Annual 
General Meeting. 

On behalf of the Board 

Michael Infante 
Director 

21 April 2022 

14 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Governance Report  
For the year ended 31 October 2021 

All members of the board believe strongly in the value and importance of good corporate governance and in our 
accountability to all of OMIP’s stakeholders, including shareholders, staff, clients and suppliers. In the statement 
below, we explain our approach to governance, and how the board and its committees operate. 

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 business and is reflective of the group’s values. Of the two widely 
recognised  formal  codes,  we  have  therefore  decided  to  adhere  to  the  Quoted  Companies  Alliance’s  (QCA) 
Corporate Governance Code for small and mid-size quoted companies (revised  in April 2018 to meet the new 
requirements of AIM Rule 26). 

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 in relation to each. The Board considers that it does not depart from 
any of the principles of the QCA Code. The information below was last updated on 17 March 2021. 

Board composition and compliance 

The QCA Code requires that the boards of AIM companies have an appropriate balance between executive and 
non-executive directors. The Board composition continues to be reviewed to ensure  compliance. 

Board evaluation 

For many years we have supported the QCA Code’s principle to review regularly the effectiveness of the board’s 
performance as a unit, as well as that of its committees and individual directors. The most recent review was in 
January 2022.  

Shareholder engagement 

We have made significant efforts to ensure effective engagement with both institutional and private shareholders. 
In  addition  to  the  usual  roadshows  following  the  release  of  full  year  and  interim  results,  each  of  which  was 
expanded to include a greater number of existing and potential new investors, we have actively promoted our 
AGM as a forum to present to and meet with shareholders.  

The board has ultimate responsibility for reviewing and approving the Annual Report and Accounts and it has 
considered and endorsed the arrangements for their preparation, under the guidance of its audit committee. The 
directors confirm that the Annual Report and Accounts, taken as a whole, is fair, balanced and understandable 
and  provides  the  information  necessary  for  shareholders  to  assess  the  group’s  position  and  performance, 
business model and strategy. 

The following paragraphs set out OMIP’s compliance with the ten principles of the QCA Code.  

15 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Governance Report - continued 
For the year ended 31 October 2021 

1.  Establish a strategy and business model which promotes long-term value for shareholders 

The Group is a B2B and B2C digital content provider, exploiting intellectual property rights around music and 
video. The Group specialises in acquiring and repackaging nostalgic music and TV programmes from recordings 
made over the last 90 years. The Group delivers digital music and video content via aggregators to over 600 
online digital stores such as Apple Music, Spotify, Amazon and YouTube. Consumers download or stream the 
content  via  PCs,  smart  phones,  internet-enabled  radios  and  music  players  and  Smart  TVs.  The  Group  was 
founded in 2005 by Michael Infante, the Group’s Chief Executive Officer, with a strategy to acquire mixed media 
content and digitise this media to exploit the shift from physical to digital formats. 

The Group is listed on the Alternative Investment Market (AIM) of the London Stock Exchange (ticker OMIP). 

The key challenges we face include:  

Maintaining consistently high levels of quality – The digital ingestion and exploitation of music and video has 
evolved over the last 10 years. New standards and objectives are required on a regular basis and our internal 
team are trained and appraised to meet these exacting standards. Cross checking and regular self-assessment 
forms a regular part of our systems to ensure that all data is kept in its most precise form for our customers to 
either ingest into their own system or for audit purposes. 

Ensuring security of client assets – All of our (and that of our customers) music and video data and metadata 
is secured on the safest of cloud based servers with all the latest safeguards that meet our industry's standards. 
The cloud based systems hosted by Amazon are regularly tested and are of the best available in our opinion for 
our service and use. Appraisals of their security are undertaken by our technical department in conjunction with 
our key customers’ approval.  

Delivering continuous availability – All of the group's data and day to day functionality is backed up across 
multi-platform,  cross  territorial  servers  that  allow  for  catastrophic  failures  in  localized  systems.  The  Group’s 
disaster  recovery  program  is  appraised  annually  together  with  the  Group’s  insurance  policies  to  ensure 
continuation of service.  

Recruiting and retaining suitable staff – the Group’s ability to execute its strategy is dependent on the skills 
and  abilities  of  its  staff.  We  undertake  ongoing  initiatives  to  foster  good  staff  engagement  and  ensure  that 
remuneration packages are competitive in the market. The Group has a small team of professional individuals 
trained for the Group’s requirements in sales, technology and administration. New staff are sought via  trusted 
agencies or are promoted through the ranks. We believe in recognising the skill sets of long term staff and reward 
via a share option scheme as well as competitive salary rates.  

We believe we have the right strategy and service in place to deliver growth in sales over the medium to long 
term which will enable us to deliver sustainable shareholder value. 

Departure and Reason - None 

2.  Seek to understand and meet shareholder needs and expectations 

Responsibility for investor relations rests with the Chairman, supported by the CEO.  

The  Group  is  committed  to  communicating  openly  with  its  shareholders  to  ensure  that  its  strategy  and 
performance  are  clearly  understood.  We  communicate  with  shareholders  through  the  Annual  Report  and 
Accounts, full-year and half-year announcements, trading updates and the annual general meeting (AGM), and 
we encourage shareholders’ participation in face-to-face meetings. 

A range of corporate information (including all OMIP announcements) is also available to shareholders, investors 
and the public on our website. 

16 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Governance Report - continued 
For the year ended 31 October 2021 

The AGM is the principal forum for dialogue with shareholders, and we encourage all shareholders to attend and 
participate. 

The Notice of Meeting is sent to shareholders at least 21 days before the meeting. The chairs of the board and 
all committees, together with all other directors whenever possible, attend the AGM and are available to answer 
questions raised by shareholders. 

Shareholders vote on each resolution, by way of a poll. For each resolution we announce the number of votes 
received for, against and withheld and subsequently publish them on our website. 

The  directors  actively  seek  to  build  a  mutual  understanding  of  objectives  with  institutional  shareholders.  The 
Chairman  and  CEO  make  presentations  to  institutional  shareholders  and  analysts  immediately  following  the 
release of the full-year and half-year results. We communicate with institutional investors frequently through  a 
combination of formal meetings, roadshows and briefings with management. 

The  majority  of  meetings  with  shareholders  and  potential  investors  are  arranged  by  the  Company’s  broker. 
Following meetings, the broker provides feedback to the Board from all fund managers met. 

In addition, we review analysts’ notes to achieve a wider understanding of investors’ views.  

Departure and Reason – None 

3.  Take into account wider stakeholder and social responsibilities and their implications for long-term 

success 

Staff 

Our ability to fulfil client services and develop and enhance our audio and visual content relies on having talented 
and motivated staff. Good two-way communication with staff is a key requirement for high levels of engagement, 
fostering  a  culture  of  innovation.  Six  monthly  updates  occur  with  the  invitation  to  staff  to  ask  questions  of 
management that are answered in the meetings. 

All staff are encouraged to contribute to the intra-net (Podio) which provides industry and company insights as 
well as technical updates. 

Clients 

Our success and competitive advantage are dependent upon fulfilling client requirements, particularly in relation 
to  quality  of  service,  its  speed  of  delivery  and  security.  Understanding  current  and  emerging  requirements  of 
clients enables us to develop new and enhanced services, together with software to support the fulfilment of those 
services. 

Shareholders 

As a public company we provide transparent, easy-to-understand and balanced information to ensure support 
and confidence. 

Departure and Reason - None 

4.  Embed  effective  risk  management,  considering  both  opportunities  and  threats,  throughout  the 

organisation 

Within the scope of the annual reporting, specific financial risks are evaluated in detail, including in relation to 
foreign currency, interest rates, liquidity and credit. 

The key risks of the Company are set out in the Annual Report & Accounts. 

In terms of risk management and the Group’s financial systems, the Audit Committee prepares a report following 
the completion of each audit as to the quality and robustness of the systems and a copy of this is  

17 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Governance Report - continued 
For the year ended 31 October 2021 

provided to the board which will consider the report at the board meeting held next following the completion of the 
report and acts on any recommendations contained in the report. 

Staff  are  reminded  on  a  regular  basis  to  report,  anonymously  or  otherwise,  any  security  risks  or  threat  they 
perceive  in  the  operations  of  the  business.  On  receipt  of  any  such  notification,  a  security  incident  team  is 
assembled to assess and take remedial action as appropriate in the circumstances. 

Staff are reminded on a regular basis that they should seek approval from the CEO if they, or their families, plan 
to trade in the Group’s equities. 

Departure and Reason - None 

5.  Maintain the board as a well-functioning, balanced team led by the chairman 

The members of the board have a collective responsibility and legal obligation to promote the interests of the 
Group, and are collectively responsible for defining corporate governance arrangements. 

Ultimate  responsibility  for  the quality  of, and approach  to,  corporate  governance lies  with  the chairman  of  the 
board. 

The board consists of five directors of which three are executive and two non-executive. 

The board is supported by two committees: audit and remuneration. 

The board intends to appoint additional non-executive directors as its business expands. 

Non-executive directors are required to attend 10-12 board and board committee meetings per year and to be 
available  at  other  times  as  required  for  face-to-face  and  telephone  meetings  with  the  executive  team  and 
investors. 

Departure and Reason - The board does not currently have a nominations committee.  All members of the board 
are involved in the appointment of new directors, however the board is committed to keeping it under review and 
monitoring the prospective requirement periodically should the need arise to implement a separate nominations 
committee. 

6.  Ensure  that  between  them  the  directors  have  the  necessary  up-to-date  experience,  skills  and 

capabilities 

The five members of the board bring relevant sector experience in media and technology, bringing a strong mix 
of public market and corporate governance experience. 

The board believes that its blend of relevant experience, skills and personal qualities and capabilities is sufficient 
to enable it to successfully execute its strategy. Directors attend seminars and other regulatory and trade events 
to ensure that their knowledge remains current. 

Michael Infante, CEO 

Term of office: Co-founder from the Group’s inception in 2005. 

Background  and suitability  for  the  role: Michael started  his career  in 1976  in  the  food  industry  working for  his 
family’s  business,  Creamery  Fare.  In  1988,  after  jointly  orchestrating  the  sale  of  his  family’s  business  to  the 
publicly  listed  Hazlewood  Foods  PLC,  he  joined  the  music  industry.  He  worked  on  the  Royal  Philharmonic 
Orchestra’s largest recording project as the executive producer for over  140 classical albums recorded at CTS 
studios in London. In 1995 Michael co-founded Air Music & Media Group PLC (now MBL Plc), which was admitted 
to trading on the OFEX market (now ICAP) in 2000 and subsequently moved to AIM in 2001. Recognising the 
emerging digital market in 2005, Michael founded the Company. Michael oversees the Company’s acquisition 
programme  having  introduced  an  acquisition  policy  for  nostalgic  audio/visual  content  and  has  made  over  80 
acquisitions to date of small music and TV content catalogues. Michael is a serving Justice of the Peace for the 
West London Local Justice Area. 

18 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Governance Report - continued 
For the year ended 31 October 2021 

Alice Dyson, COO 

Term of office: Appointed Managing Director for One Media IP Ltd in October 2016 and then appointed COO for 
the Group on 21 October 2019. 

Background and suitability for the role: Alice, with over 20 years’ music industry experience, has, for the last four 
years, held the role of Managing Director of the Company’s trading subsidiary, One Media IP Ltd. In September 
2017, Alice was elected as a director of the British Phonographic Industry (“BPI”). The BPI is the music industry’s 
trade body that optimises the trading environment for the UK’s music industry globally. 

Steven Gunning, CFO and Company Secretary 

Term of office: Appointed Group Financial Controller and Company Secretary in October 2016 and then appointed 
CFO for the Group on 21 October 2019. 

Background  and  suitability  for  the  role: Steve  began  his  career  with  Barclays  Bank  plc,  where  he  gained  an 
extensive  knowledge  of  the  banking environment,  both personal  and corporate  followed by  a  move  to  Dixons 
Group  plc,  working  in  the  Finance  department.  His  career  then  took  him  to  Share  plc,  an  independent  retail 
stockbroker,  and  to  the  position  of  Chief  Accountant.  After  8  years  with  Share  plc  he  took  a  position  as  the 
company accountant for Kings Oak Homes Ltd (a subsidiary of Barratt Developments plc) responsible for group 
reporting. 

In  2007  he  joined  e-Financial  Management  Ltd,  managing  a  portfolio  of  clients  providing  outsourced  finance 
solutions  and  expertise  to  SME’s,  before  starting  his  own  company  in  2012  and  now  provides  strategic  and 
financial support to a diverse set of clients in the manufacturing, property, retail, media and education sectors. An 
Accountant with over 20 years’ experience in the finance industry, both managing the finance function for a wide 
range of companies and being part of the senior management team. He has a CIMA Diploma in Management 
Accounting and is a member of the Association of Accounting Technicians. 

Claire Blunt, Chairman 

Term of office: Appointed on 6 January 2020 

Background and suitability for the role: In January 2021 Claire was appointed Chief Advertising Officer and Chief 
Executive Officer International at the Guardian Media Group, which she will fulfil alongside her current role at One 
Media. Prior to this appointment Claire was chief financial operations and data officer for Hearst Europe having 
held  roles  previously  at  Hearst  UK.  Prior  to  her  roles  at  Hearst  UK,  Claire  has  served  in  lead  financial  and 
management roles at BrightHouse, Selecta Group, Hobbycraft and Staples. 

Brian Berg, Independent Non-Executive Director 

Term of office: Appointed on 6 January 2020 

Background and suitability for the role: Brian Berg is Chairman of Eclipse Global Entertainment. He also holds 
senior  media  and  music  consultancy  roles  for  various  major  companies  and  is  Executive  Producer  on  the  hit 
musical Dreamboats and Petticoats. Prior to this Brian was the President of Universal Music Enterprises and a 
director  of  Universal  Music,  which  is  the  biggest  record  company  in  the  world.  Brian  has  been  chairman  of 
fundraising for the leading music industry charity Nordoff Robbins Music Therapy, as  well as a governor of the 
school and is still very involved with the charity. 

Departure and Reason - None 

19 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Governance Report - continued 
For the year ended 31 October 2021 

7.  Evaluate  board  performance  based  on  clear  and  relevant  objectives,  seeking  continuous 

improvement 

A board evaluation process led by the chairman took place January 2022. The review considered effectiveness 
in  a  number  of  areas  including  general supervision  and  oversight,  business  risks  and  trends,  succession  and 
related matters, communications, ethics and compliance, corporate governance and individual contribution. 

A number of refinements in working practices were identified as a result of this exercise and have since been 
adopted. 

We will be considering the use of external facilitators in future board evaluations. 

As the business expands, the executive directors will be challenged to identify potential internal candidates who 
could potentially occupy board positions, and set out development plans for these individuals. 

Departure and Reason - None 

8.  Promote a corporate culture that is based on ethical values and behaviours 

Our long-term growth is underpinned by our five core values, they are: 

1.  We place our customers first, putting ourselves in their shoes to understand the current and future needs of 

those who use our products and services, and always striving to exceed their expectations. 

2.  We have an enduring positive attitude that stems from being self-motivated, adaptable and agile and feeling 
fully empowered to make a difference, speaking out with ideas and suggestions to make things better. 
3.  We are team players who recognise that OMIP is a company worth much more than the sum of its parts, we 
are passionate about communicating with colleagues and with our customers and are committed to learning 
from one another. 

4.  We are committed to innovation in what we do and how we do it, and to working smarter rather than harder 

to reduce costs, increase efficiency and make lives easier by being creative, pragmatic and different. 

5.  We respect one  another  and  are  courteous,  honest  and  straightforward  in  all  our  dealings,  we  honour 
diversity,  individuality  and  personal  differences,  and  are  committed  to  conducting  our  business  with  the 
highest personal, professional and ethical standards. 

The  culture  of  the  Group  is  characterised  by  these  values which  are  communicated  regularly  to  staff  through 
internal communications and forums. The core values are communicated to prospective employees in the Group’s 
recruitment programmes and are considered as part of the selection process. 

The board believes that a culture that is based on the five core values is a competitive advantage and consistent 
with fulfilment of the group’s mission and execution of its strategy.  

Departure and Reason - None 

9.  Maintain governance structures and processes that are fit for purpose and support good decision-

making by the board 

The Board provides  strategic  leadership  for  the  group  and  operates  within  the  scope  of  a  robust  corporate 
governance framework. Its purpose is to ensure the delivery of long-term shareholder value, which involves setting 
the culture, values and practices that operate throughout the business, and defining the strategic goals that the 
Group implements in its business plans. The Board defines a series of matters reserved for its decision and has 
approved  terms  of  reference  for  its  audit  and  remuneration  committees  to  which  certain  responsibilities  are 
delegated. The chair of each committee reports to the board on the activities of that committee. 

The Audit Committee monitors the integrity of financial statements, oversees risk management and control and 
reviews external auditor independence. 

20 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Governance Report - continued 
For the year ended 31 October 2021 

The Remuneration Committee sets and reviews the compensation of executive directors including the setting of 
targets and performance frameworks for cash- and share-based awards. 

The Executive Board, consisting of the executive directors, operates as a management committee,  chaired by 
the  Chairman,  which  reviews  operational  matters  and  performance  of  the  business,  and  is  responsible  for 
significant management decisions while delegating other operational matters to individual managers within the 
business. 

The Chairman has overall responsibility for corporate governance and in promoting high standards throughout 
the group. They lead and chairs the board, ensuring that committees are properly structured and operate with 
appropriate terms of reference, ensures that performance of individual directors, the board and its committees 
are  reviewed  on  a  regular  basis,  leads  in  the  development  of  strategy  and  setting  objectives,  and  oversees 
communication between the group and its shareholders. 

The CEO provides  coherent  leadership  and  management  of  the  group,  leads  the  development  of  objectives, 
strategies and performance standards as agreed by the board, monitors, reviews and manages key risks and 
strategies with the board, ensures that the assets of the group are maintained and safeguarded, leads on investor 
relations activities to ensure communications and the Group’s standing with shareholders and financial institutions 
is maintained, and ensures that the board is aware of the views and opinions of employees on relevant matters. 

The Executive Directors are responsible for implementing and delivering the strategy and operational decisions 
agreed by the board, making operational and financial decisions required in the day-to-day operation of the Group, 
providing  executive  leadership  to  managers,  championing  the  Group’s  core  values  and  promoting  talent 
management.  

The Independent Non-Executive Directors contribute independent thinking and judgement through the application 
of  their  external  experience  and  knowledge,  scrutinise  the  performance  of  management,  provide  constructive 
challenge  to  the  executive  directors  and  ensure  that  the  group  is  operating  within  the  governance  and  risk 
framework approved by the board. 

The Company  Secretary is  responsible  for  providing  clear  and  timely  information  flow  to  the  board  and  its 
committees and supports the board on matters of corporate governance and risk. 

The matters reserved for the board are: 

(cid:120)  Setting long-term objectives and commercial strategy. 
(cid:120)  Approving annual operating and capital expenditure budgets. 
(cid:120)  Changing the share capital or corporate structure of the group. 
(cid:120)  Approving half-year and full-year results and reports. 
(cid:120)  Approving dividend policy and the declaration of dividends. 
(cid:120)  Approving acquisitions, investments, disposals, capital projects or contracts. 
(cid:120)  Approving  resolutions  to  be  put  to  general  meetings  of  shareholders  and  the  associated  documents  or 

circulars. 

(cid:120)  Approving changes to the board structure. 

The board has approved the adoption of the QCA Code as its governance framework against which this statement 
has  been  prepared  and  will  monitor  the  suitability  of  this  code  on  an  annual  basis  and  revise  its  governance 
framework as appropriate as the Group evolves. 

Departure and Reason - None 

21 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Governance Report - continued 
For the year ended 31 October 2021 

10.  Communicate  how  the  company  is  governed  and  is  performing  by  maintaining  a  dialogue  with 

shareholders and other relevant stakeholders 

A healthy dialogue should exist between the board and all of its stakeholders, including shareholders, to enable 
all interested parties to come to informed decisions about the company. In particular, appropriate communication 
and reporting structures should exist between the board and all constituent parts of its shareholder base. This will 
assist:  

(cid:120) 
(cid:120) 

the communication of shareholders’ views to the board; and  
the shareholders’ understanding of the unique circumstances and constraints faced by the company. It should 
be clear where these communication practices are described (annual report or website). 

Historical annual reports and other governance-related material, notices of all general meetings over the last five 
years can be found on the website. 

There have been no votes where a significant proportion of votes (e.g. 20% of independent votes) have been cast 
against a resolution at any general meeting. 

In addition to the investor relations activities described above, the following audit and remuneration committee 
reports are provided. 

Audit Committee Report 

The Audit Committee’s continued focus is on the effectiveness of the controls throughout the group. The Audit 
Committee consists of Claire Blunt, Chair, and Alice Dyson. The committee meets once a year, with the external 
auditor, the Group CFO and CEO will be invited to attend these meetings.  

Consideration  will  be  given  to  the  auditor’s pre-  and  post-audit  reports  and  these  will  provide  opportunities  to 
review  the  accounting  policies,  internal  control  and  the  financial  information contained in  both  the  annual  and 
interim reports. 

Remuneration Committee Report 

The remit of the Remuneration Committee is to determine the framework, policy and level of remuneration, and 
to make recommendations to the board on the remuneration of executive directors. In addition, the committee 
oversees the creation and implementation of all-employee share plans. The Remuneration Committee consists 
of Brian Berg, Chair, and Michael Infante. The committee meets twice a year. 

In  setting  remuneration  packages  the  committee  ensure  that  individual  compensation  levels,  and  total  board 
compensation, are comparable with those of other AIM-listed companies. 

During the period under review the Remuneration Committee has granted options to executive and non-executive 
directors  of  the  company.  In  granting  these  options,  the  Remuneration  Committee’s  objective  was  to  attract, 
motivate  and  retain  key  staff  over  the  long  term,  designed  to  incentivise  delivery  of  the  company's  growth 
objectives. 

Departure and Reason - None 

22 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Governance Report  
For the year ended 31 October 2021 continued 

Report on Remuneration 

Directors' remuneration 

The Board recognises that Directors' remuneration is of legitimate concern to shareholders. The Group operates 
within a competitive environment where performance depends on the individual contributions of the Directors and 
employees and the Group believes in rewarding vision and innovation. 

Policy on Executive Directors' remuneration 

The Remuneration Committee is chaired by Brian Berg, Non-Executive Director and supported by Michael Infante, 
CEO. The Remuneration Committee met with the Chairman at the beginning of the financial year to discuss, and 
subsequently agreed, their recommendations for Executive Directors remuneration for the year. 

Remuneration of the serving Directors for the year ended 31 October 2021 is as follows: 

Michael Antony Infante 
Alice Dyson 
Steven Gunning 
Claire Blunt 
Brian Berg 

Fees and 
emoluments  
Year ended 
31 October 
2021 

Fees and 
emoluments  
Year ended 
31 October  
2020 

£ 

187,259 
143,969 
104,051 
41,432 
41,432 
518,143 

£ 

148,803 
114,011 
87,963 
44,295 
44,295 
439,367 

Bonuses and Performance Conditions 

Included  in  the  Fees  and  Emoluments  for  Michael  Anthony  Infante  are  taxable  benefits  in  respect  of  Health 
Insurance of £nil (2020: £10,153), taxable benefit for a company car of £5,381 (2020: £6,627), attributable share 
option cost of £12,863 (2020: £3,273) and pension contributions of £4,950 (2020: £3,750). Michael Infante did 
not receive a bonus in the year (2020: £nil). Fees and Emoluments for Alice Dyson include taxable benefit for a 
company  car  of £2,356  (2020:  £9,702),  attributable share  option cost  of  £12,863  (2020:  £1,309)  and  pension 
contributions of £3,750 (2020: £3,000). Alice Dyson did not receive a bonus in the year (2020: £nil). Fees and 
Emoluments  for  Steven  Gunning  include  £31,500  (2020:  17,500)  for  his  role  as  a  director,  £59,688  (2020: 
£57,600) in respect of his role as a consultant and £12,863 (2020: £12,863) attributable share option costs. Steven 
Gunning did not receive a bonus in the year (2020: £nil). Claire Blunt Fees include £35,000 (2020: £25,000) and 
attributable share option cost of £6,432 (2020: £19,295). Brian Berg Fees include £35,000 (2020: £25,000) and 
attributable share option cost of £6,432 (2020: £19,295). 

Directors’  contracts  do  not  include  any  specific  performance  criteria  but  implicit  within  their  terms  of  their 
engagements is that at all times they will seek to enhance shareholder value. Apart from share options granted 
there are no other specific long term incentive plans for any of the Directors. The Company received qualifying 
services from 5 (2020: 8) Directors under long term incentive qualifying schemes. 

Notice periods 

The Directors have contracts which are terminable on twelve months’ notice on either side for Michael Infante 
and three months on either side for all the other Directors. 

23 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Independent Auditors' Report 
to the Members of One Media iP Group Plc 

Opinion 

We have audited the financial  statements  of  One  Media  IP Group  Plc  (the  ‘Company’)  for  the  year ended  31 
October  2021  which  comprise  the  Consolidated  Statement  of  Comprehensive  Income,  the  Consolidated  and 
Company Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Consolidated 
and Company Statement of Cash Flows and notes to the financial statements, including a summary of significant 
accounting policies.    The  financial  framework  that has  been  applied  in  their  preparation is  applicable  law  and 
International Financial Reporting Standards (IFRSs) as adopted by the European Union. 

In our opinion: 

(cid:120) 

(cid:120) 

(cid:120) 

the financial statements give a true and fair view of the state of the Group and of the parent company’s affairs 
as at 31 October 2021 and of the Group’s profit for the year then ended; 

the financial statements have been properly prepared in accordance with IFRSs as adopted by the European 
Union and, as regard the parent company’s financial statements, as applied in accordance with the provisions 
of the Companies Act 2006; 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 of Auditing (UK) (ISAs (UK)) and applicable 
law.  Our responsibilities under those standards are further discussed in the Auditor’s responsibilities for the audit 
of the financial statements section of our report.  We are independent of the Group and Company in accordance 
with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the 
FRC’s  Ethical  Standards  as  applied  to  listed  entities,  and  we  have  fulfilled  our  ethical  responsibilities  in 
accordance  with  these  requirements.    We  believe  that  the  audit  evidence  we  have  obtained  is  sufficient  and 
appropriate to provide a basis for our opinion. 

Conclusions relating to going concern 

In  auditing  the  financial  statements,  we  have  concluded  that  the  directors'  use  of  the  going  concern  basis  of 
accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or 
conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a 
going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

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

An overview of the scope of our audit 

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) (‘ISAs (UK and 
Ireland)’).  Our audit approach was based on a thorough understanding of the company’s business and is risk-
based. We obtained an understanding the internal controls as required by Auditing Standards and carried out 
appropriate substantive and analytical procedures.  We undertook substantive testing on significant transactions, 
balances and disclosures, the extent of which was based on our assessment of general and specific audit risks.   

Key audit matters 

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of 
the financial statements of the current period and include the most significant assessed risks of  

24 

 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
Independent Auditors' Report 
to the Members of One Media iP Group Plc 

material misstatement (whether or not due to fraud) we identified, including those which had the greatest effect 
on: the overall audit strategy; the allocation of resources in the audit; and directing efforts of the engagement 
team.  These matters 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.  We determined that 
there were no key matters applicable to the parent company to communicate in our report. 

Revenue recognition 

Risk description 

In common with most trading businesses, there is a risk of revenue being materially misstated, either by error or 
fraud. 

How the scope of our audit responded to the risk 

To assess the appropriateness and completeness of revenue recognised in the year we performed the following 
procedures: 

(cid:120) 
(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

examined a sample of revenue transactions by reference to underlying source documentation; 
examined on a sample basis the different types of revenue recognised during the year and around the period 
end; 
reviewed manual journals posted to the revenue account in the period and subsequent to year-end gaining 
an understanding of the appropriateness of these; 
reviewed accrued income at the balance sheet date and assessed its accuracy by reference to underlying 
commercial agreements and subsequent events; 
considered the  appropriateness and  application  of the  Group’s  accounting policy  for  revenue  recognition; 
and 
considered the disclosures in the financial statements regarding revenue. 

Key observations 

The results of our testing were satisfactory. 

Completeness of royalty accrual 

Risk description 

The Company has a number of royalty agreements in place. Royalties are payable based on sales figures at 
certain rates.  There is a risk that the royalty accrual may be understated or overstated. 

How the scope of our audit responded to the risk 

To assess the appropriateness and completeness of royalty accrual recognised in the year we performed the 
following procedures: 

(cid:120) 

(cid:120) 

gained an understanding through walkthroughs performed and discussions with management of the process 
in place for recognising royalty accruals; and 
examined a sample of royalty accruals and preformed a recalculation of the accrual. 

Key observations 

The results of our testing were satisfactory. 

Management override 

Risk description 

As directed by the ISAs, there is a presumed risk of fraud or error due to management’s ability to manipulate the 
results. 

25 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Independent Auditors' Report 
to the Members of One Media iP Group Plc 

How the scope of our audit responded to the risk 

Procedures: 
(cid:120) 
(cid:120) 

examined journal adjustments made throughout the year; and 
reviewed key areas that involved the use of management’s judgement or estimations. 

Key observations 

The results of our testing were satisfactory. 

Valuation and existence of intangible assets  

Risk description 

The Company has a significant amount of intangible assets. There are various risks associated with these assets 
including accurate capturing of costs to be capitalised, ensuring capitalised amounts meet the recognition criteria, 
and impairment risk.  

How the scope of our audit responded to the risk 

To assess the appropriateness of the application of accounting standards and the assumptions and judgements 
made by management in the recognition and measurement of intangibles we performed the following procedures: 

(cid:120) 
(cid:120) 
(cid:120) 
(cid:120) 
(cid:120) 
(cid:120) 

gained an understanding of how management recognise intangible assets of various classes; 
examined the assets recognised and considered their recognition against the criteria detailed in IAS 38; 
examined a sample of assets capitalised in the year to supporting evidence; 
reviewed amortisation calculations and considered the appropriateness of the rates applied;  
considered impairment risk;and 
considered the disclosures in the financial statements regarding intangibles. 

Key observations 

The results of our testing were satisfactory. 

Our application of materiality 

We define materiality  as  the magnitude  of misstatement  or  omission  in  the  financial statements  that  makes  it 
probable that the economic decisions of a reasonably knowledgeable person would be changed or influenced.  
We use materiality both in planning the scope of our audit work and in evaluating the results of our work. 

Based on our professional judgment we determined overall materiality for the financial statements as a whole to 
be £54,000 (2020: £50,000), based on 5% of operating profit. Performance materiality of £43,000 (2020: £40,000) 
was applied for testing and it was agreed with the board that we would report on all audit differences in excess of 
£2,700  (2020:  £2,500),  as  well  as  differences  below  that  threshold  that,  in  our  view,  warranted  reporting  on 
qualitative  grounds.  We  also  report  on  disclosure  matters  that  we  identified  when  assessing  the  overall 
presentation of the financial statements. 

Other information included in the annual report 

The directors are responsible for the other information.  The other information comprises the information included 
in the annual report, other than the financial statements and our auditor’s report thereon.  Our opinion on the 
financial statements does not cover the other information and, except to the extent otherwise explicitly stated 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 of otherwise appears to be materially misstated.  If we identify such material 
inconsistencies or apparent material misstatements, we are required to determine  

26 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Independent Auditors' Report 
to the Members of One Media iP Group Plc 

whether  there  is  a  material  misstatement  in  the  financial  statements  or  a  material  misstatement  in  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  given  in  the  strategic  report  and  the  directors’  report  for  the  financial  year  for  which  the 
financial statements are prepared is consistent with the financial statements; and 
the  strategic  report  and  the  directors’  report  have  been  prepared  in  accordance  with  applicable  legal 
requirements. 

Matters on which we are required to report by exception 

In the light of the knowledge and understanding of the Group and parent company and its environment obtained 
in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ 
report. 

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

(cid:120) 

adequate accounting records have not been kept by the parent company, or returns adequate for the 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:120) 
the financial statements are not in agreement with the accounting records and returns; or 
(cid:120) 
(cid:120) 
certain disclosures of directors remuneration specified by law are not made; or 
(cid:120)  we have not received all the information and explanations we require for our audit. 

Responsibilities of directors 

As explained more fully in the directors’ responsibilities statement set out on page 11, 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 Group and parent company’s 
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the 
going concern basis of accounting unless the directors’ either intend to liquidate the Group and parent company 
or to cease operating, or have no realistic alternative but to do so. 

Auditors’ responsibilities for the audit of the financial statements 

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

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including 
those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk 
increases the more that compliance with a law or regulation is removed from the events and transactions reflected 
in the financial statements, as we will be less likely to become aware of instances of non-compliance.  

The  risk  is  also  greater  regarding  irregularities  occurring  due  to  fraud  rather  than  error,  as  fraud  involves 
intentional concealment, forgery, collusion, omission or misrepresentation.  

27 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
Independent Auditors' Report 
to the Members of One Media iP Group Plc 

The specific procedures for this engagement that we designed and performed to detect material misstatements 
in respect of irregularities, including fraud, were as follows:  

(cid:120)  Enquiry of management and those charged with governance around actual and potential litigation and 

claims;  

(cid:120)  Enquiry of management and those charged with governance to identify any material instances of non-

compliance with laws and regulations;  

(cid:120)  Reviewing  financial  statement  disclosures  and  testing  to  supporting  documentation  to  assess 

compliance with applicable laws and regulations;  

(cid:120)  Performing  audit  work  to  address  the  risk  of  irregularities  due  to  management  override  of  controls, 
including testing of journal entries and other adjustments for appropriateness, evaluating the business 
rationale  of  significant  transactions  outside  the  normal  course  of  business  and  reviewing  accounting 
estimates for evidence of bias. 

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

Use of our report 

This report is made solely to the Company's shareholders, 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 
shareholders those matters we are required to state to them in an Auditor's report and for no other purpose. To 
the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company 
and the Company's shareholders, as a body, for our audit work, for this report, or for the opinions we have formed. 

Alexander Peal BSc(Hons) FCA DChA (Senior Statutory Auditor) 
For and on behalf of  
James Cowper Kreston  
Chartered Accountants and Statutory Auditors 

Reading Bridge House 
George Street 
Reading 
RG1 8LS 

21 April 2022 

28 

 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Registered Number: 05799897 
Consolidated Statement of Comprehensive Income 
For the year ended 31 October 2021 

Revenue 

Distribution charges 
Royalty costs 
Other costs 

Net revenue 

Amortisation of catalogues 
Administration expenses 
FOREX gains/(losses) 

Operating profit 

Share based payments 
Finance costs 
Finance income 

Profit from continuing activities 

Assets disposal 

Profit on ordinary activities before taxation 

Tax expense 

for  period  attributable 

Profit 
to  equity 
shareholders and total comprehensive income 
for the year 

Basic earnings per share 
Diluted earnings per share 

Note 

1 

Year ended 
31 October 
2021 

Year ended 
31 October 
2020 

£ 

£ 

4,389,581 

4,005,385 

(1,107,127) 
(435,386) 
(66,542) 

(1,002,805) 
(481,832) 
(61,397) 

2,780,526 

2,459,351 

(599,308) 
(1,040,706) 
(64,554) 

1,075,958 

(77,178) 
(184,045) 
1 

814,736 

(93,939) 

720,797 

(176,222) 

(523,170) 
(919,250) 
2,953 

1,019,884 

(62,465) 
(223,384) 
8 

734,043 

- 

734,043 

(103,846) 

544,575 

630,197 

0.24p 

0.20p 

0.42p 

0.33p 

2 

15 
3 
3 

17 

4 

7 
7 

The Consolidated Statement of Comprehensive Income has been prepared on the basis that all operations are 
continuing activities. 

The notes on pages 34 to 56 form part of these financial statements. 

29 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Registered Number: 05799897 
Consolidated Statement of Changes in Equity 
For the year ended 31 October 2021 

Share 
Capital 

Share 
redemption 
reserve 

Share 
premium 

£ 

£ 

£ 

Share 
based 
payment 
reserve 
£ 

Retained 
earnings 

Total equity 

£ 

£ 

At 1 November 2019 

678,018 

239,546 

4,314,220 

364,756 

2,440,209  8,036,749 

Proceeds  from  the  issue 
of new shares 

431,713 

Share  based  payment 
charge 

Profit for the year 

Dividends paid 

- 

- 

- 

- 

- 

- 

- 

5,159,107 

- 

- 

- 

- 

62,465 

- 

- 

- 

- 

5,590,820 

62,465 

630,197 

630,197 

(74,582) 

(74,582) 

At 1 November 2020 

1,109,731  239,546 

9,473,327 

427,221 

2,995,824  14,245,649 

Proceeds  from  the  issue 
of new shares 

2,500 

Share  based  payment 
charge 

Profit for the year 

Dividends paid 

- 

- 

- 

- 

- 

- 

- 

11,250 

- 

- 

- 

- 

77,178 

- 

- 

- 

- 

13,750 

77,178 

544,575 

544,575 

(122,345) 

(122,345) 

At 31 October 2021 

1,112,231  239,546 

9,484,577 

504,399 

3,418,054  14,758,807 

The notes on pages 34 to 56 form part of these financial statements. 

30 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Registered Number: 05799897 

Consolidated Statement of Financial Position at 31 October 2021 

Note 

At 
31 October 
2021 

  At 

31 October 
2020 

£ 

£ 

Assets 
Non-current assets 

Intangible assets 
Property, plant and equipment 

Current assets 

Trade and other receivables 
Cash and cash equivalents 

Total current assets 

Total assets 

Liabilities 
Current liabilities 

Trade and other payables 
Deferred tax 

Total current liabilities 

Borrowings 

Total liabilities 

Equity 

Called up share capital 
Share redemption reserve 
Share premium account 
Share based payment reserve 
Retained earnings 

Total equity 

8 
9 

11 
12 

13 
14 

21 

15 

13,484,077 
44,007 

8,884,158 
91,260 

13,528,084 

8,975,418 

1,481,077 
2,565,813 

1,141,555 
6,766,424 

4,046,890 

7,907,979 

17,574,974 

16,883,397 

937,622 
132,830 

823,151 
117,356 

1,070,452 

940,507 

1,745,735 

1,697,241 

2,816,187 

2,637,748 

1,112,231 
239,546 
9,484,577 
504,399 
3,418,054 

1,109,731 
239,546 
9,473,327 
427,221 
2,995,824 

14,758,807 

14,245,649 

Total equity and liabilities 

17,574,974 

16,883,397 

The notes on pages 34 to 56 form part of these financial statements. 

The Consolidated Financial Statements were  approved by the  Directors on 21 April 2022 and signed on their 
behalf by: 

Michael Infante 
Director 

31 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Registered Number: 05799897 
Company Statement of Financial Position at 31 October 2021 

Note 

At 
31 October 
2021 
£ 

At 
31 October 
2020 
£ 

Assets 
Non-current assets 

Investments 

Current assets 

Trade and other receivables 
Cash and cash equivalents 

Total current assets 

Total assets 

Liabilities 
Current liabilities 

Trade and other payables 
Deferred tax 

Total current liabilities 

Borrowings 

Total liabilities 

Equity 

Called up share capital 
Share redemption reserve 
Share premium account 
Share based payment reserve 
Retained earnings 

Total equity 

10 

11 
12 

13 
14 

21 

15 
16 
16 
16 
16 

124,554 

493,817 

11,423,598 
2,314,653 

7,454,333 
6,388,047 

13,738,251 

13,842,380 

13,862,805 

14,336,197 

169,362 
24,995 

194,357 

140,220 
24,995 

165,215 

1,745,735 

1,697,241 

1,940,092 

1,862,456 

1,112,231 
239,546 
9,484,577 
403,374 
682,985 

1,109,731 
239,546 
9,473,327 
326,196 
1,324,941 

11,922,713 

12,473,741 

Total equity and liabilities 

13,862,805 

14,336,197 

The notes on pages 34 to 56 form part of these financial statements. 

The Company Financial Statements were approved by the Directors on 21 April 2022 and signed on their behalf 
by: 

Michael Infante 
Director 

32 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Registered Number: 05799897 
Consolidated and Company Cash Flow Statement  
For the year ended at 31 October 2021 

Year ended 
31 October 
2021 
Group 

  Year ended 
31 October 
2020 
Group 

  Year ended 
31 October 
2021 
Company 

  Year ended 
31 October 
2020 
Company 

£ 

  £ 

  £ 

  £ 

from 

flows 

Cash 
operating activities 
Operating profit before tax 
Amortisation 
Depreciation 
Share based payments 
Finance income 
Finance costs 
(Increase) in receivables 
Increase/(decrease) 
payables 
Corporation tax paid 

720,798 
599,169 
50,509 
77,178 
(1) 
184,045 
(313,783) 

(69,144) 
(72,063) 

in 

734,043 
523,170 
18,504 
62,465 
(8) 
223,384 
(162,150) 

(238,909) 
(127,735) 

(418,586) 

  369,263 

- 

  77,178 
(1) 
- 
(4,070,290) 

(57,627) 
- 
- 
(38,560) 
(3) 
- 
275,472 

  144,017 

  178,193 

- 

- 

Net  cash  inflow  (outflow) 
from operating activities 

Cash flows from investing 
activities 

1,176,708 

1,032,764 

(3,898,419) 

  357,475 

in 

intellectual 

Investment 
property rights and TCAT 
Investment  in  property,  plant 
and equipment 
Finance income 

Net cash used in investing 
activities 

Cash flows from financing 
activities 

(5,199,087) 

(506,919) 

- 

(3,257) 
1 

(102,117) 
8 

- 
  1 

(5,202,343) 

(609,028) 

  1 

- 

- 
  3 

  3 

Net proceeds from the issue of 
new shares 
Finance cost paid 
Loan notes 
Dividend paid 

13,750 
(114,873) 
48,492 
(122,345) 

5,590,820 
(109,136) 
74,975 
(74,582) 

  13,750 

(114,873) 

  48,492 

(122,345) 

  5,590,820 
(109,136) 

  74,975 

(74,582) 

Net  cash  inflow  (outflow) 
from financing activities 

Net  change  in  cash  and 
cash equivalents 
Cash  at  the  beginning  of 
the year 

(174,976) 

5,482,077 

(174,976) 

  5,482,077 

(4,200,611) 

5,905,813 

(4,073,394) 

  5,839,555 

6,766,424 

860,611 

  6,388,047 

  548,492 

Cash at the end of the year  2,565,813 

6,766,424 

  2,314,653 

  6,388,047 

33 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal Accounting Policies 
For the year ended 31 October 2021 

Basis of preparation 

The Company is a public limited company incorporated and domiciled in England under the Companies Act 2006. 
The Board has adopted and complied with International Financial Reporting Standards (IFRS) as adopted by the 
European  Union.  The  Company's  shares  were  admitted  for  trading  on  the  AIM  market  of  the  London  Stock 
Exchange on 18 April 2013. 

Basis of consolidation 

The Group financial statements consolidate those of the Company and all its subsidiary undertakings drawn up 
to the balance sheet date. Subsidiaries are entities over which the Group has the power to control the financial 
and  operating  policies  so  as  to  obtain  benefits  from  their  activities.  The  Group  obtains  and  exercises  control 
through voting rights. 

Unrealised  gains  or  losses  on  transactions  between  the  Group  and  its  subsidiaries  are  eliminated.  Amounts 
reported in the financial statements of subsidiaries are adjusted where necessary to ensure consistency with the 
accounting policies adopted by the Group. 

Acquisitions of subsidiaries are dealt with by the equity method. The equity method involves the recognition of 
the  fair  value  of  all  identifiable  assets  and  liabilities,  including  contingent  liabilities  of  the  subsidiary,  at  the 
acquisition date, regardless of whether or not they were recorded in the financial statements of the subsidiary 
prior  to  acquisition.  On  initial  recognition,  the  assets  and  liabilities  of  the  subsidiary  are  included  in  the 
consolidated  balance  sheet  at  fair  values,  which  are  also  used  as  the  basis  for  subsequent  measurement  in 
accordance  with  the  Group  accounting  policies.  Goodwill  is  stated  after  separating  out  identifiable  intangible 
assets.  Goodwill  represents  the  excess  of  acquisition  cost  over  the  fair  value  of  the  Group's  share  of  the 
identifiable net assets of the acquired subsidiary at the date of acquisition. 

Revenue 

The Group recognises revenue when performance obligations have been satisfied and for the Group this is when 
the  services  have  been  provided  to  the  customer  and  the  customer  has  control  over  use  of  the  services.  In 
principle therefore, revenue is recognised to the extent that the Group has obtained the right to consideration 
through its performance. 

Revenue,  excluding  VAT,  represents  the  value  of  income  arising  from  digital  distribution,  licences  and  goods 
delivered or title passed. In the case of digital income revenue is recognised when reported to the Group and 
where reasonable estimates can be made of digital stores income still to be reported at any point of time. 

In line with normal accounting practice revenue is reported gross received and receivable. 

Commercial advances 

To the extent that commercial advances are un-recouped at the year end any outstanding amounts are included 
in Other payables. The outstanding balances are calculated in line with underlying contractual obligations. 

Going concern 

The Directors monitor the capital and liquidity requirements of the Group and its subsidiaries on a regular basis. 
They  have  also  reviewed  cash  flow  forecasts  which  are  based  on  assumptions  about  the  future  returns  from 
existing  Catalogues  and  the  annual  operating  cost.  Based  on  these  sources  of  information  and  their  own 
judgement the Directors believe it is appropriate to prepare the Consolidated Financial Statements of the Group 
on a going concern basis. The business has a robust recurring income model that lends itself to remote working, 
much  like  its  major  partners.  As  a  result  of  a  planned  disaster  recovery  process  all  of  the  Group’s  business 
operations are expected to continue as normal. However, the Group understands that it cannot control the effects 
on third parties and their business operations. In the event of a material drop in revenue the Group has significant 
cash reserves that enables it to continue to operate during this period without any adverse impact on the business. 

34 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal Accounting Policies 
For the year ended 31 October 2021 

Taxation 

Current income tax assets and/or liabilities comprise those obligations to, or claims from, fiscal authorities relating 
to the current or prior reporting period, that are unpaid at the balance sheet date. They are calculated according 
to the tax rates and tax laws applicable to the fiscal periods to which they relate, based on the taxable result for 
the  year.  All  changes  to  current  tax  assets  or liabilities  are recognised  as  a component  of  tax  expense in  the 
income statement. 

Deferred  income  taxes  are  calculated  using  the  liability  method  of  temporary  differences.  This  involves  the 
comparison of the carrying amounts of assets and liabilities in the consolidated financial statements with their 
respective tax bases. However deferred tax is not provided on the initial recognition of goodwill, nor on the initial 
recognition  of  an  asset  or  liability  unless  the  related  transaction  is  a  business  combination  or  affects  tax  or 
accounting profit. Deferred tax on temporary differences associated with shares in subsidiaries is not provided if 
reversal of these temporary differences can be controlled by the Group and it is probable the reversal will not 
occur in the foreseeable future. In addition, tax losses available to be carried forward as well as other income tax 
credits to the Group are assessed for recognition as deferred tax assets. 

Intangible assets 

Licences and other intangible assets 
Licences and other intangible assets, including labour capitalised under IAS38 Intangible Assets, are valued at 
cost less accumulated amortisation. Capitalised labour represents costs incurred in "ingesting" products and the 
compilation of existing content into new and revised albums. Amortisation is calculated to write off the cost in 
equal  amounts  over  the  life  of  the  licences  and  other  intangible  assets  (between  24  months  and  25  years). 
Licences and intangible assets are subject to annual impairment reviews. 

Assets acquired as part of a business combination 
In  accordance  with  IFRS  3  revised  “Business  Combinations",  an  intangible  asset  acquired  in  a  business 
combination is deemed to have a cost to the Group of its fair value at the acquisition date. The fair value of the 
intangible asset reflects market expectations about the probability that the future economic benefits embodied in 
the asset will flow to the Group. The fair value is then amortised over the economic life of the assets. Where an 
intangible asset might be separable, but only together with a related tangible or intangible asset, the Group of 
assets is recognised as a single asset separable from goodwill where the individual fair values of the assets in 
the Group are not reliably measurable. Where the individual fair value of the complimentary assets are not reliably 
measurable, the Group recognises them as a single asset provided the individual assets have similar useful lives.  

Impairment of intangible assets, property, plant and equipment 
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately 
identifiable cash flows (cash generating units). As a result, some assets are tested individually for impairment and 
some are tested at cash-generating unit level. 

Individual assets or cash-generating units, other than intangible assets with an identifiable useful life, and those 
intangible assets not yet available for use are tested for impairment at least annually. All other individual assets 
or cash-generating units are tested for impairment whenever events or changes in circumstances indicate that 
the carrying amount may not be recovered. 

An impairment loss is recognised in the income statement 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, 
reflecting  market  conditions  less  costs  to  sell,  and  value  in  use  based  on  an  internal  discounted  cash  flow 
evaluation.  Impairment  losses  recognised  for  cash-generating  units  are  charged  to  the  assets  in  the  cash 
generating  unit.  All  assets  are  subsequently  reassessed  for  indications  that  an  impairment  loss  previously 
recognised may no longer exist. An impairment loss is reversed if there has been a favourable change in the 
estimates  used  to  determine  the  assets  recoverable  amount  and  only  to  the  extent  that  the  asset's  carrying 
amount  does  not  exceed  the  carrying  amount  that  would  have  been  determined  net  of  amortisation,  if  no 
impairment had been recognised. 

35 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal Accounting Policies 
For the year ended 31 October 2021 

Financial assets 

The Group's financial assets include cash and other receivables. 

All financial assets are recognised when the Group becomes party to the contractual provisions of the investment. 
All financial assets are initially recognised at fair value, plus transaction costs. 

Non-compounding  interest  and  other  cash  flows  resulting  from  holding  financial  assets  are  recognised  in  the 
income statement when received, regardless of how the related carrying amount of financial assets is measured. 

Trade  and  other  receivables  are  subsequently  measured  at  amortised  cost.  Trade  and  other  receivables  are 
provided against when objective evidence is received that the Group will not be able to collect all amounts due to 
it in accordance with the original terms of the receivables. The amount of the write-down is determined as the 
difference between the asset's carrying amount and the present value of estimated cash flows. 

Cash and cash equivalents 

Cash  and  cash  equivalents  comprise  cash  in  hand,  bank  deposits,  together  with  short-term  highly  liquid 
investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk 
of change in value with original maturities of three months or less from the date of acquisition. 

Equity 

The share capital is determined using the nominal value of shares that have been issued. 

The share premium account represents premiums received on the initial issuing of share capital. Any transaction 
costs  associated  with  the  issuing  of  shares  are  deducted  from  share  premium,  net  of  any  related  income  tax 
benefits. 

Retained earnings include all current and prior period results as disclosed in the income statement. 

Financial liabilities 

The Group's financial liabilities include trade and other payables. Financial liabilities are obligations to pay cash 
or other financial assets and are recognised when the Group becomes party to the contractual provisions of the 
instrument. 

All financial liabilities are recognised initially at fair value, net of direct issue costs, and are subsequently recorded 
at  amortised  cost  using  the  effective  interest  method  with  interest  charges  recognised  as  an  expense  in  the 
income statement. 

Dividend distributions to shareholders are included in "other short term financial liabilities" when dividends are 
approved by the shareholders' before the year end. 

36 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal Accounting Policies 
For the year ended 31 October 2021 

Provisions, contingent liabilities and contingent assets 

Provisions are recognised when present obligations will probably lead to an outflow of economic resources from 
the Group and they can be estimated reasonably. Timing or the amount of the outflow may still be uncertain. A 
present obligation arises from the presence of a legal or constructive commitment that has resulted from past 
events. For example, legal disputes or onerous contracts. 

Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most 
reliable evidence available at the balance sheet date, including the risks and uncertainties associated with the 
present obligation. Any reimbursement expected to be received in the course of the settlement of the present 
obligation is recognised, if virtually certain as a separate asset, not exceeding the amount of the related provision. 
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is 
determined by considering the class of obligations as a whole. In addition, long term provisions are discounted to 
present values, where the time value of money is material. All provisions are reviewed at each balance sheet date 
and adjusted to reflect the current best estimate. 

In those cases where the possible outflow of economic resource as a result of the present obligation is considered 
improbable or remote, or the amount to be provided cannot be measured reliably, no liability is recognised in the 
balance sheet. Probable inflows of economic benefits to the Group that do not yet meet the recognition criteria 
are considered contingent assets. 

Property, plant and equipment 

Measurement basis 

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. The cost 
of an asset comprises its purchase price and any directly attributable costs of bringing the asset to the working 
condition  and  location  for  its  intended  use.  In  the  case  of  new  internally  generated  software  creation  and 
improvements this includes capitalised labour. Subsequent expenditure relating to property, plant and equipment 
is added to the carrying amount of the assets only when it is probable that future economic benefits associated 
with the item will flow to the Group and the cost of the item can be measured reliably. All other costs, such as 
repairs and maintenance are charged to the income statement during the period in which they are incurred. 

When assets are sold any gain or loss resulting from their disposal, being the difference between the net disposal 
proceeds and the carrying amount of the assets is included in the income statement. 

Borrowings 

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently 
measured at amortised cost. Any difference between the proceeds and the redemption amount is recognised in 
the statement of comprehensive income over the period of the borrowings using the effective interest method. 
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that 
it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw 
down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn 
down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to 
relates.  
it 
which 

Borrowings are removed from the statement of financial position when the obligation specified in the contract is 
discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been 
extinguished or transferred to another party and the consideration paid, including any noncash assets transferred 
or liabilities assumed, is recognised in profit or loss as other income or finance costs. 

Fund raise costs 

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, 
net of tax, from the proceeds. 

37 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal Accounting Policies 
For the year ended 31 October 2021 

Property, plant and equipment - continued 

Lease policy 

The date of initial application of IFRS 16 for the Group is November 2019. Refer to Note 21 for impact of  
adoption of IFRS 16.  

The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the  
contract  conveys  the  right  to  control  the  use  of  an  identified  asset  for  a  period  of  time  in  exchange  for 
consideration.  

Group as a lessee  

The Group applies a single recognition and measurement approach for all leases, except for short-term leases 
and leases of low-value assets. The Group recognises lease liabilities representing obligations to make lease 
payments and right-of-use assets representing the right to use the underlying assets.   

i) Right-of-use assets  

The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the  
underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated  
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of  right-
of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and  lease payments 
made at or before the commencement date less any lease incentives received.  

Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated 
useful lives of the assets, as follows:  

• Buildings 2 years  
• Motor vehicles and other equipment 3 years   

If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise 
of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets 
are also subject to impairment. Refer to the Impairment of intangible assets, property, plant and equipment in the 
principal accounting policies. 

ii) Lease liabilities  

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of 
lease  payments  to  be  made  over  the  lease  term.  The  lease  payments  include  fixed  payments  (including  in-
substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index 
or a rate, and amounts expected to be paid under residual value guarantees.  

The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by 
the Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising the 
option to terminate.  

Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are 
incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.  

In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease 
commencement date because the interest rate implicit in the lease is not readily determinable.  

After the commencement date, the amount of lease liabilities is increased to reflect the accretion of  
interest  and  reduced  for  the  lease  payments  made.  In  addition,  the  carrying  amount  of  lease  liabilities  is 
remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes 
to  future payments  resulting  from a  change in an index  or  rate  used  to  determine  such  lease payments)  or a 
change in the assessment of an option to purchase the underlying asset.  

38 

 
 
 
 
 
  
  
  
 
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
Principal Accounting Policies 
For the year ended 31 October 2021 

Property, plant and equipment - continued 

The Group’s lease liabilities are included in trade and other payables (see Note 13). 

iii) Short-term leases and leases of low-value assets  

The  Group  applies  the  short-term  lease  recognition  exemption  to  its  short-term  leases  of  machinery  and 
equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do 
not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of 
office equipment that are considered to be low value. Lease payments on short-term leases and leases of low-
value assets are recognised as expense on a straight-line basis over the lease term.  

Depreciation 

Depreciation is calculated so as to write off the cost of property, plant and equipment, less its estimated residual 
value, which is revised annually, over its useful economic life as follows: 

Furniture and fixtures - 33.33% straight line 
Office equipment        - 33.33% straight line 
Right of use assets     - over remaining life of the lease 

Investment in subsidiary 

Investment in subsidiary undertakings is shown at cost, less any provision for impairment. 

Foreign currency 

The Consolidated Financial Statements are presented in UK Sterling which is also the functional currency of the 
parent Company. Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of 
exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the 
rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at 
the Income Statement.  

Non-monetary  items  measured  at  historical  cost  are  translated  using  the  exchange  rates  at  the  date  of  the 
transaction (not retranslated). Non-monetary items measured at fair value are translated using the exchange rates 
at the date when the fair value was determined. 

Operating segments 

A segment is a distinguishable component of the Group that is engaged either in a particular business (business 
segment) or conducting business in a particular geographic area (geographic segment), which is subject to risks 
and rewards that are different from other segments. 

The  Group  operates in  one  significant  business  segment  which is  the  digital  “net-label” market,  the  results  of 
which are seen in the Consolidated Statement of Comprehensive Income. 

Critical accounting estimates and judgements 

Estimates and judgements are continually evaluated and are based on historical experience and other factors, 
including expectations of future events that are believed to be reasonable under the circumstances. The Group 
makes estimates and assumptions about the future. The resulting accounting estimates will, by definition, seldom 
equal the related actual results. The estimates and assumptions that have a risk of causing a material adjustment 
to the carrying amounts of assets and liabilities within the next accounting year are discussed below. 

39 

 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal Accounting Policies 
For the year ended 31 October 2021 

Impairment of assets 

The Group conducts impairment reviews of assets when events or changes in circumstances indicate that the 
carrying amounts may not be recoverable annually, or in accordance with the relevant accounting standards. An 
impairment loss is recognised when the carrying amount of an asset is higher than the greater of its net selling 
price  or  the  value  in  use.  In  determining  the  value  in  use,  management  assesses  the  present  value  of  the 
estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the 
end  of  its  useful  life.  Estimates  and  judgements  are  made  in  respect  of  the  potential  impairment  of  goodwill, 
intellectual property, licences and other intangible assets. 

Internally generated intangible assets and software systems 

The  Group  capitalises  labour  in  respect  of  intangible  assets  and  internally  generated  software.  Significant 
judgement is required in estimating the time and cost involved in these activities and distinguishing the research 
from  the  development  phase.  Development  costs  are  recognised  as  an  asset  whereas  research  costs  are 
expensed as incurred. 

Share option and warrant policy 

The Group has applied the requirements of IFRS 2 Share-Based Payment.  

The Group operates both approved and unapproved share option and warrant schemes for the Directors, senior 
management and certain employees. 

Where share options and warrants are awarded, the fair value of the instruments at the date of grant is charged 
to the Statement of Comprehensive Income over the vesting period. Non-market vesting conditions are taken into 
account by adjusting the number of equity instruments expected to vest at each reporting date so that ultimately 
the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. 
Market vesting conditions are factored into the fair value of the options granted, as long as other vesting conditions 
are satisfied. The cumulative expense is not adjusted for failure to achieve a market vesting condition. 

Where the terms and conditions of the instruments are modified before they vest, any increase in fair value of 
these instruments, measured immediately before and after the modification is also charged to the Statement of 
Comprehensive Income over the remaining vesting period. 

Fair value is measured using the Black-Scholes model. The expected life used in the model has been adjusted, 
based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioral 
conditions. 

Fundraising costs 

Fundraise costs have been allocated to the balance sheet and are amortised over the period of the debt facility. 

Adoption of new or amended IFRS 

New standards, interpretations and amendments not yet effective. 

At the date of signing of these financial statements, the Group has not applied the following new and revised 
IFRSs that have been issued but are not yet effective and had not yet been adopted by the EU: 

IFRS 17 – Insurance contracts 
IFRS 17 requires insurance liabilities to be measured at a current fulfilment value and provides a more 
uniform measurement and presentation approach for all insurance contracts. These requirements are designed 
to achieve the goal of a consistent, principle-based accounting for insurance contracts. IFRS 17 supersedes IFRS 
4. 

40 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal Accounting Policies 
For the year ended 31 October 2021 

Adoption of new or amended IFRS – continued 

Insurance Contracts as of 1 January 2021. 
Effective for annual reporting periods beginning on or after 1 January 2021. 

As the Group does not offer insurance products this new standard is not expected to have a material 
impact on the Group. 

Classification of liabilities as current or non-current (amendments to IAS 1) 
The  amendments  aim  to  promote  consistency  in  applying  the  requirements  by  helping  companies  determine 
whether, in the statement of financial position, debt and other liabilities with an uncertain 
settlement date should be classified as current (due or potentially due to be settled within one year) or 
non-current. 

Effective for annual reporting periods beginning on or after 1 January 2022. 

The Group expects to adopt the amendment for the first time in the 2022 annual financial statements. The impact 
of this amendment will depend on the nature of debt and other liabilities arising. 

Property, Plant and Equipment — Proceeds before Intended Use (Amendments to IAS 16) 
The amendments amend IAS 16 to prohibit deducting from the cost of an item of property, plant and 
equipment any proceeds from selling items produced while bringing that asset to the location and 
condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity 
recognises the proceeds from selling such items, and the cost of producing those items, in profit or loss. 

Effective for annual reporting periods beginning on or after 1 January 2022. 

The Group expects to adopt the amendment for the first time in the 2022 annual financial statements. The Group 
does not expect this amendment will have a material impact. 

Annual Improvements 2018-2020 Cycle 
These annual improvements will make the following amendments: 

IFRS 1 First-time Adoption of International Financial Reporting Standards - Subsidiary as a first-time 
adopter. The amendment permits a subsidiary that applies paragraph D16(a) of IFRS 1 to measure 
cumulative  translation  differences  using  the  amounts  reported  by  its  parent,  based  on  the  parent’s  date  of 
transition to IFRSs. 

IFRS 9 Financial Instruments - Fees in the ‘10 per cent’ test for derecognition of financial liabilities. The 
amendment clarifies which fees an entity includes when it applies the ‘10 per cent’ test in paragraph B3.3.6 of 
IFRS  9  in  assessing  whether to  derecognise  a  financial  liability.  An  entity  includes  only  fees  paid  or  received 
between the entity (the borrower) and the lender, including fees paid or received by either the entity or the lender 
on the other’s behalf. 

IAS 41 Agriculture - Taxation in fair value measurements. The amendment removes the requirement in 
paragraph 22 of IAS 41 for entities to exclude taxation cash flows when measuring the fair value of a 
biological asset using a present value technique. This will ensure consistency with the requirements in 
IFRS 13. 

Effective for annual reporting periods beginning on or after 1 January 2022. 

The Group expects to adopt the amendment for the first time in the 2022 annual financial statements. The Group 
does not expect this amendment will have a material impact. 

Reference to the Conceptual Framework (Amendments to IFRS 3) 
These amendments will result in the following changes to IFRS 3: 
i) update IFRS 3 so that it refers to the 2018 Conceptual Framework instead of the 1989 Framework; 

41 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal Accounting Policies 
For the year ended 31 October 2021 

Adoption of new or amended IFRS – continued 

ii) add to IFRS 3 a requirement that, for transactions and other events within the scope of IAS 37 or IFRIC 21, an 
acquirer applies IAS 37 or IFRIC 21 (instead of the Conceptual Framework) to identify the liabilities it has assumed 
in a business combination; and 
iii)  add  to  IFRS  3  an  explicit  statement  that  an  acquirer  does  not  recognise  contingent  assets  acquired  in  a 
business combination. 

Effective for annual reporting periods beginning on or after 1 January 2022. 

The Group expects to adopt the amendment for the first time in the 2022 annual financial statements. The Group 
does not expect this amendment will have a material impact. 

Covid-19-Related Rent Concessions (Amendment to IFRS 16) 
Amends  IFRS  16  to  provide  lessees  with  an  exemption  from  assessing  whether  a  COVID-19-related  rent 
concession is a lease modification. The changes: 
i) provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a 
lease modification; 
ii) require lessees that apply the exemption to account for COVID-19-related rent concessions as if they 
were not lease modifications; 
iii) require lessees that apply the exemption to disclose that fact; and 
iv) require lessees to apply the exemption retrospectively in accordance with IAS 8, but not require them to restate 
prior period figures. 

The practical expedient applies to COVID-19-related rent concessions that result in reduction in lease 
payments due on or before 30 June 2021. 

Effective for annual reporting periods beginning on or after 1 June 2020. 

The Group expects to adopt the amendment for the first time in the 2021 annual financial statements. The Group 
does not expect this amendment will have a material impact. 

The Directors do not expect that the adoption of the Standards listed above will have a material impact on the 
financial statements of the Group in future periods. 

42 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the Consolidated Financial Statements 
For the year ended 31 October 2021 

1.  Revenue 

Revenue  is  the  amount  attributable  to  the  Group's  principal  activity  undertaken  in  the  United  Kingdom.  The 
geographic split of Group revenue is as follows: 

United Kingdom 
North America & rest of world 
Europe 

Year ended 
31 October 
2021 

  Year ended 
31 October 
2020 

£ 

£ 

148,866 
3,909,097 
331,618 

111,778 
3,518,708 
374,899 

4,389,581 

4,005,385 

The Group considers it has one business segment with all its Profit ultimately earned from its sole activity in the 
United Kingdom. 

Included in revenues for the year ended 31 October 2021 it is estimated that £867,000 (2020: £802,000) is from 
its largest ultimate customer and £412,000 (2020: £381,000) from its second largest ultimate customer. Together 
these represent 29.1% (2020: 29.5%) of the total Group revenue for the year. In addition, the company relies on 
a distribution aggregator (The Orchard) who channels approximately 63% (2020: 62%) of the Group’s turnover.  

2.  Operating profit 

Operating profit is stated after charging: 

Group 

Directors' remuneration 
Amortisation of intangible assets 
Depreciation of plant, property and equipment 
Auditors' remuneration - audit fees 
Auditors' remuneration - taxation 
Difference on foreign exchange 

Year ended 
31 October 
2021 

  Year ended 
31 October 
2020 

£ 

518,142 
559,308 
50,509 
19,600 
5,850 
64,554 

£ 

446,867 
523,170 
18,505 
17,000 
4,450 
(2,953) 

Included in audit fees above is £6,500 (2020: £6,500) for the audit of the parent Company. 

43 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the Consolidated Financial Statements 
For the year ended 31 October 2021 

3.  Finance cost and finance income 

Finance costs 
Interest receivable 

4.  Taxation 

Analysis of the charge for the year 

UK corporation tax charge 
Deferred tax 

Year ended 
31 October 
2021 

  Year ended 
31 October 
2020 

£ 

£ 

(184,045) 
1 

(223,384) 
8 

Year ended 
31 October 
2021 

  Year ended 
31 October 
2020 

£ 

£ 

171,122 
5,100 

72,063 
31,783 

176,222 

103,846 

The standard rate of tax for the year, based on the UK standard rate of corporation tax is 19% (2020: 19%). The 
actual  tax  charge  for  the  periods  is  different  than  the  standard  rate  for  the  reasons  set  out  in  the  following 
reconciliation:  

Reconciliation of current tax charge 

Year ended 
31 October 
2021 

  Year ended 
31 October 
2020 

£ 

£ 

Profit on ordinary activities before tax 

814,737 

734,043 

Tax on profit on ordinary activities at 19% (2020: 19%) 
Effects of: 
Non-deductible expenses 
Adjustments  to  tax  charge  in  respect  of  previous 
periods 
Fixed asset timing differences 

Depreciation in excess of capital allowances  

Share scheme deduction 
Research and development 

Total tax charge 

154,800 

139,468 

18,071 
- 

5,100 

8,768 

14,869 
- 

31,783 

(4,430) 

(10,517) 

(77,844) 

176,222 

103,846 

In the Spring Budget 2021, the Government announced that from 1 April 2023 the corporation tax rate will increase 
to 25%.  As the proposal to increase the rate to 25% had not been substantively enacted at the balance sheet 
date, its effects are not included in these financial statements. However, it is likely that the overall effect of the 
change, had it been substantively enacted by the balance sheet date, would be to increase the tax expense for 
the period by £22,757. 

44 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the Consolidated Financial Statements 
For the year ended 31 October 2021 

5.  Employee information 

Directors' emoluments - excluding applicable share option 
and pension charges 
Fees paid to directors 
Share option charge 
Wages and salaries 
Social security 
Pension 
Benefit in kind 

Year ended 
31 October 
2021 

  Year ended 
31 October 
2020 

£ 

£ 

390,565 
59,688 
77,178 
158,439 
58,679 
7,011 
1,068 

752,628 

384,082 
57,600 
62,465 
279,288 
53,158 
11,226 
3,858 

851,677 

The average monthly number of Group employees (excluding non-executive directors) during the year was as 
follows: 

  Year ended 
31 October 
2021 

  Year ended 
31 October 
2020 

Technical, creative technicians and management 

11 

10 

6.  Parent Company Profit and Loss Account 

The  loss  for  the  year  to  31  October  2021  dealt  within  in  the  financial  statements of  the parent  Company  was 
£540,931 (2020: profit £132,208). As permitted by section 408 of the Companies Act 2006, no separate profit and 
loss account is prepared for the parent Company. 

7.  Earnings per share 

The weighted average number of shares in issue for the basic earnings per share calculations is  223,973,646 
(2020:  149,252,562)  and  for  the  diluted  earnings  per  share  assuming  the  exercise  of  all  warrants  and  share 
options is 267,606,979 (2020: 189,047,539). 

The calculation of basic earnings per share is based on the profit for the period of £544,575 (2020: £630,197). 
Based on the weighted average number of shares in issue during the year of 223,973,646 (2020: 149,252,562) 
the basic earnings per share is 0.24p (2020: 0.42p). The diluted earnings per share is based on  267,606,979 
shares (2020: 189,047,539) and is 0.20p (2020: 0.33p). 

45 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the Consolidated Financial Statements 
For the year ended 31 October 2021 

8.  Intangible assets - Group 

Cost 
At 1 November 2019 
Additions 
Disposals 

At 31 October 2020 

Additions 
Disposals 

At 31 October 2021 

Amortisation 
At 1 November 2019 
Charge for the year 
Disposals 

At 31 October 2020 

Charge for the year 
Disposals 

At 31 October 2021 

Net book value 
At 31 October 2021 

At 31 October 2020 

Intangible 
assets 

  £ 

10,707,571 
506,920 
- 

11,214,491 

5,293,028 
(93,939) 

16,413,578 

1,807,163 
523,169 
- 

2,330,332 

599,169 
- 

2,929,501 

13,484,077 

8,884,159 

All amortisation is included in Cost of sales in the Consolidated Statement of Comprehensive Income. 

46 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the Consolidated Financial Statements 
For the year ended 31 October 2021 

9.  Property, plant and equipment - Group 

Office  
equipment 

Fixtures 
and 
fittings 

  Total 

Right  of 
Use 
assets 

£ 

£ 

£ 

  £ 

67,155 
3,425 
- 

70,580 

3,256 
- 

11,294 
- 
- 

11,294 

- 
- 

- 
98,692 
- 

78,449 
102,117 
- 

98,692 

180,566 

- 
- 

3,256 
- 

Cost 
At 1 November 2019 
Additions 
Disposals 

At 31 October 2020 

Additions 
Disposals 

At 31 October 2021 

73,836 

11,294 

98,692 

183,822 

Depreciation 
At 1 November 2019 
Charge for the year 
Disposals 

At 31 October 2020 

Charge for the year 
Disposals 

At 31 October 2021 

Net book value 

At 31 October 2021 

At 31 October 2020 

59,922 
5,801 
- 

65,723 

3,351 
- 

69,074 

4,762 

4,857 

10,879 
217 
- 

- 
12,487 
- 

70,801 
18,505 
- 

11,096 

12,487 

89,306 

198 
- 

46,960 
- 

50,509 
- 

11,294 

59,447 

139,815 

- 

198 

39,245 

44,007 

86,205 

91,260 

All depreciation is included in administrative expenses in the Consolidated Statement of Comprehensive Income. 

47 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the Consolidated Financial Statements 
For the year ended 31 October 2021 

10.  Investment in subsidiary undertakings 

At 1 November 2020 
Asset disposal 
At 31 October 2021 

   Total 
£ 

493,817 
(369,263) 
124,554 

The Company holds interests in the following subsidiary undertakings. 

Company 

One Media iP Limited   
Company number 05536271 

Country of 
incorporation 

England  and 
Wales 

Nature of business 

Class of 
shares 

Share 
held % 

Audio-visual content 

Ordinary 

100% 

One Media Intellectual Property Limited 
Company number 08224199  

England  and 
Wales 

Dormant 

One Media Publishing Limited 
Company number 082123128  

England  and 
Wales 

Dormant 

OMIP Ltd 
Company number 10585974 

England  and 
Wales 

Dormant 

TCAT OMIP Limited 
Company number 10586072 

England  and 
Wales 

Dormant 

Men & Motors Limited 
Company number 10582506 

England  and 
Wales 

Dormant 

Harmony IP Limited 
Company number 11974465 

England  and 
Wales 

Dormant 

Ordinary 

100% 

Ordinary 

100% 

Ordinary 

100% 

Ordinary 

100% 

Ordinary 

100% 

Ordinary 

100% 

TCAT Limited 
Company number NI669086 

Northern 
Ireland 

Other 
technology 
activities 

information 
service 

Ordinary 

92% 

The Company's investment at the balance sheet date is 100% of the share capital of the unlisted companies One 
Media  iP  Limited,  One  Media  Intellectual  Property  Limited,  One  Media  Publishing  Limited,  OMIP  Ltd,  Men  & 
Motors Limited and Harmony IP Limited with the TCAT Limited investment at 92%. All of the above subsidiaries 
principal place of business is 623 East Props Building, Pinewood Studios, Iver Heath, Bucks SL0 0NH. 

All the above activities are included in the consolidated financial statements. 

11.  Receivables 

Year ended 
31 October 
2021 
Group 
£ 

  Year ended 
31 October 
2020 
Group 
£ 

  Year ended 
31 October 
2021 
Company 

  £ 

  Year ended 
31 October 
2020 
Company 
£ 

Amounts  owed  by  group 
undertakings 
Trade receivables 
Social security and other taxes  33,587 
Other receivables 
Prepayments 

- 
326,427 

1,053,156 
67,907 

- 
277,656 
7,848 
798,130 
57,921 

  11,365,251 

- 
- 
  6,998 
  51,349 

7,400,705 
- 
- 
33,317 
20,311 

1,481,077 

1,141,555 

  11,423,598 

7,454,333 

48 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the Consolidated Financial Statements 
For the year ended 31 October 2021 

11.  Receivables – continued 

Trade and other receivables are usually due within 30 to 90 days and do not bear any effective interest. A provision 
of £nil (2020: £nil) was made for doubtful debts at 31 October 2021.  

12.  Cash and cash equivalents 

An analysis of cash and cash equivalent balances by currency is shown below: 

Year ended 
31 October 
2021 
Group 

  Year ended 
31 October 
2020 
Group 

  Year ended 
31 October 
2021 
Company 

  Year ended 
31 October 
2020 
Company 

£ 

£ 

  £ 

£ 

GB£ 
US$ 
Euro 

2,332,682 
221,333 
11,798 

6,401,826 
346,890 
17,708 

  2,314,653 

- 
- 

6,388,047 
- 
- 

2,565,813 

6,766,424 

  2,314,653 

6,388,047 

13.  Trade and other payables 

Year ended 
31 October 
2021 
Group 
£ 

  Year ended 
31 October 
2020 
Group 
£ 

  Year ended 
31 October 
2021 
Company 

  £ 

  Year ended 
31 October 
2020 
Company 
£ 

Current 
Trade payables 
Social security and other taxes  25,093 
Corporation tax 
Accruals & deferred Income 
Other payables 
RoU liabilities 

156,441 
150,012 
389,428 
39,245 

177,403 

101,330 
- 
67,843 
129,219 
438,554 
86,205 

  55,761 

- 
- 

  113,601 

- 
- 

44,745 
- 
- 
95,475 
- 
- 

937,622 

823,151 

  169,362 

140,220 

The fair value of trade and other payables has not been disclosed as, due to their short duration,  management 
considers the carrying amounts recognised in the balance sheet to be a reasonable approximation of their fair value. 

49 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the Consolidated Financial Statements 
For the year ended 31 October 2021 

14.  Deferred tax liability 

Group 

Opening balance 
Origination and reversal of timing differences 

Total deferred tax liability 

  Year ended 
31 October 
2021 

  Year ended 
31 October 
2020 

£ 

117,356 
15,474 

132,830 

£ 

85,573 
31,783 

117,356 

The  Group  has  estimated  trading  losses  of  £nil  (2020:  £nil)  available  for  carry  forward  against  future  trading 
profits. 

Company 

Opening balance 
Other timing differences 
Unrelieved tax losses 

Total deferred tax liability 

15.  Share capital 

Group and Company 

Authorised: 

  Year ended 
31 October 
2021 

  Year ended 
31 October 
2020 

£ 

24,995 
- 
- 

24,995 

£ 

24,995 
- 
- 

24,995 

2021 

£ 

2020 

£ 

200,000,000 ordinary shares of 0.5p each 

1,000,000 

1,000,000 

Issued: 
222,446,249 (2020: 221,946,249) ordinary shares of 0.5p each 

1,112,231 

1,109,731 

50 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the Consolidated Financial Statements 
For the year ended 31 October 2021 

15.  Share capital - continued 

The movement in the issued share capital over the last year has been as follows: 

Balance at 1 November 2020 
Shares issued in period 
Balance at 31 October 2021 

£ 

1,109,731 
2,500 
1,112,231 

On 21 April 2015 a further 1,200,000 share options of 9p were issued to 2 directors and 1 member of staff remain 
outstanding at 31 October 2021 (2020: 1,200,000). These options are exercisable on or before 20 April 2022. 

On 22 December 2017 a further 2,000,000 share options of 9p were issued to 3 directors and 1 member of staff 
remain  outstanding  at  31  October  2021  (2020:  2,000,000).  These  options  are  exercisable  on  or  before  21 
December 2022. 

On  25  September  2018  a  further  30,833,333  share  options  of  6p  were  issued  and  remain  outstanding  at  31 
October 2021 (2020: 30,833,333). These options are exercisable on or before 24 September 2025. 

On 11 April 2019 a further 3,800,000 share options of 6p were issued to 3 directors and 1 member of staff remain 
outstanding at 31 October 2021 (2020: 3,800,000). These options are exercisable on or before 30 October 2026. 

On 3 April 2020 a further 2,000,000 share options of 6p were issued to 3 directors and remain outstanding at 31 
October 2021 (2020: 2,000,000). These options are exercisable on or before 30 October 2026. 

On 15 April 2021 a further 3,000,000 share options of 7.31p were issued to 5 directors and 3 members of staff 
remain outstanding at 31 October 2021. These options are exercisable on or before 30 October 2026. 

All share options issues were made to underpin key Directors and senior staff service conditions. The share based 
payment charge in relation to these share options is spread over the period of subscription. 

The share price of the options granted on 5 June 2014 was 14.5p per share. The Fair Value of these options, 
based on the Black Scholes model, was 21.87p per share based on a risk free interest rate of 5% and a volatility 
of 40%. A share option charge of £nil has been made for the year ended 31 October 2021 (2020: £3,158). 

The share price of the options granted on 21 April 2015 was 9p per share. The Fair Value of these options, based 
on the Black Scholes model, was 13.57p per share based on a risk free interest rate of 5% and a volatility of 40%. 
A share option charge of £nil has been made for the year ended 31 October 2021 (2020: £7,855). 

The share price of the options granted on 3 April 2020 was 6p per share. The Fair Value of these options, based 
on the Black Scholes model, was 8.57p per share based on a risk free interest rate of 5% and a volatility of 40%. 
A share option charge of £nil has been made for the year ended 31 October 2021 (2020: £51,452). 

The share price of the options granted on 15 April 2021 was 7.31p per share. The Fair Value of these options, 
based on the Black Scholes model, was 8.57p per share based on a risk free interest rate of 5% and a volatility 
of 40%. A share option charge of £77,178 has been made for the year ended 31 October 2021. 

51 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the Consolidated Financial Statements 
For the year ended 31 October 2021 

16.  Company reserves  

Share 
redemption 
reserve 

Share 
premium 

£ 

£ 

Share 
based 
payment 
reserve 
£ 

Retained 
earnings 

Total  

£ 

£ 

At 1 November 2019 

239,546 

4,314,220 

263,731 

1,457,149  6,274,646 

Proceeds  from  the  issue  of 
new shares 

Fund raise costs 

Share based payment charge 
(as restated) 

Profit / (loss) for the year (as 
restated) 

Dividend paid 

- 

- 

- 

- 

- 

5,612,265 

(453,158) 

- 

- 

- 

- 

- 

62,465 

- 

- 

- 

- 

- 

5,612,265 

(453,158) 

62,465 

(57,626) 

(57,626) 

(74,582) 

(74,582) 

At 1 November 2020 

239,546 

9,473,327 

326,196 

1,324,941  11,364,010 

Proceeds  from  the  issue  of 
new shares 

Fund raise costs 

Share based payment charge 

Profit / (loss) for the year 

Dividend paid 

- 

- 

- 

- 

- 

11,250 

- 

- 

- 

- 

- 

- 

77,178 

- 

- 

- 

- 

- 

11,250 

- 

77,178 

(519,611) 

(519,611) 

(122,345) 

(122,345) 

At 31 October 2021 

239,546 

9,484,577 

403,374 

682,985 

10,810,482 

The Consolidated Statement of Changes in Equity is shown on page 26. 

17.  Asset disposals 

The asset disposed in the year ended 31 October 2021 of £93,939 related to the carrying value of a dormant 
Group subsidiary, Collecting Records LLP.  

18.  Dividends 

The total dividend paid in the year ended 31 October 2021 was £122,345 (2020: £74,582).  

19.  Contingent liabilities 

Due to the nature of the business, from time to time, claims will be made against the Group. Nonetheless, the 
Directors are not aware of any claims that are likely to be successful and, in their opinion, result in a material 
liability.  

52 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the Consolidated Financial Statements 
For the year ended 31 October 2021 

20.  Capital commitments 

There were no capital commitments at 31 October 2021 or at 31 October 2020. 

21.  Leases 

Property, Plant and Equipment comprise owned and leased assets that do not meet the definition of investment 
property. 

Property, Plant and Equipment owned 
Right of Use Assets 

Note  2021 

9 

£ 
4,762 
39,245 
44,007 

2020 
£ 
5,055 
86,025 
91,260 

Information about leases for which the company is a lessee is presented below. 

Right of Use Assets 
2021 
Balance at 1 November 2020 
Additions in the year 
Depreciation charge for the year 
Balance at 31 October 2021 

Lease Liabilities 

Property 
£ 
66,482 
- 
(37,990) 
28,492 

Equipment 
£ 
19,723 
- 
(8,970) 
10,753 

Total 
£ 
86,205 
- 
(46,960) 
39,245 

Maturity Analysis – contractual undiscounted cashflows 
Less than one year 
One to five years 
More than five years 
Total undiscounted leases liabilities at 31 October 2021 
Lease liabilities included in the statement of financial position at 31 October 2021 
Current 
Non-current 

Amounts recognised in profit or loss 
Interest on lease liabilities 
Total 

22.  Financial instruments 

£ 
36,386 
3,828 
- 
40,214 
40,972 
37,210 
3,762 

2021 
£ 
2,550 
2,550 

The Group uses financial instruments comprising cash and cash equivalents, other loans and various other short-
term instruments such as trade receivables and trade payables which arise from its operations. The main purpose 
of  these  financial  instruments  is  to  fund  the  Group's  business  strategy  and  the  short-term  working  capital 
requirements of the business. 

53 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the Consolidated Financial Statements 
For the year ended 31 October 2021 

22.  Financial instruments - continued 

Financial assets by category 

Categories of financial asset included in the Consolidated Statement of Financial Position are as follows: 

Loans  and 
receivables 

£ 

- 

326,427 

50,943 
1,053,156 
67,906 

2,565,813 

Non 
financial 
assets 
£ 

4,762 
39,245 
- 

- 
- 
- 

- 

2021 
Total 

Loans  and 
receivables 

£ 

£ 

4,762 
39,245 
326,427 

50,943 
1,053,156 
67,906 

- 
- 
277,655 

7,848 
798,130 
57,921 

2,565,813 

6,766,424 

Non 
financial 
assets 
£ 

5,055 
86,205 
- 

- 
- 
- 

- 

2020 
Total 

£ 

5,055 
86,205 
277,655 

7,848 
798,130 
57,921 

6,766,424 

4,013,302 

44,007 

4,057,309 

7,907,978 

91,260 

7,999,238 

Property,  plant  and 
equipment 
RoU assets 
Trade receivables 
Social  security  and 
other taxes 
Other receivables 
Prepayments 
and 
Cash 
equivalents 

cash 

Included within loan and receivables above are cash and cash equivalents of £2,565,813 (2020: £6,766,424), and 
trade and other receivables of £58,348 (2020: £53,629) excluding amounts owed by group undertakings in relation 
to the company. 

Trade Receivables at 31 October 2021 of £326,427 (2020: £277,655) include £272,665 (2020: £235,096) payable 
in $USD and £17,855 (2020: £10,727) payable in Euro. 

Financial liabilities by category 

Categories of financial liabilities included in the Consolidated Statement of Financial Position are as follows: 

Other 
financial 
liabilities 
at 
amortised 
cost 
£ 

177,403 

25,091 
156,441 
132,830 

Liabilities 
not within 
the scope 
of  
IAS 39 

£ 

- 

- 
- 
- 

2021 
Total 

£ 

Other 
financial 
liabilities 
at 
amortised 
cost 
£ 

177,403 

101,330 

25,091 
156,441 
132,830 

- 
67,843 
117,356 

Liabilities 
not within 
the scope 
of  
IAS 39 

£ 

- 

- 
- 
- 

2020 
Total 

£ 

101,330 

- 
67,843 
117,356 

- 
389,430 
39,245 
1,745,735 

150,012 
- 
- 
- 

150,012 
389,430 
39,245 
1,745,735  1,697,241 

- 
438,554 
86,205 

129,219 
- 
- 
- 

129,219 
438,554 
86,205 
1,697,241 

2,666,175 

150,012 

2,816,187  2,508,529 

129,219 

2,637,748 

Trade payables 
Social  security  and  other 
taxes 
Corporation tax 
Deferred tax 
Accruals  and  deferred 
income 
Other payables 
RoU liabilities 
Borrowings 

54 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the Consolidated Financial Statements 
For the year ended 31 October 2021 

22.  Financial instruments - continued 

Included within other financial liabilities are trade payables of £nil (2020: £nil) and other payables of £6,500 (2020: 
£6,500) in relation to the company. 

The  Group  is  exposed  to  a  variety  of  financial  risks  which  result  from  its  operating  activities.  The  Board  is 
responsible for co-ordinating the Group's risk management and focuses on actively securing the Group's short to 
medium term cash flows. Long term investments are managed to generate lasting returns. 

The Group does not actively engage in the trading of financial assets and has no financial derivatives. The most 
significant risks to which the Group is exposed are described below: 

Credit risk 

The  Group's  credit  risk  is  primarily  attributable  to  its  trade  receivables,  other  receivables  and  cash  and  cash 
equivalents.  The  amounts  presented  in  the  Consolidated  Statement  of  Financial  Position  are  net  of  any 
allowances for doubtful receivables. The Group has a significant concentration of credit risk associated with its 
distributor of digital content, The Orchard. Cash at bank is all held with highly rated banks or deposit takers, the 
suitability of which is constantly reviewed. The maximum credit to which the Group is exposed, including Cash at 
bank of £2,565,813, is £4,013,301 (2020: £7,900,130). 

Liquidity risk 

The  Group  seeks  to  manage risks  to ensure  sufficient  liquidity  is  available  to meet  foreseeable  needs and  to 
invest cash and assets safely and profitably. Short term flexibility is achieved by the use of money markets to 
deposit excess cash which is not required in the short term. The directors prepare cash flow forecasts on a regular 
basis to identify at an early stage any short term funding difficulties. 

All  the  financial  liabilities  noted  above,  with  the  exception  of  the  liability  to  deferred  tax  of  £132,830  (2020: 
£117,356) and borrowings of £1,745,735 (2020: £1,697,241), are expected to result  in cash outflow within six 
months of the year end. Borrowings are to be repaid in equal quarterly instalments starting December 2023, with 
the final payment due in June 2025. 

Currency risk 

The Group is exposed to foreign exchange risk in connection with its digital downloading and streaming business 
where the revenue is largely transacted in US$ and the settlement of royalty and other liabilities arising from this 
revenue is largely denominated in US$. 

Included  in  Cash  and  cash  equivalents,  Trade  receivables  and  Other  receivables  is  USD$1,347,797  (2020: 
USD$1,338,739) equivalent to £985,448 (2020: £1,033,775) and Euro 35,099 (2020: Euro 31,563) equivalent to 
£29,652 (2020: £28,435) payable in Euro. If the foreign exchange rate was 10% different from the rate used at 
the year end there would be an under/over statement of assets of £112,789 (2020: £118,023). 

Included  in  Accruals  &  deferred  income  and  Other  payables  is  USD$6,907  (2020:  USD$6,939)  equivalent  to 
£5,050 (2020: £5,358) payable in USD$. If the foreign exchange rate was 10% different from the rate used at the 
year end there would be an under/overstatement of liabilities of £561 (2020: £595). 

23.   Related party transactions 

There were no related party transactions in the year under review or in the year ended 31 October 2021 nor 31 
October 2020, other than transactions with the directors as disclosed in the Directors' Report and note 5 to the 
financial statements. 

At 31 October 2021 the principal operating subsidiary One Media iP Limited owed the Company £11,365,251 
(2020: £7,400,705). No formal inter-company loan agreement is in existence between the  

55 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the Consolidated Financial Statements 
For the year ended 31 October 2021 

23.  Related party transactions - continued 

Company and its subsidiaries. During the year the Company made a management charge  of £306,682 (2020: 
£238,511) against One Media iP Limited and received a dividend of £350,000 (2020: £350,000). 

24.  Post balance sheet events 

On  21  February  2022  Nick  Stewart  was  appointed  as  Chief  Executive  Officer  to  the  board  of  the  Company's 
subsidiary, TCAT Limited. Nick Stewart will use his experience of the global music market, royalty collection and 
music piracy to build the profile of TCAT Limited and its ground‐breaking A.I software, which monitors millions of 
music 
fraudulently 
claimed royalties. The Company is the majority shareholder in TCAT Limited and uses the technology to police 
its own catalogue which includes income derived from tracks performed by Kid Creole, Take That, Don Williams, 
Mungo Jerry, Mago De Oz, Heatwave, Culture Club and many more. 

rights  holders  millions 

in  unpaid  or 

tracks  across 

the  world, 

saving 

On 11 March 2022 One Media iP Group Plc acquired the licensor's share of the royalties to the Orbital Digital Ltd 
catalogue of rights, which contains several thousands of recordings. As part of the deal, One Media has acquired 
the licensor's income share of the catalogue on an in‐perpetuity basis, which opens a new route of income and 
profit for the group. Distributed by FUGA, the Dutch content distributor which will additionally be a new distributor 
to the group for this catalogue. 

56 

 
 
 
 
 
 
 
 
 
        About One Media iP Group PLC

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