D.C. THOMSON & COMPANY LIMITED - Annual Accounts

Form: AA - Annual Accounts

GROUP OF COMPANIES' ACCOUNTS MADE UP TO 31/03/09

Filed on: 23 Jan 2010

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COMPANIES HOUSE

DC Thomson & Company Limited
Contents
Directors’ report
Group income statement
Group balance sheet
Company balance sheet
Group cash How statement
Company cash How statement
Group statement of recognised income and expense
Company statement of recognised income and expense
Notes to the accounts
Directors’ responsibilities
Independent auditor’s report
Page
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Registered number ####

DC Thomson & Company Limited
Directors' report
The Directors' report to the hundred and fifth Annual General Meeting of DC Thomson & Company
Limited, to be held at ## Meadowside, Dundee on Tuesday ##"‘ November #### at ## noon.
The Directors submit the audited accounts of the Company and of the Group for the year ended
## March ####.
Activities and dividends
The principal activity of the Group remains the printing and publishing of Newspapers, Magazines and
Books.
The Directors recommend that a final dividend of £l#,###,### (#### - £##,./##,###) be paid, which
together with the interim dividend of £#,###,### (#### - £#,###, ###) already paid, will make a total of
£l#,###,### (#### - £##, ###, ###) for the year.
Business overview
The Business overall had a more difficult year particularly those businesses of ours exposed to
advertising revenues. The Group’s policy to have a wide spread of interests gives some protection since
advertising revenue represents less than ##% of our total revenue unlike some media companies.
However trading profit was down some £#.#m before exceptional costs. Turnover increased mainly due
to increased book sales by Parragon although this company had its own issues involving the demise of
Woolworths and also in Europe.
The Group made one purchase during the year of a small business which publishes magazines about
and promoting England (as The Scots Magazine does for Scotland), Since the year end we have
purchased the ##% share of bright solid group limited (formerly called Scotland On Line Limited) that
we did not already own.
We continue to work towards consolidating as many services and operations between our Group
companies as possible. This is dependent upon the work being done in the core business in Dundee with
the introduction of new systems and ways of working. This will now be a constant.
The Change Programme in Dundee accelerated and involves all aspects of the business. This includes
changes in management structure , continuing development of training in all areas of our operations and
new and more regular ways of communicating with both our staff and our customers.
The new Procurement Programme has completed its first major stage and is bearing fruit throughout the
Group but the benefits will be, in the main, going forward commencing in the year we are now in.
We have commented in the last two annual reports that the Media industry of which we are part has
been going through a period of significant change. This change will be more profound than even we had
thought. The object of much that we have been doing over the last two years and that we are currently
doing is to prepare the Group for times ahead in what may be somewhat different circumstances.
We have initiated a full strategic review of each of our business areas. This includes Newspapers,
Books, Children’s Entertainment, Print and Production and Digital as well as, in due course, Magazines.
As a consequence of declining prints and new technologies in the printing business we have written
down the carrying value of our plant and also some property.
The current year will be difficult as the recession continues to affect us all, As well as the economic
situation there is the Internet and its effect on classified advertising and, in particular, recruitment
advertising which is and has been a comer stone of the Regional Press. We are fully aware of these
challenges facing us and the Change Programme has the fundamental goal of re-shaping the Company
and the Group to be modem, innovative, dynamic and profitable and to be a good place in which to
work.
l Registered number ####

DC Thomson & Company Limited
Directors' report (continued)
Business overview (continued)
The changes we have made have initially been in the Dundee core business but they will have an impact
throughout the Group and the overall aim is to have a Group that works together coherently and as
efficiently as possible to face the challenges ahead, which are considerable.
Trading overview
Sales of our Regional Daily Newspapers are in Scotland. Sales of our Sunday newspaper The Sunday
Post and our Magazines are mainly in the UK. Sales of our Books are throughout the world. Export
sales represented ##% of our trading revenue (####-##%) and they have increased in absolute terms by
£#m.
The turnover of our Publishing Businesses in the year to March #### is divided between Newspapers
##% (##%), Magazines and Annuals ##% (##%) and Books ##% (##%). Printing and other income
represents #% (#%).
On a like for like basis Group Publishing Income was £###m (£###m) of which £##m (£##m) was
Newspaper and Magazine copy sales, £##m (£##m) advertising revenue and £##m (£##m) book sales
including annuals.
The Group experienced challenging conditions in most areas of its operations, some more than others.
Underlying trading profit, [being profit before interest, exceptional (including pension credit), and tax]
were significantly down principally due to reductions in advertising in our Dundee and Aberdeen
businesses which accelerated after New Year #### but also because of unavoidable additional costs.
Profit overall was down also due to reductions in pension credit, bank interest and significant
restructuring and impairment costs.
The Newspaper Division of our business consists principally of our Regional Newspapers: The Press
and Journal and The Evening Express (based in Aberdeen) and The Courier and Advertiser and The
Evening Telegraph (based in Dundee). We also publish, of course, The Sunday Post, a National Title.
Although the Aberdeen Newspaper business performed well in the first half it was also affected by the
downturn in advertising in the second half Costs were up with rises in newsprint, energy, press repairs
and Internet publishing.
The Dundee Regional Newspaper business also found revenue more difficult with continued cut backs,
in particular, in local government and recruitment advertising. Improvements and changes in operating
practices in the advertising department mitigated this to some extent.
The Sunday Post showed some resilience in copy sales revenue principally as a result of increasing the
price of the paper but copy sales were down. Advertising, which had been holding up well in the first
half found it more difficult as we went into the second half-brother year.
There has been for many years a modest decline in sales of most Newspapers and our titles are no
exception but we are certainly in comparative good health in our Regional Newspaper copy sales
compared to some in the market. While copy sales are tending back overall we do not accept that this
has to be the case and our Evening paper in Dundee particularly has performed well in this respect over
the last two years.
In the Newspaper Division the underlying Trading Proht declined with Aberdeen profit down some
£#.#m and Dundee also back.
# Registered number ####

DC Thomson & Company Limited
Directors' report (continued)
T daring overview (continued)
The Magazine Division of our business consists of the Puzzler titles, our Women’s Magazines, and our
Children’ s Entertainment titles.
Puzzler had a reasonable year with tu mover down £#.#m partly due to ceasing operations in the USA
but profits were up. In comparison to the rest of the magazine publishing business in the UK that is a
good performance. Copy Sales revenue held up well and Puzzler does not depend on advertising
revenue unlike much of the rest of the industry.
Our Women’s Magazines based in Dundee were also affected by the decline in advertising revenue and
difficult market conditions but The People’s Friend continued to sell steadily and bring in valuable
advertising revenue.
Children’s Entertainment consists of four different areas:
First of all, the famous children’s comics, The Beano and The Dandy, which continue to find their
market difficult. This area has however benefited from a number of higher priced issues and issues of
The Beano’s stable mate BeanoMax.
Secondly, in the girls’ area we have Shout, Animals and You and Goodie Bag Mag. Animals and You
unfortunately has continued to have some stiff competition from a new title launched by the BBC called
All About Animals. The BBC seems to have developed an unfortunate habit of careering into markets
where there seems to be no need for it to be and damaging the interests of independent businesses.
Thirdly, a new development over the last two or three years, has been a more consistent focus in our
Children’s area on licensed properties for magazine and indeed book publishing. We have a licence
from Bratz and from World Wrestling Entertainment for a children’s magazine and now also from
Chuggington a pre-school brand which we partly own through our interest in Ludorum PLC.
The fourth area, of course, is our Christmas Annuals and we have a variety of these, most of them based
in the Children’s market although there are one or two titles for adults as well. These faced a difficult
market this year but we continue to work hard to keep these as prominent as possible on the shelves.
Sales during the year were down and this was not helped by some difficulties in the retail trade. The
recently installed KBA offset press allows us to rim more efficient printing schedules and thereby
reduce unsold copies. We intend to re-focus our Book businesses in part on growing this important area
and develop some licensed titles.
However, overall, our Newspaper and Magazine divisions were together back by some £#.#m. The
shortfall in advertising was the major contributor to this.
Work continued to lither the exploitation of our Children’s characters, Brands and Intellectual
Property. As part of the exploitation of these we have had considerable success in licensing product
based on some of our valuable IP. We have also developed, successfully, another TV series of Dennis
the Menace which we have resold to the BBC and in Australia. We have also commissioned some
short TV episodes of Marvo the Wonder Chicken, one of our characters, and these have been sold to a
Disney subsidiary and we now also have some expectation of sales in the USA of our film properties.
Our Book Division consists in the main of Parragon and also of course of the smaller Peter Haddock.
During the year Parragon increased its sales revenue to £##m (£##m) on a like for like basis, up on the
previous year. This was, in the main, due to greater sales in Australia from our acquisition there.
However European sales were difficult.
Parragon has operations in the U.K., U.S.A., Germany, Netherlands, India, Hong Kong and Singapore
and is the market leader in Australia having bought the business assets of a major competitor, Funtastic,
towards the end of the last financial year. Underlying Trading Profit of the Book Division has remained
in line with last year,
# Registered number ####

DC Thomson & Company Limited
Directors' report (continued)
Trading overview (continued)
We have significant financial assets and other business interests which are there to support the main
trading business and are very much part of it.
The Group has always operated a prudent policy of having reserves and financial assets and other
business interests to cover all known and implicit liabilities and to enable it to continue to develop,
enhance and protect its business activities and trade and to remain strong. This has been particularly
important in this period and in these times and gives a real resilience to our business and an ability to
continue to build our business at a time when others can not.
The performance overall in this area of the business in the year to ## March #### has been reasonable
in the circumstances. However we suffered a considerable reduction in Bank Interest in the last #
months of the year as the Bank base rate was cut c.##%.
During the year the Group continued to convert some of these assets and interests into cash at
reasonable prices and moved some of its liquid resource into government bonds or gilts in a rather more
substantial way. We also reduced the exposure of one of our subsidiary companies to a short term bank
facility, preferring to cover that from our own resources at better rates to the group treasury. Since the
year end we have returned to holding cash resource, in the main, rather than gilts.
Values of financial assets and other business interests at the end of the current year (that is the year to
## March ####) are substantially reduced from those in the accounts to ## March #### because of
market conditions. Our year end month (March ####) was the recent low point in the markets and so the
values were low. However it may be worth mentioning that the current market value has significantly
recovered and also that only some # years ago the UK markets were as low as they were in March ####.
The formal Actuarial Valuation of our main Pension Fund (The Thomson-Leng Provident Fund), which
takes place every # years, was recently completed. That valuation as of#l March #### (the formal date)
shows a healthy position as before. However, at ###' March ####, (the year we are reporting on) the
market value of the fund assets was of course reduced (but still in surplus) as March #### was the low
point for the year, as mentioned. That position has of course improved as markets have steadied.
Accordingly the fund is in good health.
The Fund’s Income for the year to ## March #### also remained significantly ahead of pensions paid.
However, there is likely to be a reduction in income in the year we are now in, due to the suspension of
or reduction in some bank and other company dividends as they repair their balance sheets and due to
the considerable reduction in bank interest receivable. The unusual intervention by the UK Government
or rather the Bank of England in the gilts market with their programme of Quantitative Easing has also
had the effect of reducing the yield of medium term gilts which are the benchmark for pension fund
liability valuations and thus increasing the level of liabilities of Pension Funds.
Rislm and uncertainties
The Group continues to devote appropriate resources to manage risks but also to exploit opportunities.
The main commodity price risk the Group faces is that of paper. The price of newsprint went up ##%
on # January ####. There has been a modest reduction in some grades from # July ####. The Group
enters into various arrangements, as appropriate for its particular industry, to manage effectively the
cost of paper as far as possible.
The Book Division also faces a risk in logistics costs and enters into contracts to fix a significant
element of these.
# Registered number ####

DC Thomson & Company Limited
Directors' report (continued)
Risks and uncertainties (continued)
The majority of the Book Division’s material purchases are denominated in US dollars and ##% of its
revenue is in foreign currency. Accordingly, the Group seeks to manage its exposure by means of
forward currency contracts which hedge the expected net cash flow exposure for up to IX months
forward. Details are presented in Note ##. The Group does not trade in financial instruments for any
other purpose.
There is competition in all the markets in which the Group operates and new products and titles may be
launched by competitors which could adversely affect the Group as has happened recently as a result of
the BBC launching a title against Animals and You. Market conditions are also liable to change and the
economic downturn may affect retail market.
The Internet offers the Group, its competitors, and the business segments it operates in a range of
opportunities and threats.
The Directors are aware of environmental, health and safety and other non-compliance risks which
could impact on our business and also monitor forthcoming legislation regularly in all areas in which
we operate.
Costs
As part of the Change Programme We have set up a procurement initiative, which will deliver some
good benefits in cost savings throughout the Group going forward. Over the last year cost control in
Dundee was reasonable but there is always more to do, Some increases in costs were unavoidable such
as the cost of newsprint and energy, as mentioned previously,
Staff costs of our Dundee businesses were well controlled and towards the end of the year we gave
notice to end our Early Voluntary Severance (EVS) scheme. The effect of this was that some ### of
our staff took advantage of the scheme before it ended. That has cost some £#.#m in severance costs but
the ongoing staff costs of the firm will also be reduced by a similar amount on an annual basis.
Parragon initiated a cost saving programme in January ####.
Market Research continues to be a major cost but for both sales and advertising purposes it is an
essential expense so that we can invest in and produce the best products. This is however kept under
close review.
During the year the Change Programme has resulted in exceptional costs which will continue into the
current year as well but with the help of our Procurement Team we expect the basic Trade Expenses of
the business in the current year to be well controlled as far as market conditions allow.
The Group, as mentioned above, continues to have a healthy balance sheet and a well-funded pension
scheme although that is in no way ever taken for granted and a large amount of work has to be done to
manage our Pension Funds in the light of current regulations.
Non financial overview
We continue to develop good practice in a wide variety of areas, environmental, social and governance.
Our business activities impact on the environment and rely on good systems to monitor any and all risks
emanating from our operations. We are constantly aware of environmental legislation and aim to
ensure that we operate within its parameters. We have, as an employer, an ongoing responsibility to our
employees for their safety and well-being at work. To this end a great deal of training goes on and we
employ staff trained in health and safety and human resource.
# Registered number ####

DC Thomson & Company Limited
Directors' report (continued)
Non financial overview (continued)
The Group devotes management time to and reports on key environmental matters including specific
energy consumption, packaging waste, carbon dioxide emissions and effluent discharge.
We take our relationship with our suppliers and our customers seriously and have appropriate
guidelines in place.
The Group’s staff resources are vital to its operational success and we monitor closely accidents and
time lost from injury, illness and otherwise.
Future prospects
The Group is committed to improving operational efficiency and maintaining a tight grip on costs. We
are aware of significant changes going on in the industry generally but are also aware that it is of great
importance to maintain the quality of our products. For only by meeting the needs of our readers in the
best possible way will we succeed.
The current year has been exceptionally difficult particularly for our advertising revenues. Since
January #### there has been a significant decline in our regional newspaper advertising which seems to
have bottomed out at a reduction of ##%. We are taking steps to cut costs and grow revenues to put the
business back into a better position.
Paper costs are still higher than we would like and while we have seen some reductions we do not
expect regular reductions in the long term.
We believe that sales of our products, Newspapers, Magazines, Books and Christmas Annuals, which
are on the whole low priced items, will present a good opportunity for purchasers who are affected
negatively by all that is going on in the economy. This downturn may in fact therefore also offer
opportunities to the Group.
In our Book Business we aim to further the global growth odour sales.
Work goes on to improve our Internet sites and Aberdeen’s newly launched site is bringing in some
encouraging revenue.
Puzzler continues to perform well.
We have now taken ###% control of bright solid group limited. This Company made its first profit and
successfully launched the Census #### on-line. it invested more than £#m under contract from The
National Archive at Kew and first results have been very encouraging. The bright solid group has built
a small but successful Genealogy business, partly organically driven such as the contract from the
General Register of Scotland (GROS) for Births Deaths and Marriages and The National Archive and
partly from Find My Past Limited a company acquired almost # years ago.
We also recently bid £##in to buy Friends Reunited Limited from ITV. The matter is currently with the
OFT.
The bright solid group is a key element in our plans for the future.
The current year to ## March #### will be difficult. We continue to incur certain exceptional costs
relating to restructuring and legitimisation of our business without yet enjoying the full benefits from
these. However we do expect that once we are through #### the Company should be better placed.
# Registered number ####

DC Thomson & Company Limited
Directors' report (continued)
Employees
Details conceding employees are shown in Note #. Good relations with employees are regarded as
paramount and communication is maintained through regular team briefings and quarterly newsletters.
The Health and Safety of all employees has constant attention.
Disabled employees are employed where possible and people with disabilities have full and fair
consideration for all suitable vacancies. Training is available as necessary and should an employee
become disabled when working for the company efforts are made to continue their employment and
retraining is provided if required.
Most employees are members of company pension schemes.
The Group has a talented, dedicated and loyal staff. This is not taken for granted. Creativity, producing
and maintaining the quality and popularity of products and services, brands and intellectual property
that people wish to buy or associate with, is vital to the Group, as is research to assist that.
We intend to accelerate the provision of training across the Group and the development of all staff
potential. The process of restructuring our business to integrate our Group companies should open up
opportunities for our staff.
Fixed assets
In the opinion of the Directors the market value of the land and buildings on an existing use basis,
which are largely freehold, is not less than the value stated in the accounts.
Charitable and political contributions
No political contributions were made. Most of the Group’s substantial charitable contributions are
made by charitable trusts, the capital of which was subscribed over the years by various shareholders.
In addition charitable donations of£##,l## (#### - .£##,###) were made.
Directors
The Directors in office are Messrs AF Thomson, LM Thomson and CHW Thomson.
In times of the Articles of Association Mr LM Thomson retires by rotation and being eligible offers
himself for re-election.
In so far as the Directors are aware:
# There is no relevant audit information of which the company’s auditors are unaware; and
# The Directors have taken all steps that they ought to have taken to make themselves aware of any
relevant audit information and to establish that the auditors are aware of that information.
Auditors
A resolution concerning the re-appointment of Henderson Loggie and for their remuneration to be fixed
by the Directors will be proposed to the Annual General Meeting.
By order of the board;
I Douglas
Secretary
Dundee
## October ####
# Registered number ####

DC Thomson & Company Limited
Group income statement for the year ended ## March ####
#### ####
Note £### £### £###
Revenue # ###,### ###,###
Change to inventories of finished goods and
work in progress #a ##,### ###
Raw materials and consumables (###,###) (##,###)
#a (##,###) (##,###)
Employee benefits costs #b/# (##,###) (##,###)
Depreciation and amortisation Sc (##,###) (##,###)
pimiento ofassets # (##,###) -
Other expenses #d (##,###) (##,###)
Finance costs # (#,###) (#,###)
Total expenses # (###,###) (###,###)
Gain from disposal of financial assets ##,### ##,###
Provision against financial assets (#,###) (#,###)
##,### ##,###
Impairment of goodwill from change in
tax rates - (#,#l I)
Share of post tax results of associates ## #,### -
Profit before taxation ##,### ##,###
Taxation I# (#,###) (##,###)
Profit for year ##,### ##,###
Profit attributable to minority interest l#a ### #,###
Profit attributable to equity shareholders ##,### ##,###
##,### ##,###
# Registered number ####

DC Thomson & Company Limited
Group balance sheet at ## March ####
#### ####
Note £### £###
Non-current assets
Goodwill I# ###,### ###,###
Other intangible assets ## ###,### ###,###
Property, plant and equipment ## ##,### ##,###
Financial assets - other business assets ## ###,### ###,###
Interests in associates ## ##,### -
Retirement benefit surplus ## ##,### ##,###
###,### #,###,###
Current assets
Inventories ## ##,### ## ,###
Trade and other receivables ## ##,### ##,###
Derivative financial instruments A ## #,### -
Financial assets - held to maturity ## ##,### ##,###
Cash and cash equivalents ## ##,### ##,###
###,### ###,###
Total assets #,###,### #,###,###
Current liabilities #
Borrowings ## ##,### ##,###
Trade and other payables ## ##,### ##,###
Income tax liabilities _ #,###
Derivative financial instruments ## - #,###
##,### ##,###
Non-current liabilities
Borrowings ## ##,### ##,###
Trade and other payables #i #,### #,###
Deferred tax liabilities ## ###,### ###,###
###,### ###,###
Total liabilities ###,### ###,###
Net assets ###,### ###,###
Equity
Share capital ## #,### #,###
Pension reserve ## ##,### ##,###
Capital expenditure reserve ## ###,### ###,###
Other reserves ## ###,### ###,###
Retained earnings (previously profit and loss account) ## ###,### ###,###
__?, #,
Total equity attributable to the shareholders of the company ###,### ###,###
Minority interest in equity ##a #,### ##i
Total equity ###,### ###,###
The accounts were approved by the Board of Directors on ## October and signed on its behalf by:
AF Thomson '\ ‘J CHW Thomson
Director N V# ` * #" \ ° Director _
#
~ f
Registered number ####

DC Thomson & Company Limited
Company balance sheet at ## March ####
#### ####
Note £### £###
Non-current assets
Other intangible assets ## #,### -
Property, plant and equipment ## ##,### ##,###
Financial assets - other business assets ## ###,### ###,###
Interests in Group undertaking ## ###,### ###,###
###,### ###,###
Current assets
Inventories ## #,### #,###
Trade and other receivables ## ##,### ##,###
Financial assets - held to maturity ## ##,### ##,###
Cash and cash equivalents ## ##,### ##,###
###,### ##,###
Total assets ###,### ###,###
Current liabilities
Trade and other payables ## ##,### l #,###
Non-current liabilities
Deferred tax liabilities ## ##,### ##,###
Total liabilities ##,### ##,###
Net assets ###,### ###,###
Equhy
Share capital ## #,### #,###
Other reserves ## ###,### ###,###
Retained earnings (previously profit and loss account) ## ###,### ###,###
Total equity attributable to the shareholders of the company ###,### ###,###
The accounts were approved by the Board of Directors on ## October #### and signed on its behalf
AF Thomson Nth) # ,_/ii\/\em.\o\-/ CHW Thomson #, #
Director Director l'
## Registered number ####

DC Thomson & Company Limited
Group cash flow statement for the year ended ## March ####
#### ####
Note £### £###
Cash t`#ow fROM operating activities
Profit before taxation ##,### ##,###
Finance costs #,### #,###
Depreciation and amortisation ##,### ##,###
Impairment of assets f ##,### -
Exchange gain on cash (##) (###)
Share of result of associate (#,###) -
Gain on sale of property, plant and equipment (###) (###)
Net gain on financial assets f (##,###)“ X (##,###)
Goodwill impairment - #,## #
Derivative movement (#,###) #,###
Pension adjustment (#,###) (##,###)
-Scrip dividend (###) (#,###)
(Increase)/decrease in inventories (##,###) #,###
Increase in receivables (#,###) (#,###)
Increase/(decrease) in payables #,### (#,###)
Exchange movement on core balances #,### ##
Cash generated from operations ##,### ##,###
Income tax paid (##,###) (#,###)
Interest paid (#,###) (#,###)
Net cash from operating activities ##,### ##,###
Investing activities
Proceeds on disposal of property, plant and equipment s ### ###
Proceeds on disposal of financial assets / ##,### ##,###
Proceeds on disposal of financial assets - held to maturity gilts ## ##,### -
Purchases of property, plant and equipment (#,###)‘ (#,###)
Purchase of subsidiary undertaking (#,###) (##,###)
Purchase of associate (###) -
Purchase of financial assets (#,###) (##,###)
Purchase of financial assets - held to maturity gilts ## (##,###) -
Purchase of intangibles (#,###) (#,###)
Acquisition of minority interest in subsidiary - (##,###)
Net cash used in investing activities #,### (##,###)
Financing activities
Dividends paid (##,###) (##,###)
Repayments of borrowings ## (#,###) (#,###)
Net cash used in financing activities (##,###) (##,###)
Net increase/(decrease) in cash and cash equivalents #,### (##,###)
Effects of exchange rate changes on cash and cash equivalents ## ###
Cash and cash equivalents at ## March #### ## ##,### ###,###
On acquisition of subsidiary ### (###)
Cash and cash equivalents at ## March #### ## ##,### ##,###
##
Registered number ####

DC Thomson & Company Limited
Company cash flow statement for the year ended ## March ####
#### ####
Note £### £###
Cash flows from operating activities
Profit before taxation #,### ##,###
Depreciation and amortisation #,### #,###
Impairment of assets ##,### A
Exchange gain on cash # (###)
Gain on sale of property, plant and equipment (###) (###)
Net gain on disposal of financial assets (##,###) (i#,###)
Scrip dividend (###) (#,###)
Decrease in inventories #,### #,###
(Increase)/decrease in receivables (#,###) #,###
Increase/(decrease) in payables #,### (##)
Cash generated from operations #,### ##,###
Income tax paid (#,###) (#,###)
Net cash from operating activities #,### ##,###
Investing activities
Proceeds on disposal of property, plant and equipment ### ###
Proceeds on disposal of financial assets ##,### # I ,###
Proceeds on disposal of financial assets - held to maturity gilts ## ##,### -
Purchases of property, plant and equipment (#,###) (#,###)
Purchase of financial assets - held to maturity gilts I# (##,###) -
Purchase of intangible assets (#,###) -
Investment in subsidiary undertaking _ (#,###)
Interest in group undertakings (#,###) (##,###)
Purchase of financial assets (#,###) (##,###)
Net cash used in investing activities ##,### (##,###)
Financing activities
Dividends paid (##,###) (##,###)
Net cash used in financing activities (##,###) (##,###)
Net increase/(decrease) in cash and cash equivalents ##,### (##,###)
Effects of exchange rate changes on cash and cash equivalents (#) ###
Cash and cash equivalents at ## March #### ## ##,### ##,###
Cash and cash equivalents at ## March #### ## ##,### ##,###
I#
Registered number ####

DC Thomson & Company Limited
Group statement of recognised income and expense for the year ended ## March ####
#### Revaluation Retained
reserve earnings Total
£### £### £###
Exchange differences on translation
of foreign operations - #,### #,###
Revaluation of financial assets (###,###) - (###,###)
Release on disposal of financial assets (##,###) - (##,###)
Actuarial loss on defined benefit pension scheme - (#,###) (#,###)
Tax arising on above ##,### #,### ##,###
Change in rate on above - #,### #,###
Net income and expense recognised direct in equity (###,###) #,### (###,###)
Profit for the year - ##,### ##,###
(###,###) ##,### (##,###)
Minority interest - (###) (###)
Total recognised income and expense (Note ##) (###,###) ##,### (##,###)
####
Exchange differences on translation
of foreign operations - ## ##
Revaluation of financial assets (##,###) - (##,###)
Release on disposal of financial assets (##,###) - (##,###)
Actuarial loss on defined benefit pension scheme - (##,###) (##,###)
Tax arising on above ##,### ##,### ##,###
Net income and expense recognised direct in equity (# I ,###) (##,###) (##,###)
Profit for the year - ##,### ##,###
(##,###) ##,### (##,###)
Minority interest - (#,###) (#,###)
Total recognised income and expense (Note ##) (##,###) ##,### (##,###)
Registered number ####

DC Thomson & Company Limited
Company statement of recognised income and expense for the year ended ## March ####
#### Revaluation Retained
reserve earnings Total
£### £### £###
Revaluation of financial assets (###,###) - (###,###)
Release on disposal of financial assets (##,###) (##,###)
Tax arising on above ##,### - ##,###
Net income and expense recognised direct in equity (##,###) - (##,###)
Profit for the year - #,### #,###
Total recognised income and expense (Note ##) (##,###) #,### (##,###)
####
Revaluation of financial assets (##,#l #) (##,###)
Release on disposal of financial assets (##,###) (##,###)
Tax arising on above ##,### - ##,###
Net income and expense recognised direct in equity (##,###) - (##,###)
Profit for the year - ##,### ##,###
Total recognised income and expense (Note ##) (##,###) ##,### (##,###)
##
Registered number ####

DC Thomson & Company Limited
Notes to the accounts
Statement of compliance
Both the Group and parent company financial statements (“financial# statements”) at ## March ####
have been prepared and approved by the directors in accordance with informational Financial
Reporting Standards as adopted by the EU .
Two Interpretations issued by the international Financial Reporting Interpretations Committee are
effective for the current period. These are: IFRS# - Group and Treasury Share Transactions and
alfresco# alls# - The Limit of Defined Benefit Asset Minimum Funding Requirements and their
Interaction. The adoption of these interpretations has not led to any changes in THC Group’s
accounting policies.
Accounting policies
Basis of consolidation
The financial statements incorporate the results, cash flows and financial position of the company
and its subsidiaries for the year ended ## March ####.
The financial statements of its subsidiaries and associates are prepared to the same reporting date
using accounting policies consistent with those of the parent company. intra-Group transactions
and balances, including any unrealised gains and losses or income and expenses arising from
intra-Group transactions, are eliminated in full. The company accounts include information
about the parent company only.
Subsidiaries
Subsidiaries are entities controlled by the company. Control exists when the company has the
power, directly or indirectly (but normally through voting rights granted through the company’s
shareholdings), to govern the financial and operating policies of an entity to obtain benefits from
its activities. The financial statements of subsidiaries are included in the consolidated financial
statements.
Associates
Associates are entities in which the Group has significant influence, but not control, over the
financial and operating policies. The consolidated financial statements include the Group’s share
of the total recognised gains and losses of its associates on an equity accounted basis, from the
date that significant influence commences until the date that significant influence ceases.
Adjustments are made to align the accounting policies of the associates with the Group and to
eliminate the Group’s share of unrealised gains and losses on transactions between the Group and
its associates.
Acquisitions
On acquisition, the assets and liabilities oaf subsidiary, including identifiable intangible assets,
are measured at their fair value at the date of acquisition. Any excess of the cost of acquisition
over the fair value of the identifiable net assets acquired is recorded as goodwill. Goodwill is
reviewed for impairment annually and any impairment is recognised immediately in the income
statement. Any excess of fair value of the identifiable net assets acquired over the cost of
acquisition is credited to the income statement on acquisition. Goodwill recorded on business
combinations prior to IFRS transition has not been restated and has either been written off to
reserves or capitalised according to the UK GAAP accounting standards then in force. On
disposal or closure of a previously acquired business, the attributable goodwill previously written
off to reserves is not included in determining the profit or loss on disposal.
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
Accounting policies (continued)
in accordance with Section ### of the Companies Act ####, a separate profit and loss account of
DC Thomson & Company Limited is not presented.
Basis of preparation
The financial statements are prepared on the historical cost basis except for centring financial
assets including derivative financial instruments and the assets of the pension schemes, both of
which are stated at their fair values.
The preparation of financial statements in conformity with IFRS requires the directors to make
judgements, estimates and assumptions that affect the application of policies and reported
amounts of assets and liabilities, income and expense. The estimates and judgements are based
on historical experience and various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making judgements about carrying amounts
of assets and liabilities that are not readily apparent from other sources. Actual results may differ
from these estimates. The accounting policies set out below have, unless otherwise stated, been
applied consistently to all periods presented in these financial statements.
Goodwill and other intangible assets
Goodwill is measured at cost less any accumulated impairment losses. Goodwill is reviewed for
impairment annually.
Impairment is determined by comparing the recoverable amount of the cash-generating unit or
group of cash-generating units (“CGU”) which are expected to benefit from the acquisition in
which the goodwill arose, to the carrying value of the goodwill. The recoverable amount is the
greater of an asset’s value in use and its fair value less costs to sell. Value in use is calculated by
discounting the future cash flows expected to be derived from the asset or group of assets in a
CGU at the Group’s cost of capital. Where the recoverable amount is less than the carrying
value, the goodwill is considered impaired and is written down through the income statement to
its recoverable amount.
Other intangible assets acquired as part oaf business acquisition are capitalised at fair value at
the date of acquisition. Purchased intangible assets acquired separately are capitalised at cost.
After initial recognition, all intangible fixed assets are measured at cost less accumulated
amortisation and any accumulated impairment losses.
Where an intangible asset has been assigned an indefinite useful life, it is not amortised and is
reviewed for impairment either annually or more frequently if events or changes in circumstances
indicate a possible decline in the carrying value.
Intangible assets which have been assigned a finite life are amortised on a straight line basis over
the assets’ useful life of up to ## years and are tested for impairment if events or changes in
circumstances indicate that the carrying value may have declined. This is done on a similar basis
to the testing of goodwill, either for the individual assets or at the level oaf CGU. Useful lives
are examined every year and adjustments are made, where applicable, on a prospective basis.
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
Accounting policies (continued)
Property, plant and equipment
Property, plant and equipment are shown at cost, net of depreciation and any provision for
impairment. Depreciation is provided on all property, plant and equipment at varying rates
calculated to write off cost less residual value over the useful lives. The principal rates employed
are:
Heritable and freehold property (excluding land) #% reducing balance
Printing presses ## to ## years straight line
Plant and machinery # to ## years straight line
The carrying values of property, plant and equipment are reviewed for impairment when events
or changes in circumstances indicate these values may not be recoverable. If there is an
indication that impairment does exist, the carrying values are compared to the estimated
recoverable amounts of the assets conceded. The recoverable amount is the greater of an asset’s
value in use and its fair value less the Cost of selling it. Value in use is calculated by discounting
the future cash flows expected to be derived from the asset. Where the carrying value of an asset
exceeds its recoverable amount, the asset is considered impaired and is written down through the
income statement to its recoverable amount.
An item of property, plant and equipment is written off either on disposal or when there is no
expected future economic benefit from its continued use. Any gain or loss (calculated as the
difference between the net disposal proceeds and the carrying value of the asset) is included in
the income statement in the year.
Financial assets
Other business assets
Other business assets represent equity, preference shares and loans in other entities and are
recognised when contractually committed. When a contract to sell is in place, the relevant asset
is no longer recognised.
Listed investments are shown as available for sale, initially recorded at cost in the period of
acquisition and subsequently measured at fair value. Gains and losses on the revaluation of
available for sale investments are recognised in the statement of recognised income and expense
through the revaluation reserve. On disposal or impairment of the investment, all relevant gains
and losses are included in the income Statement, Fair value is arrived at using publicly quoted
bid price market values for the majority of investments. When an investment’s carrying value is
impaired and the directors do not expect the value to recover, an impairment charge is recognised
immediately through the income statement,
Where there is no publicly quoted market value other investments, including subsidiaries, are
shown at cost less provisions for impairment.
Held to maturity
Interests held to maturity are initially recognised at fair value plus acquisition costs. After initial
recognition, such assets are carried at amortised cost using the effective interest method.
I# Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
Accounting policies (continued)
Interests in group companies
Subsequent to initial recognition, investments in subsidiaries are measured at cost and
investments in associates are accounted for using the equity method in the Group financial
statements and the cost method in the Company financial statements. Therefore, the Group
financial statements include the Group’s share of the profit and net assets of associated
undertakings.
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents
amounts receivable for goods and services provided in the normal course of business, net of sales
related taxes and discounts. Advertising revenue is recognised on the date of publication and
sales revenue is recognised at point of sale less provisions for levels of expected rectums. Printing
revenue is recognised when the service is provided. Investment income is recognised when
earned.
Foreign currencies
The results and financial position of the Group are expressed in pounds sterling, its functional
currency. in preparing the accounts of individual companies, transactions in currencies other
than pounds sterling are recorded at the exchange rate ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are
translated to sterling at the foreign exchange rate ruling at that date. Exchange differences arising
on translation are recognised in the consolidated income statement for the period.
Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value
are translated at the rates prevailing at the dates when the fair value was determined. Non-
monetary assets and liabilities that are measured at historical cost in a foreign currency (e.g.
property, plant and equipment purchased in a foreign currency) are translated using the exchange
rate prevailing at the date of the transaction. Exchange differences arising on the translation of
net assets are effected through the statement of recognised income and expense.
For the purpose of presenting consolidated financial statements, the assets and liabilities of the
Group’s foreign operations are translated at exchange rates prevailing on the balance sheet date.
Income and expense items are translated at the average exchange rates for the period, Exchange
differences arising, if any, are classified as equity and transferred to the reserves. Such
translation differences are recognised as income or as expenses in the period in which the
operation is disposed of.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as
assets and liabilities of the foreign entity and translated at the closing rate.
Where a foreign currency loan forms part of the net investment in a foreign subsidiary, on
consolidation the exchange differences are recognised directly in equity.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all
the risks and rewards of ownership to the lessee. Assets held under finance leases are capitalised
within property, plant and equipment and are depreciated over the shorter of the lease terms and
their useful lives, The capital elements of future lease obligations are recorded as liabilities,
while the interest elements are charged to the income statement over the period of the leases on
the effective interest method. All other leases are classified as operating leases and rentals are
charged on a straight line basis over the lease term.
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
Accounting policies (continued)
Financial instruments
Financial assets and financial liabilities are recognised on the Group’s balance sheet when the
Group becomes a party to the contractual provisions of that instrument.
One subsidiary uses forward foreign currency contracts to hedge its net cash f`low exposure and
another has taken out a fixed rate interest swap to hedge its term loan interest rate exposure. The
Group does not use derivative financial instruments for speculative purposes.
Interest rate swaps and foreign currency exchange contracts are initially recognised at cost and
are subsequently re-measured to fair value at each balance sheet date. Changes in the fair value
of derivative financial instruments that do not qualify for hedge accounting are recognised in the
income statement as they arise. These valuations are provided by the issuing financial institution.
See Note ##.
Derivatives embedded in other financial instruments or other host contracts are treated as
separate derivatives when their risks and characteristics are not closely related to those of the host
contracts and the host contracts are not carried at fair value with unrealised gains or losses
reported in the income statement.
Preference shares issued by Group companies are recognised as a liability where an obligation
exists. Related dividends are recognised as they accrue as an interest expense.
Trade and other receivables
Trade receivables do not carry any interest and are stated at their nominal value as reduced by
appropriate allowance for impairments which, based upon previous experience is evidence oaf
reduction in the recoverability of the cash flows. Changes in this allowance are recognised in the
income statement.
Other receivables are assessed for indicators of impairment at each year end and where a
provision is required the income statement is charged directly.
Trade and other payables
Trade payables are not interest-bearing and are stated at their nominal value.
Borrowings
Interest-bearing loans and bank overdrafts are initially recorded at the fair value of proceeds
received and are subsequently stated at amortised cost. Finance charges, including premix
payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis
to the income statement using the effective interest method and are added to the carrying amount
of the instrument to the extent that they are not settled in the period in which they arise.
Financial guarantee contracts
The company treats guarantee contracts as a contingent liability until such time as it becomes
probable that the company will be required to make a payment under the guarantee.
I# Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
Accounting policies (continued)
Taxation
The tax expense represents the sum of the income tax and deferred tax charge for the year.
The tax currently payable is based on taxable profit for the year. The Group’s liability for current
tax is calculated using the tax rates that have been enacted or substantively enacted by the
balance sheet date.
Deferred tax is measured on differences between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases, as used in the computation of taxable
profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are
generally recognised for all taxable temporary differences and deferred tax assets are recognised
to the extent that it is probable that taxable profits will be available. Such assets and liabilities
are not recognised if the temporary difference arises from goodwill or from the initial recognition
(other than in a business combination) of financial assets and liabilities in a transaction that
affects neither the taxable profit nor the accounting profit.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the
liability is settled or the asset is realised. Deferred tax is charged or credited in the income
statement, except when it relates to' items charged or credited directly to equity, in which case the
deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when the relevant requirements of IASIZ are
satisfied.
Inventories
inventories are valued at the lower of cost and net realisable value. in determining the cost of
raw materials, consumables and goods for resale, the average purchase price is used. For work in
progress and finished goods, cost is taken as production cost which includes an appropriate
proportion of overheads.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances in the balance sheet. Bank overdrafts that are
repayable on demand and form an integral part of the Group’s cash-book management are
included as a component of cash and cash equivalents for the purpose only of` the statement of
cash f`lows.
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
Accounting policies (continued)
Retirement benefit costs
The Group operates both defined benefit and defined contribution pension schemes covering the
majority of employees.
Payments to defined contribution schemes are charged to the income statement as an expense as
they fall due.
For defined benefit retirement benefit schemes, the cost of providing benefits is determined by
independent actuaries using the projected unit credit method by discounting the estimated future
cash f`lows using interest rates on high quality corporate bonds that have maturity dates
approximating to the terms of the Group’s and the Company’s obligations. Actuarial gains and
losses are recognised in full in the period in which they occur restricted by the surplus cap
requirements of IAS I# Para ##(b). Such gains and losses are recognised outside the income
statement and are presented in the statement of recognised income and expense. Past service cost
is recognised immediately, to the extent that the benefits are already vested or are amortised on a
straight line basis over the average period until the benefits become vested.
The retirement benefit surplus recognised in the balance sheet represents the fair value of scheme
assets as reduced by the present value of the defined benefit obligation as adjusted for
unrecognised past service cost. The surplus is limited to past service cost, plus the present value
of available refunds and reductions in future contributions to the scheme.
Dividends payable
Dividends payable to the Company’s shareholders are recorded as a liability in the period in
which the dividends are approved.
Critical judgements in applying the Group’s accounting policies
In the process of applying the Group’s accounting policies, management has made the following
judgements that have the most significant effect on the amounts recognised in the financial
statements (apart from those involving estimations, which are dealt with below).
Valuation of intangible assets on acquisition
During the year the Group completed the acquisition described in Note ##. The Group’s policies
require that a fair value at the date of acquisition be attributed to the intangible assets owned by
the acquired businesses. The directors use their judgement to identify the separate intangible
assets and then determine a fair value for each based upon the consideration paid, the nature of
the asset, industry statistics, future potential and other relevant factors. The useful lives and
carrying values are reviewed for impairment annually.
Deferretl tax balances on intangible assets
Deferred tax amounting to £##,###,### at ## March #### (#### - .£##,###,###), has been
provided under IAS I# (Income Taxes) on the values of the intangible assets in the Group’s
balance sheet. The directors have provided this balance in order to comply with the technical
requirements of IAS I# despite the fact that they cannot foresee any circumstances in which such
a tax liability would arise.
There is no intention at the present time to dispose of any of the assets concerned but even if such
a decision was to be taken at some future date, it is unlikely that the assets would be sold
separately from the legal entities. Accordingly this tax provision should never be required to be
paid.
#] Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
Accounting policies (continued)
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the
balance sheet date, that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year, are discussed below.
Impairment
Determining whether any non current asset has been impaired requires an estimation of the value
in use of the cash generating units to which these assets are allocated. The value in use
calculation requires the Group to identify appropriate cash generating units, to estimate the future
cash flows expected to arise from each cash generating unit and a suitable discount rate in order
to calculate present value. Impairment exercises on fixed tangible assets, goodwill and indefinite
life intangible assets have been undertaken in the year as described in the relevant notes.
Useful lives
The Group uses forecast cash flow information and estimates of future growth to assess whether
goodwill and other intangible fixed assets are impaired, and to detention the useful economic
lives of its goodwill and intangible assets. If the results of operations in a future period are
adverse to the estimates used a reduction in useful economic life may be required.
Retirement benefit asset
The financial statements recognise an asset which reflects the surplus within one of the Group’s
final salary pension schemes, restricted to the amount expected to be recovered through refunds
or reductions in future contributions in line with IAS I#.
The movement in this asset is determined with advice from actuarial advisers and affects both the
income statement and the statement of recognised income and expense.
The calculations undertaken by the actuary apply a number of critical assumptions which can
materially ipact the reported asset and the amount recognised in the income statement from
year to year. The principal factors are disclosed in Note ##.
Provision for returns
Provision is made in the Book and Magazine businesses based on estimates of the expected level
of returns and exposure to distributors.
Standards not yet effective
The following standards are not yet effective # IFRSI (amended)/IAS## (amended) - Cost of an
investment in a subsidiary,jointly controlled entity or associate, IFRS# (amended) - Share-based
Payment- Vesting Conditions and Cancellations, IFRS# (revised ####) - Business Combinations,
IASI (revised ####) - Presentation of Financial Statements, IFRS # Operating Segments, IFRIC
I# Service Concession Arrangements, OAS## (revised ####) - Borrowing Costs, IASZ# (revised
####) ~ Consolidated and Separate Financial Statements, OAS## (amended)/IASI (amended) -
Puttable Financial Instruments and Obligations Arising on Liquidation, IFRICIS - Agreements
for the Construction of Real Estate, auricle# - Hedges of a Net Investment in a Foreign
Operation.
The directors do not expect any of these standards to have a material impact on the financial
statements.
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
# Revenue #### ####
£### £### £###
Trading revenue ###,### ###,###
Other income
Dividends ##,### ##,###
Interest #,### #,###
##,### ##,###
###,### ###,###
Analysis of trading revenue by destination market
United Kingdom ###,### ###,###
Rest of Europe ##,### ##,###
North America ##,### ##,###
Rest of World ##,### ##,###
###,### ###,###
# Income statement
Total expenses is stated after charging:
Depreciation #,### #,###
Amortisation #,### #,###
Impairment of assets ##,### -
Auditor’s remuneration ### I ##
Auditor’s remuneration for non-audit work ### ###
Loss on sale affixed assets # #
Rentals under property operating leases #,### #,###
Rentals under plant operating leases ### ###
and allier crediting
Gain on sale of fixed tangible assets ### ###
Net income from rents ## ##
The auditor’s remuneration for the company’s audit, included above, amounted to £##,###
(#### - £##,###). The non-audit work was in connection with consultancy £###,### (#### -
£###,###), taxation services £##,### (#### - £##,###) and other legislative compliance
£##,### (#### - £##,###). In addition, auditor’s remuneration for non-audit work capitalised
during the year was £nil (#### - £##, ###).
##
Registered number ####

Notes to the accounts (continued)
# Income statement analysis
#### ####
Total expenses Recurring One off Total Recurring One off Total
£### £### £### £### £### £###
Raw materials and consumables ##,### #,### ##,### ##,# I# #,### ##,###
Employee benefit costs ##,### (#,###) ##,### ##,### (# l,###) ##,###
Depreciation and amortisation ##,### - ##,### ##,### #,### ##,###
Impairment of assets - ##,### ##,### - - -
Other expenses ##,### #,### ##,### ##,### #,### ##,###
Finance costs #,### - #,### #,### - #,###
###,### ##,### ###,### ###,### (#,###) ###,###
Trading revenue is up in the Book Division by £#m on a volume basis with an additional £#m from the
fall in exchange rates which boosts the £ valuation. Newspaper and Magazine Divisions revenues,
including advertising, are down £#m.
a) The increase in inventories is described in more detail at Note ## and primarily relates to the
increase levels of activity in the Book Division resulting in higher stock levels, and the effect of
the fall in spot rates for US$.
The cost of raw materials and consumables allowing for movements in inventories has increased
by £#.#m. This reflects a volume increase of £#m at the Book Division which is in line with the
increase in trading revenue and a £#m impact from falling US$ spot rates. This division makes
extensive use of forward contracts to hedge its net cash flow exposure as set out in Note ##. The
movement in the valuation of these contracts is included in Other expenses as noted below.
b) The overall increase in employee costs from £##.#m to £##.#m reflects the defined benefit
pension credit for the year which has fallen by £#.#m because of lower asset values and expected
rectums coupled with higher interest cost on increased liabilities (Note ##). Severance payments
have increased by £#.#m. Employee benefits costs are set out in Note #. The increase before
pension credit and severance payments from £##.#m to £##.#m reflects the increase in trading
activity in the Book Division, in particular the expansion in Australia, and small inflationary
increases across other divisions.
c) Depreciation for the year has fallen by £#.#m to £#.#m due to the lower levels of capital
expenditure and the capitalisation policy with regard to IT.
Amortisation of intangibles has increased by £#.#m reflecting the full year amortisation of the
Australian acquisition.
d) Other expenses have increased by £#m due to certain one off costs including restructuring within
the group of £#m, an increase in bad debts of £#m in Parragon Publishing, increases in energy
bills of £#m, together with additional overhead and property leasing costs in the Book Division
required to facilitate the growth in activity levels. These increases are offset by the credit for the
year arising from the movement in the valuation of forward contracts as per Note ##. The
comparative figure includes a reallocation of £#.#m from Other expenses to Raw Materials.
##
Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
# Employee benefits costs #### ####
Number Number
Average monthly number of employees during the year
Group #,### #,###
Company #,### #,###
Employee costs during the year (including directors £### £###
remuneration) amounted to:
Wages and salaries ##,### ##,###
Social security costs #,### #,###
Defined contribution pension costs ### ###
##,### ##,###
Defined benefit pension credit (Note ##) (#,###) (##,###)
Severance payments #,### ###
##,### # #,###
The pension credit is a non cash adjustment arising from the accounting treatment of final
salary pension schemes under IASI# (Note ##).
# Directors’ emoluments #### ####
£### £###
Remuneration ### ###
Pension scheme ccontributions - -
### ###
The emoluments receivable by the highest paid director are £###,### (#### - £###,###) and
there is no accrued pension at #i March #### or #### as his service during the current and
preceding year has no effect on his pension entitlement.
Retirement benefits are accruing to the following #### ####
number of directors under: Number Number
Defined benefit schemes # I
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
Impairment
As set out in Notes ## and ##, the Group annually reviews the carrying value of fixed tangible
and intangible assets. This year, the Group has considered the printing capacity and
organisation across the group and has identified an excess carrying value within property and
plant of £##.#m which has been charged to the income statement. A similar exercise was
carried out in #### and again in #### when £##.#m and £##.#m impairments were charged to
the income statement. The cash generating units (CGU’s), as described in Note ##, were each
of the printing locations used by the Group and where different printing methods were in use in
one location each printing method was treated as a CGU. Contributions for each CGU were
based upon best available information and estimated residual value of property. A discount rate
of #.#% was used. The Group has also been involved in developing certain intangible assets
with regard to films and on-line services which at this time may not be supported by future
revenues and accordingly these have been impaired by £#.#m.
Finance costs #### ####
£### £###
Interest payable #,### #,###
Preference share interest expense ### ###
#,### #,###
Interest is payable by the following companies
Parragon Publishing Limited #,### #,###
Puzzler Media Holdings Limited #,### #,###
Aberdeen Journals Limited ### ###
#,### #,###
The preference share interest expense relates wholly to Puzzler Media Holdings Limited.
Note ## sets out the group borrowings which reside with Parragon Publishing Limited and
Puzzler Media Holdings Limited.
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
## Taxation #### ####
£### £###
Current taxation
UK corporation tax on profits for the year #,### ##,###
Double tax relief (###) (###)
#,### ##,###
Overseas tax ### ###
Adjustments in respect of prior years - UK (###) (###)
- Overseas ## (##)
#,### ##,###
Deferred taxation
Origination and reversal of timing differences (#,###) #,###
Change in tax rates - (###)
Adjustment in respect of prior years (###) (###)
Change in tax rate on intangible (##) (#,## #)
Taxation #,### ##,###
Factors affecting tax charge for year
Profit for year before tax ##,### ##,###
Tax thereon at ##% (#### - ##%) #,### ##,###
Effects of
Franked investment income not attracting tax (#,###) (#,###)
Excess book gain over capital gain ### #
Items not affecting tax charge #,### ###
Overseas profits tax impact ### #
Associate undertaking effect (###) (#,###)
Change in industrial buildings allowance _ #,###
Change in tax rate (##) (#,###)
Adjustments in respect of prior years (###) (###)
Taxation #,### ##,###
Notes to the accounts (continued)
##
Registered number ####

DC Thomson & Company Limited
## Dividends - paid in the year #### ####
£### £###
Ordinary shares:
Final for #### of###.#p per share paid (#### - ###.#p) ##,### ##,###
Interim of ##p per share (#### - ##p) #,### #,# ##
##,### ##,###
Dividends paid alter the year end are no longer recognised as liabilities
Dividends - paid post year end and proposed
Interim of ##p paid (#### - ##p) #,### #,###
Final of ###.#p per share proposed (#### ~ ###.#p) ##,### ##,###
##,### ##,###
## Goodwill
Group £###
Cost
At ## March #### ###,###
On acquisition of minority shareholding in subsidiary #,###
Acquisitions #,###
On change in tax rate (#,###)
At ## March #### ###,###
On acquisitions (Note ##) #,###
On change of tax rate (###)
At ## March #### ###,###
Towards the year end the Group acquired This England Publishing Limited for £#.#m creating
goodwill of £l.#m. On ## February ####, the Group acquired all the minority shares in
Parragon Publishing Limited for £ l#m.
Goodwill now includes £##m (#### - £##### for Pan'ago Ppublishing Limited, £l#m (#### -
£##m) for Puzzler Media Holdings Limited, £##m (#### - £##m) for Aberdeen Journals
Limited and £#m for This England Publishing Limited.
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
## Goodwill and other intangible assets (continued)
Intangible assets Indefinite
life Other Total
£### £### £###
Group
At ## March #### ###,### ##,### ###,###
Acquisition - #,### #,###
Addition #,### #,###
Release to income statement (#,###) (#,###)
Retranslation of foreign assets - ### ###
At ## March #### ###,### ##,### ###,###
Acquisition - #,### #,###
Transfer from debtors - #,### #,###
Addition # #,### #,###
Release to income statement - (#,###) (#,###)
Impaimient (Note #) (#,###) (#,###)
Retranslation of foreign assets - ### ###
At ## March #### ###,### ##,### ###,###
Intangible assets
Company
Transfer from debtors #,### #,###
Addition #,### #,###
Impairment (Note #) - (#,###) (#,###)
At ## March #### - #,### #,###
Indefinite life intangible assets, which are mainly mastheads, include £##m on the
acquisition of Puzzler Media Holdings Limited and £###m on the acquisition of Aberdeen
Journals Limited. Other intangible assets are mainly licences and distribution channels to
market and include £##m (#### - film) in Parragon Publishing Limited and £#m (#### -
£#### in Puzzler Media Holdings Limited, together with film costs of £#m (#### - £NiD in
DC Thomson & Company Limited and £#m publishing assets in This England Publishing
Limited. All these intangible assets were purchased. Internally generated intangible assets
are not recognised.
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
Goodwill and other intangible assets (continued)
Goodwill and indefinite We intangible assets
The Group tests goodwill and indefinite life intangible assets annually for impairment, or
more frequently if there are indications that they might be impaired. No impairment of
goodwill or indefinite life intangible assets was recognised in #### or ####, other than arising
from the change in tax rate.
Goodwill arising on acquisitions has been allocated to the group of assets or cash-generating
units (CGUS) that are expected to benefit from those business combinations.
The directors consider that certain intangible assets arising on acquisition have an indefinite
useful life because they represent brands which have been in existence for many years, have
strong market recognition and are central to their division’s strategic plan.
The Group applies IAS## impermanent of Assets. Under this the Group conducts a formal
annual review to determine whether the carrying value of the goodwill and intangible assets
on the balance sheet can be justified. The impairment review comprises a comparison of the
carrying amount of the goodwill and intangible assets with its recoverable amount (the higher
of fair value less costs to sell and value in use).
When testing for impatient, recoverable amounts for all of the Group’s CGUs were
measured at their value in use by discounting the expected cash flows over the next ## years
from the assets in the CGUs. The remaining useful life of the CGUs is expected to exceed ##
years. These calculations use cash flow projections based on forecasts for the next five years,
Cash flows beyond the initial five year period are extrapolated using a long-term growth rate
of #% (which is inflation only). The cash flows have been discounted at a pre-tax discount
rate of #%, the Group’s current cost of capital. These assumptions have been used for all
CGUS to which goodwill and indefinite life intangible assets are allocated.
The key assumptions for these reviews are discount rates and expected trading performance,
Residual values are assumed where appropriate based on a multiple of the year ## cash flow
and other figures reflect managements’ best estimate given current knowledge, From the
results of these reviews the directors are satisfied the goodwill and intangible assets have not
been impaired and where appropriate continue to have an indefinite useful life.
Other intangible assets
The intangible amortisation charge of £#.#m (#### ~ £Z#m) relates to certain titles in the
Magazine Division and licence and origination costs in the Book Division. These are
amortised over their estimated useful lives.
The addition in the year relates to film costs, Book Division origination spend and the
publishing asset recognised on acquisition of This England Publishing Limited.
At the year end, the Group reviewed the appropriateness of the remaining useful economic
lives and carrying value for all its intangible assets. Based on anticipated income from films
the film costs intangible asset has been impaired by £#.#m. The Group is satisfied that the
carrying value at ## March #### of these assets remain recoverable in full.
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
## Property, plant and equipment
Assets in
Freehold Plant and course of
property equipment construction Total
£### £### £### £###
Group
Cost
At ## March #### ##,### ###,### #,### ###,###
Additions ### #,### #,### #,###
Transfers - #,### (#,###) -
On acquisition of subsidiary ### ### - ###
Disposals (#) (#,###) - (#,###)
Retranslation of foreign assets ## ## - ##
At ## March #### ##,### ###,### #,### ###,###
Additions ### #,### ### #,###
Transfers ### #,### (#,###) -
Disposals (#) (###) - (###)
Retranslation of foreign assets ### ### - ###
At ## March #### ##,### ###,### ## ###,###
Depreciation
At ## March #### ##,### ###,### ###,###
Charge for year ### #,### #,###
On disposals (#) (#,###) (#,###)
Retranslation of foreign assets - I# - I#
At ## March #### ##,### ###,### ###,###
Charge for year #,### #,### #,###
Transfers ### (###) -
On disposals - (###) (###)
Impairment #,### #,### ##,###
Retranslation of foreign assets ## ### - ###
At ## March #### ##,### ###,### - ###,###
Net book value
At ## March #### ##,### ##,### ## ##,###
At ## March #### ##,### ##,### #,### ##,###
## Registered number ####


DC Thomson & Company Limited
Notes to the accounts (continued)
Property, plant and equipment (continued)
Assets in
Freehold Plant and course of
property equipment construction Total
£### £### £### £###
Company
Cost
At ## March #### ##,### ###,### #,### ###,###
Additions ### ## #,### #,###
Transfers - #,### (#,###) -
Disposals (#) (###) - (###)
At ## March #### ##,### ###,### #,### ###,###
Additions ### ### ### #,###
Transfers ## #,### (#,###) -
Disposals - (###) - (###)
At ## March #### ##,### ###,### ## ###,###
Depreciation
At ## March #### ##,### ###,### ###,###
Charge for year ### #,### #,###
On disposals (#) (###) - (###)
At ## March #### ##,### ###,### ###,###
Charge for year ### #,### #,###
On disposals - (###) (###)
Impainnent #,### #,### - ##,###
At ## March #### ##,### ###,### - ###,###
Net book value
At ## March #### ##,### ##,### ## ##,###
At ## March #### ##,### ##,### #,### ##,###
The directors review on an ongoing basis the useful lives and carrying values of the
company’s major printing installations. The cash generating units were taken to be individual
printing installations. The method of review is described in Note ##.
The impatient has been undertaken in line with the approach set out in Note #, whilst taking
recognition of the expected working lives of the property and plant available to the company
and known contracts.
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
Financial assets - other business assets
#### ####
Group Company Group Company
£### £### £### £###
At ## March #### ###,### ###,### ###,### ###,###
Additions #,### #,### ##,### ##,###
Transfer to associate (##,###) (##,###) - -
Disposals (##,###) (##,###) (##,###) (##,###)
Revaluation (###,###) (###,###) (##,###) (##,#l #)
At ## March #### ###,### ###,### ###,### ###,###
These assets principally divide into reserves, publishing, media and retail interests and our
incubator interests. They are a significant part of and support, the trading businesses and are
core to the operations and underpin pensions and other ongoing obligations.
The Group operates a prudent policy of having reserves, interests and assets which are used in
the businesses, are interests or businesses core to the main operations, and which, together
with cash and cash equivalents, are available to cover (as far as may be known) actual and
implicit liabilities as well as operational needs.
The carrying amount of listed business assets are stated at their fair value based on bid market
price. The potential capital gains tax payable based on these Group values is .£##m (#### -
£###in) and is included in Note ##.
## Financial assets - interests in Group undertakings
Company
A list of the investments in significant subsidiaries and associates is given in Note ## to the
accounts.
Shares Loans Total
£### £### £###
At ## March #### ###,### ###,### ###,###
Additions #,### ##,### ##,###
Disposals (##,###) - (##,###)
At ## March #### ###,### ###,### ###,###
Additions - ##,### ##,###
Disposal - (##,###) (##,###)
Transfer #,### ##,### ##,###
At ## March #### ###,### ###,### ###,###
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
## Financial assets - interests in associates
Group #### ####
£### £###
At ## March #### - ##,###
Transfer from unlisted investment ##,### -
Additions ### #,###
Share of profit #,### -
Interest payable by group undertaking (###) -
Disposal - (##,###)
At ## March #### ##,### -
During the previous year, Chelsea Stores Holdings Limited was sold to Mothercare PLC by
way of a share exchange.
During the year, the Group acquired additional shares in Newsfax informational Limited
bringing its shareholding to ##% and accordingly it is now recognised as an associate.
Since the year end the Group has acquired the remaining shares in bright solid group limited
(see Note ##). The Group’s role has been evolving over the last year and accordingly, the
directors consider bright solid group limited became an associate with effect from # April
####.
##a Minority interest - Group
Minority interest in the profit and loss account of £###,### (#### - £l,###, ###) represents the
share of subsidiary undertakings’ results for the year which do not belong to the Group.
At ## March ####, the minority interest is a liability of £#,###,### (#### - £##I,###),this is
the minority interest in ICOB a subsidiary of Parragon Publishing Limited, and an asset of
###,###,### (#### - .£#,###,###). The asset relates entirely to Puzzler Media Holdings
Limited. The movement from last year represents the charge for the year as set out above as
adjusted by the minority interest in movements through equity. The asset element is netted
against shareholder equity in Note ##.
The balance sheet figure represents the share of subsidiaries’ net assets at the year end which
do not belong to the Group. Where the minority interest’s share is an asset, it is only
recognised to the extent it is considered recoverable.
Included in non current borrowings are preference shares of £#,###,### which are held by
the minority shareholders of Puzzler Media Holdings Limited.
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
## Inventories #### ####
Group Company Group Company
£### £### £### £###
Raw materials and
consumables #,### #,### #,### #,###
Work in progress #,### #,### #,### #,###
Finished goods and goods
for resale ##,### ### ##,### ###
##,### #,### ##,### #,###
Group inventories reflect provisions for slow moving items of £#,###,### (#### - £#,]##, ###).
Company inventories reflect provisions for slow moving items of £###,### (#### - £###, ###).
Finished goods have increased primarily in the Book Division where stock levels have
increased by £#.#m with the fall of USS spot exchange rates adding a further £#.#m to the
carrying value of stocks. The forward contracts in place however hedge the overall foreign
currency cash flow exposure (Notes ##, ## and ##). The Company’s reduction in work in
progress reflects a change in overhead recovery methodology.
Trade and other receivables
#### ####
Group Company Group Company
£### £### £### £###
Trade receivables ##,### ##,### ##,### # #,###
Other receivables #,### #,### ##,### #,###
Prepayments and accrued
income #,### #,### #,### ###
Receivables due from
group undertakings (Note ##) - ##,### #,###
Income tax #,### #,### #,###
##,### ##,### ##,### ##,###
The increase in trade receivables arises primarily in the Book Division from its growth in sales
accounting for a £#m increase and spot exchange rate changes a further £#m. As set out in
Notes ##, ## and ## however, that division’s extensive use of forward contracts hedges its
overall cash flow exposure. The Newspaper Division debtors have fallen £#m as activity
levels, particularly in advertising, fell away towards the year end.
Other receivables and prepayments have fallen due to timing of transactions and some
reallocations including film costs (Note ##).
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
Trade and other receivables (continued)
No interest is charged on the trade receivables. The Group has provided for estimated
irrecoverable amounts in accordance with its accounting policy.
The Group’s credit risk is primarily attributable to its trade and other receivables. Management
has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis.
Credit evaluations are performed for all customers requiring credit over a certain amount and
as appropriate. The Group reviews trade receivables past due but not impaired on a regular
basis and considers, based on past experience, that the credit quality of these amounts at the
balance sheet date has not deteriorated since the transaction was entered into and so considers
the amounts recoverable. Regular contact is maintained with all such customers and, where
necessary, payment plans are in place to further reduce the risk of default on the receivable.
Included in the Group’s trade receivable balance are debtors with a carrying amount of £##m
(#### - £#Im) which are past due at the reporting date but for which the Group has not
provided as there has not been a significant change in credit quality and the Group believes that
the amounts are still recoverable. The Group does have retention of title over much of the
stock which gave rise to these balances.
Ageing of past due but not impaired trade receivables
#### ####
Overdue by £### £###
# - ## days #,### #,## #
## - ## days #,### #,###
## + days #,### ###
##,### ##,###
Total trade receivables are stated net of provision for bad debts and returns as set out in the
accounting policies. These total £#.#m (#### - £#_]m). The credit risk is greatest in the Book
Division where debtors represent ##% (#### - ##%) of the Group total but ##% (#### - ##%)
of the year end provisions.
The directors consider that the carrying amount of trade and other receivables approximates
their fair value.
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
## Financial assets - held to maturity #### ####
£### £###
Group
Cost of fixed interest rate government securities including
premium to redemption ##,### ##,###
Company
Cost of fixed interest rate government securities including
premium to redemption ##,### ##,###
The Group acquired gilts of£##m (Company £##m) and sold gilts of £##m (Company £##.#m)
during the year.
## Borrowings
#### ####
Group Company Group Company
£### £### £### £###
Bank loans and overdraft (secured) ##,### - ##,### -
#.#% Preference shares #,### #,###
Finance leases #,### #,###
##,### - ##,### -
Current ##,### ##,###
Non-current ##,### ##,###
##,### - ##,### -
Details of the repayment of bank loans and overdrafts and finance leases are shown in Note ##.
##
Registered number ####


Fair value is calculated based on discounted expected future principal and interest cash flows at
DC Thomson & Company Limited
Notes to the accounts (continued)
Borrowings (continued)
Puzzler Media Holdings Limited accounts for £##,###,### (#### - £##,###,###) of bank loans
and overdraft, and all the preference shares. Most of these borrowings arose as part of the
finance package agreed upon with the minority shareholders on acquisition. Parragon
Publishing Limited accounts for the balance of the borrowings.
The preference shares were issued at par by Puzzler Media Holdings Limited. There are
£##.#m preference shares of which £##.#m are held by John Leng & Company Limited with the
£#.#m representing the par value of the shares not held by the Group being ##.#%. They are
redeemable only at Puzzler Media Holdings Limited’s discretion but carry a right to receive, in
preference to any payments to the ordinary shareholders, cumulative dividends of #.#% per
annum. The preference shares carry no votes at meetings unless the shares have not been
redeemed when due or a petition to wind up the company has been lodged. On a winding up of
Puzzler Media Holdings Limited, the preference shareholders have a right to receive, in
preference to any payments to the ordinary shareholders, an amount equal to the subscription
price paid for such shares and any arrears of the preference dividend.
Parragon Publishing Limited’s overdraft is secured by a fixed and floating charge over its
group’s assets. There is a further charge over the copyrights held by that group. Puzzler Media
Holdings Limited’s bank loan is secured by a fixed and floating charge over its property and
assets and those of its subsidiary undertakings.
The bank loan is repayable over # years by quarterly repayments. There are # years outstanding
on the Ioan, Interest is charged at #.##% above LIBOR, which has been capped at #.#% through
an interest rate swap (see Note ##).
current interest rates.
Bank loans and
Finance leases overdrafts
Group #### #### #### ####
£### £### £### £###
Borrowings can be analysed as falling due:
In one year or less, or on demand #,### #,### ##,### ##,###
Between one and two years #,### #,### #,### #,###
Between two and five years - #,### #,### ##,###
#,### #,### ##,### ##,###
Current liabilities (#,###) (#,###) (##,###) (##,###)
Non-current liabilities #,### #,### ##,### ##,###
Puzzler Media Holdings Limited has repaid £#.#m of term loans in the year.
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
## Trade and other payables
#### ####
Group Company Group Company
£### £### £### £###
Trade payables and accruals ##,### #,### ##,### #,###
Other taxes and social security #,### #,### #,### #,# ##
Interim dividend - - #,### #,###
Payables due to group undertakings - #,### - #,###
(Note ##)
Other payables ##,### #,### ##,### #,###
##,### ##,### ##,### ##,###
Current ##,### ##,### ##,### # #,###
Non-current #,### - #,### -
##,### ##,### ##,### # #,###
The Group non-current liabilities relate to the accrued dividends on preference shares issued by
Puzzler Media Holdings Limited which are not held by the Group (see Note ##).
The trade payables increase reflects the impact ii in particular, the USS exchange rate
movements in the year. As set out in Notes ##, ## and ## however, that division’s extensive
use of forward contracts hedges its overall cash flow exposure.
Other payables include accruals for reorganisation and severance costs as well as timing
differences.
Trade creditors and accruals principally comprise amounts outstanding for trade purchases and
ongoing costs. The Group has financial risk management policies in place to ensure all
payables are paid within the agreed credit terms.
The directors consider that the carrying amount of trade payables approximates their fair value.
Financial instruments
Capital management
The Board’s policy is to maintain a strong capital base so as to cover all liabilities and to
maintain the business and to sustain its development.
The Board of Directors also monitors the level of dividends to ordinary shareholders.
There were no changes in the Group’s approach to capital management during the year.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital
requirements.
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
Financial instruments (continued)
Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for
recognition, the basis of measurement and the basis on which income and expenses are
recognised, in respect of each class of financial asset, financial liability and equity instrument
are disclosed on pages ## to ##.
Categories of financial instruments
Group #### ####
£### £###
Financial assets (current and non-current)
Trade and other receivables ##,### ##,###
Financial assets - held to maturity ##,### ##,###
Cash and cash equivalents ##,### ##,###
Financial assets - other business assets ###,### ###,###
Derivative financial instruments #,### -
Financial liabilities (current and non-current)
Derivative financial instruments ~ - (#,###)
Trade and other payables (##,###) (##,## #)
Borrowings (##,###) (##,###)
Financial risk management objectives
The key divisional boards monitor and manage the financial risks relating to the operations of
that division. These risks include market risk (including currency risk and interest rate risk),
credit risk and liquidity risk.
Where appropriate, the Group seeks to minimise the effects of market risks by using derivative
financial instruments to hedge these risk exposures as appropriate. The Group does not enter
into or trade in financial instruments, including derivative financial instruments, for speculative
purposes.
Market risks
The Group’s activities, particularly the Book Division, expose it primarily to the financial risks
of changes in foreign currency exchange rates.
There has been no change to the Group’s exposure to market risks or the manner in which it
manages and measures risk.
The total fair value of the currency and interest rate financial assets is an asset of ###,###,###
(#### ~ liability £#,###,###) and the credit in the year through other expenses in the income
statement is £#,#l #,### (#### - debit £#,##l, ###).
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
Financial instruments (continued)
Currency nark - cash /low hedges
The Book Division is party to a number of currency forward contracts in the management of its
exchange rate exposures. The instalments purchased are primarily denominated in the
currencies of its overseas subsidiaries (US dollars, Euros and Australian dollars). At the
balance sheet date, the total amount of outstanding forward foreign exchange contracts that the
Group has committed to at the year end was to buy US$##m (#### - $##m) and to sell €##m
(#### - €##in) and AUS$#m (#### - AUS$##m) at various rates over a period of up to # years.
The fair value of these contracts is an asset of £#,###,### (#### - liability £#, ###, ###) which is
reflected in the balance sheet. Movements are taken through the income statement. Fair value
is based on values provided by the Group’s bankers using the appropriate valuation techniques
based on rates current at the year end.
The carrying amounts of the Book Division foreign currency denominated monetary assets and
liabilities were as follows:
Net monetary
assets/(liabilities)
#### ####
£### £###
Euro #,### #,###
US Dollar (##,###) (#,###)
Australian Dollar #,### l,##l
Foreign currency sensitivity
As noted above the Group is exposed mainly to movements in Euros and US dollars rates in
the Book Division. The forward contracts in place manage the exchange rate risk by fixing
the values of expected sterling cash flows for up to # years. However, as these hedges deal
with future cash flows, timing differences impact the year end position reported in these
accounts, The division’s sensitivity to a l#% change in pound sterling against the Euro and
the US Dollar would be £l,###,### offset by a change of £###,### in the fair value of the
forward contracts as at the year end. The impact on equity would be £#,###,##(] reflecting
the re translation of net assets on consolidation.
Interest rare risk - interest rate /ledges
Puzzler Media Holdings Limited uses an interest rate swap to cap the interest rate on a term
loan over the expected life of the loan. it is included in the balance sheet at its fair value at the
year end with year on year movements taken through the income statement. The fair value is
an asset of £#,### (#### - £##, ###).
A l% increase in global interest rates would be expected to change the Group’s annual net
interest income by £l,###,### (#### - .£###, ###) and the fair value of the interest rate swap by
£##,### (#### - £###.###). The impact of interest rate movements on the Group is relatively
insignificant.
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
Financial instruments (continued)
Credit risk management
Credit risk is the risk of financial loss to the Group ifs customer or counterpart to a financial
instrument fails to meet its contractual obligations, and arises principally from the Group’s
receivables from customers and investment securities,
The Group’s principal financial assets, other than business assets, are trade and other
receivables and cash and cash equivalents. These represent the Group’s maximum exposure to
credit risk in relation to financial assets.
Trade nm othee receivables
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of
each customer.
The balance presented in the balance sheet is net of allowances for doubtful receivables and
returns, estimated by the Group’s management based on prior experience and their assessment
in the current economic climate.
The Group’s main concentration of credit risk relates to its Book Division where a credit risk
management approach is employed, including strict retention of title and customer stock
holding visibility.
Liquidity risk management
The Group retains significant liquid assets to fund its contractual obligations and the
maintenance of the business and its ongoing development. As a result there are no significant
liquidity risks facing the Group.
The following tables detail the Group’s remaining contractual maturity for its non-derivative
financial liabilities. The tables have been drawn up on the undiscounted cash flows of financial
liabilities based on the earliest date on which the Group can be required to pay the table
includes both interest and principal cash flows.
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
## Financial instruments (continued)
Group
Gross loan and overdraft liability
in one year or less, or on demand
Between one and two years
Between two and five years
Future interest
Gross lease liability
In one year or less, or on demand
Between one and two years
Between two and five years
Future interest
Net lease liability
####
£###
##,###
#,###
#,###
##,###
(#,###)
##,###
#,###
#,###
#,###
(###)
#,###
####
£###
##,###
#,###
##,###
##,###
(#,###)
##,###
#,###
#,###
#,###
#,###
(###)
#,###
The maturity profile of the Group’s foreign currency exchange swaps using undiscounted
cash flows has roughly ##% falling due within one year with the balance due between l and #
years.
Registered number ####

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The information below relates to the defined benefit pension scheme for the parent and its
DC Thomson & Company Limited
Notes to the accounts (continued)
Retirement benefits
The Group operates both defined benefit final salary and defined contribution pension schemes
covering the majority of employees with assets held in separate, trustee administered funds.
The net pension credit for the year was £#,###,### (#### - £##, ###, ###). This includes a credit
of £#,###,### (#### - £# #,# ##, ###) for the parent and a charge of £##,### (#### - £##,###) for
a subsidiary under the IASI# defined benefit scheme calculation below, and contributions of
£# ##,### (#### - £###,###) in respect of defined contribution schemes.
Defined benefit schemes
The parent company and two subsidiaries operate defined benefit final salary schemes in the
UK. Independent valuations are carried out by a qualified actuary every three years using the
Projected Unit Credit Method. The contributions to the scheme are based on these valuations.
Defined contribution schemes
Contributions by group companies are charged to income statement as an expense as they fall
due.
subsidiaries.
#### ####
£### £###
Change in benefit obligation
Benefit obligation at beginning of year ###,### ###,###
Current service cost #,### #,###
interest cost ##,### l#,l##
Actuarial losses/(gains) #,### (##,###)
Contributions - employee ### ###
Benefits paid (##,###) (l#,###)
Benefit obligation at end of year - wholly funded ###,### ###,###
Change in plan assets
Fair value of plan assets at beginning of year ###,### ###,###
Expected return on plan assets ##,### ##,###
Actuarial losses (###,###) (##,##l)
Contributions - employee ### ###
Benefits paid (##,###) (##,###)
Contributions ~ employer ## ###
Fair value of plan assets at end of year ###,### ###,###
Retirement benefit surplus ###,### ###,###
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
Retirement benefits (continued)
#### ####
£### £###
Retirement benefit surplus
Funded status ###,### ###,###
Effect of alls# paragraph ##(b) limit (##,###) (###,###)
Net amount recognised ##,### ##,###
Group
Surplus ##,### ##,###
The actuary is unable to provide separate valuations for the parent and Aberdeen lounges
Limited, so these individual companies are accounted for as defined contribution schemes in
their own company accounts.
The credit in the income statement in respect of pension costs is lower than that in the previous
year due to lower expected returns on assets, due to a decrease in the long term expected return
and a lower asset value used as a starting point. This is combined with a higher interest cost,
due to an increase in the liabilities. There was also a fall in the service cost due to a weaker
actuarial basis being used to assess the value of benefits accruing over the year and a reduction
in salary roll.
The amount of the Funded Status (assets less liabilities) that can be recognised as an asset of
the Company is constrained by the limit set out in paragraph ##(b) of _ASl#. This limit
restricts the recognised pension asset to t#e value of the benefits that can be accrued over the
remaining working life of the active membership, calculated at lace# year end, reduced by the
value of any future contributions payable by the members themselves. The weaker assumptions
used to place a value on the liabilities at ## March #### are broadly offset by changes in the
age profile of the membership revealed by the formal actuarial valuation. Hence there is little
change in the asset that can be recognised.
The surplus disclosed above has been calculated using assumptions determined in accordance
with the requirements official#. The Trustees of the pension fund use different assumptions to
determine the financial position of the fund which are determined in accordance with
legislation and guidance from the Pensions Regulator. As a result, the financial position
disclosed above will be different to the financial position used by the Trustees in the running of
the fund. On both bases, the valuations show the fund is in healthy surplus.
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
## Retirement benefits (continued)
#### ####
Components of pension cost £### £###
Current service cost #,### #,###
interest cost ##,### ##,###
Expected rectum on plan assets (##,###) (##,###)
Total pension credit recognised in employee benefit costs (#,###) (##,###)
Actuarial losses immediately recognised ###,### #,###
Effect flashy# paragraph ##(b) limit (###,###) ##,###
Total pension charge recognised in statement of
recognised income and expense #,### ##,###
Cumulative actuarial losses/(gains) immediately recognised ##,### (##,###)
Plan assets
The weighted average asset allocation at the year end was as follows:
#### ####
Asset category % %
Equities ## ##
Bonds ## ##
Cash and annuities ## #
### ###
£### £###
Amounts i##clued in t#e fair value of assets for:
Equities ###,### ###,###
Bonds ##,### ##,###
Cash ##,### ##,###
Annuities #,### #,###
###,### ###,###
Actual return on plan assets (###,###) (##,###)
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
## Retirement benefits (continued)
Weighted average assumptions used to determine benefit #### ####
obligations % %
Discount rate #.## #.##
Rate of salary increase #.## #.##
inflation rate - #.##
Life expectancy at age ## is assumed at ## years for males and ## years for females.
Weighted average assumptions used to determine net #### ####
pension cost for year % %
Discount rate #.## #.##
Expected long term rectum on plan assets #.## #.##
Rate of salary increase #.## #.##
To develop the expected long term rate of return on assets assumption, the company considered
the current level of expected rectums on risk free investments (primarily government bonds), the
historical level of the risk premium associated with the other asset classes in which the portfolio
is invested and the expectations for the future returns of each asset class. The expected rectum
for each asset class was then weighted based on the target asset allocation to develop the
expected long term rate of return on assets assumption to the portfolio. This resulted in the
selection of the #.##% assumption at ## l\/larch ####.
History
#### #### ####
£### £### £###
Benefit obligation at end of year ###,### ###,### ###,###
Fair value of plan assets at end of year ###,### ###,### ###,###
Surplus ###,### ###,### ###,###
Difference between expected and actual return o_#
scheme assets:
amount (£###) (###,###) (##,###) ##,###
percentage of scheme assets (##%) ( ##%) #%
Experience gains and losses on scheme liabilities:
amount (£###) (##,###) (#,###) ##,###
percentage of scheme liabilities (#%) #% #%
Contributions
As advised by the actuary the parent company \bill not contribute to its final salary pension plans
next year.
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
## Called up share capital
Authorised Allotted, called up and fully paid
#### #### #### #### #### ####
£### £### Number £### Number £###
Ordinary shares of
£# each #,### #,### #,###,### #,### #,###,### #,###
## Reconciliation of shareholders’ equity - reserves
Capital
Group Other Pension expenditure Total
FESCFVCS l‘€S€l'V€ TESETYB YESEFVES
£### £### £### £###
At ## March #### ###,### ###,###
Total recognised income and
expense (page ##) (##,###) - - (##,###)
Transfer from retained earnings - ##,### ###,### ###,###
Tgtal movements (##,###) ##,### ###,### ###,###
At ## March #### ###,### ##,### ###,### ###,###
Total recognised income and
expense (page ##) (###,###) (###,###)
Total movements (###,###) - - (###,###)
At ## March #### ###,### ##,### ###,### ###,###
Other reserves include:
Capital redemption reserve of £#,###,### (#### - £l,###,###) created on the purchase by the
company of its own shares. This reserve has not moved during the year.
Revaluation reserve of £##l,###,### (#### - £###,###,###) which represents the unrealised
appreciation on financial assets. All movements in other reserves relate to this reserve.
##
Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
R ,
conciliation of shareholders equity (continued)
Group
Equity at ## March ####
Total recognised income and
expense (page ##)
Recognised directly in equity
Dividends
Minority interest
Transfer
Total movements
Total equity attributable to the
shareholders of the company
at ## March ####
Total recognised income and
expense (page ##)
Recognised directly in equity
Dividends
Minority interest
Total movements
Total equity attributable to the
shareholders of the company
at ## March ####
Retained earnings include net exchange differences arising on translation of foreign
since # April #### as follows:
At # April ####
Arising in year
At ## March ####
Arising in year
At ## March ####
Share Retained
capital Reserves earnings Total
£### £### £### £###
#,### ###,### ###,### #,###,###
(##,###) ##,### (##,###)
- (##,###) (##,###)
- (#,###) (#,###)
###,### (###,###) -
###,### (###,###) (##,###)
#,### ###,### ###,### ###,###
(###,###) ##,### (##,###)
(##,###) (##,###)
### ###
(###,###) ##,### (###,###)
#,### ###,### ###,### ###,###
operations
£###
(###)
##
(###)
#,###
#,###
##
Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
## Reconciliation of shareholders’ equity (continued)
Company Share Other Retained
capital reserves earnings Total
£### £### £### £###
Equity at ## March #### #,### ###,### ###,### ###,###
Total recognised income and
expense (page ##) (##,###) ##,### (##,###)
Dividends - (##,###) (##,###)
Total movements (##,###) ##,### (##,###)
Total equity attributable to the
shareholders of the company at ##
March #### #,### ###,### ###,### ###,###
Total recognised income and
expense (page ##) (##,###) #,### (##,###)
Dividends - (##,###) (##,###)
Total movements (##,###) (#,###) (###,###)
Total equity attributable to the
shareholders of the company at ##
March #### #,### ###,### ###,### ###,###
Other reserves include:
Capital redemption reserve of £#,###,### (#### - £#,###,###) created on the purchase by the
company of its own shares. This reserve has not moved during the year.
Revaluation reserve of £###,###,### (#### - £###,###,###) which represents the unrealised
appreciation o_# financial assets. All _movements in other reserves relate to this reserve.
Retained earnings are fully distributable.
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
## Notes to the cash flow statement
#### ####
Group Company Group Company
£### £### £### £###
Cash and cash equivalents
Bank balances ##,### #,### ##,### #,###
Call deposits ##,### ##,### ##,### ##,###
Cash and cash equivalents ##,### ##,### ##,### ##,###
Overdraft (##,###) - (##,###) -
##,### ##,### ##,### ##,###
The overdraft arises in the Book Division where increases in working capital (see Notes ## and
##) required additional short term funding.
Cash and cash equivalents
The carrying amount of these assets approximates to their fair value.
#### ####
Group Company Group Company
£### £### £### £###
Cash flows from operating activities include:
Dividends ##,### ##,### ##,### ##,###
interest #,### #,### #,### #,# ##
##,### ##,### ##,### ##,###
These are included in profit before taxation in the cash flow statements.
The interest arises primarily from deposits £#m (#### - £#m) and gilts £#m (#### - £#m).
##
Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
## Group companies
The Group’s interest in its principal subsidiary undertakings are as follows
Country of Class and
registration or Principal percentage
Subsidiary undertakings incorporation activity of shares held
# Aberdeen .lounges Limited Scotland Publisher ###% Ordinary
£# shares
# John Leng & Company Limited Scotland Publishing ###% Ordinary
holding company £# shares
a) Puzzler Media Holdings Limited England Publisher ##% Ordinary
£# shares
##.#% Preference
£# shares
b) This England Publishing Limited England Publisher ###% Ordinary
£# shares
# Meadowside Leasing Limited Scotland Publishing ###% Ordinary
holding company £# shares
a) Parragon Publishing Limited England Publisher ###% Ordinary
lo shares
###% Preference
£# shares
b) Peter Haddock Limited England Publisher ###% Ordinary
£# shares
Associated undertakings
# bright solid group limited Scotland Online publisher ##% Ordinary
£# shares
# Newsfax International Limited England Publisher ##% Ordinary
£# shares
None of the preference shares carry any voting entitlement under normal circumstances, so the
company’s voting power reflects the percentage of ownership of ordinary shares.
The Group invests in a number of unlisted businesses using both equity and loans. The
percentage voting rights does not exceed ##% so none of these investments fall to be treated as
subsidiaries. The amounts involved individually and collectively are not regarded as material to
the Group. Such investments are included as financial assets in Note ## and are carried at cost
less provisions for impairment.
Changes in ownership since the year end are set out in Note ##.
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
## Acquisitions
Towards the year end John Leng & Company Limited acquired the business and assets of This
England Publishing Limited for a cash consideration of £#,###,###.
This transaction has been accounted for as an acquisition and the fair value and goodwill arising
are set out below:
Intangible fixed assets
Tangible fixed assets
Stock
Debtors
Cash and bank
Creditors less than # year
Deferred tax
Net assets acquired
Net assets acquired
Purchase consideration
Goodwill
Accounting Fair value
Book value policies adjustments Fair values
£### £### £### £###
- - #,### #,###
## - - ##
### (##) - ##
## - ##
### - - ###
(#,###) - (#,###)
- - (#,###) (#,###)
(###) (##) #,### #,###
#,###
#,###
#,###
The intangible fixed assets are publishing rights which are being amortised over ## years. The
directors consider that the value of the intangible assets fully reflects the price paid. As a result,
the deferred tax arising under alls# gives rise to the goodwill.
This acquisition took place shortly before tote year end, and the post acquisition impact is
immaterial.
## Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
Contingent liabilities
The Group has guaranteed payments in favour of HMRC in respect of raw materials imports
and other materials the maximum liability under which would be £###,### (#### - £###, ###).
At the year end, the Group had provided a guarantee of £##,### for a commercial contract for
bright solid limited with a third party. Since the year end, this has been increased to £l.#m.
Parragon Books Limited has provided a guarantee of £###,### (#### - £###,###) for the
borrowings of Parragon Publishing (India) Private Limited, a ##%joint venture.
Financial commitments
#### ####
£### £###
Capital commitments - Group and company
Contracted for but not provided ### ###
Contractual commitments - Group
At the year end the Group was committed to making the following payments during the next
year in respect of contracts:
#### ####
£### £###
Origination costs contracted for but not provided #,### #,###
At ## Marcl# ####, Parragon Publishing Limited had forward contracts to buy US$##m (####
- USS##/ii) and to sell €##m (#### - €##m) and AUS$#m (#### - AUS$##er_) at a variety of
rates.
The Group is committed to buy the remaining ##% holding in Slebo Holdings BV (##% in
#### and ##% in ####), with consideration being based on the average profitability of that
company at time of sale.
The group has a commitment to buy the outstanding minority shareholdings in Puzzler Media
Holdings Limited
### Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
## Financial commitments (continued)
Operating lease commitments - Group
At ## March #### the Group had total commitments under non-cancellate ooperating leases
as set out below:
Land & buildings Other
#### #### #### ####
£### £### £### £###
Total amount payable where lease expires:
Within one year ## ## ### ##
In second to fifth year inclusive ### #,### ### ###
After five years #,### #,### ### ##
The land and buildings leases are mainly for offices and warehouses and are subject to
renegotiation at various intervals specified in the leases. Other leases are mainly equipment
at warehouses.
## Post balance sheet event
Since the year end, the Group bought out its joint venture partner in brightness group limited
making that group a wholly owned subsidiary.
Si##ce the year end, the Group agreed to acquire Friends Reunited Limited, subject to Office of
Fair Trading approval which is still awaited.
##
Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
## Related party transactions
The Company undertook transactions on an arm’s length basis with various subsidiaries and
associates primarily in connection with providing managerial and financing services as follows
Fees Outstanding balance
#### #### #### ####
£### £### £### £###
Aberdeen Journals Ltd #,### #,### #,### #,###
William Thomson & Sons is a non profit making partnership controlled by the directors which
provides administration and investment management services to the Group. The Parent
Company receives dividends of £#m each year from John Leng & Company Limited.
Amounts due from/to Group undertakings are included as follows:
Trade and other receivables
John Leng & Company Limited
Meadowside Leasing Limited
Puzzler Media Holdings Limited
Aberdeen Joumals Limited
Peter Haddock Limited
Dennis & Gnasher # Limited
Trade and other payables
Peter Haddock Limited
Aberdeen Journals Limited
##
####
£###
#,###
###
###
#,###
#
#
##,###
#,###
#,###
#,###
####
£###
#,###
_ ##
i##
#,###
##
#,###
###
#,###
#,###
Registered number ####

DC Thomson & Company Limited
Notes to the accounts (continued)
## Directors’ interests in share capital
The directors who held office at the date of this report had the following interests in the £#
ordinary shares of the company at the year end.
Beneficial interest:
AF Thomson
LM Thomson
CHW Thomson
As trustees without beneficial interest:
AF Thomson
LM Thomson
CHW Thomson
As joint trustees without beneficial interest:
CHW Thomson
AF Thomson )
LM Thomson )
CHW Thomson )
## March #### # April zoos
##,### ##,###
##,### ##,###
##,### ##,###
###,### ###,###
###,### ###,###
###,### ###,###
###,### ###,###
###,### ###,###
Dividends paid to directors in the year totalled £###,### (#### - £#I#,###) being £##,###
(#### - £##, ###) for AF Thomson, £##,### (#### - £##, ###) for LM Thomson and £##,###
(#### - £##, ###) for CHW Thomson.
## Country of registration
The company is incorporated in Scotland and is registered at Albert Square, Dundee DDl #QJ
Scotland.
##
Registered number ####

DC Thomson & Company Limited
Directors’ responsibilities for the preparation of accounts
The directors are responsible for preparing the annual report and accounts in accordance with applicable
law and regulations.
Company law requires the directors to prepare accounts for each financial year. Under that law the
directors have elected to prepare the accounts in accordance with informational Financial Reporting
Standards (“IFRS”) as adopted by European Union and applicable law. The accounts are required by law
to give a true and fair view of the state of affairs of the Group and Company and of the profit or loss of the
Group for that period. In preparing these accounts, the directors are required to:
~ select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable IFRS have been followed, subject to any material departures disclosed
and explained in the accounts; and
prepare the accounts on the going concept basis unless it is inappropriate to presume that the
Group will continue in business.
The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy
at any time the financial position of the company and enable them to ensure that the financial statements
comply with the Companies Act ####. They are also responsible for safeguarding the assets of the
company and hence for taking reasonable steps for the prevention and detection of fraud and other
irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information
included on the company’s website.
## Registered number ####

DC Thomson & Company Limited
Independent auditor’s report to the shareholders of DC Thomson & Company Limited
We have audited the Group and parent company accounts (“the accounts”) of DC Thomson &
Company Limited for the year ended #l March #### which comprise the group income statement, the
group and parent company balance sheets, the group and parent company cash flow statements, the
group and parent company statements of changes in equity, the group and parent company statement of
recognised income and expense and the related notes. These accounts have been prepared under the
accounting policies set out therein.
This report is made solely to the company’s members, as a body, in accordance with Section ### of the
Companies Act ####. Our audit work has been undertaken so that we might state to the company’s
members those matters we are required to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than
the company and the company’s members as a body, for our audit work, for this report, or for the
opinions we have formed.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the annual report and the financial statements in accordance
with applicable law and informational Financial Reporting Standards (IFRS) as adopted by the European
Union are set out in the directors’ responsibilities statement.
Our responsibility is to audit the accounts in accordance with relevant legal and regulatory requirements
and informational Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the accounts give a true and fair view and have been
properly prepared in accordance with the Companies Act ####. We also report to you whether, in our
opinion, the information given in the directors’ report is consistent with the accounts.
In addition we report to you if, in our opinion, the company has not kept proper accounting records, if
we have not received all the information and explanations we require for our audit, or if information
specified by law regarding directors’ remuneration and other transactions is not disclosed.
We read the directors’ report and consider the implications for our report if we become aware of any
apparent misstatements or material inconsistencies with the accounts. Our responsibilities do not
extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland)
issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence
relevant to the amounts and disclosures in the accounts. It also includes an assessment of the significant
estimates and judgements made by the directors in the preparation of the accounts, and of whether the
accounting policies are appropriate to the Group’s and the company’s circumstances, consistently
applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we
considered necessary in order to provide us with sufficient evidence to give reasonable assurance that
the accounts are free from material misstatements, whether caused by fraud or other irregularity or
error. In forming our opinion we also evaluated the overall adequacy of`the presentation of information
in the accounts.
## Registered number ####

DC Thomson & Company Limited
Independent auditor’s report to the shareholders of DC Thomson & Company Limited
(continued)
Opinion
In our opinion:
# the accounts give a true and fair view, in accordance with IFRS as adopted by the European
Union, of the state of the group’s and the parent company’s affairs as at #l March #### and of
the group’s profit for the year then ended;
° the accounts have been properly prepared in accordance with the Companies Act ####; and
# the information given in the directors’ report is consistent with the accounts.
ll #w
Henderson Loggie
Chartered Accountants
Registered Auditor
Dundee
## October ####
#] Registered number ####