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REGISTERED NUMBER: 00839992 (England and Wales)





















STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

COGENT ELLIOTT LIMITED

COGENT ELLIOTT LIMITED (REGISTERED NUMBER: 00839992)






CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 31 December 2021




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


COGENT ELLIOTT LIMITED

COMPANY INFORMATION
for the year ended 31 December 2021







DIRECTORS: W.E. Husselby
M.S. Husselby





REGISTERED OFFICE: Heath Farm
Hampton Lane
Meriden
West Midlands
CV7 7LL





REGISTERED NUMBER: 00839992 (England and Wales)





AUDITORS: Dafferns LLP
One Eastwood
Harry Weston Road
Binley Business Park
Coventry
CV3 2UB

COGENT ELLIOTT LIMITED (REGISTERED NUMBER: 00839992)

STRATEGIC REPORT
for the year ended 31 December 2021

The directors present their strategic report for the year ended 31 December 2021.

OVERVIEW OF COGENT
Cogent is a well-respected, market leading creative agency and is the oldest independent agency in the UK, having traded successfully for over ninety years.

Our principal business is in delivering integrated marketing campaigns to client companies, driving their growth, building their brands, influencing consumer behaviour and ensuring strong ROI in an increasingly digital world.

Core capabilities include Planning, Strategy, Digital, Advertising, Design, Mobile, Brand, Social, PR, Film, Photography, CRM, Online Media, SEO and Content. We operate in both B2B (40%) and B2C (60%) markets.

Our proprietary 'Belief Mapping' tool helps brands change behaviour by building and sharing a cogent narrative.

REVIEW OF BUSINESS
Our 2021 business plan was focussed on the continued recovery from the Covid-19 crisis.

We were pleased to follow a tough 2020 with very strong new business performance. New wins included Virgin, Wolseley, Enreach, Lifetime Brands and Stellantis. Our win ratio was over 80%.

We are also very proud not to have lost a client in 2021, achieved record breaking Net Promoter scores and once again won Campaign Magazine Best Places to work for the third year running as well as picking up an IPA Gold for delivering on our CPD commitments across the whole team.

We launched our Mission:

- Better People

- Better Relationships

- Better Work

We firmly believe that investment in our team will, overall deliver better results for our clients and therefore for us as well.

We heavily invested in the Government's Kick Start scheme, giving the underprivileged a gateway into our industry. We currently have four great team members fully employed following their initial six-month period.

Our sister operation, Junction Eleven Limited, based in Banbury continued its recovery from Covid with more film work, building on our editing capabilities and also developing a 'remote shoot' product to avoid clients having to travel.

The bulk of our business operation remains headquartered in the Midlands, where our location, outstanding office facilities and reputation allow us to attract world class talent, whilst also offering greater value to clients often shackled with covering London overheads via our competitors.

PRINCIPAL RISKS AND UNCERTAINTIES
The business environment in which we operate continues to be challenging. The Marketing Communications industry in the UK is highly competitive, and margins remain under pressure.

We continue to experience further economic uncertainty in the current year, with the war in Ukraine, client-side supply chain issues, inflationary pressures, and the cost-of-living crisis.

The directors aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year-end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.


COGENT ELLIOTT LIMITED (REGISTERED NUMBER: 00839992)

STRATEGIC REPORT
for the year ended 31 December 2021

KEY PERFORMANCE INDICATORS
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover and gross margin.

Overall, the operating profit for the year was £457,434 compared to an operating profit of £18,070 in 2020.

Return on capital employed was 15% (2020: 1%). Return on capital employed is calculated as operating profit divided by capital employed, which constitutes total assets less current liabilities, less investments, less cash, plus overdrafts and other debt borrowings.

FUTURE DEVELOPMENTS
In 2022 the business benefits from the full year of our new business wins, and our client base remains broad and varied. No single client represents more than 15% of our total revenue, reducing risk to the business.

Looking forward the directors continue to invest in the business with plans to extend and diversify the agency service offering, to both attract new work as well as add further value to our existing clients.

ON BEHALF OF THE BOARD:





W.E. Husselby - Director


24 August 2022

COGENT ELLIOTT LIMITED (REGISTERED NUMBER: 00839992)

REPORT OF THE DIRECTORS
for the year ended 31 December 2021

The directors present their report with the financial statements of the company for the year ended 31 December 2021.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of an advertising and marketing agency.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2021 will be £ 185,000 .

FUTURE DEVELOPMENTS
Future developments have been detailed in the strategic report in accordance with s414C(11) CA 2006.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report.

W.E. Husselby
M.S. Husselby

GOING CONCERN
During the 2021 financial year, the company has continued to weather the negative impacts driven by the Covid-19 virus outbreak. Despite further national lockdowns during the year and its knock on impact for businesses and the overall confidence in the wider market place, the company has continued to recover well, and this is reflected in the positive 2021 financial results.

The company continued to utilise the Coronavirus Job Retention Scheme throughout the 2021 financial year, albeit on a reduced scale, in order to support the ongoing working capital needs of the company.

During the prior financial year, in July 2020, a new bank loan was secured for £1.2m. A further £50k bounce back loan was obtained in March 2021 and a £700k bank overdraft facility is available to the company which remains unused at the date of these financial statements.

The directors have considered the working capital requirements of the company and believe that the resources available to them are sufficient and appropriate for the continuing trading needs of the company. As a result of this assessment, the going concern assumption continues to be adopted in the preparation of these financial statements.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

COGENT ELLIOTT LIMITED (REGISTERED NUMBER: 00839992)

REPORT OF THE DIRECTORS
for the year ended 31 December 2021


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





W.E. Husselby - Director


24 August 2022

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
COGENT ELLIOTT LIMITED

Opinion
We have audited the financial statements of Cogent Elliott Limited (the 'company') for the year ended 31 December 2021 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
COGENT ELLIOTT LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- Enquiry of management and those charged with governance around actual and potential litigation and claims;
- Reviewing minutes of meetings of those charged with governance;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
COGENT ELLIOTT LIMITED


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.




Martin Gibbs FCCA (Senior Statutory Auditor)
for and on behalf of Dafferns LLP
One Eastwood
Harry Weston Road
Binley Business Park
Coventry
CV3 2UB

12 September 2022

COGENT ELLIOTT LIMITED (REGISTERED NUMBER: 00839992)

STATEMENT OF COMPREHENSIVE
INCOME
for the year ended 31 December 2021

2021 2020
Notes £    £    £    £   

TURNOVER 4 4,502,881 3,934,045

Other operating income 5 366,997 368,662
4,869,878 4,302,707

Materials and external charges 1,485,497 967,461
3,384,381 3,335,246

Staff costs 6 2,281,271 2,546,660
Depreciation 51,700 71,199
Other operating expenses 593,976 699,317
2,926,947 3,317,176
OPERATING PROFIT 457,434 18,070

Group pension fund professional fees 8 (27,901 ) (53,740 )
Reorganisation costs 8 (125,226 ) (147,977 )
304,307 (183,647 )


Interest payable and similar expenses 9 45,800 46,858
PROFIT/(LOSS) BEFORE TAXATION 10 258,507 (230,505 )

Tax on profit/(loss) 11 50,000 (49,500 )
PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

208,507

(181,005

)

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

208,507

(181,005

)

COGENT ELLIOTT LIMITED (REGISTERED NUMBER: 00839992)

BALANCE SHEET
31 December 2021

2021 2020
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 13 45,566 79,500
Tangible assets 14 47,544 56,048
93,110 135,548

CURRENT ASSETS
Debtors 15 3,076,621 2,883,132
Cash at bank and in hand 230,840 81,897
3,307,461 2,965,029
CREDITORS
Amounts falling due within one year 16 1,318,609 951,763
NET CURRENT ASSETS 1,988,852 2,013,266
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,081,962

2,148,814

CREDITORS
Amounts falling due after more than one
year

17

1,224,542

1,314,901
NET ASSETS 857,420 833,913

CAPITAL AND RESERVES
Called up share capital 22 100 100
Retained earnings 23 857,320 833,813
SHAREHOLDERS' FUNDS 857,420 833,913

The financial statements were approved by the Board of Directors and authorised for issue on 24 August 2022 and were signed on its behalf by:




W.E. Husselby - Director



M.S. Husselby - Director


COGENT ELLIOTT LIMITED (REGISTERED NUMBER: 00839992)

STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2021

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 January 2020 100 2,014,818 2,014,918

Changes in equity
Dividends - (1,000,000 ) (1,000,000 )
Total comprehensive income - (181,005 ) (181,005 )
Balance at 31 December 2020 100 833,813 833,913

Changes in equity
Dividends - (185,000 ) (185,000 )
Total comprehensive income - 208,507 208,507
Balance at 31 December 2021 100 857,320 857,420

COGENT ELLIOTT LIMITED (REGISTERED NUMBER: 00839992)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2021

1. STATUTORY INFORMATION

Cogent Elliott Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements and functional currency of the company is the Pound Sterling (£).

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Turnover
Turnover represents the fair value of services provided during the year on client assignments. Turnover is recognised as contract activity progresses and the right to consideration is earned. Fair value reflects the amount expected to be recoverable from clients and is based on the time spent, skills and expertise provided and expenses incurred. Turnover excludes Value Added Tax.

Unbilled turnover on individual client assignments is included as accrued income within debtors.

Employment support and grant income
Grant income received from the UK's Coronavirus Job Retention Scheme and Kickstart Scheme has been recognised in the period in which the related staff expense was incurred. This income has been recognised in other operating income.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2019, is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets
Tangible fixed assets are recognised at cost and subsequently measured under the historical cost model being cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes any direct expenditure incurred to bring the asset to its current location and condition necessary for the asset to work as intended by management.

Repairs and maintenance costs are charged to the statement of comprehensive income in the period in which they are incurred.

Depreciation is provided on the cost of tangible assets in equal annual instalments over their estimated useful lives, which are as follows:

Fixtures and equipment - Between 3 and 5 years

Any gains and losses on the disposal of tangible fixed assets are recognised in the statement of comprehensive income in the year that the disposal takes place.

COGENT ELLIOTT LIMITED (REGISTERED NUMBER: 00839992)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2021

3. ACCOUNTING POLICIES - continued

Financial instruments
Basic financial instruments in debtors and creditors with no stated interest rate, and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income in other administrative expenses.

Other financial assets and liabilities, such as loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the statement of comprehensive income on a straight line basis over the period of the lease.

COGENT ELLIOTT LIMITED (REGISTERED NUMBER: 00839992)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2021

3. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The company makes contributions to a defined contribution pension scheme and a defined benefit scheme administered by the holding company, Cogent Elliott Group Limited.

Contributions payable to the company's pension scheme are charged to the statement of comprehensive income in the period to which they relate. A defined contribution plan is a pension scheme under which the company pays fixed contributions into an independently administered fund and has no further obligations once the contributions have been paid.

Defined benefit pension contributions are charged to the statement of comprehensive income in the period to which they relate, as though it were a defined contribution scheme, because the company is unable to identify its share of the underlying assets and liabilities. Details of the defined benefit scheme can be found in the consolidated accounts of Cogent Elliott Group Limited.

4. TURNOVER

The turnover and profit (2020 - loss) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2021 2020
£    £   
United Kingdom 4,031,352 3,697,670
Rest of the World 471,529 236,375
4,502,881 3,934,045

5. OTHER OPERATING INCOME
2021 2020
£    £   
Rents received 11,315 -
Other grants 62,563 -
CJRS grants 293,119 368,662
366,997 368,662

CJRS grants reflect furlough grants received from the UK Government, having utilised the Coronavirus Job Retention Scheme, being made available in response to the Covid-19 pandemic.

Other grants reflect employment grants obtained in relation to the UK Government Kickstart Scheme.

6. EMPLOYEES AND DIRECTORS
2021 2020
£    £   
Wages and salaries 1,997,891 2,234,353
Social security costs 222,686 237,048
Other pension costs 60,694 75,259
2,281,271 2,546,660

COGENT ELLIOTT LIMITED (REGISTERED NUMBER: 00839992)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2021

6. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2021 2020

Finance and administration 5 8
Studio 2 3
Agency 45 54
52 65

As of 2020, the pension funding payments in connection to the group defined benefit scheme are now being accounted for directly in Cogent Elliott Group Limited, being the ultimate parent company of the group. Therefore these cost are no longer reflected in the statement of comprehensive income of the company.

7. DIRECTORS' EMOLUMENTS
2021 2020
£    £   
Directors' remuneration - 48,645
Directors' pension contributions to money purchase schemes - 1,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes - 1

8. EXCEPTIONAL ITEM
2021 2020
£    £   
Group pension fund professional fees (27,901 ) (53,740 )
Reorganisation costs (125,226 ) (147,977 )
(153,127 ) (201,717 )

9. INTEREST PAYABLE AND SIMILAR EXPENSES
2021 2020
£    £   
Bank overdraft interest - 13,472
Bank loan interest 36,894 17,219
Other interest 4,911 7,313
Hire purchase interest 3,995 8,854
45,800 46,858

COGENT ELLIOTT LIMITED (REGISTERED NUMBER: 00839992)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2021

10. PROFIT/(LOSS) BEFORE TAXATION

The profit (2020 - loss) is stated after charging:

2021 2020
£    £   
Depreciation - owned assets 16,326 15,771
Depreciation - assets on hire purchase contracts 12,591 28,928
Goodwill amortisation 22,783 26,500
Foreign exchange differences 24 -
Auditors remuneration 8,600 8,200
Operating lease charges - equipment 11,130 11,229
Operating lease charges - rent 215,863 193,998

11. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
2021 2020
£    £   
Deferred tax 50,000 (49,500 )
Tax on profit/(loss) 50,000 (49,500 )

Reconciliation of total tax charge/(credit) included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2021 2020
£    £   
Profit/(loss) before tax 258,507 (230,505 )
Profit/(loss) multiplied by the standard rate of corporation tax in the
UK of 19% (2020 - 19%)

49,116

(43,796

)

Effects of:
Expenses not deductible for tax purposes 3,241 853
Recognition of deferred tax on brought forward losses - (4,750 )
Deferred tax rate and rounding differences (2,357 ) (1,807 )
Total tax charge/(credit) 50,000 (49,500 )

The company has tax losses carried forward of £452,375 (2020: £731,345) that are available for offset against future taxable profits. A deferred tax asset of £Nil (2020: £50,000) has been recognised in respect to these tax losses.

12. DIVIDENDS
2021 2020
£    £   
Interim 185,000 1,000,000

COGENT ELLIOTT LIMITED (REGISTERED NUMBER: 00839992)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2021

13. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 January 2021 150,000
Impairments (11,151 )
At 31 December 2021 138,849
AMORTISATION
At 1 January 2021 70,500
Amortisation for year 22,783
At 31 December 2021 93,283
NET BOOK VALUE
At 31 December 2021 45,566
At 31 December 2020 79,500

14. TANGIBLE FIXED ASSETS
Fixtures
and Motor
fittings vehicles Totals
£    £    £   
COST
At 1 January 2021 1,038,703 - 1,038,703
Additions 12,413 8,000 20,413
At 31 December 2021 1,051,116 8,000 1,059,116
DEPRECIATION
At 1 January 2021 982,655 - 982,655
Charge for year 28,917 - 28,917
At 31 December 2021 1,011,572 - 1,011,572
NET BOOK VALUE
At 31 December 2021 39,544 8,000 47,544
At 31 December 2020 56,048 - 56,048

COGENT ELLIOTT LIMITED (REGISTERED NUMBER: 00839992)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2021

14. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Fixtures
and
fittings
£   
COST
At 1 January 2021 116,480
Transfer to ownership (116,480 )
At 31 December 2021 -
DEPRECIATION
At 1 January 2021 103,889
Charge for year 12,591
Transfer to ownership (116,480 )
At 31 December 2021 -
NET BOOK VALUE
At 31 December 2021 -
At 31 December 2020 12,591

15. DEBTORS
2021 2020
£    £   
Amounts falling due within one year:
Trade debtors 838,125 433,999
Amounts owed by group undertakings 1,729,305 1,901,871
Other debtors 22,289 1,197
Deferred tax asset - 50,000
Accrued income 68,161 86,269
Prepayments 146,544 162,198
2,804,424 2,635,534

Amounts falling due after more than one year:
Other debtors 272,197 247,598

Aggregate amounts 3,076,621 2,883,132

Deferred tax asset
2021 2020
£    £   
Accelerated capital allowances - 3,000
Tax losses carried forward - 46,000
Other timing differences - 1,000
- 50,000

COGENT ELLIOTT LIMITED (REGISTERED NUMBER: 00839992)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2021

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£    £   
Bank loans and overdrafts (see note 18) 66,393 23,347
Hire purchase contracts (see note 19) 7,918 28,411
Payments on account 203,783 178,029
Trade creditors 512,238 336,736
Amounts owed to group undertakings 25 61
Social security and other taxes 193,200 168,538
VAT 217,160 131,101
Other creditors 14,258 11,872
Accruals 103,634 73,668
1,318,609 951,763

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2021 2020
£    £   
Bank loan (see note 18) 1,154,364 1,176,653
Hire purchase contracts (see note 19) - 7,918
VAT 70,178 130,330
1,224,542 1,314,901

18. LOANS

An analysis of the maturity of loans is given below:

2021 2020
£    £   
Amounts falling due within one year or on demand:
Bank loan 66,393 23,347

Amounts falling due between one and two years:
Bank loans 76,460 71,485

Amounts falling due between two and five years:
Bank loans 1,074,373 1,105,168

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal 3,531 -

A bank loan of £1,200,000 was taken out in 2020 over a term of 4 years and is repayable by August 2024. The loan was issued with a 12 month interest only period, with monthly loan repayments commencing from August 2021. Interest is being charged on the loan at a rate of 2.75% above the Bank of England base rate.

A Government backed Bounce Back loan was taken out in the 2021 financial year for £50,000. This loan has a 6 year repayment term with no interest charges or capital repayments in the first 12 months. The first repayments of this loan will commence in 2022 and interest will be charged at a rate of 2.5%.

COGENT ELLIOTT LIMITED (REGISTERED NUMBER: 00839992)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2021

19. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2021 2020
£    £   
Net obligations repayable:
Within one year 7,918 28,411
Between one and five years - 7,918
7,918 36,329

Non-cancellable operating leases
2021 2020
£    £   
Within one year 275,443 297,688
Between one and five years - 679,554
275,443 977,242

20. SECURED DEBTS

The following secured debts are included within creditors:

2021 2020
£    £   
Bank loan 1,220,757 1,200,000
Hire purchase contracts 7,918 36,329
1,228,675 1,236,329

Bank borrowings are secured by a fixed charge over the group's properties and a floating charge over all the group assets. Hire purchase contracts are secured by certain specific fixed assets.

21. DEFERRED TAX
£   
Balance at 1 January 2021 (50,000 )
Accelerated capital allowances 3,000
Other timing differences 1,000
Trading losses 46,000
Balance at 31 December 2021 -

22. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2021 2020
value: £    £   
100 Ordinary £1 100 100

COGENT ELLIOTT LIMITED (REGISTERED NUMBER: 00839992)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2021

23. RESERVES
Retained
earnings
£   

At 1 January 2021 833,813
Profit for the year 208,507
Dividends (185,000 )
At 31 December 2021 857,320

Retained earnings represents cumulative profits and losses net of dividends and any other adjustments.

24. PENSION COMMITMENTS

The company operates a defined contribution scheme for employees. Employer contributions to the scheme during the financial year amounting to £60,694 (2020: £75,259) have been charged to the statement of comprehensive income. At 31 December 2021 there were £13,378 of total outstanding contributions to be paid over to the pension scheme (2020: £11,872).

As of 2020, the pension funding payments in connection to the group defined benefit scheme are now being accounted for directly in Cogent Elliott Group Limited, being the ultimate parent company of the group. Therefore these cost are no longer reflected in the statement of comprehensive income of the company.

25. CONTINGENT LIABILITIES

The company has guaranteed borrowings of fellow subsidiaries amounting to £Nil (2020: £31,967) and has entered into a group overdraft facility which is secured by a fixed and floating charge over all assets of the company.

26. ULTIMATE PARENT COMPANY

The Company is a wholly-owned subsidiary of Cogent Group Limited (CGL) and its ultimate parent company is Cogent Elliott Group Limited (CEGL).

The registered office and principal place of business of CEGL is Heath Farm, Hampton Lane, Meriden, West Midlands, CV7 7LL, from which group accounts can be obtained.

27. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

During the year, a total of key management personnel compensation of £ 185,978 (2020 - £ 261,917 ) was paid.