REGISTERED NUMBER: |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
FOR |
COGENT ELLIOTT LIMITED |
REGISTERED NUMBER: |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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 £ |
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. |
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: |
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. |
for and on behalf of |
One Eastwood |
Harry Weston Road |
Binley Business Park |
Coventry |
CV3 2UB |
COGENT ELLIOTT LIMITED (REGISTERED NUMBER: 00839992) |
STATEMENT OF COMPREHENSIVE |
INCOME |
for the year ended 31 December 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
TURNOVER | 4 |
Other operating income | 5 |
4,869,878 | 4,302,707 |
Materials and external charges |
3,384,381 | 3,335,246 |
Staff costs | 6 |
Depreciation |
Other operating expenses |
2,926,947 | 3,317,176 |
OPERATING PROFIT |
Group pension fund professional fees | 8 | ( |
) | ( |
) |
Reorganisation costs | 8 | ( |
) | ( |
) |
304,307 | (183,647 | ) |
Interest payable and similar expenses | 9 |
PROFIT/(LOSS) BEFORE TAXATION | 10 | ( |
) |
Tax on profit/(loss) | 11 | ( |
) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
COGENT ELLIOTT LIMITED (REGISTERED NUMBER: 00839992) |
BALANCE SHEET |
31 December 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 13 |
Tangible assets | 14 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2020 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2021 |
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 |
The presentation currency of the financial statements and functional currency of the company is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
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 |
Rest of the World | 471,529 | 236,375 |
5. | OTHER OPERATING INCOME |
2021 | 2020 |
£ | £ |
Rents received |
Other grants |
CJRS grants |
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 |
Social security costs |
Other pension costs |
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 |
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 |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
8. | EXCEPTIONAL ITEM |
2021 | 2020 |
£ | £ |
Group pension fund professional fees | ( |
) | ( |
) |
Reorganisation costs | ( |
) | ( |
) |
(153,127 | ) | (201,717 | ) |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2021 | 2020 |
£ | £ |
Bank overdraft interest |
Bank loan interest |
Other interest |
Hire purchase interest |
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 |
Depreciation - assets on hire purchase contracts |
Goodwill amortisation |
Foreign exchange differences |
Auditors remuneration |
Operating lease charges - equipment |
Operating lease charges - rent |
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 | ( |
) |
Tax on profit/(loss) | ( |
) |
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 | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
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 |
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 |
Impairments | (11,151 | ) |
At 31 December 2021 |
AMORTISATION |
At 1 January 2021 |
Amortisation for year |
At 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
14. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 January 2021 |
Additions |
At 31 December 2021 |
DEPRECIATION |
At 1 January 2021 |
Charge for year |
At 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
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 |
Transfer to ownership | (116,480 | ) |
At 31 December 2021 |
DEPRECIATION |
At 1 January 2021 |
Charge for year |
Transfer to ownership | (116,480 | ) |
At 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
15. | DEBTORS |
2021 | 2020 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Deferred tax asset |
Accrued income |
Prepayments |
Amounts falling due after more than one year: |
Other debtors |
Aggregate amounts |
Deferred tax asset |
2021 | 2020 |
£ | £ |
Accelerated capital allowances |
Tax losses carried forward |
Other timing differences | - | 1,000 |
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) |
Hire purchase contracts (see note 19) |
Payments on account |
Trade creditors |
Amounts owed to group undertakings |
Social security and other taxes |
VAT | 217,160 | 131,101 |
Other creditors |
Accruals |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loan (see note 18) |
Hire purchase contracts (see note 19) |
VAT | 70,178 | 130,330 |
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 |
Amounts falling due between one and two years: |
Bank loans |
Amounts falling due between two and five years: |
Bank loans |
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 |
Between one and five years |
Non-cancellable | operating leases |
2021 | 2020 |
£ | £ |
Within one year |
Between one and five years |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
2021 | 2020 |
£ | £ |
Bank loan |
Hire purchase contracts | 7,918 | 36,329 |
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 | ( |
) |
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: | £ | £ |
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 |
Profit for the year |
Dividends | ( |
) |
At 31 December 2021 |
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 £ |