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Company registration number: 00357743
Berlitz (U.K.) Limited
Filleted financial statements
31 December 2022
Berlitz (U.K.) Limited
Contents
Directors and other information
Directors responsibilities statement
Statement of financial position
Notes to the financial statements
Berlitz (U.K.) Limited
Directors and other information
Directors Mr J Cooknell
Mr A Gatoff
Secretaries Mr J Walton
Mr P Weinstein (Resigned 31 December 2022)
Ms T Regan (Appointed 1 January 2023)
Company number 00357743
Registered office Level 1, Fox Court
14 Gray's Inn road
London
WC1X 8HN
Auditor Hicks and Company
Vaughan Chambers
Vaughan Road
Harpenden
Hertfordshire
AL5 4EE
Bankers The Royal Bank of Scotland Plc
London Cavendish Square Branch
28 Cavendish Square
London
EC4V 4JV
Berlitz (U.K.) Limited
Directors responsibilities statement
Year ended 31 December 2022
The directors are responsible for preparing the directors report 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). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the 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 judgments and accounting estimates that are reasonable and prudent; and
- 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.
Berlitz (U.K.) Limited
Statement of financial position
31 December 2022
2022 2021
Note £ £ £ £
Fixed assets
Tangible assets 7 - 1
__________ __________
- 1
Current assets
Stocks 2,503 4,191
Debtors 8 755,273 900,659
Cash at bank and in hand 276,867 114,459
__________ __________
1,034,643 1,019,309
Creditors: amounts falling due
within one year 9 ( 3,994,739) ( 3,810,890)
__________ __________
Net current liabilities ( 2,960,096) ( 2,791,581)
__________ __________
Total assets less current liabilities ( 2,960,096) ( 2,791,580)
__________ __________
Net liabilities ( 2,960,096) ( 2,791,580)
__________ __________
Capital and reserves
Called up share capital 36,656 36,656
Share premium account 2,567,352 2,567,352
Profit and loss account ( 5,564,104) ( 5,395,588)
__________ __________
Shareholders deficit ( 2,960,096) ( 2,791,580)
__________ __________
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
These financial statements were approved by the board of directors and authorised for issue on 28 September 2023 , and are signed on behalf of the board by:
Mr J Cooknell
Director
Company registration number: 00357743
Berlitz (U.K.) Limited
Notes to the financial statements
Year ended 31 December 2022
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Level 1, Fox Court, 14 Gray's Inn road, London, WC1X 8HN.
2. Statement of compliance
These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets measured at fair value through profit or loss.The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The company is dependent on the financial support of Berlitz Corporation, the parent company of the smallest group for which consolidated financial statements are drawn up. The directors have received a commitment of financial support from Berlitz Corporation. The directors have formed a judgement, at the time of approving the accounts, that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason the directors continue to adopt the going concern basis in preparing the financial statements.
Turnover
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax.
Taxation
The taxation expense represents the aggregate amount of current tax and deferred tax recognised in the reporting period. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and any accumulated impairment losses.Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stocks
Inventories are measured at the lower of cost and estimated selling price less costs to complete and sell.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.
4. Operating loss
Operating loss is stated after charging/(crediting):
2022 2021
£ £
Depreciation of tangible assets - 483
Operating lease rentals 52,892 23,330
Foreign exchange differences 157,015 ( 32,857)
Fees payable for the audit of the financial statements 17,937 15,593
Restructuring costs (see Note 6) ( 46,720) 15,573
__________ __________
5. Employee numbers
The average number of persons employed by the company during the year amounted to 24 (2021: 25 ).
6. Restructuring cost
As a result of the Coronavirus pandemic, the company reviewed its accommodation and operations in the year ended 31 December 2020. Based on the changing mix of customer requirements, the directors decided to restructure the company's operations and relocate to smaller premises. The vast majority of the excess provision has been reversed in the year ended 31 December 2022 hence the negative expense, leaving a minor amount for any future exceptional items realting to the restructuring cost. The restructuring cost charged in the years ended 31 December 2022 and 31 December 2021 are as follows:
2022 2021
£ £
Interest 2,423 15,573
Dilapidations (49,143) -
__________ __________
(46,720) 15,573
__________ __________
7. Tangible assets
Computer equipment Total
£ £
Cost
At 1 January 2022 54,299 54,299
Disposals ( 54,299) ( 54,299)
__________ __________
At 31 December 2022 - -
__________ __________
Depreciation
At 1 January 2022 54,298 54,298
Disposals ( 54,298) ( 54,298)
__________ __________
At 31 December 2022 - -
__________ __________
Carrying amount
At 31 December 2022 - -
__________ __________
At 31 December 2021 1 1
__________ __________
8. Debtors
2022 2021
£ £
Trade debtors 111,600 70,269
Amounts owed by group undertakings and undertakings in which the company has a participating interest 601,671 711,213
Other debtors 42,002 119,177
__________ __________
755,273 900,659
__________ __________
Amounts owed by group undertakings are considered by the directors to be repayable on demand.
9. Creditors: amounts falling due within one year
2022 2021
£ £
Trade creditors 61,122 49,792
Amounts owed to group undertakings and undertakings in which the company has a participating interest 3,184,028 3,032,171
Social security and other taxes 26,389 11,644
Other creditors 723,200 717,283
__________ __________
3,994,739 3,810,890
__________ __________
Amounts owed to group undertakings are considered by the directors to be payable on demand.
10. Operating leases
The company as lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
£ £
Not later than 1 year - 66,717
__________ __________
11. Pension commitments
The company operates a defined contribution scheme for company employees. The assets of the scheme are held separately from those of the company in an independently administered fund. At the balance sheet date, unpaid contributions of £1,681 (2021 - £2,118) were due to the fund. They are included within other creditors.
12. Summary audit opinion
The auditor's report for the year dated 28 September 2023 was unqualified.
The senior statutory auditor was Philip Dean for and on behalf of Hicks and Company
13. Related party transactions
The parent company of the smallest group for which consolidated financial statements are drawn up, of which Berlitz (UK) Limited is a member, is Berlitz Corporation.Copies of the group financial statements of Berlitz Corporation are available from 7 Roszel Road, Princeton, NJ 08540, USA.The company has taken advantage of the exemption granted by section 33, paragraph 33.1A of FRS 102 not to disclose related party transactions between two or more members of a group, where the subsidiary which is party to the transaction is wholly owned by such a member.