Company registration number 02264709 (England and Wales)
R.S.V.P. (MEDIA RESPONSE) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
R.S.V.P. (MEDIA RESPONSE) LIMITED
COMPANY INFORMATION
Directors
Mr M Abernethy
Mr S Christie
Mr D Hurst
Mr H Patel
Ms L Roberts
Mr B Wilkes
Company number
02264709
Registered office
Level 7
One Canada Square
London
England
E14 5AA
Auditor
DSA Prospect Audit Limited
The Old Chapel
Union Way
Witney
Oxfordshire
OX28 6HD
R.S.V.P. (MEDIA RESPONSE) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of income and retained earnings
9
Balance sheet
10
Notes to the financial statements
11 - 22
R.S.V.P. (MEDIA RESPONSE) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present the strategic report for the year ended 31 March 2023.
Fair review of the business
A difficult year with the war in Ukraine impacting revenues significantly. A major Utility switching client suspended activity for the whole year due to increases in energy costs destroying the switching market overnight. Furthermore our commencement with a major new client was put on hold due to impacts felt elsewhere in their business due to supply chain issues brought about by the war. Elsewhere in the business the cost of living crisis saw a number of clients move work to South Africa choosing cost reduction over service quality.
As the year progressed, the business started to reduce overheads further in line with reduced revenues and remained profitable but with a greatly reduced margin compared to previous years. The year end is impacted by some significant redundancy associated costs and further impacted by a write down due to asset disposal brought about by the move from office based to Hybrid working .
We anticipate more of the same for FY24, with the business in good shape to whether the storm as we refocus our sales strategy on customer service focussed UK businesses.
Principal risks and uncertainties
As with many businesses, the company is exposed to macroeconomic factors of an uncertain nature such as changes in inflation, corporate and consumer spending patterns and levels of disposable income.
Key performance indicators
The key financial and other performance indicators during the year were as follows:
2023
2022
Change
£'000
£'000
+/-
Turnover
7,638
10,090
(24.30)%
Operating profit
509
1,826
(70.00)%
Profit for the financial year
456
1,486
(69.32)%
Total equity
4,649
4,593
1.22%
Current assets as % of current liabilities
869%
535%
334.45%
Return on assets %
9%
26%
(17.65)%
Average number of employees in the year
285
379
(24.80)%
Key people
As with all businesses the company is dependent upon a number of key employees, particularly for the sales activity and management functions. The company recognises this risk by support and careful long-term succession planning.
Mr M Abernethy
Director
13 October 2023
R.S.V.P. (MEDIA RESPONSE) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the company continued to be the provision of telephone response services.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £400,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr M Abernethy
Mr S Christie
Mr D Hurst
Mr H Patel
Ms L Roberts
Mr B Wilkes
Financial instruments
Price Risk - The company is somewhat exposed to commodity price risk through its dependence on reliable and consistent telecommunication and human resources costs. The company has an excellent relationship with its telecommunications supplier and is satisfied that this relationship provides an element of stability around the associated costs. The company is further aware that its success depends to a great extent upon the quality of its human resources and considers that there are suitable measures in place to balance staff retention with margin security.
Credit Risk - The company has implemented policies that require appropriate credit checks on potential customers before credit is offered.
Interest Rate Risk - The company's exposure to interest rate risk is considered extremely low due a lack of acquisitions or purchases through any methods considered to be interest-rate sensitive.
Market Risk - The company operates in a competitive and dynamic industry in which demand is high and ever-increasing. The company considers itself well-placed in understanding its market and its performance obligations to both develop and succeed within it.
Research and development
Research and development (R&D) expenditure is expensed in the year in which it is incurred.
R.S.V.P. (MEDIA RESPONSE) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
Disabled persons
RSVP has a responsibility to increase the employment opportunities for persons with disabilities at all levels within the company by developing recruitment plans which include positive steps to allow the recruitment of disabled people. At all times the company will provide reasonable working environments for applicants and employees with disabilities.
Appropriate training will be given to all managers to ensure they understand the commitment of the company to employ individuals with disabilities. Training will also be given to ensure all managers have an understanding of RSVP programs and policies to recruit, appoint and develop flexibility in attitudes of recruitment and company working practices to assist in recruiting people with disabilities.
Alternative work schedules, job sharing and part-time employment will be offered as being possible options of employment to disabled persons. RSVP will ensure employment information and recruitment materials are accessible for people with disabilities. Information should be available in alternate formats such as large print, audiocassette, braille and computer disk.
Vacancy announcements will be made in plain language stating that the company will make reasonable adjustments for qualified applicants or employees with disabilities. Full consideration should be given to employees with disabilities for inclusion in all developmental opportunities designed to enhance their skills and to advance their careers by ensuring that individuals with disabilities have equal access to all career development opportunities available to employees.
Managers and supervisors should be offered specific courses, such as Disability Access Workshops, where managers are provided with information and skills to hire and supervise employees with disabilities, learn to ensure that workplace environments are accessible and how to assess the ability of employees with disabilities to perform the essential functions of the job.
RSVP will monitor success in increasing the numbers, retention and promotion of individuals with disabilities by making a periodic review of all polices ensuring progress is maintained in achieving greater employment of people with disabilities and strategies implemented in response to workforce diversity.
RSVP will provide appropriate access to their premises for anyone with a disability, including making any appropriate changes to work spaces.
Employee involvement
RSVP is committed to consulting with staff at all levels to ensure the continual communication of views, working practices and information.
Team briefings are held daily with grass roots level employees and form an open discussion where concerns on any aspect of staff welfare, development, health & safety or working conditions may be raised.
If a staff member wishes to raise a matter of concern in private, they are advised to address this with their supervisor or line manager in the first instance, or report it to the HR Department who will raise the concern on their behalf. For staff at upper and senior levels, regular supervisor and management meetings are held on an ad-hoc basis to address the concerns presented to them or to raise issues themselves which are then presented to the Directors by an appointed representative.
All matters of concern no matter how minor are given fair hearing providing they are not a pet grievance or triviality. They are given thought and consideration with deliberations and conclusions relayed back to staff via team briefings as soon as possible to ensure efficiency. Reasons for rejected ideas are always provided as is recognition of suggested changes to working practice which have been acted upon.
The company considers the welfare of the staff to be instrumental in its success and is committed to providing a caring, supportive and fully inclusive network to encourage them to reach their full potential and help achieve its goals.
Post reporting date events
There have been no significant post reporting date events.
R.S.V.P. (MEDIA RESPONSE) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
Future developments
RSVPs new website has been fully operational during this time and the focus on ensuring the content is relevant and enticing for today’s marketplace. AI, Saas partnerships, leading edge technology and service quality all feature heavily.
Achieving Technology efficiencies has been another focus during 2023. RSVP have been reviewing scheduling software with a view to reduce the manual person power currently required to produce our staff schedules. A new system will be in place during FY24. Additionally, a review of Call Centre CRM systems has taken place to strengthen RSVPs offering with special focus on latest technology’s that include AI. Both systems will offer both better working efficiencies and cost savings as well as enhancing RSVP services and working practices. As we move into FY24 the plan will be to reduce the number of different platforms that staff must use and take advantage of the almost constantly improving and evolving software that is available from heavily funded and forward thinking Saas providers. Adopting new technology partners and systems removes the cost of technology development from within RSVP itself and enables us to focus on our core strengths of delivering a superior contact centre service.
Our business has continued to operate a hybrid working model. Some staff are full time in the office and other full time from home. A smaller percentage are truly hybrid and have the option to work at home and in the office. Our technology and working practices continue to develop to counter the challenges of the new mixed working model. Amongst many goals, The HR team are focused on agent welfare which is a huge new challenge for some based at home. Additionally, the Team managers work hard to maximise the engagement and performance of both remote and office-based staff. These goals and objectives are very much a joint effort of human interaction and emotional intelligence alongside the use of the appropriate technologies.
Auditor
In accordance with the company's articles, a resolution proposing that DSA Prospect Audit Limited be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr M Abernethy
Director
13 October 2023
R.S.V.P. (MEDIA RESPONSE) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
The directors are responsible for preparing the annual 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 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.
R.S.V.P. (MEDIA RESPONSE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF R.S.V.P. (MEDIA RESPONSE) LIMITED
- 6 -
Opinion
We have audited the financial statements of R.S.V.P. (Media Response) Limited (the 'company') for the year ended 31 March 2023 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including 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 March 2023 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.
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 Auditor's 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
R.S.V.P. (MEDIA RESPONSE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF R.S.V.P. (MEDIA RESPONSE) LIMITED
- 7 -
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 directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the telecommunications sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental (including Waste Electrical and Electronic Equipment recycling (WEEE) Regulations 2013) and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
R.S.V.P. (MEDIA RESPONSE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF R.S.V.P. (MEDIA RESPONSE) LIMITED
- 8 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Mr Gary John McHale FCCA
Senior Statutory Auditor
For and on behalf of DSA Prospect Audit Limited
13 October 2023
2023-10-13
Chartered Certified Accountants
Statutory Auditor
The Old Chapel
Union Way
Witney
Oxfordshire
OX28 6HD
R.S.V.P. (MEDIA RESPONSE) LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
7,637,626
10,089,595
Cost of sales
(4,528,643)
(5,707,483)
Gross profit
3,108,983
4,382,112
Administrative expenses
(2,599,650)
(2,555,859)
Operating profit
4
509,333
1,826,253
Interest receivable and similar income
7
1,218
1,153
Interest payable and similar expenses
8
(945)
Profit before taxation
509,606
1,827,406
Tax on profit
9
(53,617)
(341,070)
Profit for the financial year
455,989
1,486,336
Retained earnings brought forward
4,592,787
4,606,451
Dividends
10
(400,000)
(1,500,000)
Retained earnings carried forward
4,648,776
4,592,787
The profit and loss account has been prepared on the basis that all operations are continuing operations.
R.S.V.P. (MEDIA RESPONSE) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
173,443
243,169
Current assets
Debtors
12
4,146,329
3,985,499
Cash at bank and in hand
947,988
1,421,223
5,094,317
5,406,722
Creditors: amounts falling due within one year
13
(586,027)
(1,010,899)
Net current assets
4,508,290
4,395,823
Total assets less current liabilities
4,681,733
4,638,992
Provisions for liabilities
Deferred tax liability
15
32,955
46,203
(32,955)
(46,203)
Net assets
4,648,778
4,592,789
Capital and reserves
Called up share capital
17
2
2
Profit and loss reserves
4,648,776
4,592,787
Total equity
4,648,778
4,592,789
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved by the board of directors and authorised for issue on 13 October 2023 and are signed on its behalf by:
Mr M Abernethy
Director
Company registration number 02264709 (England and Wales)
R.S.V.P. (MEDIA RESPONSE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
1
Accounting policies
Company information
R.S.V.P. (Media Response) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Level 7, One Canada Square, London, England, E14 5AA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of RSVP (Call Centres) Limited. These consolidated financial statements are available from its registered office, Level 7, One Canada Square, London, England, E14 5AA.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
R.S.V.P. (MEDIA RESPONSE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 12 -
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
10% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
R.S.V.P. (MEDIA RESPONSE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
R.S.V.P. (MEDIA RESPONSE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
R.S.V.P. (MEDIA RESPONSE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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 profit and loss account, 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 company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
R.S.V.P. (MEDIA RESPONSE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Useful economic lives of tangible fixed assets
The annual depreciation charge is sensitive to any changes in the estimated useful life and residual values of tangible assets. The useful economic lives and residual value is assessed on an annual basis and are amended only when evidence shows a change in the estimated economic lives or residual life. Criteria used to assess the economic life and residual value includes technological advancement, economic utilisation, physical condition of the asset and future investments.
Operating lease commitments
The company has entered into commercial property leases as a lessee, under the terms of which it obtains use of property. The classification of such leases as operating or finance lease requires the company to determine, based on an evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of this property and accordingly whether the lease requires an asset and liability to be recognised.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by geographical market
UK
6,977,805
9,463,687
USA
14,257
9,744
EU
645,564
616,164
7,637,626
10,089,595
2023
2022
£
£
Other revenue
Interest income
1,218
1,153
R.S.V.P. (MEDIA RESPONSE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
16,000
14,000
Depreciation of owned tangible fixed assets
28,226
27,020
Loss on disposal of tangible fixed assets
68,216
-
Operating lease charges
395,764
333,809
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Operations
285
379
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
5,492,758
6,619,691
Social security costs
444,419
490,646
Pension costs
73,211
84,476
6,010,388
7,194,813
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
410,502
363,088
Company pension contributions to defined contribution schemes
67,266
11,597
477,768
374,685
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).
R.S.V.P. (MEDIA RESPONSE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
6
Directors' remuneration
(Continued)
- 18 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
107,651
107,550
Company pension contributions to defined contribution schemes
5,000
5,000
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
1,218
63
Other interest income
1,090
Total income
1,218
1,153
8
Interest payable and similar expenses
2023
2022
£
£
Other interest
945
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
66,865
330,823
Deferred tax
Origination and reversal of timing differences
(13,248)
10,247
Total tax charge
53,617
341,070
R.S.V.P. (MEDIA RESPONSE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
9
Taxation
(Continued)
- 19 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
509,606
1,827,406
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
96,825
347,207
Tax effect of expenses that are not deductible in determining taxable profit
13,300
156
Group relief
(33,220)
(9,347)
Depreciation on assets not qualifying for tax allowances
(10,040)
(7,193)
Other permanent differences
(13,248)
10,247
Taxation charge for the year
53,617
341,070
10
Dividends
2023
2022
£
£
Final paid
400,000
1,500,000
11
Tangible fixed assets
Plant and equipment
£
Cost
At 1 April 2022
489,546
Additions
62,359
Disposals
(313,771)
At 31 March 2023
238,134
Depreciation and impairment
At 1 April 2022
246,377
Depreciation charged in the year
28,226
Eliminated in respect of disposals
(209,912)
At 31 March 2023
64,691
Carrying amount
At 31 March 2023
173,443
At 31 March 2022
243,169
R.S.V.P. (MEDIA RESPONSE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
11
Tangible fixed assets
(Continued)
- 20 -
Tangible fixed assets with a carrying amount of £173,443 (2022 - £243,169) have been pledged to secure borrowings of the subsidiary. The company is not allowed to pledge these assets as security for other borrowings.
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,025,402
1,859,424
Amounts owed by group undertakings
2,958,787
1,816,635
Other debtors
90,871
228,002
Prepayments and accrued income
71,269
81,438
4,146,329
3,985,499
The carrying amount of debtors includes £4,075,059 (2022 - £3,904,064) have been pledged to secure borrowings of the subsidiary. The company is not allowed to pledge these assets as security for other borrowings.
13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
71,809
48,209
Corporation tax
50,366
141,438
Other taxation and social security
322,797
508,352
Other creditors
8,525
111,010
Accruals and deferred income
132,530
201,890
586,027
1,010,899
14
Security
Debenture/ Guarantee and Debenture
Barclays Bank Plc hold fixed and floating charges over the undertaking and all property and assets present and future including goodwill book debts uncalled capital buildings, fixtures, fixed plant and machinery.
All monies due or to become due from the company and/or all or any of the other companies named therein to the chargee on any account whatsoever.
Debenture
Mr R Fitzjohn holds a fixed and floating charge over the undertaking and all property and assets present and future, including goodwill, book debts, uncalled capital, buildings, fixtures, fixed plant and machinery.
All monies due or to become due from the company to the chargee on any account whatsoever.
R.S.V.P. (MEDIA RESPONSE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
32,955
46,203
2023
Movements in the year:
£
Liability at 1 April 2022
46,203
Credit to profit or loss
(13,248)
Liability at 31 March 2023
32,955
The deferred tax liability set out above is expected to reverse within 12 to 48 months and relates to accelerated capital allowances that are expected to mature within the same period.
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
73,211
84,476
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
18
Financial commitments, guarantees and contingent liabilities
The director's do not believe there are any financial commitments, guarantees or contingent liabilities that need to be disclosed.
19
Capital commitments
The directors do not believe there are any capital commitments that need to be disclosed.
R.S.V.P. (MEDIA RESPONSE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
419,520
456,005
Between one and five years
566,775
228,002
986,295
684,007
21
Events after the reporting date
There are no events after the year end that the directors believe need to be reported.
22
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Dividends totalling £0 (2022 - £0) were paid in the year in respect of shares held by the company's directors.
23
Ultimate controlling party
The immediate parent company and controlling party undertaking is R.S.V.P. Call Centres Limited, a company incorporated and registered in England and Wales. The parents consolidated financial statements are available from its registered offices at Level 7, One Canada Square, London, E14 5AA.
The company's financial statements are consolidated into the ultimate holding company's financial statements and are available from the parent's registered office.
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.200Mr M AbernethyMr S ChristieMr D HurstMr H PatelMs L RobertsMr B Wilkes455989022647092022-04-012023-03-3102264709bus:Director12022-04-012023-03-3102264709bus:Director22022-04-012023-03-3102264709bus:Director32022-04-012023-03-3102264709bus:Director42022-04-012023-03-3102264709bus:Director52022-04-012023-03-3102264709bus:Director62022-04-012023-03-3102264709bus:RegisteredOffice2022-04-012023-03-31022647092023-03-31022647092021-04-012022-03-3102264709core:RetainedEarningsAccumulatedLosses2022-03-3102264709core:RetainedEarningsAccumulatedLosses2021-03-3102264709core:ShareCapital2023-03-3102264709core:ShareCapital2022-03-3102264709core:RetainedEarningsAccumulatedLosses2023-03-3102264709core:RetainedEarningsAccumulatedLosses2022-03-31022647092022-03-3102264709core:RetainedEarningsAccumulatedLosses2021-04-012022-03-3102264709core:PlantMachinery2023-03-3102264709core:PlantMachinery2022-03-3102264709core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3102264709core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3102264709core:CurrentFinancialInstruments2023-03-3102264709core:CurrentFinancialInstruments2022-03-3102264709core:PlantMachinery2022-04-012023-03-310226470912022-04-012023-03-310226470912021-04-012022-03-3102264709core:UKTax2022-04-012023-03-3102264709core:UKTax2021-04-012022-03-310226470922022-04-012023-03-310226470922021-04-012022-03-3102264709core:PlantMachinery2022-03-3102264709core:WithinOneYear2023-03-3102264709core:WithinOneYear2022-03-3102264709core:BetweenTwoFiveYears2023-03-3102264709core:BetweenTwoFiveYears2022-03-3102264709bus:PrivateLimitedCompanyLtd2022-04-012023-03-3102264709bus:FRS1022022-04-012023-03-3102264709bus:Audited2022-04-012023-03-3102264709bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP