Company registration number 04617223 (England and Wales)
WINKREATIVE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
WINKREATIVE LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 10
WINKREATIVE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
3
36,960
8,628
Current assets
Stocks
-
7,310
Debtors
4
1,537,924
1,463,312
Cash at bank and in hand
83,081
11,482
1,621,005
1,482,104
Creditors: amounts falling due within one year
5
(937,482)
(734,481)
Net current assets
683,523
747,623
Total assets less current liabilities
720,483
756,251
Creditors: amounts falling due after more than one year
6
(220,000)
(300,000)
Net assets
500,483
456,251
Capital and reserves
Called up share capital
7
2
2
Profit and loss reserves
500,481
456,249
Total equity
500,483
456,251
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 16 October 2023
J T Brule
Director
Company Registration No. 04617223
WINKREATIVE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2021
2
534,411
534,413
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
84,140
84,140
Other movements
-
(162,302)
(162,302)
Balance at 31 December 2021
2
456,249
456,251
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
44,232
44,232
Balance at 31 December 2022
2
500,481
500,483
WINKREATIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
1
Accounting policies
Company information
Winkreative Limited is a private company limited by shares incorporated in England and Wales. The registered office is Midori House, 1 Dorset Street, London, W1U 4EG.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Going concern
The company has received assurances from its immediate parent that it will continue to require its services and that it is willing and able to provide continuing support to ensure that it continues to be able to meet its liabilities as they fall due. Therefore, atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for services provided during the year net of VAT and trade discounts. Turnover is calculated as the recharge of the costs incurred by the company as well as an agreed mark up.
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:
Land and buildings Leasehold
5 - 10 years straight line
Office equipment
3 - 5 years straight line
Furniture & fixtures
3 - 10 years straight line
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.
WINKREATIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
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
Stocks
Stocks comprise work in progress and is stated at the lower of cost and estimated selling price. Cost comprises direct labour costs and those overheads that have been incurred in bringing the stocks to their present condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
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.
WINKREATIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 5 -
1.8
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.
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.
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.
1.9
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
WINKREATIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 6 -
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.
Deferred tax
Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. During both the prior year and current year, the company received income under the government coronavirus job retention scheme (CJRS).
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
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.
WINKREATIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
19
23
3
Tangible fixed assets
Land and buildings Leasehold
Office equipment
Furniture & fixtures
Total
£
£
£
£
Cost
At 1 January 2022
889,990
362,157
735,281
1,987,428
Additions
34,838
34,838
At 31 December 2022
889,990
396,995
735,281
2,022,266
Depreciation and impairment
At 1 January 2022
889,990
355,244
733,566
1,978,800
Depreciation charged in the year
5,020
1,486
6,506
At 31 December 2022
889,990
360,264
735,052
1,985,306
Carrying amount
At 31 December 2022
36,731
229
36,960
At 31 December 2021
6,913
1,715
8,628
WINKREATIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
4
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,194,743
1,036,075
Corporation tax recoverable
20,713
20,713
Amounts due from group undertakings
23,325
Other debtors
234,037
223,056
Prepayments and accrued income
73,900
128,407
1,523,393
1,431,576
Deferred tax asset
14,531
31,736
1,537,924
1,463,312
5
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
80,000
80,157
Trade creditors
187,685
346,485
Amounts owed to group undertakings
81,629
81,629
Corporation tax
5,361
35,212
Other taxation and social security
43,939
46,720
Other creditors
368,406
4,702
Accruals and deferred income
170,462
139,576
937,482
734,481
6
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
220,000
300,000
In the previous year, a CBILS loan was obtained from Coutts repayable by June 2026. During the year the company made four repayments on this loan. Interest is charged on the loan at 3.50% per annum.
WINKREATIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
7
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
8
Operating lease commitments
Lessee
The company holds its head office under operating lease which was renewed in November 2020 for a period of 5 years.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2022
2021
£
£
1,647,917
2,212,917
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Matthew Granger
Statutory Auditor:
UHY Hacker Young
10
Related party transactions
WINKREATIVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
10
Related party transactions
(Continued)
- 10 -
During the year the company invoiced Winkreative AG £3,100,501 (2021: £2,829,425) for services provided. Included within trade debtors as at 31 December 2022 is £1,194,750 (2021: £935,097) due from Winkreative AG. Winkreative AG is the immediate parent company.
During the year the company invoiced £371,064 (2021: £375,097) in respect of rent and recharged other expenses of £115,267 (2021: £115,227) to Winkontent Limited. Included within other creditors as at 31 December 2022 is £194,403(2021: £nil) due to Winkontent Limited. Winkontent Limited is also controlled by Winkorp AG, the ultimate controlling party.
As at 31 December 2022 the company owed Winkorp AG £152,311 (2021: £81,629) in respect of a loan. The company incurred accrued interest of £1,866 (2021: £3,199) on the loan from Winkorp AG for the year ended 31 December 2022. As at 31 December 2022 the total accrued interest due on the loan from Winkorp AG was £72,548 (2021: £70,682).
As at 31 December 2022 the company owed Winkreative Toronto £9,476 (2021: £109,445).
As at 31 December 2022 the company owed Winkontent Hong Kong £nil (2021: £3,013).
As at 31 December 2022 the company owed Winkontent Tokyo £nil (2021: £36,993).
Included within other debtors as at 31 December 2022 is £63,733 (2021: £63,733) due from J T Brule, who is the director of the company.
11
Intercompany loan waiver
During the prior year, £162,302 of the balance receivable from the parent company was waived. In accordance with FRS102, this waiver was recognised directly in equity.
12
Parent company
The immediate parent company is Winkreative AG and the ultimate parent company is Winkorp AG. Both companies are registered in Switzerland.
The ultimate controlling party is J T Brule, a director of the company.
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