Registered number
04958922
Eastside Consulting Limited
Report and Accounts
31 March 2023
Eastside Consulting Limited
Report and accounts
Contents
Page
Company information 1
Directors' report 2-3
Accountants' report 4
Profit and loss account 5
Balance sheet 6
Statement of changes in equity 7
Notes to the accounts 8-13
Eastside Consulting Limited
Company Information
Directors
R E Chadwick
R G Litchfield
B M Rook
D M Garratt (resigned 19 April 2022)
Accountants
FJM Accountancy Limited
23 Shackleton Court
2 Maritime Quay
London
E14 3QF
Bankers
National Westminster Bank plc
1 Princes Street
London
EC2R 8BP
Registered office
Canopi
7-14 Great Dover Street
London
SE1 4YR
Registered number
04958922
Eastside Consulting Limited
Registered number: 04958922
Directors' Report
The directors present their report and accounts for the year ended 31 March 2023.
Principal activities
The company's principal activity during the year continued to be management consultancy services.
Directors
The following persons served as directors during the year:
R E Chadwick
R G Litchfield
B M Rook
D M Garratt (resigned 19 April 2022)
Financial and operating performance
Our mission is to build the capacity and effectiveness of social sector organisations (charities and social enterprises).
We deliver on this mission through providing consultancy and recruitment services deploying a talent pool of people (our 'members') who have been mobilised for their senior professional experience drawn from across the charity, business and healthcare sectors.
We achieved good growth of 15% during the last year thanks to the development of our recruitment arm which provided a mix of interim placements as well as senior leadership roles for executives and boards.
Given the difficult operating environment as a result of the cost-of-living crisis and post-COVID recovery, our projects have been particularly geared to supporting clients to develop new strategies, diversify income, improve their digital deployments and reconfigure their workforces. The breadth of our support provides some improved resilience because we can offer services to both social sector organisations that are growing as well as those who need to restructure and cut back.
Looking forward, we are forecasting modest growth as our clients tackle the cost-of-living crisis, with our recruitment business being particularly in demand due to rises in the churn of senior management and leadership roles in the social sector.
In the last quarter of the financial year, we refreshed our branding and launched Eastside People superseding Eastside Primetimers as the trading name for the company. We believe this will better reflect our key message of access to a spectrum of senior resources – whether consultants, interims, mentors, non-execs or permanent leaders (via our recruitment arm).
Following the year-end we were again recognised as one of the UK's top social enterprises in the RBS SE100 Index for 2023, demonstrating our social credentials and alignment of purpose with our clients.
Small company provisions
This report has been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.
This report was approved by the board on 24 October 2023 and signed on its behalf.
R G Litchfield
Director
Eastside Consulting Limited
Accountants' Report
Accountants' report to the directors of
Eastside Consulting Limited
You consider that the company is exempt from an audit for the year ended 31 March 2023. You have acknowledged, on the balance sheet, your responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts. These responsibilities include preparing accounts that give a true and fair view of the state of affairs of the company at the end of the financial year and of its profit or loss for the financial year.
In accordance with your instructions, we have prepared the accounts which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and the related notes from the accounting records of the company and on the basis of information and explanations you have given to us.
We have not carried out an audit or any other review, and consequently we do not express any opinion on these accounts.
FJM Accountancy Limited
Accountants
23 Shackleton Court
2 Maritime Quay
London
E14 3QF
25 October 2023
Eastside Consulting Limited
Profit and Loss Account
for the year ended 31 March 2023
2023 2022
£ £
Turnover 1,760,635 1,527,234
Cost of sales (1,032,679) (938,574)
Gross profit 727,956 588,660
Administrative expenses (689,744) (514,805)
Other operating income - 9,250
Operating profit 38,212 83,105
Interest receivable 265 8
Interest payable (117) (426)
Profit before taxation 38,360 82,687
Tax on profit (7,249) (15,331)
Profit for the financial year 31,111 67,356
Eastside Consulting Limited
Registered number: 04958922
Balance Sheet
as at 31 March 2023
Notes 2023 2022
£ £
Fixed assets
Tangible assets 3 5,188 4,546
Current assets
Debtors 4 344,976 298,450
Cash at bank and in hand 348,890 332,491
693,866 630,941
Creditors: amounts falling due within one year 5 (453,713) (373,212)
Net current assets 240,153 257,729
Net assets 245,341 262,275
Capital and reserves
Called up share capital 109 118
Share premium 90,336 90,336
Profit and loss account 154,896 171,821
Shareholders' funds 245,341 262,275
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
R G Litchfield
Director
Approved by the board on 24 October 2023
Eastside Consulting Limited
Statement of Changes in Equity
for the year ended 31 March 2023
Share Share Re- Profit Total
capital premium valuation and loss
reserve account
£ £ £ £ £
At 1 April 2021 118 90,336 - 132,548 223,002
Profit for the financial year - - - 67,356 67,356
Dividends (28,083) (28,083)
At 31 March 2022 118 90,336 - 171,821 262,275
At 1 April 2022 118 90,336 - 171,821 262,275
Profit for the financial year - - - 31,111 31,111
Dividends paid - - - (27,176) (27,176)
Shares redeemed (9) (20,860) (20,869)
At 31 March 2023 109 90,336 - 154,896 245,341
Eastside Consulting Limited
Notes to the Accounts
for the year ended 31 March 2023
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
The directors have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the Company to continue as a going concern. The directors have made this assessment for a period of at least one year from the date of approval of the financial statements.
Having reviewed our budget and projections in light of the current situation, the directors have concluded that there is a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.
The preparation of the financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.
The following principal accounting policies have been applied.
Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:
Rendering of services
Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
- the amount of turnover can be measured reliably;
- it is probable that the Company will receive the consideration due under the contract;
- the stage of completion of the contract at the end of the reporting period can be measured reliably; and
- the costs incurred and the costs to complete the contract can be measured reliably.
Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Tangible fixed assets (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method, as follows:
Office and IT equipment 15% to 25%
The assets' residual value, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of income and retained earnings.
Stocks
Stocks and work in progress are valued at the lower of cos and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs as an appropriate proportion of fixed and variable overheads.
Long-term contracts
Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen.
Debtors
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest rate method, less any impairment.
Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of income and retained earnings.
Financial instruments (continued)
For the financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For the financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.
Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Finance costs
Finance costs are charged to the Statement of income and retained earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Operating leases: the Company as lessee
Rentals paid under operating leases are charged to the Statement of income and retained earnings on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Operating leases: the Company as lessee (continued)
The Company has taken advantage of optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard 01 April 2015 to continue to be charged over the period to the first market rent review rather than the term of the lease.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Employees 2023 2022
Number Number
Average number of persons employed by the company 11 9
3 Tangible fixed assets
Plant and machinery
£
Cost
At 1 April 2022 6,662
Additions 2,488
At 31 March 2023 9,150
Depreciation
At 1 April 2022 2,116
Charge for the year 1,846
At 31 March 2023 3,962
Net book value
At 31 March 2023 5,188
At 31 March 2022 4,546
4 Debtors 2023 2022
£ £
Trade debtors 253,153 202,047
Amounts owed from Eastside Primetimers Foundation (see Note 8) - 238
Other debtors 91,823 96,165
344,976 298,450
5 Creditors: amounts falling due within one year 2023 2022
£ £
Loan from Eastside Primetimers Foundation (Note 8) 1,500 13,425
Trade creditors 116,515 108,370
Taxation and social security costs 98,487 74,280
Other creditors 237,211 177,137
453,713 373,212
6 Other financial commitments 2023 2022
£ £
Total future minimum payments under non-cancellable operating leases 870 998
7 Related party transactions
Eastside Primetimers Foundation (Registered company number 05249273) owns 25% of the shares of the company. At 31 March 2023 £1,500 was owed to Eastside Primetimers Foundation (2022: £238 was owed from Eastside Primetimers Foundation).
Eastside Primetimers Foundation advanced a loan to the company. The loan was originally repayable over 36 months from February 2019, however a repayment holiday was taken during the year ended 31 March 2021. The interest rate charged on the uncleared balance is 3% and the interest charged in the year was £117 (2022 £426).
Repayments are due as follows: 2023 2022
£ £
One to two years - 13,425
Due within one year - -
Total loan balance - 13,425
8 Controlling party
R G Litchfield has a controlling interest in the company by virtue of holding the majority of the voting rights in the company.
9 Other information
Eastside Consulting Limited is a private company limited by shares and incorporated in England. Its registered office is:
Canopi
7-14 Great Dover Street
London
SE1 4YR
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