Company registration number 08901408 (England and Wales)
LONDON SCHOOL OF DESIGN AND MARKETING LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
LONDON SCHOOL OF DESIGN AND MARKETING LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
LONDON SCHOOL OF DESIGN AND MARKETING LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
4
2,044
2,912
Current assets
Debtors
5
447,428
389,467
Cash at bank and in hand
31,891
61,676
479,319
451,143
Creditors: amounts falling due within one year
6
(1,354,773)
(1,555,716)
Net current liabilities
(875,454)
(1,104,573)
Net liabilities
(873,410)
(1,101,661)
Capital and reserves
Called up share capital
7
100,000
100,000
Profit and loss reserves
(973,410)
(1,201,661)
Total equity
(873,410)
(1,101,661)

The directors of the company have 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 by the board of directors and authorised for issue on 30 October 2023 and are signed on its behalf by:
Carlos Abrunhosa De Brito
Director
Company registration number 08901408 (England and Wales)
LONDON SCHOOL OF DESIGN AND MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
1
Accounting policies
Company information

London School of Design and Marketing Limited is a private company limited by shares incorporated in England and Wales. The registered office is Tower 42, 25 Old Broad Street, London, EC2N 1HN.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

The truedirectors have, at the time of approving the financial statements, received confirmation from the parent company that they will continue to provide financial support for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements based on this group support.

1.3
Turnover

Turnover is measured at the fair value of the consideration received or receivable for the rendering of services in the normal course of business.

 

Revenue from contracts for the provision of 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.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation 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:

Website
5 years straight line
1.5
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:

Computers
4 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.

LONDON SCHOOL OF DESIGN AND MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 3 -
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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).

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ”Basic Financial Instruments” 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.

Basic financial assets

Short term debtors are measured at transaction price less any provision for impairment. Loans receivable are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method, less any provision for impairment.

Basic financial liabilities

Short term creditors are measured at transaction price. Other financial liabilities, including bank loans and other loans, are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method.

1.8
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.

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.

 

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.

1.9
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.

1.10
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.

LONDON SCHOOL OF DESIGN AND MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
1.11
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.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2022
2021
Number
Number
Total
19
21
3
Intangible fixed assets
Website
£
Cost
At 1 January 2022 and 31 December 2022
7,360
Amortisation and impairment
At 1 January 2022 and 31 December 2022
7,360
Carrying amount
At 31 December 2022
-
0
At 31 December 2021
-
0
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2022 and 31 December 2022
3,473
Depreciation and impairment
At 1 January 2022
561
Depreciation charged in the year
868
At 31 December 2022
1,429
Carrying amount
At 31 December 2022
2,044
At 31 December 2021
2,912
LONDON SCHOOL OF DESIGN AND MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
-
0
491
Other debtors
125,559
108,936
125,559
109,427
2022
2021
Amounts falling due after more than one year:
£
£
Deferred tax asset
321,869
280,040
Total debtors
447,428
389,467
6
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
89,390
45,317
Taxation and social security
914
673
Other creditors
1,264,469
1,509,726
1,354,773
1,555,716
7
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
8
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:
David Jones
Statutory Auditor:
Harwood Hutton Limited
LONDON SCHOOL OF DESIGN AND MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
9
Financial commitments, guarantees and contingent liabilities

The company has entered in to a partnership agreement with the University for the Creative Arts (UCA) to enroll a minimum number of students on to its courses. If the company is unable to reach this target number they are subject to a top-up fee so that the total amount paid to UCA in the academic year 2022/23 totals £300,000. As at the date of signing, the top-up fee payable amounted to £12,390.

10
Parent company

The directors consider that the ultimate controlling party at the balance sheet date is Talent SGPS SA, a company registered in Portugal by virtue of it owning 100% of the share capital in London School of Design and Marketing Limited. Talent SGPS SA prepares group financial statements and copies can be obtained from Av. de Boavista, 1102 - 1 Drt. e Esq, 4100 - 113 Porto, Portugal.

11
Prior period adjustment

The prior period has been restated to reflect changes in deferred income, trade creditors, accruals, prepayments and the deferred tax asset. Details of these matters are included below.

Reconciliation of changes in equity
31 December
31 December
2020
2021
Notes
£
£
Adjustments to prior year
Revenue recognition
A
(294,037)
(420,024)
Trade creditors
B
(37,248)
(44,978)
Audit accrual
C
-
(29,400)
UCA fee
D
(47,517)
(87,900)
Deferred tax asset
E
71,972
110,637
Total adjustments
(306,830)
(471,665)
Equity as previously reported
(766,920)
(629,996)
Equity as adjusted
(1,073,750)
(1,101,661)
Analysis of the effect upon equity
Profit and loss reserves
(306,830)
(471,665)
LONDON SCHOOL OF DESIGN AND MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
11
Prior period adjustment
(Continued)
- 7 -
Reconciliation of changes in profit/(loss) for the previous financial period
2021
Notes
£
Adjustments to prior year
Revenue recognition
A
(125,987)
Trade creditors
B
(7,730)
Audit accrual
C
(29,400)
UCA fee
D
(40,383)
Deferred tax asset
E
38,665
Total adjustments
(164,835)
Profit as previously reported
136,924
Loss as adjusted
(27,911)
Notes to reconciliation
A. Revenue recognition

In prior years sales were recognised on a cash basis. The correct treatment, to recognise the income by stage of completion as at the reporting end date, has now been applied. The effect in the year-ended 2020 is a reduction in revenue of £294,037 and in the year-ended 2021 is an adjustment of £420,024. These amounts are recognised as deferred income on the balance sheet in their respective periods. The net effect on profit and loss in the year-ended 2021 was a reduction in revenue of £125,987.

B. Trade creditors

In prior years purchase invoices were recognised on a cash basis. The correct treatment, to recognise the liability in the period the expense is incurred, has now been applied. The effect in the year-ended 2020 is an increase in expenses of £37,248 and in the year-ended 2021 is an increase of £44,978. These amounts are recognised as trade creditors on the balance sheet in their respective periods. The net effect on profit and loss in the year-ended 2021 was an increase in expenses of £7,730.

C. Audit accrual

An accrual for the audit work relating to the year-ended 2021 and the two prior periods should have been included in the 2021 profit and loss account. An adjustment has been posted to reflect the fees incurred on audit work performed on these periods.

D. UCA fee

An accrual adjustment for costs directly related to income has been put through to recognise the liability that is due when a sales invoice is raised. The effect in the year-ended 2020 is an increase in accruals of £107,669 and in the year-ended 2021 is an increase in accruals of £171,906. Where a proportion of income has been deferred on a pro-rata basis, the cost directly related to this deferred income has also been prepaid. The effect in the year-ended 2020 is an increase to prepayments of £60,153 and in the year-ended 2021 is an increase to prepayments of £84,005. The net effect on profit and loss in the year-ended 2021 was an increase in direct costs of £40,383.

E. Deferred tax asset

As a result of the adjustments in notes A, B, C and D, the taxable loss for both periods increased so an adjustment is required to the deferred tax asset balance carried forward. This has been calculated at 19% of the net profit and loss adjustments.

2022-12-312022-01-01false21 November 2023CCH SoftwareCCH Accounts Production 2023.300No description of principal activityThis audit opinion is unqualifiedCarlos Abrunhosa De BritoGoncalo Caetano AlvesCarlos Manuel Cortes Pereira SaAndrew John BatesMark Andrew Huntfalse089014082022-01-012022-12-31089014082022-12-31089014082021-12-3108901408core:OtherPropertyPlantEquipment2022-12-3108901408core:OtherPropertyPlantEquipment2021-12-3108901408core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3108901408core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-3108901408core:CurrentFinancialInstruments2022-12-3108901408core:CurrentFinancialInstruments2021-12-3108901408core:ShareCapital2022-12-3108901408core:ShareCapital2021-12-3108901408core:RetainedEarningsAccumulatedLosses2022-12-3108901408core:RetainedEarningsAccumulatedLosses2021-12-3108901408bus:Director12022-01-012022-12-3108901408core:IntangibleAssetsOtherThanGoodwill2022-01-012022-12-3108901408core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-01-012022-12-3108901408core:ComputerEquipment2022-01-012022-12-31089014082021-01-012021-12-3108901408core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2021-12-3108901408core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-12-3108901408core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2021-12-3108901408core:OtherPropertyPlantEquipment2021-12-3108901408core:OtherPropertyPlantEquipment2022-01-012022-12-3108901408core:WithinOneYear2022-12-3108901408core:WithinOneYear2021-12-3108901408core:AfterOneYear2022-12-3108901408core:AfterOneYear2021-12-3108901408bus:PrivateLimitedCompanyLtd2022-01-012022-12-3108901408bus:SmallCompaniesRegimeForAccounts2022-01-012022-12-3108901408bus:FRS1022022-01-012022-12-3108901408bus:Audited2022-01-012022-12-3108901408bus:Director22022-01-012022-12-3108901408bus:Director32022-01-012022-12-3108901408bus:Director42022-01-012022-12-3108901408bus:Director52022-01-012022-12-3108901408bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP