Caseware UK (AP4) 2022.0.179 2022.0.179 All amounts relate to continuing operations. There was no other comprehensive income for 2022 (2021: £Nil).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. The assets' residual values, 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 profit or loss.No description of principal activitytruetrue2022-01-01false075false 05250455 2022-01-01 2022-12-31 05250455 2021-01-01 2021-12-31 05250455 2022-12-31 05250455 2021-12-31 05250455 2021-01-01 05250455 1 2022-01-01 2022-12-31 05250455 d:CompanySecretary1 2022-01-01 2022-12-31 05250455 d:Director1 2022-01-01 2022-12-31 05250455 d:Director3 2022-01-01 2022-12-31 05250455 d:Director4 2022-01-01 2022-12-31 05250455 d:Director5 2022-01-01 2022-12-31 05250455 d:Director5 2022-12-31 05250455 d:RegisteredOffice 2022-01-01 2022-12-31 05250455 d:Agent1 2022-01-01 2022-12-31 05250455 c:OfficeEquipment 2022-01-01 2022-12-31 05250455 c:OfficeEquipment 2022-12-31 05250455 c:OfficeEquipment 2021-12-31 05250455 c:OfficeEquipment c:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 05250455 c:ComputerEquipment 2022-01-01 2022-12-31 05250455 c:ComputerEquipment 2022-12-31 05250455 c:ComputerEquipment 2021-12-31 05250455 c:ComputerEquipment c:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 05250455 c:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 05250455 c:CurrentFinancialInstruments 2022-12-31 05250455 c:CurrentFinancialInstruments 2021-12-31 05250455 c:ReportableOperatingSegment1 2022-01-01 2022-12-31 05250455 c:ReportableOperatingSegment1 2021-01-01 2021-12-31 05250455 c:UKTax 2022-01-01 2022-12-31 05250455 c:UKTax 2021-01-01 2021-12-31 05250455 c:ShareCapital 2022-12-31 05250455 c:ShareCapital 2021-12-31 05250455 c:ShareCapital 2021-01-01 05250455 c:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 05250455 c:RetainedEarningsAccumulatedLosses 2022-12-31 05250455 c:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 05250455 c:RetainedEarningsAccumulatedLosses 2021-12-31 05250455 c:RetainedEarningsAccumulatedLosses 2021-01-01 05250455 d:OrdinaryShareClass1 2022-01-01 2022-12-31 05250455 d:OrdinaryShareClass1 2021-01-01 2021-12-31 05250455 d:OrdinaryShareClass1 2022-12-31 05250455 d:OrdinaryShareClass1 2021-12-31 05250455 d:FRS102 2022-01-01 2022-12-31 05250455 d:Audited 2022-01-01 2022-12-31 05250455 d:FullAccounts 2022-01-01 2022-12-31 05250455 d:PrivateLimitedCompanyLtd 2022-01-01 2022-12-31 05250455 c:AcceleratedTaxDepreciationDeferredTax 2022-12-31 05250455 c:AcceleratedTaxDepreciationDeferredTax 2021-12-31 05250455 2 2022-01-01 2022-12-31 05250455 6 2022-01-01 2022-12-31 xbrli:shares iso4217:GBP xbrli:pure

img27af.png






Financial Statements
Elements Communications Ltd
For the year ended 31 December 2022





































Registered number: 05250455

 
Elements Communications Ltd
 

Company Information


Directors
Howard Beggs 
Wendy Mathias 
Rory Cremin 
Peter Thompson (resigned 6 September 2022)




Company secretary
Erin Lane



Registered number
05250455



Registered office
Aurora House
Deltic Avenue

Rooksley

Milton Keynes

Buckinghamshire

United Kingdom




Independent auditor
Grant Thornton
Chartered Accountants & Statutory Auditors

13-18 City Quay

Dublin 2

Ireland




Bankers
Citibank N.A. London
Canada SQ Service CTR

Citigroup CTR 25

London

United Kingdom

E14 5LB





 
Elements Communications Ltd
 

Contents



Page
Directors' report
1
Directors' responsibilities statement
2
Independent auditor's report
3 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Notes to the financial statements
10 - 20


 
Elements Communications Ltd
 
 
Directors' report
For the year ended 31 December 2022

The directors present their report and the financial statements for the year ended 31 December 2022.

Results and dividends

The profit for the year, after taxation, amounted to £85,292 (2021 - £1,304,846).

The directors have proposed a dividend of £Nil in the subsequent year (2021: £Nil).

The Company has paid a dividend of £Nil during the year (2021: £2,100,000).

Directors

The directors who served during the year were:

Howard Beggs 
Wendy Mathias 
Rory Cremin 
Peter Thompson (resigned 6 September 2022)

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since year end.

Auditor

The auditor, Grant Thorntonwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
Howard Beggs
Director

Date: 28 July 2023

Page 1

 
Elements Communications Ltd
 

Directors' responsibilities statement
For the year ended 31 December 2022

The directors are responsible for preparing the Directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

On behalf of the board



................................................

Howard Beggs

Director


Date: 28 July 2023
Page 2

 
 
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Independent auditor's report to the members of Elements Communications Ltd
 
Opinion


We have audited the financial statements of Elements Communications Ltd which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity for the year ended 31 December 2022, and the related notes to the financial statements, including a summary of significant accounting policies.  

The financial reporting framework that has been applied in the 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, Elements Communications Ltd's financial statements:


give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice of the assets, liabilities and financial position of the Company as at 31 December 2022 and of its financial performance for the year then ended; and


have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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 'Responsibilities of the auditor 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 United Kingdom, namely the FRC's Ethical Standard and the ethical pronouncements established by Chartered Accountants Ireland, applied as determined to be appropriate in the circumstances of the entity. 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 the date 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.
Page 3

 
 
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Independent auditor's report to the members of Elements Communications Ltd (continued)



Other information


Other information comprises the information included in the annual report, other than the financial statements and our Auditor's report thereon, including the Directors' report. The directors are responsible for the other information. Our opinion on the financial statements does not cover the information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.


In connection with our audit of the financial statementsour 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 audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies in the financial statements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:
the information given in the Directors' report for the year for which the financial statements are prepared is consistent with the financial statements, and 
the Directors' report has been prepared in accordance with applicable legal requirements. 

Matters on which we are required to report by exception


In the light of the knowledge and understanding of the Company and its environment we have obtained in the course of the audit, we have not identified material misstatements in 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 directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.; or
the directors were not entitled to take advantage of the small companies' exemptions from the requirement to prepare a strategic report or in preparing the Directors' report.
Page 4

 
 
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Independent auditor's report to the members of Elements Communications Ltd (continued)

Responsibilities of management and those charged with governance for the financial statements
 

Management is responsible for the preparation of the financial statements which give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS102 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, management is 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 management either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.


Those charged with governance are responsible for overseeing the Company's financial reporting process.

Responsibilities of the auditor for the audit of the financial statements
 

The objectives of an auditor 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 their 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.

A further description of an auditor's responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISAs (UK).

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to compliance with data protection and Employment laws, Health and Safety Regulation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulation that have a direct impact on the preparation of the financial statements such as Companies Act 2006 and UK tax legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and management bias through judgements and assumptions in significant accounting estimates, in particular in relation to significant one-off or unusual transactions. We apply professional scepticism through the audit to consider potential deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the financial statements.
Page 5

 
 
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Independent auditor's report to the members of Elements Communications Ltd (continued)

Responsibilities of the auditor for the audit of the financial statements (continued)

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud (continued)

In response to these principal risks, our audit procedures included but were not limited to:

inquiries of management and board on the policies and procedures in place regarding compliance with laws and regulations, including consideration of known or suspected instances of non-compliance and whether they have knowledge of any actual, suspected or alleged fraud;
inspection of the Company’s regulatory and legal correspondence and review of minutes of board meetings during the year to corroborate inquiries made;
gaining an understanding of the internal controls established to mitigate risk related to fraud;
discussion amongst the engagement team in relation to the identified laws and regulations and regarding the risk of fraud, and remaining alert to any indications of non-compliance or opportunities for fraudulent manipulation of financial statements throughout the audit;
identifying and testing journal entries to address the risk of inappropriate journals and management override of controls;
designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing; 
challenging assumptions and judgements made by management in their significant accounting estimates, including useful lives of depreciable assets and estimating allowance for impairment of debtors; and
review of the financial statements disclosures to underlying supporting documentation and inquiries of management.

The primary responsibility for the prevention and detection of irregularities including fraud rests with those charged with governance and management. As with any audit, there remains a risk of non-detection or irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or override of internal controls. 

The purpose of our audit work and to whom we owe our responsibilities
 

This report is made solely to the Company’s members, as a body, in accordance with chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

 
 
Tracey Sullivan (Senior Statutory Auditor)
for and on behalf of
Grant Thornton
Chartered Accountants
& Statutory Auditors
13 - 18 City Quay
Dublin 2
 
Date:
28 July 2023
Page 6

 
Elements Communications Ltd
 

Statement of comprehensive income
For the year ended 31 December 2022

2022
2021
Note
£
£

Turnover
 4 
7,896,097
10,070,272

Cost of sales
  
(1,459,534)
(1,864,817)

Gross profit
  
6,436,563
8,205,455

Administrative expenses
  
(6,362,840)
(6,592,289)

Operating profit
 5 
73,723
1,613,166

Interest receivable and similar income
 7 
-
35

Profit before tax
  
73,723
1,613,201

Tax on profit
 8 
11,569
(308,355)

Profit for the year
  
85,292
1,304,846

All amounts relate to continuing operations.

There was no other comprehensive income for 2022 (2021£Nil).

The notes on pages 10 to 20 form part of these financial statements.

Page 7

 
Elements Communications Ltd
Registered number:05250455

Statement of financial position
As at 31 December 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible fixed assets
 9 
1,754
7,763

Investments
 10 
100
100

  
1,854
7,863

Current assets
  

Debtors: amounts falling due within one year
 11 
7,268,513
6,696,030

Cash at bank and in hand
 12 
706,282
939,893

  
7,974,795
7,635,923

Current liabilities
  

Creditors: amounts falling due within one year
 13 
(5,422,514)
(5,174,943)

Net current assets
  
 
 
2,552,281
 
 
2,460,980

Total assets less current liabilities
  
2,554,135
2,468,843

Provisions for liabilities
  

Deferred tax
 14 
(7,157)
(7,157)

Net assets
  
2,546,978
2,461,686


Capital and reserves
  

Called up share capital 
 15 
1
1

Profit and loss account
 16 
2,546,977
2,461,685

Shareholders' funds
  
2,546,978
2,461,686


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
Howard Beggs
Director

Date: 28 July 2023

The notes on pages 10 to 20 form part of these financial statements.

Page 8

 
Elements Communications Ltd
 

Statement of changes in equity
For the year ended 31 December 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
1
2,461,685
2,461,686



Profit for the year
-
85,292
85,292


At 31 December 2022
1
2,546,977
2,546,978



Statement of changes in equity
For the year ended 31 December 2021


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2021
1
3,256,839
3,256,840



Profit for the year
-
1,304,846
1,304,846

Dividends: Equity capital
-
(2,100,000)
(2,100,000)


At 31 December 2021
1
2,461,685
2,461,686


The notes on pages 10 to 20 form part of these financial statements.

Page 9

 
Elements Communications Ltd
 
 
Notes to the financial statements
For the year ended 31 December 2022

1.


General information

Elements Communications Ltd is a company limited by shares which is registered and incorporated in the United Kingdom with a registered office at Aurora House, Deltic Avenue, Rooksley, Milton Keynes, Buckinghamshire, MK13 8LW, United Kingdom. The principal activity of the Company in the year under review is the provision of medical education and communications to the global healthcare sector.

2.Accounting policies

  
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Acts 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
 
The Company is exempt from the requirement to produce consolidated accounts by virtue of s400 of the Companies Act 2006, as the results of the Company and its subsidiary are included in the consolidated financial statements of Clanwilliam Headquarters Limited, drawn up to 31 December 2020, available from Office Suite 17, The Courtyard, Carmanhall Road, Sandyford, Dublin 18.

The Company has availed of the exemptions in FRS 102 section 1.12 (b) which allows non-disclosure of the requirements of Section 7 Statement of Cash Flows, Section 3 Financial Statement Presentation paragraph 3.17(d) and from disclosing the Company key management personnel compensation under paragraph 33.7

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue 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 revenue is recognised:

Rendering of services

Revenue 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 revenue 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.

Page 10

 
Elements Communications Ltd
 

Notes to the financial statements
For the year ended 31 December 2022

2.Accounting policies (continued)

 
2.3

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss 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.

 
2.4

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.5

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.6

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 11

 
Elements Communications Ltd
 

Notes to the financial statements
For the year ended 31 December 2022

2.Accounting policies (continued)

 
2.7

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.

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.

Depreciation is provided on the following basis:

Office equipment
-
25%
Computer equipment
-
33%

The assets' residual values, 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 profit or loss.

  
2.8

Financial instruments

The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below:

Financial assets and financial liabilities are initially measured at fair value.

Financial assets
All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.

Debt instruments at amortised cost
Debt instruments are subsequently measured at amortised cost where they are financial assets held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and selling the financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Amortised cost is calculated using the effective interest method and represents the amount measured at initial recognition less repayments of principal plus the cumulative amortisation using the effective interest method of any difference between the initial amount and the maturity amount, adjusted for any loss allowance.

Impairment of financial assets
The Company recognises a loss allowance for expected credit losses on investments in debt instruments that are measured at amortised or at fair value through other comprehensive income. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument.
Page 12

 
Elements Communications Ltd
 

Notes to the financial statements
For the year ended 31 December 2022

2.Accounting policies (continued)

2.8  Financial instruments (continued)

The Company always recognises lifetime expected credit losses for trade receivables and amounts due on contracts with customers. The expected credit losses on these financial assets are estimated based on the Company's historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. Lifetime of expected credit losses represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument.

Financial liabilities

At amortised cost
Financial liabilities which are neither contingent consideration of an acquirer in a business combination, held for trading, nor designated as at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. This is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or where appropriate a shorter period, to the amortised cost of a financial liability.

 
2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

 
2.10

 Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, including transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

 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.

 
2.12

 Creditors

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

Page 13

 
Elements Communications Ltd
 

Notes to the financial statements
For the year ended 31 December 2022

2.Accounting policies (continued)

 
2.13

 Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.

 
2.14

 Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

When preparing the financial statements management prepares a number of judgements, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses.

Useful lives of depreciable assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on the number of factors. In re-assessing asset lives, factors such as value assessments consider future market conditions, the remaining life of the asset and projected disposal value.

Allowances for impairment of trade debtors
The Company estimates the allowance for doubtful trade debtors based on assessment of specific accounts where the Company has objective evidence comprising default in payment terms or significant financial difficulty that certain customers are unable to meet their financial obligations. In these cases, judgment used was based on the best available facts and circumstances including but not limited to, the length of relationship.



4.


Turnover

An analysis of turnover by class of business is as follows:


2022
2021
£
£

Sales
7,896,097
10,070,272


All turnover arose within the United Kingdom.

Page 14

 
Elements Communications Ltd
 
 
Notes to the financial statements
For the year ended 31 December 2022

5.


Operating profit

The operating profit is stated after charging:

2022
2021
£
£

Depreciation of tangible fixed assets
7,156
11,560

Exchange differences
21,921
(1,232)

29,077
10,328


6.


Employees

Staff costs were as follows:


2022
2021
£
£

Wages and salaries
-
(33,478)

Social security costs
-
(4,965)

Cost of defined contribution scheme
-
2,312

-
(36,131)


There was no directors' remuneration paid during 2022 (2021: £Nil).

The average monthly number of employees, including the directors, during the year was as follows:


        2022
        2021
            No.
            No.







Employees
-
75


7.


Interest receivable

2022
2021
£
£


Other interest receivable
-
35

Page 15

 
Elements Communications Ltd
 
 
Notes to the financial statements
For the year ended 31 December 2022

8.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
-
253,396

Adjustments in respect of previous periods
(11,569)
54,959



Taxation on (loss)/profit on ordinary activities
(11,569)
308,355

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2021 - higher than) the standard rate of corporation tax in the UK of19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


Profit on ordinary activities before tax
73,723
1,613,201


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
14,007
306,508

Effects of:


Capital allowances for year in excess of depreciation
855
1,847

Group relief
(14,862)
-

(Over)/under provision in prior years
(11,569)
-

Total tax charge for the year
(11,569)
308,355


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 16

 
Elements Communications Ltd
 
 
Notes to the financial statements
For the year ended 31 December 2022

9.


Tangible fixed assets





Office equipment
Computer equipment
Total

£
£
£



Cost or valuation


At 1 January 2022
2,412
22,864
25,276


Additions
-
1,147
1,147



At 31 December 2022

2,412
24,011
26,423



Depreciation


At 1 January 2022
1,959
15,554
17,513


Charge for the year on owned assets
453
6,703
7,156



At 31 December 2022

2,412
22,257
24,669



Net book value



At 31 December 2022
-
1,754
1,754



At 31 December 2021
453
7,310
7,763



Page 17

 
Elements Communications Ltd
 
 
Notes to the financial statements
For the year ended 31 December 2022

10.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2022
100



At 31 December 2022

100






Net book value



At 31 December 2022
100



At 31 December 2021
100


The aggregate of the share capital and reserves as at 31 December 2022 and the profit or loss for the year ended on that date for the subsidiary undertaking was as follows:



11.


Debtors: Amounts falling due within one year

2022
2021
£
£


Trade debtors
2,568,023
1,921,081

Amounts owed by group undertakings
3,391,946
3,500,001

Corporation tax repayable
203,775
-

Other debtors and prepayments
14,004
16,058

Amounts receivable under contract
912,348
1,007,391

VAT repayable
178,417
251,499

7,268,513
6,696,030


All balances are recoverable within one year.
Amounts owed by group undertaking are unsecured, interest free and repayable on demand.

Page 18

 
Elements Communications Ltd
 
 
Notes to the financial statements
For the year ended 31 December 2022

12.


Cash and cash equivalents

2022
2021
£
£

Cash at bank and in hand
706,282
939,893



13.


Creditors: Amounts falling due within one year

2022
2021
£
£

Trade creditors
28,227
54,238

Amounts owed to group undertakings
3,469,664
3,418,698

Corporation tax
-
94,682

Other taxation and social security
-
-

Accruals and deferred income
1,924,623
1,607,325

5,422,514
5,174,943


Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
Glas Trust Corporation Limited hold a fixed and floating charge over the assets of the Company.


14.


Deferred taxation




2022


£






At beginning of year
7,157



At end of year
7,157

The provision for deferred taxation is made up as follows:

2022
2021
£
£


Accelerated capital allowances
7,157
7,157

Page 19

 
Elements Communications Ltd
 
 
Notes to the financial statements
For the year ended 31 December 2022

15.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



1 (2021 - 1) Ordinary share of £1.00
1
1



16.


Reserves

Profit and loss account

Includes all current and prior period retained profits and losses.


17.


Commitments under operating leases

At 31 December 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:



18.


Related party transactions

The Company has availed of the exemptions in FRS102 Section 33, Paragraph 33.1A which allows non-disclosure of transactions between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.


19.


Post balance sheet events

There have been no significant events affecting the Company since year end.


20.


Controlling party

The immediate controlling party is Obsidian Healthcare Group Limited., a company incorporated in the United Kingdom.

The smallest and largest consolidated financial statements presented are that of Clanwilliam Headquarters Limited. They are publicly available from the Companies Registration Office, Bloom House, Gloucester Place Lower, Dublin 1. 

Clanwilliam Headquarters Limited is owned by a UK trust called The Clanwilliam Group TrustM H Steven Wilson is the sole trustee and is the ultimate controlling party.

Page 20