Goodstuff Holdings Limited
Annual Report and Financial Statements
For the year ended 31 December 2022
Company Registration No. 10525545 (England and Wales)
Goodstuff Holdings Limited
Company Information
Directors
Ben Hayes
Andrew Stephens
Ryan Greene
Frank Lanuto
Jay Leveton
Sandy Roberts
Secretary
M Stuart
Company number
10525545
Registered office
Fifth Floor
Corinthian House
279 Tottenham Court Road
London
United Kingdom
W1T 7RJ
Auditor
Moore Kingston Smith LLP
Charlotte Building
17 Gresse Street
London
W1T 1QL
Goodstuff Holdings Limited
Contents
Page
Strategic report
1 - 5
Directors' report
6
Directors' responsibilities statement
7
Independent auditor's report
8 - 11
Statement of comprehensive income
12
Balance sheet
13
Statement of changes in equity
14
Notes to the financial statements
15 - 31
Goodstuff Holdings Limited
Strategic Report
For the year ended 31 December 2022
Page 1
The directors present the strategic report of Goodstuff Holdings Limited (trading as Goodstuff Communications) (“the Company”) for the year ended 31 December 2022.
Principal Activities
The principal activity of the Company is the provision of a broad range of services to our clients including planning and buying of digital and traditional media, creative solutions, and communication strategies.
Goodstuff Highlights
Our Business
Goodstuff completed its first year being part of the Stagwell Group and with this came the opportunity to access several products and services which are complementary to those already offered by Goodstuff and which have been beneficial to our clients especially in the areas of technology, data, and digital services.
In a year of significant economic upheaval due to the war in Ukraine, spiraling inflation and interest rate rises, the Company has maintained its revenue despite clients looking to scale back marketing spends in the face of these uncertain economic circumstances. Through strong cost control this has results in an increase in EBITDA by 9% year on year to £3,098,000.
Our Clients
Our relationships with our clients remain strong and this continues to be reflected in our client satisfaction surveys which we carry out three times a year. We use the feedback from these surveys to assist in setting our service objectives during our regular client check ins.
Our Work
In early 2022, at the Campaign Media Awards, we were crowned Media Agency of the Year 2021 and were short-listed for nine awards, securing three highly commended and two wins.
At the Media Week awards, we secured three short-listed papers, winning bronze for two of those. Across the entire of 2022, we won four awards, three highly commended and three bronze awards from Campaign, Campaign Tech, Media Week, and the Wires Awards, which reflects the quality of the work we deliver to our clients.
Our People
The Company, along with our industry, experienced The Great Resignation for the two years following COVID. This impacted staffing consistency for our clients, but we continued to deliver quality work.
Our focus therefore in 2022 was consistency of high-quality work and on retaining our new and existing hires.
With higher turnover of staff in 2022 compared with previous years, we continued our in-house recruitment partnership with Blue Zebra which lead to most of our hires being directly sourced as opposed to via external recruitment agencies.
We grew our teams by hiring 11 entry-level Goodstarters across the Planning and Investment departments and all those hires are on track for a promotion in 2024.
We recognised the impact of the increase in cost of living on our staff, especially at junior levels, and made a one off cost of living payment to all staff below Group Director level in December 2022. We continue to benchmark our salary levels against the market to attract and retain high quality staff.
Goodstuff Holdings Limited
Strategic Report (Continued)
For the year ended 31 December 2022
Page 2
Goodstuff Holdings Limited
Strategic Report (Continued)
For the year ended 31 December 2022
Page 3
Goodstuff Holdings Limited
Strategic Report (Continued)
For the year ended 31 December 2022
Page 4
(c) The need to foster the Company’s business relationships with clients and media owners/suppliers | The directors recognise the importance of the Company developing strong relationships with its clients and this is reflected in the client satisfaction survey which we conduct three times a year. The Company constantly see the results of these survey’s putting us in the top quartile of our industry. The Company uses the feedback from this survey to assist in setting our service objectives at our regular client service meetings. As we buy media activity for our clients our relationship with media owners is critical to our success to ensure that we can negotiate competitive pricing in a neutral manner always putting our clients first. The Company expects our suppliers to demonstrate compliance with all laws and regulations such as data privacy; respect for human rights (including modern slavery requirements); anti-bribery laws; tax evasion and fraud; money laundering; and environmental impact. |
(d) The impact of the Company’s operations on the community and the environment | The directors understand that ensuring the Company’s operations have a positive impact on the community and environment is of strategic importance. The Company has continued to work on our B-Corp certification during 2022 and have engaged an external consultant to assist with this process. The Company has a nominated charity each year and employees will conduct fund raising activities during the year. For 2022 our nominated Charity was Cystic Fibrosis Trust. Our nominated Charity as voted for by Goodstuffers for 2023 is Whitechapel Mission, a homeless shelter in London, offering food, showers, clothing and advice. |
(e) The desirability of the Company maintaining a reputation for high standards of business conduct | The directors believe that managing its reputation for high standards of business including neutrality in media buying is a key priority. The directors ensure that there are appropriate codes of conduct in place to support this. All policies are available on the Company’s HR software (“HiBob”), and these are reviewed and updated on an annual basis as a minimum. All staff are required to confirm on an annual basis that they have complied with the Company’s anti bribery policy. |
(f) The need to act fairly as between Company’s owners | Key members of the senior management team have regular meetings with the Brand Performance Network Global CEO and CFO in which the Company is a division of. Results are reported monthly to Stagwell Group along with commentary business performance/risks/opportunities. |
The Directors consider the following are key stakeholders:
Our people/employees
Clients
Media Owners
Shareholder
The approach to each of the groups mentioned above are set out above.
Goodstuff Holdings Limited
Strategic Report (Continued)
For the year ended 31 December 2022
Page 5
Principal Risks and Uncertainties
The Company faces a range of market, strategy, financial, legal, operational, and human resource risks. The Company continues to focus on maximising working capital and reviews the key risks on a regular basis. Listed below are the key risks that the Company believes to be the principal risks and uncertainties faced during the period and the strategies to manage them:
Credit risk – the Company’s credit risk is primarily attributable to its trade debtors. The Company manages this risk by ensuring contracts are in place for all clients, continued monitoring of clients to ensure compliance with agreed payment terms and by obtaining credit insurance on clients where applicable. Where credit insurance is not available clients are required to pre-pay for all activity.
Highly competitive market - the Company operates in a highly competitive industry and therefore the differentiation of our services from Network Agencies and other Independent Agencies is key. The Company does this by ensuring there are dedicated client service teams in place, regular Client Satisfaction Surveys and Client Reviews are undertaken and the development of Client Action plans on the back of these to move our service forward. The Company works hard to maintain a distinctive brand and service offering that sets us apart from our competitors.
Attracting and retaining key talent – the failure to hire and retain key talent at all levels could have a significant impact on the servicing of clients. The ‘Great Resignation’ faced by the whole of the industry during 2021 and 2022 has resulted in churn rates higher than we have experienced in the past, but it has also given us the opportunity to bring in exciting new talent with fresh ideas and perspective. The Company looks to recruit people who not only have the right experience but will also live by our core values. High importance is placed on people engagement through our people satisfaction surveys that are run quarterly. The results of these surveys shape our People Strategy and help to ensure the Company is a great and happy place to work.
Liquidity risk – maintaining a sound financial position to support the future growth of the Company and new investment opportunities. The Company monitors its working capital closely and looks to maximise the level of cash on deposit at any point in time. Clear KPIs are set for the business around billing, overdue debtors, and media queries and these are monitored regularly. Stagwell Group also have quarterly targets.
Market conditions – adverse economic conditions locally and globally – adverse economic conditions can lead to Clients cutting back on media investment and reviewing arrangements with the view of reducing overall cost of services. The economic and political uncertainty is expected to remain high because of the global pandemic and geopolitical risks arising from the Russian war on Ukraine, both of which has seen rising inflation, including significant wage inflation and interest rates in the UK and the rest of the world. The Company will continue to manage the level of staffing and discretionary costs so that they are aligned with Client spending.
Ben Hayes
Director
22 November 2023
Goodstuff Holdings Limited
Directors' Report
For the year ended 31 December 2022
Page 6
The directors present their annual report and financial statements for the year ended 31 December 2022.
Principal activities
The principal activity of the company continued to be that of a communications planning agency.
Results and dividends
The results for the year are set out on page 12.
Ordinary dividends were paid amounting to £9,000,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Ben Hayes
Andrew Stephens
Ryan Greene
Frank Lanuto
Jay Leveton
Sandy Roberts
Auditor
In accordance with the company's articles, a resolution proposing that Moore Kingston Smith LLP be reappointed as auditor of the company will be put at a General Meeting.
Energy and carbon report
Goodstuff Holdings Limited is a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions available from the energy and carbon reporting requirements.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Ben Hayes
Director
22 November 2023
Goodstuff Holdings Limited
Directors' Responsibilities Statement
For the year ended 31 December 2022
Page 7
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Goodstuff Holdings Limited
Independent Auditor's Report
To the Members of Goodstuff Holdings Limited
Page 8
Opinion
We have audited the financial statements of Goodstuff Holdings Limited (the 'company') for the year ended 31 December 2022 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Goodstuff Holdings Limited
Independent Auditor's Report (Continued)
To the Members of Goodstuff Holdings Limited
Page 9
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Goodstuff Holdings Limited
Independent Auditor's Report (Continued)
To the Members of Goodstuff Holdings Limited
Page 10
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Goodstuff Holdings Limited
Independent Auditor's Report (Continued)
To the Members of Goodstuff Holdings Limited
Page 11
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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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.
Esther Carder
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
23 November 2023
Chartered Accountants
Statutory Auditor
Charlotte Building
17 Gresse Street
London
W1T 1QL
Goodstuff Holdings Limited
Statement of Comprehensive Income
For the year ended 31 December 2022
Page 12
2022
2021
Notes
£
£
Turnover
3
128,956,608
153,235,885
Cost of sales
(114,978,518)
(139,304,188)
Gross profit
13,978,090
13,931,697
Administrative expenses
(11,058,665)
(11,322,911)
Operating profit
4
2,919,425
2,608,786
Interest receivable and similar income
8
138,100
9,572
Interest payable and similar expenses
9
(118)
(3,201)
Fair value gains and losses
10
-
52,671
Profit before taxation
3,057,407
2,667,828
Tax on profit
11
(315,221)
1,154,688
Profit for the financial year
2,742,186
3,822,516
The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.
Goodstuff Holdings Limited
Balance Sheet
As at 31 December 2022
Page 13
2022
2021
Notes
£
£
£
£
Fixed assets
Goodwill
13
363,574
449,124
Tangible assets
14
131,047
175,414
Investments
15
37,007
37,057
531,628
661,595
Current assets
Debtors
17
33,256,377
28,181,303
Cash at bank and in hand
1,858,200
17,589,688
35,114,577
45,770,991
Creditors: amounts falling due within one year
18
(32,208,582)
(36,723,296)
Net current assets
2,905,995
9,047,695
Total assets less current liabilities
3,437,623
9,709,290
Provisions for liabilities
Deferred tax liability
19
(13,853)
-
(13,853)
Net assets
3,437,623
9,695,437
Capital and reserves
Called up share capital
22
13,414
13,414
Profit and loss reserves
3,424,209
9,682,023
Total equity
3,437,623
9,695,437
The financial statements were approved by the board of directors and authorised for issue on 22 November 2023 and are signed on its behalf by:
Ben Hayes
Director
Company Registration No. 10525545
Goodstuff Holdings Limited
Statement of Changes in Equity
For the year ended 31 December 2022
Page 14
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2021
10,000
5,859,507
5,869,507
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
3,822,516
3,822,516
Issue of share capital
22
3,414
-
3,414
Balance at 31 December 2021
13,414
9,682,023
9,695,437
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
2,742,186
2,742,186
Dividends
12
-
(9,000,000)
(9,000,000)
Balance at 31 December 2022
13,414
3,424,209
3,437,623
Goodstuff Holdings Limited
Notes to the Financial Statements
For the year ended 31 December 2022
Page 15
1
Accounting policies
Company information
Goodstuff Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is Fifth Floor, Corinthian House, 279 Tottenham Court Road, London, United Kingdom, W1T 7RJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Forward 3D Group Limited. These consolidated financial statements are available from the Registrar of Companies.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Goodstuff Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 16
1.3
Turnover
Turnover represents amounts invoiced, excluding value added taxes, for media and services provided in the normal course of business, and reflects commissions and fees together with any related costs of advertising.
Revenue recognition
Commissions are recognised as income when the related advertisements appear. Fees are recognised as income when they are earned in accordance with the contractual agreement with the client. Where revenue has been earned before the end of an accounting period but has not been billed, revenue is accrued into the financial statements.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
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:
Leasehold improvements
Over the lease term
Fixtures and fittings
5 years straight line
Computers
3 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.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
Goodstuff Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 17
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
1.7
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). 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.
1.8
Cash at bank and in hand
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.
1.9
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.
Goodstuff Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 18
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
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.
Goodstuff Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 19
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.11
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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
Goodstuff Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 20
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Share-based payments
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
1.15
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.
1.16
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.
Goodstuff Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 21
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Amortisation and depreciation
The annual amortisation charge for intangible assets is sensitive to changes in the estimated lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. Goodwill impairment reviews are also performed annually. These reviews require an estimation of the value in use of the cash generating units to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise for the cash generating unit and a suitable discount rate to calculate present value. See note 11 for the carrying amount of the intangible assets and note 1.4 for the useful economic lives for each class of asset.
The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of the property, plant and equipment and note 1.5 for the useful economic lives for each class of asset.
Bad debt provision
The directors have completed a review of the trade debtor balances to determine balances to determine balances which are unlikely to be received and a provision has been accounted for where necessary.
The directors have completed a review of the unbilled media activity and media queries at the year end to identify any balances which may not be recoverable from clients and based on previous years' experience and the nature of the items have made a necessary provision.
3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Media strategy, planning and buying
128,956,608
153,235,885
Goodstuff Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
3
Turnover and other revenue
(Continued)
Page 22
2022
2021
£
£
Turnover analysed by geographical market
United Kingdom
127,071,023
147,701,297
Europe
1,465,527
4,939,006
Rest of World
420,058
595,582
128,956,608
153,235,885
4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
10,876
22,835
Depreciation of owned tangible fixed assets
94,765
148,772
(Profit)/loss on disposal of tangible fixed assets
(1,800)
8,315
Amortisation of intangible assets
85,550
85,550
Operating lease charges
561,078
643,680
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
32,249
29,195
For other services
Preparation of statutory financial statements
3,650
3,300
Taxation compliance services
3,000
2,500
All other non-audit services
6,535
6,650
12,335
Goodstuff Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 23
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Operations
104
101
Finance
10
9
Support
11
10
125
120
The total number of employees as at 31 December 2022 was 123 (2021: 122).
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
6,677,795
6,680,986
Social security costs
776,601
772,497
Pension costs
268,245
219,459
7,722,641
7,672,942
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
391,104
430,576
Company pension contributions to defined contribution schemes
19,555
20,270
410,659
450,846
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2021 - 2).
Goodstuff Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
7
Directors' remuneration
(Continued)
Page 24
Remuneration disclosed above include the following amounts paid to the highest paid director:
2022
2021
£
£
Remuneration for qualifying services
195,552
239,448
Company pension contributions to defined contribution schemes
9,778
10,135
8
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
30,490
9,572
Interest receivable from group companies
107,610
Total income
138,100
9,572
9
Interest payable and similar expenses
2022
2021
£
£
Interest on bank overdrafts and loans
118
3,201
10
Amounts provided against related party loans
2022
2021
£
£
Gain on disposal of financial assets held at cost
-
52,671
Loans due from related parties, 16x9 Limited and Love Sugar Science Limited were provided for in 2020. The company has taken a prudent approach to provide for the loan balances as deemed irrecoverable therefore £nil (2021: £nil) outstanding at year end.
11
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
(1,020,409)
Adjustments in respect of prior periods
1,020,409
Total current tax
1,020,409
(1,020,409)
Goodstuff Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
11
Taxation
2022
2021
£
£
(Continued)
Page 25
Deferred tax
Origination and reversal of timing differences
(705,188)
(134,279)
Total tax charge/(credit)
315,221
(1,154,688)
The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit before taxation
3,057,407
2,667,828
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
580,907
506,887
Tax effect of expenses that are not deductible in determining taxable profit
2,036
37,467
Tax effect of utilisation of tax losses not previously recognised
(594,970)
Unutilised tax losses carried forward
(642,589)
Adjustments in respect of prior years
1,020,409
Effect of change in corporation tax rate
52,944
Permanent capital allowances in excess of depreciation
4,414
Amortisation on assets not qualifying for tax allowances
16,255
Tax relief on share options
(1,687,792)
Other provisional adjustments
(6,909)
49,416
Other movements in deferred tax
(43,663)
(134,279)
Taxation charge/(credit) for the year
315,221
(1,154,688)
12
Dividends
2022
2021
£
£
Final paid
9,000,000
Goodstuff Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 26
13
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2022 and 31 December 2022
855,500
Amortisation and impairment
At 1 January 2022
406,376
Amortisation charged for the year
85,550
At 31 December 2022
491,926
Carrying amount
At 31 December 2022
363,574
At 31 December 2021
449,124
14
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2022
327,303
101,032
269,176
697,511
Additions
4,375
7,708
43,792
55,875
Disposals
(4,375)
(24,651)
(29,026)
At 31 December 2022
327,303
108,740
288,317
724,360
Depreciation and impairment
At 1 January 2022
304,171
53,100
164,826
522,097
Depreciation charged in the year
10,860
17,048
66,857
94,765
Eliminated in respect of disposals
(649)
(22,900)
(23,549)
At 31 December 2022
314,382
70,148
208,783
593,313
Carrying amount
At 31 December 2022
12,921
38,592
79,534
131,047
At 31 December 2021
23,132
47,932
104,350
175,414
Goodstuff Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 27
15
Fixed asset investments
2022
2021
Notes
£
£
Investments in associates
16
50
Other investments
37,006
37,006
Investments in subsidary
1
1
37,007
37,057
Movements in fixed asset investments
Investment in associates
Other investments
Investment in subsidary
Total
£
£
£
£
Cost or valuation
At 1 January 2022
50
37,006
1
37,057
Disposals
(50)
-
-
(50)
At 31 December 2022
-
37,006
1
37,007
Carrying amount
At 31 December 2022
-
37,006
1
37,007
At 31 December 2021
50
37,006
1
37,057
16
Associates
Details of the company's associates at 31 December 2022 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Goodstuff Communications LLP
Corinthian House, 279 Tottenham Court Road, London, United Kingdom, W1T 7RJ
LLP Capital Account
20.00%
This company was dissolved on 30 August 2022.
Goodstuff Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 28
17
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
11,017,698
13,136,832
Corporation tax recoverable
924,123
1,020,409
Amounts owed by group undertakings
16,442,039
9,000,000
Other debtors
1,149,707
1,266,268
Prepayments and accrued income
2,892,604
3,618,924
32,426,171
28,042,433
Deferred tax asset (note 19)
830,206
138,870
33,256,377
28,181,303
Included within group debtors is an amount of £12,374,598 which represents cash and cash equivalents held by group entities and which are part of the groups cash pooling arrangements.
18
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
6,149,371
1,747,532
Corporation tax
66,940
Other taxation and social security
2,035,791
1,707,316
Other creditors
2,155,627
2,955,133
Accruals and deferred income
21,867,793
30,246,375
32,208,582
36,723,296
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2022
2021
2022
2021
Balances:
£
£
£
£
Decelerated capital allowances
-
13,853
107,071
-
Provisions and unpaid pensions
-
-
77,000
69,207
Tax losses
-
-
646,135
69,663
-
13,853
830,206
138,870
Goodstuff Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
19
Deferred taxation
(Continued)
Page 29
2022
Movements in the year:
£
Asset at 1 January 2022
(125,017)
Credit to profit or loss
(705,189)
Asset at 31 December 2022
(830,206)
The deferred tax asset set out above is expected to reverse within 12 - 24 months and relates to the utilisation of tax losses against future expected profits of the same period.
20
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
268,245
219,459
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
At the year end there were no outstanding amounts in respect of defined contribution schemes (2021: £nil).
21
Share-based payment transactions
Number of share options
Weighted average exercise price
2022
2021
2022
2021
Number
Number
£
£
Outstanding at 1 January 2022
143,597
-
0.025
Exercised
(136,558)
-
(0.025)
Expired
(7,039)
-
(0.025)
Outstanding at 31 December 2022
-
-
-
Exercisable at 31 December 2022
During the prior year, the company recognised total share-based payment expenses of £nil which related to equity settled share based payment transactions. The calculated charge was trivial to the financial statements and as such was not been recognised.
The share option scheme closed on 22 December 2021.
Goodstuff Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 30
22
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A Shares of 2.5p each
100,000
100,000
2,500
2,500
Ordinary B Shares of 2.5p each
142,840
142,840
3,571
3,571
Ordinary C Shares of 2.5p each
148,790
148,790
3,720
3,720
Ordinary D Shares of 2.5p each
144,928
144,928
3,623
3,623
536,558
536,558
13,414
13,414
The Ordinary A, B, C and D shares rank pari-passu in all respects.
23
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2021
£
£
Within one year
685,208
540,759
Between two and five years
123,780
505,330
808,988
1,046,089
24
Related party transactions
During the year, the company had made sales of £nil (2021: £nil) and purchases of £nil (2021: £nil) with 16x9 Media Limited, a company in which Goodstuff Holdings Limited owned 25% of the share capital up until 22 December 2021. As at 31 December 2022, the company was owed £50,000 (2021: £50,000) by 16x9 Media Limited in relation to a loan made during 2019. The directors decided to fully provide against the loan balance in 2020.
During the year, the company had made sales of £nil (2021: £nil) and purchases of £nil (2021: £nil) with Love Sugar Science Limited, a company in which Goodstuff Holdings Limited owned 30% of the share capital up until 22 December 2021. The company is also related by virtue of common directorship. As at 31 December 2022, the company was owed £65,000 (2021: £65,000) by Love Sugar Science Limited which is included within other debtors and the Company owed Love Sugar Science Limited £92,547 (2021: £131,869) in respect to revenue sharing arrangements on common clients. The directors decided to fully provide against the loan balance in 2020.
Goodstuff Holdings Limited sold it's shareholding in the 16x9 Media Limited on 22 December 2021 to a third party for consideration of £6,000. Goodstuff Holdings Limited sold it's shareholding in the Love Sugar Science Limited on 22 December 2021 to related parties who shared common directorships with both entities for consideration of £81,040.
Goodstuff Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 31
25
Ultimate controlling party
The company is included in the group financial statements prepared by Forward 3D Group Limited and these can be obtained from the Registrar of Companies.
ForwardPMX Group LLC, an entity incorporated in the United States of America, is the immediate parent of the group.
The group considers Stagwell Inc, an entity incorporated in the United States of America, its ultimate controlling party and it is the largest group of undertakings for which group financial statements are drawn up.
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