Company registration number 06420102 (England and Wales)
Direct Response UK Ltd
Unaudited financial statements
For the year ended 31 May 2023
Direct Response UK Ltd
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
Direct Response UK Ltd
Balance sheet
As at 31 May 2023
31 May 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
676,199
877,462
Current assets
Debtors
4
1,303,889
1,819,721
Cash at bank and in hand
238,288
299,821
1,542,177
2,119,542
Creditors: amounts falling due within one year
5
(1,709,383)
(2,224,187)
Net current liabilities
(167,206)
(104,645)
Total assets less current liabilities
508,993
772,817
Creditors: amounts falling due after more than one year
6
(256,227)
(527,528)
Provisions for liabilities
(151,600)
(153,200)
Net assets
101,166
92,089
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
101,066
91,989
Total equity
101,166
92,089
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 May 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
Direct Response UK Ltd
Balance sheet (continued)
As at 31 May 2023
31 May 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 18 January 2024 and are signed on its behalf by:
Mr P Shortt
Director
Company Registration No. 06420102
Direct Response UK Ltd
Notes to the financial statements
For the year ended 31 May 2023
- 3 -
1
Accounting policies
Company information
Direct Response UK Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Expedite House, Etruscan Street, Etruria, Stoke on Trent, Staffordshire, England, ST1 5PQ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
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.
Usually, turnover from the sale of services is recognised with reference to the proportion of the service contract completed. Where payments are received from customers in advance of services provided, the amounts are recorded as Deferred Income and included as part of Creditors due within one year.
Direct Response UK Ltd
Notes to the financial statements (continued)
For the year ended 31 May 2023
1
Accounting policies
(Continued)
- 4 -
Interest and dividends receivable
Interest income is recognised using the effective interest method and dividend income is recognised as the company's right to receive payment is established.
1.3
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
2% on cost
Plant and equipment
25% on reducing balance
Computers Equipment
33% on cost
Motor vehicles
25% on reducing balance
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.
1.4
Financial instruments
Basic financial assets and liabilities are initially measured at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future cash flows discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
1.5
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.
Direct Response UK Ltd
Notes to the financial statements (continued)
For the year ended 31 May 2023
1
Accounting policies
(Continued)
- 5 -
1.6
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.7
Leases
Assets, obtained under hire purchase contracts and finance leases, are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account on a straight-line basis.
1.8
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
16
17
Direct Response UK Ltd
Notes to the financial statements (continued)
For the year ended 31 May 2023
- 6 -
3
Tangible fixed assets
Leasehold improvements
Plant and equipment
Computers Equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 June 2022
80,987
225,634
9,993
1,142,710
1,459,324
Additions
975
2,735
3,710
At 31 May 2023
80,987
226,609
12,728
1,142,710
1,463,034
Depreciation and impairment
At 1 June 2022
9,719
54,892
3,905
513,346
581,862
Depreciation charged in the year
1,619
42,743
3,270
157,341
204,973
At 31 May 2023
11,338
97,635
7,175
670,687
786,835
Carrying amount
At 31 May 2023
69,649
128,974
5,553
472,023
676,199
At 31 May 2022
71,268
170,742
6,088
629,364
877,462
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
829,649
1,559,386
Amounts owed by group undertakings
463,938
241,585
Other debtors
10,302
18,750
1,303,889
1,819,721
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
677,868
896,161
Amounts owed to group undertakings
5,887
70,978
Taxation and social security
225,197
170,816
Other creditors
800,431
1,086,232
1,709,383
2,224,187
Contained within other creditors are hire purchase commitments of £262,186 (2022 - £249,635) secured against the assets to which they relate.
Other creditors also include factoring debts of £517,575 (£2022 - £780,314) secured against the debts to which they relate.
Direct Response UK Ltd
Notes to the financial statements (continued)
For the year ended 31 May 2023
- 7 -
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
256,227
527,528
Contained within other creditors are hire purchase commitments of £256,227 (2022 - £527,528) secured against the assets to which they relate.
7
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
226,667
226,667
Total lease payments recognised as an expense during the period amounted to £Nil (2022 - £80,000).