Waggener Edstrom Worldwide Limited
Annual Report and Financial Statements
For the year ended 31 December 2022
Pages for Filing with Registrar
Company Registration No. 04153480 (England and Wales)
Waggener Edstrom Worldwide Limited
Contents
Page
Directors' report
1
Balance sheet
2
Statement of changes in equity
3
Notes to the financial statements
4 - 11
Waggener Edstrom Worldwide Limited
Directors' Report
For the year ended 31 December 2022
Page 1

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 provision of strategic communications and public relations services.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

C Kalbfleisch
M Waggener Zorkin
Auditor

Moore Kingston Smith LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
C Kalbfleisch
Director
28 March 2024
Waggener Edstrom Worldwide Limited
Balance Sheet
As at 31 December 2022
Page 2
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
3
65,755
26,336
Current assets
Debtors
4
2,904,953
1,478,330
Cash at bank and in hand
608,363
1,258,573
3,513,316
2,736,903
Creditors: amounts falling due within one year
5
(2,584,534)
(2,020,993)
Net current assets
928,782
715,910
Total assets less current liabilities
994,537
742,246
Creditors: amounts falling due after more than one year
6
(128,267)
(534,062)
Net assets
866,270
208,184
Capital and reserves
Called up share capital
8
4,500,900
4,500,900
Profit and loss reserves
(3,634,630)
(4,292,716)
Total equity
866,270
208,184

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 28 March 2024 and are signed on its behalf by:
C Kalbfleisch
Director
Company Registration No. 04153480
Waggener Edstrom Worldwide Limited
Statement of Changes in Equity
For the year ended 31 December 2022
Page 3
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2021
900
(5,121,343)
(5,120,443)
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
828,627
828,627
Issue of share capital
8
4,500,000
-
4,500,000
Balance at 31 December 2021
4,500,900
(4,292,716)
208,184
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
658,086
658,086
Balance at 31 December 2022
4,500,900
(3,634,630)
866,270
Waggener Edstrom Worldwide Limited
Notes to the Financial Statements
For the year ended 31 December 2022
Page 4
1
Accounting policies
Company information

Waggener Edstrom Worldwide Limited is a private company limited by shares incorporated in England and Wales. The registered office is One New Change, London, England, EC4M 9AF.

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 financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

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.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for 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 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
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 basis:

Leasehold improvements
Period of the lease
Furniture, fittings and office equipment
10 years straight line
Computer equipment
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.

Waggener Edstrom Worldwide Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 5
1.5
Impairment of fixed assets

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

1.6
Cash and cash equivalents

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.

1.7
Financial instruments

The company only has basic financial instruments measured at amortised cost, with no financial instruments classified as other or basic instruments measured at fair value.

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.

1.8
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.

1.9
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.

Waggener Edstrom Worldwide Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 6
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.

1.10
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.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
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.

1.13
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.

Waggener Edstrom Worldwide Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 7
2
Employees

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

2022
2021
Number
Number
Total
63
54
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2022
12,057
263,345
275,402
Additions
-
0
69,700
69,700
Disposals
-
0
(7,106)
(7,106)
At 31 December 2022
12,057
325,939
337,996
Depreciation and impairment
At 1 January 2022
12,057
237,009
249,066
Depreciation charged in the year
-
0
26,453
26,453
Eliminated in respect of disposals
-
0
(3,278)
(3,278)
At 31 December 2022
12,057
260,184
272,241
Carrying amount
At 31 December 2022
-
0
65,755
65,755
At 31 December 2021
-
0
26,336
26,336
4
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
2,352,060
1,189,680
Amounts owed by group undertakings
249,543
18,053
Other debtors
134,962
140,941
Prepayments and accrued income
168,388
129,656
2,904,953
1,478,330
Waggener Edstrom Worldwide Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 8
5
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
747,630
543,799
Amounts owed to group undertakings
447,215
23,477
Taxation and social security
228,439
220,197
Other creditors
44,132
630
Accruals and deferred income
1,117,118
1,232,890
2,584,534
2,020,993
6
Creditors: amounts falling due after more than one year
2022
2021
£
£
Amounts owed to group undertakings
128,267
534,062
7
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
186,219
158,854

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.

There were accrued pension contributions at the year end of £1,825 (2021: £nil).

8
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
4,500,900
4,500,900
4,500,900
4,500,900

On 21 December 2021, Waggener Edstrom Worldwide, Inc. purchased a further 4,500,000 ordinary shares of £1.00 each. This was done via capitalisation of a £4,000,000 intercompany loan, and a £500,000 cash injection.

9
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Waggener Edstrom Worldwide Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
9
Audit report information
(Continued)
Page 9
Senior Statutory Auditor:
Esther Carder
Statutory Auditor:
Moore Kingston Smith LLP
10
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:

2022
2021
£
£
Within one year
40,000
480,600
40,000
480,600
Waggener Edstrom Worldwide Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 10
11
Related party transactions

The company derived £3,001,036 (2021: £1,325,869) in commission income and made purchases of £2,107,098 (2021: £nil) from Waggener Edstrom Worldwide, Inc. a company incorporated in the USA, the parent undertaking. At the year end, the company owed a total loan amount of £128,267 (2021: £536,786) to Waggener Edstrom Worldwide, Inc. This balance is included within creditors falling due after more than one year. The company was charged interest of £5,829 (2021: £106,626) on the loan. At the year end, the company owed £117,896 (2021: £536,786) to Waggener Edstrom Worldwide, Inc within creditors due after one year.

 

During the year, the company had made sales of £754,083 (2021: £373,685) and purchases of £758,243 (2021: £523,544) with Waggener Edstrom Worldwide GmbH, a company incorporated in Germany, and a subsidiary of Waggener Edstrom Worldwide, Inc. At the year end, the company owed £295,578 (2021: £nil) to Waggener Edstrom Worldwide GmbH.

 

During the year, the company had made sales of £180,727 (2021: £nil) and purchases of £111,157 (2021: £19,415l) with Waggener Edstrom Worldwide (Proprietary) Limited, a company incorporated in South Africa, and a subsidiary of Waggener Edstrom Worldwide, Inc. At the year end, the company owed £78,040 (2021: £1,362) to Waggener Edstrom Worldwide (Proprietary) Limited.

 

During the year, the company had made sales of £30,706 (2021: £18,904) and purchases of £22,148 (2021: £9,140) with Buchan Consulting Pty Ltd, a company incorporated in Australia and a subsidiary of Waggener Edstrom Worldwide, Inc.

 

During the year, the company had made sales of £375 (2021: £nil) from Red Bridge Communications (Shanghai) Ltd., a company incorporated in China, and a subsidiary of Waggener Edstrom Worldwide, Inc.

 

During the year, the company had made sales of £nil (2021: £17,850) from Waggener Edstrom Worldwide Singapore Pte. Ltd., a company incorporated in Singapore and a subsidiary of Waggener Edstrom Worldwide, Inc.

 

At the year end, the company was owed £42,679 (2021: - £1,338) from Avian Media Private Limited, a company incorporated in India and a subsidiary of Waggener Edstrom Worldwide, Inc.

 

At the year end, the company was owed £12,750 (2021: £nil) from Wagener Edstrom Worldwide Communications, a company incorporated in Beijing and a subsidiary of Waggener Edstrom Worldwide, Inc.

 

All of the above transactions were at arm's length.

 

No guarantees have been given or received.

Waggener Edstrom Worldwide Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 11
12
Parent company

The company is a subsidiary undertaking of Waggener Edstrom Worldwide, Inc. a company incorporated in the United States of America.

 

The address of Waggener Edstrom Worldwide, Inc. is as follows;

 

Civica North Tower

225 108th Avenue NE, Suite 600

Bellevue

WA 98004-5737

United States of America

 

Waggener Edstrom Worldwide, Inc. is the head of the largest and smallest group within which the results of the company are consolidated. The results of Waggener Edstrom Worldwide, Inc. are not available to the public.

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