Company registration number 07510763 (England and Wales)
AFFILIATE SQUARED LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
AFFILIATE SQUARED LTD
COMPANY INFORMATION
Directors
Zach Fisher
Luke Neal
Company number
07510763
Registered office
7 Western Gardens
Brentwood
Essex
England
CM14 4SP
Auditor
PMK & Associates LLP
Lower Third Floor, Evelyn Suite
Quantum House, 22 - 24 Red Lion Court
London
EC4A 3EB
AFFILIATE SQUARED LTD
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Profit and loss account
6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 18
AFFILIATE SQUARED LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 1 -
The directors present their annual report and financial statements for the Year ended 30 April 2023.
Principal activities
Affiliate Squared has been in operation for 13 years and has grown to become one of Europe’s leading award-winning innovators in the MarTech and Affiliate Marketing space. The principal activity of the company during the period under review continued to be that of global affiliate marketing management and technologically driven SaaS platform development.
Results and performance
The Affiliate Squared proprietary technology, the Social Affiliate (SOFA) Network, and the associated platform infrastructure continues to act as an intermediary to connect merchant retailers with marketing affiliates, and for accounting purposes is deemed to act as an agent rather than as the principal. Turnover is the gross profit earned by tracking and processing transactions from merchant to affiliate. The total volume of transactions from merchants in the year amounted to £244,257,160 (2022: £249,180,766).
The results of the company for the year, as set out on pages 6 - 10 of the financial statements, show a profit before taxation of £5,471,493. The shareholders' funds of the company total £10,461,726.
The performance of the company during the period met with management expectations and objectives. Online sales activity continues to flourish post-pandemic, and sustained growth is expected through 2024.
Directors
The directors who held office during the Year and up to the date of signature of the financial statements were as follows:
Zach Fisher
Luke Neal
Future developments
The company continues to grow organically in current jurisdictions and sectors.
Affiliate Marketing is a strategy which is becoming increasingly significant for retailers. Despite the ongoing unpredictable global macroeconomic environment, the company sits favorably to capitalise on the increase in online ecommerce activity and continues to develop and expand its technology platforms and associated infrastructure in accordance with the strategic objectives of the business.
Alongside a continued focus on client retention to further promote organic growth, a renewed emphasis will be placed on online marketing campaigns to fuel further expansion. New retail merchants will be targeted to satisfy the demand placed on the global online shopping marketplace and the ensuing knock-on effects to affiliate marketing activity.
Objectives for the coming year comprise of expanding the merchant and affiliate base significantly to achieve a total volume of transactions in excess of £275 million. Additional agents and marketing agencies will also be sought to continue the significant growth in registered merchants witnessed from referrals from these entities.
Auditor
The auditor, PMK & Associates LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
AFFILIATE SQUARED LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 2 -
Statement of directors' responsibilities
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;
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.
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.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Luke Neal
Director
8 April 2024
AFFILIATE SQUARED LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AFFILIATE SQUARED LTD
- 3 -
Opinion
We have audited the financial statements of Affiliate Squared Ltd (the 'company') for the Year ended 30 April 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 April 2023 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.
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 directors' report for the financial Year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
AFFILIATE SQUARED LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AFFILIATE SQUARED LTD
- 4 -
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 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; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
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.
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.
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:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations, was as follows:
We focused on specific laws and regulations which we considered may have a direct material effect on the operation of the company, which include Companies Act 2006, FCA regulations, Bribery act, Fraud act 2006, Employment law and Anti-Money laundering regulations.
We assessed the extent of compliance with the laws and regulations identified above through making enquiries with informed management and compliance consultant; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
AFFILIATE SQUARED LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AFFILIATE SQUARED LTD
- 5 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by
Making enquiries of management as to where they considered there was susceptibility to fraud and their knowledge of actual, suspected and alleged fraud.
Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
Reviewing safeguarding compliance report to identify potential risks giving rise to non-compliance with regulations which might impact going concern.
To address the risk of fraud through management bias and override of controls, we:
Tested journal entries to identify unusual transactions.
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
Investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures, which included but were not limited to:
Reviewing FCA register to check for any breaches highlighted on the company’s FCA records.
Reviewing correspondence with HMRC and regulatory and legal correspondence, if any.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Malcolm Kauder
Senior Statutory Auditor
For and on behalf of PMK & Associates LLP
8 April 2024
Chartered Certified Accountants
Statutory Auditor
Lower Third Floor, Evelyn Suite
Quantum House, 22 - 24 Red Lion Court
London
EC4A 3EB
AFFILIATE SQUARED LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2023
- 6 -
Year
Year
ended
ended
30 April
30 April
2023
2022
Notes
£
£
Turnover
7,597,609
6,268,027
Cost of sales
(1,338,253)
(1,524,034)
Gross profit
6,259,356
4,743,993
Administrative expenses
(791,553)
(738,928)
Operating profit
5,467,803
4,005,065
Interest receivable and similar income
10,234
Interest payable and similar expenses
(104)
(71)
Amounts written off investments
5
(6,440)
(22,597)
Profit before taxation
5,471,493
3,982,397
Tax on profit
(957,920)
(763,798)
Profit for the financial Year
4,513,573
3,218,599
The profit and loss account has been prepared on the basis that all operations are continuing operations.
AFFILIATE SQUARED LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2023
- 7 -
Year
Year
ended
ended
30 April
30 April
2023
2022
£
£
Profit for the Year
4,513,573
3,218,599
Other comprehensive income
-
-
Total comprehensive income for the Year
4,513,573
3,218,599
AFFILIATE SQUARED LTD
BALANCE SHEET
AS AT
30 APRIL 2023
30 April 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
6
431,605
439,804
Investments
7
7,227
7,227
438,832
447,031
Current assets
Debtors
9
7,527,718
5,554,344
Investments
10
15,342
21,782
Cash at bank and in hand
3,319,639
5,845,040
10,862,699
11,421,166
Creditors: amounts falling due within one year
11
(1,007,869)
(425,886)
Net current assets
9,854,830
10,995,280
Total assets less current liabilities
10,293,662
11,442,311
Provisions for liabilities
(13,409)
(17,634)
Net assets
10,280,253
11,424,677
Capital and reserves
Called up share capital
12
100
100
Profit and loss reserves
13
10,280,153
11,424,577
Total equity
10,280,253
11,424,677
These financial statements have been prepared 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 8 April 2024 and are signed on its behalf by:
Luke Neal
Director
Company registration number 07510763 (England and Wales)
AFFILIATE SQUARED LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2021
100
9,060,964
9,061,064
Period ended 30 April 2022:
Profit and total comprehensive income
-
3,218,599
3,218,599
Dividends
-
(854,986)
(854,986)
Balance at 30 April 2022
100
11,424,577
11,424,677
Period ended 30 April 2023:
Profit and total comprehensive income
-
4,513,573
4,513,573
Dividends
-
(5,657,997)
(5,657,997)
Balance at 30 April 2023
100
10,280,153
10,280,253
AFFILIATE SQUARED LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
16
3,739,625
1,821,853
Interest paid
(104)
(71)
Income taxes paid
(596,861)
(1,154,825)
Net cash inflow from operating activities
3,142,660
666,957
Investing activities
Purchase of tangible fixed assets
(20,298)
(49,235)
Interest received
10,234
Net cash used in investing activities
(10,064)
(49,235)
Financing activities
Dividends paid
(5,657,997)
(854,986)
Net cash used in financing activities
(5,657,997)
(854,986)
Net decrease in cash and cash equivalents
(2,525,401)
(237,264)
Cash and cash equivalents at beginning of Year
5,845,040
6,082,304
Cash and cash equivalents at end of Year
3,319,639
5,845,040
AFFILIATE SQUARED LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
- 11 -
1
Accounting policies
Company information
Affiliate Squared Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 7 Western Gardens, Brentwood, Essex, England, CM14 4SP.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents the net amount receivable by the company after onward transmission of contractual payments.
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:
Land and buildings Freehold
2% straight line
Fixtures, fittings & equipment
25% reducing balance
1.4
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.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
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.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
AFFILIATE SQUARED LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 12 -
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.
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.
1.6
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 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 trade and other 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.
Other financial instruments, 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 value cannot be measured reliably are measured at cost less impairment.
AFFILIATE SQUARED LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 13 -
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 trade and other payables, 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 receipts discounted at a market rate of interest.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Other creditors include obligations to transmit funds remitted to the company and not yet transmitted at the balance sheet date. Accounts 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 at historic cost.
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.
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.
1.9
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.
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.
AFFILIATE SQUARED LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 14 -
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
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.
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.
3
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
11,400
9,000
For other services
All other non-audit services
40,200
41,130
AFFILIATE SQUARED LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 15 -
4
Employees
The average monthly number of persons (including directors) employed by the company during the Year was:
2023
2022
Number
Number
Total
6
5
5
Amounts written off investments
2023
2022
£
£
Fair value gains/(losses)
Loss on financial assets held at fair value through profit or loss
(6,440)
(22,597)
6
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 May 2022
411,587
168,081
579,668
Additions
20,298
20,298
At 30 April 2023
411,587
188,379
599,966
Depreciation and impairment
At 1 May 2022
42,321
97,543
139,865
Depreciation charged in the Year
8,232
20,264
28,496
At 30 April 2023
50,553
117,808
168,361
Carrying amount
At 30 April 2023
361,034
70,571
431,605
At 30 April 2022
369,266
70,538
439,804
7
Fixed asset investments
2023
2022
£
£
Other investments other than loans
7,227
7,227
AFFILIATE SQUARED LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 16 -
8
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
22,569
29,009
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
7,109,525
4,595,056
Other debtors
418,193
959,288
7,527,718
5,554,344
10
Current asset investments
2023
2022
£
£
Other investments
15,342
21,782
11
Creditors: amounts falling due within one year
2023
2022
£
£
Amounts owed to group undertakings
73,408
87,107
Corporation tax
577,772
212,488
Other taxation and social security
2,300
1,103
Other creditors
354,389
125,188
1,007,869
425,886
12
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares at £1 each
100
100
AFFILIATE SQUARED LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 17 -
13
Profit and loss reserves
2023
2022
£
£
At the beginning of the Year
11,424,577
9,060,964
Profit for the Year
4,513,573
3,218,599
Dividends declared and paid in the Year
(5,657,997)
(854,986)
At the end of the Year
10,280,153
11,424,577
14
Related party transactions
Included under other creditors is an amount of £73,408 (2022:£87,107) due to Affiliate Squared Holdings Ltd, the parent company. A dividend of £5,657,997 was paid to the parent company during the year (2022: £854,986).
During the year, the company paid £70,000 (2022: £78,200) to Vesper Vintage Ltd for marketing and advertising expenses. Vesper Vintage Ltd is owned and controlled by Mrs A M Morgan, the wife of the director. There was a balance of £nil due to Vesper Vintage Ltd at the year end (2022: £7,000).
During the year, the company paid on behalf of Affiliate Squared Projects Ltd, for expenses and capital investments totalling £2,514,469 (2022: £1,410,012) for the fellow group member. At the year end the balances due from Affiliate Squared Projects Ltd was £7,109,525 (2022: £4,595,056).
During the year the company paid £156,167 (2022: £11,725) to Datalords Ltd for Working Capital. Datalords Ltd is a fellow group member company. There was a balance due from Datalords Ltd at the year end £156,167 (2022: £Nil).
15
Controlling party
The parent company is Affiliate Squared Holdings Limited, a private limited company registered in England & Wales with registered office address 7 Western Gardens, Brentwood, Essex, England, CM14 4SP. The ultimate controlling party of the parent company is Zach Fisher, a director and the majority shareholder in the parent company.
AFFILIATE SQUARED LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 18 -
16
Cash generated from operations
2023
2022
£
£
Profit for the Year after tax
4,513,573
3,218,599
Adjustments for:
Taxation charged
957,920
763,798
Finance costs
104
71
Investment income
(10,234)
Depreciation and impairment of tangible fixed assets
28,496
31,744
Amounts written off investments
6,440
22,597
Movements in working capital:
Increase in debtors
(1,973,374)
(2,229,431)
Increase in creditors
216,699
14,475
Cash generated from operations
3,739,624
1,821,853
17
Analysis of changes in net funds
1 May 2022
Cash flows
30 April 2023
£
£
£
Cash at bank and in hand
5,845,040
(2,525,401)
3,319,639
2023-04-302022-05-01falseCCH SoftwareCCH Accounts Production 2023.200Zach FisherLuke Neal4513573075107632022-05-012023-04-3007510763bus:Director12022-05-012023-04-3007510763bus:Director22022-05-012023-04-3007510763bus:RegisteredOffice2022-05-012023-04-30075107632023-04-30075107632021-05-012022-04-3007510763core:RetainedEarningsAccumulatedLosses2021-05-012022-04-3007510763core:RetainedEarningsAccumulatedLosses2022-05-012023-04-30075107632022-04-3007510763core:LandBuildings2023-04-3007510763core:OtherPropertyPlantEquipment2023-04-3007510763core:LandBuildings2022-04-3007510763core:OtherPropertyPlantEquipment2022-04-3007510763core:CurrentFinancialInstrumentscore:WithinOneYear2023-04-3007510763core:CurrentFinancialInstrumentscore:WithinOneYear2022-04-3007510763core:CurrentFinancialInstruments2023-04-3007510763core:CurrentFinancialInstruments2022-04-3007510763core:ShareCapital2023-04-3007510763core:ShareCapital2022-04-3007510763core:RetainedEarningsAccumulatedLosses2023-04-3007510763core:RetainedEarningsAccumulatedLosses2022-04-3007510763core:ShareCapital2021-04-3007510763core:RetainedEarningsAccumulatedLosses2021-04-3007510763core:RetainedEarningsAccumulatedLosses2022-04-30075107632022-04-3007510763core:LandBuildingscore:OwnedOrFreeholdAssets2022-05-012023-04-3007510763core:FurnitureFittings2022-05-012023-04-3007510763core:LandBuildings2022-04-3007510763core:OtherPropertyPlantEquipment2022-04-3007510763core:LandBuildings2022-05-012023-04-3007510763core:OtherPropertyPlantEquipment2022-05-012023-04-3007510763core:WithinOneYear2023-04-3007510763core:WithinOneYear2022-04-3007510763bus:PrivateLimitedCompanyLtd2022-05-012023-04-3007510763bus:FRS1022022-05-012023-04-3007510763bus:Audited2022-05-012023-04-3007510763bus:FullAccounts2022-05-012023-04-30xbrli:purexbrli:sharesiso4217:GBP