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Registered number: 04462001









MAVERICK ADVERTISING & DESIGN LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

COMPANY INFORMATION


Directors
C Rees 
O Rees 




Company secretary
O Rees



Registered number
04462001



Registered office
5 Gainsford Street
London

SE1 2NE




Independent auditors
Price Bailey LLP
Chartered Accountants & Statutory Auditors

24 Old Bond Street

London

W1S 4AP





 
MAVERICK ADVERTISING & DESIGN LIMITED
 

CONTENTS



Page
Strategic Report
1 - 5
Directors' Report
6 - 7
Independent Auditors' Report
8 - 11
Statement of Comprehensive Income
12
Balance Sheet
13
Statement of Changes in Equity
14
Statement of Cash Flows
15
Analysis of Net Debt
16
Notes to the Financial Statements
17 - 28


 
MAVERICK ADVERTISING & DESIGN LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023

Introduction
 
2022/23 saw the impact of the slowdown in the UK economy, highlighted as a possibility in the 21/22 report. Turnover was down to 20/21 level, despite a number of new business wins and productivity remaining at similar levels to the last 2 years. EBIT margin has faced downward pressure too, to 7.3%. 
 
The principle headwinds around turnover have been driven by clients delaying commitment to new projects, due to a weak underlying economic outlook and uncertainty created by a series of interest rate rises. In tandem, the pressure on margins has been driven by a combination of inflationary driven costs increases and the business maintaining its headcount, which has seen a significant investment over the previous 2 years. 
 
The cashflow  position have remained resilient despite this and the group structure approach has enabled the business to replace some revenue where clients have delayed making decisions on other projects. The diversification of the customer base and new business acquisition will continue to feature strongly as we step from 2022/23 into 2023/24. As the report is written a number of clients have started to commit to delayed projects and more, and new business wins in Q1 2024 are back to 2021/22 levels. 
 
Overall 22/23 has been a challenge to see if the business could maintain most of its re-growth post-covid, in the face of what is clearly quite a strong economic slowdown/recession. The results show that partially it has been possible to do that, but some momentum has been pushed into the following 2023/24 year. 
 
The investment in marketing from 2022/23 has continued to drive awareness of its profile and reputation. This has resulted in significant further coverage, amplified by the business been awarded two Drum Awards for best campaigns across Social Purpose, further building on the previous years recognition as the No.1 Independent Agency of its size in the UK (The Drum) and in the top 10 of Independent Agencies in the UK (The Drum). 

Page 1

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023

Business review
 
2022/2023 was a year in which the overall economic headwinds became much clearer to see and impacted many business’s performance. The overall turnover for Maverick Group was down by 17%, having grown by 14% the previous year. Defending the strong bounce back that the business saw in 20/21 and 21/22 was the primary goal, and although turnover dropped, the core accounts and projects that were gained across the two years remained strong, with almost all the revenue attrition being focused around budget allocation to those accounts and projects. 
A decision was made not to materially cut headcount within the year, as the business has invested heavily in talent over the previous 2 years coming out of the Covid environment. The ability to attract, retain and grow clients has been driven by the investment in talent, and the pressure on client budgets and project delays is viewed as potentially viewed as short term. Cutting significant headcount would take the business back a step and not easily able to respond to a business environment that has been expected to improve, especially in 2024. A policy though of not employing replacement staff where there were leavers and controlling freelance spending  helped create a stronger performance in Q3 and Q4. 
One of the highlights for 2022/23 have been new and existing client growth. Strong new business wins and the expansion of the client base, have helped to support the softening of budgets across some of the established programs. Client diversification increased by 42% (an addition of 9 international clients to the roster) in 2022/23, and this is a strategy that we are focusing on in 2023/24 also.  
Our new induction program introduced in 2021/22 has been really well received, with new joiners commenting on the comprehensive nature and support they have had. The continuation of monthly town halls post Covid has maintained strong communication, also supported by a return to the office of employees for part of their working week. This is not mandatory yet, but the policy is for teams to be collaborating face-to-face around new ideas generation and project delivery. The online weekly newsletter and more regular face to face social catch ups, has helped maintain the culture also. This has led to strong retention and the company being recognized as a Great Place To Work in November 2022. 

STRATEGY
Building on the decision in 2020 to redefine the structure of the business into a group, and the strong bounce back from Covid the business experienced in 2020/21 and 2021/22, the business has continued to scale and refine the propositions it offers client, in line with the established strategy. 
 
The full array of propositions that Maverick offers includes:
 
Electric – Integrated Advertising 
Engage – Cultural Change and Engagement 
Maverick Sports & Entertainment – Brand Sponsorship/Partnership
Maverick Studio – Design and Artwork Services 
MTS – Digital products, services and experiences 
Pulse – Research & Behavioural Insight
Eric – Film and Content Creation 
Global – Transcreation 
Evolution: 
In 2022/23 The business has built on the launch of MTS, it has re-shaped one of the propositions (Mavis) and started an associated unit called Reputation by Maverick.
Maverick Technology Solutions
The major evolution in 2022 was the re-shaping of Hive, the digital offering, into a more all encompassing umbrella that offers digital products, services and experiences to drive innovation and transformation for clients. 
The business operation commenced in April 2022, and immediately picked up three clients. It has continued to become an integral part of what the business offers and can deliver,enabling a far greater range of capability than previously. It now supports the majority of the clients the business has , across an expanded client base in 2022/23. 
 
 
Page 2

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023

Mavis
In order to support a focus on a broader brand and design proposition, the team from Mavis have been incorporated into the Maverick Studio. This has allowed the business to present a wider range of pure design and branding related services, with an approach that is simplified, to allow for a more cost-conscious client to access the capability of the business. 
Reputation 
In order to support the advertising and social media services of the business, in February 2023, the assets of Quiet PR were acquired for a nominal sum by the shareholders of Maverick. This offers the opportunity to build a complimentary, retainer focused business that could also act as an introducer to the wider services of The Maverick Group. 
Reputation by Maverick is a full service PR Agency, specialising in crisis management, traditional corporate and consumer PR, content creation, influencer marketing and events. The team of experts protect brand’s reputation with Crisis Management; from dealing with wrongful allegations, cyber-crime, spiralling press storms and more. Senior specialised crisis and reputation experts help clients get back on the front-foot by building a positive online profile. They also offer traditional and digital PR strategy and services, which create positive and engaging conversation about clients brand. 
The overall strategy looking ahead is to continue to grow and refine the Maverick propositions, by investing in talent and making small, highly specific acquisitions to scale the growth of the Group’s businesses. 
 
Any acquisition that we undertake would only be on the basis that:
 It enhances the overall group capability 
 It enables at least one, but preferably two or three of the group’s capabilities to scale further 
 It drives top line growth and bottom-line EBIT 
 It offers value in terms of the price paid versus future value 
 It enables the business to be positioned for the future 
 
We are still seeing a number of strong smaller businesses that are currently looking for partners to support their re-growth plans, so we continue to quietly look for the right opportunities to allow the business to scale and make up ground post-Covid.  
At the time of writing we are assessing another acquisition of a complimentary business in the Culture Transformation space, that will enable Maverick Engage to accelerates its scaling. As one of the two largest and most profitable units this offers an exciting opportunity to grow a future proofed area of the business, and achieve strong growth objectives over the next 2-3 years. 

Page 3

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023

Principal risks and uncertainties
 
There are a number of risks that are apparent for 23/24, that are continuation from 2022/23. Some risks appear to have receded too, most notably Covid. 
The major risks are primarily twofold. Firstly economic and secondly geo-political. The economic outlook has been seriously damaged by over excessive monetary tightening, reminiscent of 1989-92. A bank of England warning of recession has started to become a reality within 2023 too, as inflation has remained stubbornly high – significantly more so than in Europe or the US. There has been little stimulous in the UK either, which is markedly different to the US. 
The outlook therefore appears to indicate that a downturn will continue until inflation starts to reduce significantly and interest rates recede – we believe this will happen by mid-year 2024. We also believe that the downturn is sharper than the data is being interpreted and that unemployment data will start to rise. 
Our feeling currently is that in a post-Covid environment demand for services will not drop as much as previous slowdowns, or clients face losing almost a decade in terms of growth and performance. Also businesses post-covid are in better shape to deal with headwinds and are already operating with a leaner approach. This is something to keep a close eye on though as the other risk around additional geo-political shockss could hold back a perceived recovery in 2024. The wars in the Ukraine, Gaza and strong tensions with China, aswell as big election moments in the UK and US are all events to be navigated and could have a bearing on the global and thereby local economies. 
With the above in mind the business has embarked on a strategy to anticipate these risks and defend its business volume, whilst looking for further opportunities. An additional focus on cost reduction, expansion of the European client base, targeting clients in new geographies like ME and Asia, and small, low cost strategic acquisitions, are measures designed to offset risk and build on the strengths of the business. With 80% of the revenue from non-UK clients, The business  is strongly positioned to continue to build its world class international customer base, which has been the basis of its historical growth. The Company also continues to have substantial cash balances and manages financial risk by ensuring sufficient liquidity is available to meet foreseeable needs.
 
Overall, there is an opportunity to utilize the business’s momentum to defend it’s volumes and increase net revenues with key clients in 2022/23. If the landscape does not improve in 2024, the measures being taken and new opportunities across the various geographies and customers the business serves, aswell as strategic acquisitions, offers a strong counterweight to the various headwinds. It also positions the business very well in the medium term. 

Financial key performance indicators
 
During the year 2022/23, sales were £11,949,211. The company delivered profit before tax of £867,558  (Prior year £2,089,383 ) maintaining an operating profit margin of 7.3%. The business improved profitability in the last six months of the year generating an operating profit margin of 13%.

 


 



Page 4

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023


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





O Rees
Director

Date: 16 April 2024

Page 5

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023

The Directors present their report and the financial statements for the year ended 30 June 2023.

Directors

The Directors who served during the year were:

C Rees 
O Rees 

Results and dividends

The profit for the year, after taxation, amounted to £672,028 (2022 - £1,669,971).

Dividends paid during the year amounted to £1,202,394 (2022 - £997,816).

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the Directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Future developments

A statement on future developments has been included within the Strategic Report on page 5, in accordance with S414C (11) of the Companies Act 2006.

Research and development activities

A statement on research and development activities has been included within the Strategic Report on page 5, in accordance with SI2008/410 Sch 7,7(c) of the Companies Act 2006

Page 6

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023

Disclosure of information to auditors

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

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

Auditors

The auditorsPrice Bailey LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 16 April 2024 and signed on its behalf.
 





O Rees
Director

Page 7

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAVERICK ADVERTISING & DESIGN LIMITED
 

Opinion


We have audited the financial statements of Maverick Advertising & Design Limited (the 'Company') for the year ended 30 June 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 June 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.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 United Kingdom, including the Financial Reporting Council'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.


Page 8

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAVERICK ADVERTISING & DESIGN LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the 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 Directors' 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 set out on page 6, 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.


Page 9

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAVERICK ADVERTISING & DESIGN LIMITED (CONTINUED)


Auditors' 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 Auditors' 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:
Review of legal fees incurred;
• Performing audit work over the risk of management override of controls, including testing of journal entries  and other adjustments for appropriateness, evaluating the business rationale of significant transactions    outside the normal course of business and reviewing accounting estimates for bias;
• Agreeing the financial statement disclosures to underlying supporting documentation
• Enquiring of management including those responsible for the key regulations;
• Reviewing the key accounting estimates
 


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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


Page 10

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAVERICK ADVERTISING & DESIGN LIMITED (CONTINUED)


Use of our report
 

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 2006Our 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 Auditors' 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.





Darren Amott (Senior Statutory Auditor)
  
for and on behalf of
Price Bailey LLP
 
Chartered Accountants &
Statutory Auditors
  
24 Old Bond Street
London
W1S 4AP

22 April 2024
Page 11

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023

As restated
2023
2022
Note
£
£

  

Turnover
 4 
11,949,211
14,361,557

Cost of sales
  
(3,938,946)
(5,359,546)

Gross profit
  
8,010,265
9,002,011

Administrative expenses
  
(7,178,732)
(6,949,384)

Other operating income
 5 
37,333
51,437

Operating profit
 6 
868,866
2,104,064

Interest receivable and similar income
 10 
34,197
250

Interest payable and similar expenses
 11 
(35,505)
(14,931)

Profit before tax
  
867,558
2,089,383

Tax on profit
 12 
(195,530)
(419,412)

Profit for the financial year
  
672,028
1,669,971

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 17 to 28 form part of these financial statements.

Page 12

 
MAVERICK ADVERTISING & DESIGN LIMITED
REGISTERED NUMBER: 04462001

BALANCE SHEET
AS AT 30 JUNE 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 14 
260,058
257,445

  
260,058
257,445

Current assets
  

Debtors: amounts falling due after more than one year
 15 
224,742
224,742

Debtors: amounts falling due within one year
 15 
3,429,818
3,177,384

Cash at bank and in hand
 16 
7,187,993
12,286,123

  
10,842,553
15,688,249

Creditors: amounts falling due within one year
 17 
(6,086,598)
(10,232,648)

Net current assets
  
 
 
4,755,955
 
 
5,455,601

Total assets less current liabilities
  
5,016,013
5,713,046

Creditors: amounts falling due after more than one year
 18 
-
(166,667)

  

Net assets
  
5,016,013
5,546,379


Capital and reserves
  

Called up share capital 
 20 
216
216

Capital redemption reserve
  
33
33

Profit and loss account
  
5,015,764
5,546,130

  
5,016,013
5,546,379


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




O Rees
Director
Date: 16 April 2024

The notes on pages 17 to 28 form part of these financial statements.

Page 13

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 July 2021
216
33
4,873,975
4,874,224


Comprehensive income for the year

Profit for the year
-
-
1,669,971
1,669,971


Contributions by and distributions to owners

Dividends
-
-
(997,816)
(997,816)



At 1 July 2022
216
33
5,546,130
5,546,379


Comprehensive income for the year

Profit for the year
-
-
672,028
672,028


Contributions by and distributions to owners

Dividends
-
-
(1,202,394)
(1,202,394)


At 30 June 2023
216
33
5,015,764
5,016,013


The notes on pages 17 to 28 form part of these financial statements.

Page 14

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
672,028
1,669,971

Adjustments for:

Depreciation of tangible assets
69,400
67,008

Loss on disposal of tangible assets
-
2,540

Government grants
-
(4,735)

Interest paid
35,505
14,931

Interest received
(34,197)
(250)

Taxation charge
195,530
375,810

(Increase)/decrease in debtors
(824,828)
2,511,582

(Decrease) in creditors
(3,924,147)
(47,195)

Corporation tax (paid)
(417,433)
(384,666)

Net cash generated from operating activities

(4,228,142)
4,204,996


Cash flows from investing activities

Purchase of tangible fixed assets
(72,013)
(68,071)

Government grants received
-
4,735

Interest received
34,197
250

Net cash from investing activities

(37,816)
(63,086)

Cash flows from financing activities

New secured loans
-
(333,333)

Repayment of loans
(166,667)
-

Repayment of/new finance leases
-
(1,456)

Dividends paid
(630,000)
(997,816)

Interest paid
(35,505)
(14,931)

Net cash used in financing activities
(832,172)
(1,347,536)

Net (decrease)/increase in cash and cash equivalents
(5,098,130)
2,794,374

Cash and cash equivalents at beginning of year
12,286,123
9,491,749

Cash and cash equivalents at the end of year
7,187,993
12,286,123


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
7,187,993
12,286,123

7,187,993
12,286,123


The notes on pages 17 to 28 form part of these financial statements.

Page 15

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2023




At 1 July 2022
Cash flows
At 30 June 2023
£

£

£

Cash at bank and in hand

12,286,123

(5,098,130)

7,187,993

Debt due after 1 year

(166,667)

166,667

-

Debt due within 1 year

(333,333)

166,666

(166,667)


11,786,123
(4,764,797)
7,021,326

The notes on pages 17 to 28 form part of these financial statements.

Page 16

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

1.


General information

Maverick Advertising & Design Limited (the ‘Company’) is a private company limited by shares incorporated in England & Wales, United Kingdom.
The address of the registered office is 5 Gainsford Street, London, SE1 2NE. The Company's principal activity is that of the provision of marketing and advertising services.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is pounds sterling.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Page 17

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Revenue is derived from fees for advertising and marketing services. Revenue is recognised over the period of the relevant assignments or projects, in line with incurred costs, or on a time basis as appropriate.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to statement of comprehensive income (SOCE) on a straight-line basis over the lease term.

 
2.5

Hire purchase and finance leases: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase 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 SOCE so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to SOCE at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
2.7

Interest income

Interest income is recognised in statement of comprehensive income (SOCE) using the effective interest method.

Page 18

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.8

Finance costs

Finance costs are charged to SOCE over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Borrowing costs

All borrowing costs are recognised in SOCE in the year in which they are incurred.

 
2.10

Pensions

Defined contribution pension plan

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

The contributions are recognised as an expense in SOCE when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.11

Taxation

Tax is recognised in SOCE except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Leasehold improvements
-
25% reducing balance
Fixtures, fittings & equipment
-
25% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in SOCE.

Page 19

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.13

Debtors

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

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.15

Creditors

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

 
2.16

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of
financial assets and liabilities like trade and other debtors and creditors, loans from banks and other
third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans
and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets and liabilities that are measured at cost and amortised cost are assessed at the end
of each reporting period for objective evidence of impairment. If objective evidence of impairment is
found, an impairment loss is recognised in the Statement of Comprehensive Income.

 
2.17

Dividends

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

Page 20

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 
The directors make estimates and assumptions concerning the future based on their knowledge of the business and the markets it operates in. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results.


4.


Turnover

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


2023
2022
£
£

Provision of marketing and advertising services
11,949,211
14,361,557

11,949,211
14,361,557


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
2,239,427
2,495,493

Europe
9,029,478
11,866,064

Rest of the world
680,306
-

11,949,211
14,361,557



5.


Other operating income

As restated
2023
2022
£
£

R&D tax relief
35,433
43,602

Government grants receivable
-
4,735

Insurance claims receivable
1,900
3,100

37,333
51,437


Government grants receivable relate to the furlough grant in response to the Coronavirus pandemic. There are no conditions or contingencies in regard to this amount.

Page 21

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
(38,833)
(68,632)

Other operating lease rentals
460,000
564,000

Government grants receivable
-
(4,735)

Depreciation
69,400
67,007

Loss on disposal of fixed assets
-
2,540


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
18,350
16,675



2023
2022
£
£

Fees payable to the Company's auditors and its associates in respect of:


Accounting and tax compliance services

3,250
2,915

Page 22

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

8.


Employees

Staff costs, including Directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
4,660,517
4,467,234

Social security costs
588,253
565,512

Cost of defined contribution scheme
375,020
204,727

5,623,790
5,237,473


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


        2023
        2022
            No.
            No.







Directors
2
2



Advertising staff
67
64



Admin staff
11
12

80
78


9.


Directors' remuneration

2023
2022
£
£

Directors' remuneration
68,909
73,645

68,909
73,645



10.


Interest receivable

2023
2022
£
£


Other interest receivable
34,197
250

34,197
250

Page 23

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
23,141
13,601

Finance leases and hire purchase contracts
-
10

Other interest payable
12,364
1,320

35,505
14,931


12.


Taxation


As restated
2023
2022
£
£

Corporation tax


Current tax on profits for the year
189,807
411,559

Adjustments in respect of previous periods
5,723
7,853


Total current tax
195,530
419,412

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 20.50% (2022 - 19%). The differences are explained below:

As restated
2023
2022
£
£


Profit on ordinary activities before tax
867,558
2,089,383


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 20.50% (2022 - 19%)
177,849
388,698

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
15,860
19,484

Capital allowances for year in excess of depreciation
(3,902)
(2,836)

Short term timing difference leading to an increase (decrease) in taxation
-
6,213

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
5,723
7,853

Total tax charge for the year
195,530
419,412


Factors that may affect future tax charges

Page 24

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
 
12.Taxation (continued)

Future tax charges will be affected by the change in corporation tax rate from 19% to 25%. 3 months of the current year have been affected by this change.


13.


Dividends

2023
2022
£
£


Dividends paid
1,202,394
997,816

1,202,394
997,816


14.


Tangible fixed assets





Leasehold improvements
Fixtures & Fittings
Total

£
£
£



Cost or valuation


At 1 July 2022
191,928
705,452
897,380


Additions
7,229
64,784
72,013



At 30 June 2023

199,157
770,236
969,393



Depreciation


At 1 July 2022
136,815
503,120
639,935


Charge for the year
13,552
55,848
69,400



At 30 June 2023

150,367
558,968
709,335



Net book value



At 30 June 2023
48,790
211,268
260,058



At 30 June 2022
55,113
202,332
257,445

Page 25

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023



15.


Debtors

2023
2022
£
£

Due after more than one year

Tax recoverable - s455
224,742
224,742

224,742
224,742


2023
2022
£
£

Due within one year

Trade debtors
1,723,806
1,380,412

Other debtors
1,312,781
1,465,185

Prepayments and accrued income
393,231
331,787

3,429,818
3,177,384



16.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
7,187,993
12,286,123

7,187,993
12,286,123



17.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
166,667
333,333

Trade creditors
580,660
980,205

Corporation tax
196,171
418,074

Other taxation and social security
144,013
169,595

Other creditors
123,017
66,644

Accruals and deferred income
4,876,070
8,264,797

6,086,598
10,232,648


Page 26

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

18.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
-
166,667

-
166,667



19.


Financial instruments

As restated
2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
7,187,993
12,286,123

Financial assets measured at amortised cost
3,168,751
2,748,395

10,356,744
15,034,518


Financial liabilities


Financial liabilities measured at amortised cost
(1,277,723)
(1,922,507)


Financial assets measured at fair value through profit or loss comprise bank balances.


Financial assets that are debt instruments measured at amortised cost comprise trade and other debtors; accrued income; and director loans.


Financial liabilities measured at amortised cost comprise trade and other creditors; bank loans and accrued expenditure.


20.


Share capital

2023
2022
£
£
Authorised, allotted, called up and fully paid



216 (2022 - 216) Ordinary A shares shares of £1.00 each
216
216



21.


Contingent liabilities

Maverick Advertising & Design Limited has entered into an Omnibus Guarantee and Set-Off Agreement, as guarantor, in favour of the lenders to Oliver Estates Limited in respect of any liabilities arising to the lenders from Oliver Estates Limited. This amounted to £5,161,676 (2022 - £5,550,464) in total.

Page 27

 
MAVERICK ADVERTISING & DESIGN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

22.


Pension commitments

The group operates a defined contributions scheme. The assets of the scheme are held seperately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £375,020 (2022 - £204,727). At the year end the company owed £31,218 (2022 - £32,705) to the scheme, which is included in other creditors.


23.


Transactions with directors

2023
2022
£
£

Directors' loan accounts


Balance bought forward
801,515
2,739,874

Loans granted and expenses paid on behalf of directors
592,418
565,193

Repayments
(702,418)
(2,503,552)

Balance carried forward
691,515
801,515

The company does not charge interest on the loans granted and expenses paid on behalf of the directors. There were no specific terms to these amounts.
The directors have provided an all monies guarantee for a principal amount of £50,000 plus interest against outstanding bank loans of the company.


24.


Related party transactions

During the year the company paid dividends of £1,202,394 (2022 - £997,816) to the directors.
Key management personnel compensation for the year totalled £271,526 (2022 - £262,392).
During the year the company paid expenses of £7,108 (2022 - £1,176) on behalf of Oliver Estates Limited and were charged rent of £460,000 (2022 - £564,000) by Oliver Estates Limited, a company under the control of the directors. The amount due from Oliver Estates Limited at the year end was £590,506 (2022 - £548,300). 
During the year the company paid expenses of £178,830 (2022 - £NIL) on behalf of REPUTATION by Maverick Limited and were recharged £230,301 (2022 - £NIL) by REPUTATION by Maverick Limited, a company under the control of the directors. The amount due to REPUTATION by Maverick Limited at the year end was £51,471  (2022 - £NIL).


25.


Controlling party

The controlling parties are the directors Mr O Rees and Mrs C Rees.


Page 28