REGISTERED NUMBER: 06952258 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED |
REGISTERED NUMBER: 06952258 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Comprehensive Income | 9 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Suite 3 Hamilton Centre |
Rodney Way |
Chelmsford |
CM1 3BY |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The director presents his strategic report of the company and the group for the year ended 31 December 2022. |
Introduction |
Knowledge to Action Holdings Limited is the holding company of the Knowledge to Action Group, a group of companies that provide on line training and coaching seminars aimed at trading on the stock exchanges and foreign currency markets around the world. |
REVIEW OF BUSINESS |
As a significant part of the group, Knowledge to Action Ltd has successfully traded within its market since 2004 in the UK.Turnover in the UK has risen by 10% compared to previous year. This has contributed to an overall increase of 45% in group turnover. |
Knowledge to Action Limited generated profits of £315,814 (2021:£667,927). |
The Group's operations in Australia Generated a profit of £1,269,679 (2021:£349,560). |
The Group's Key performance indicator is profit. The overall group's results have generated a net profit before tax of £1,481,773 (2021: £905,249). |
The Group's Balance Sheet shows a net liability position of £5,624,288, which has arisen because of historical losses. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group's principal financial instruments comprise bank balances, trade debtors and trade creditors. Due to the short term nature of the financial instruments used within the group it is believed there is a very limited exposure to risk. The group does not have any credit facilities with its bankers, any liquidity and cash flow risks are met through the company maintaining positive cash balances. |
The group's only exposure to foreign exchange risk, are the inter-company loans between group members, and also with other associated overseas companies. In the UK. |
There is a risk that this uncertainty will lead to a reduction in the appetite for trading and therefore reduced demand for the courses the company offers Another risk for the company is the increased competition in the industry and the tighter regulation that is happening across Europe in the financial sector. |
There is a risk to the Group as there are excess liabilities over assets, this is mitigated by support that the Group receives from the Ultimate Beneficial Owner and Related Parties. Note 2 to the Financial Statements addresses this point. |
ON BEHALF OF THE BOARD: |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The director presents his report with the financial statements of the company and the group for the year ended 31 December 2022. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2022. |
FUTURE DEVELOPMENTS |
The Knowledge to Action Group is optimistic for the future with the adjustment of marketing strategy to a more focused approach. This allied to a constant close control of costs should see continued profits in 2022. Although the general economic outlook looks mixed in the UK at present, we are forecasting good growth in the area of financial training as the markets become increasingly complex. |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
AUDITORS |
The auditors, CBHC Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED |
Opinion |
We have audited the financial statements of Knowledge to Action (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 group's and of the parent company affairs as at 31 December 2022 and of the group's 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 group 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. |
Material uncertainty related to going concern |
We draw attention to note 2 in the financial statements, which indicates that there is a net liability position on the Balance Sheet of £5,624,288 . As stated in note 2, these events or conditions, along with the other matters as set forth in note 2, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. |
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. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED |
Opinions 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is responsible for assessing the group's and the parent 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED |
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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and group entities through discussion with the group's management. |
The group's reporting framework relevant to the company is FRS 102 and the Companies Act 2006 |
The group is also required to follow the employment legislation and laws, along with health and safety regulations. The group has sufficient policies and procedures in place to ensure that these are complied with. |
Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations above. |
We made enquiries of those charged with compliance to determine any issues arising. We corroborated our findings by reviewing Board Minutes, correspondence with Companies House and reviewing any necessary legal documentation. Nothing was noted that contradicted the explanations given to us. |
Financial Statement disclosures were tested for completeness. |
We assessed the risks of material misstatement in respect of fraud as being low due to the nature of the business. We made enquires relating to fraud with the group's management. |
We considered the risk of fraud through management override and, in response, we incorporated testing of manual journals throughout the year and reviewed any unusual transactions throughout our audit. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED |
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 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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. |
for and on behalf of |
Suite 3 Hamilton Centre |
Rodney Way |
Chelmsford |
CM1 3BY |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
31/12/22 | 31/12/21 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 27,711,201 | 19,075,240 |
Cost of sales | 22,134,458 | 11,578,329 |
GROSS PROFIT | 5,576,743 | 7,496,911 |
Distribution costs | 92,775 | 99,484 |
Administrative expenses | 5,067,870 | 6,940,125 |
5,160,645 | 7,039,609 |
416,098 | 457,302 |
Other operating income | 844,336 | 294,924 |
OPERATING PROFIT | 5 | 1,260,434 | 752,226 |
Interest receivable and similar income | 361,249 | 345,736 |
1,621,683 | 1,097,962 |
Interest payable and similar expenses | 6 | 59,618 | 142,280 |
PROFIT BEFORE TAXATION | 1,562,065 | 955,682 |
Tax on profit | 7 | 74,727 | 50,433 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
Reserves movement | (5,565 | ) | (367,197 | ) |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(5,565 |
) |
(367,197 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,481,773 |
538,052 |
Profit attributable to: |
Owners of the parent | 1,487,338 | 905,249 |
Total comprehensive income attributable to: |
Owners of the parent | 1,481,773 | 538,052 |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
31/12/22 | 31/12/21 |
£ | £ |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2022 |
31/12/22 | 31/12/21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 15,899 | 42,066 |
Investments | 10 |
Interest in joint venture |
Share of gross assets | 1,203,287 | 1,203,287 |
1,203,287 | 1,203,287 |
Other investments | 120,000 | 120,000 |
1,339,186 | 1,365,353 |
CURRENT ASSETS |
Debtors | 11 | 8,903,716 | 16,928,402 |
Cash at bank | 730,023 | 964,006 |
9,633,739 | 17,892,408 |
CREDITORS |
Amounts falling due within one year | 12 | 16,597,213 | 26,354,993 |
NET CURRENT LIABILITIES | (6,963,474 | ) | (8,462,585 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
(5,624,288 |
) |
(7,097,232 |
) |
CREDITORS |
Amounts falling due after more than one year | 13 | - | 8,829 |
NET LIABILITIES | (5,624,288 | ) | (7,106,061 | ) |
CAPITAL AND RESERVES |
Called up share capital | 14 | 300 | 300 |
Other reserves | 15 | (1,136,310 | ) | (1,130,745 | ) |
Retained earnings | 15 | (4,488,278 | ) | (5,975,616 | ) |
SHAREHOLDERS' FUNDS | (5,624,288 | ) | (7,106,061 | ) |
The financial statements were approved by the director and authorised for issue on 13 August 2024 and were signed by: |
G J Secker - Director |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
COMPANY BALANCE SHEET |
31 DECEMBER 2022 |
31/12/22 | 31/12/21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 11 |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
( |
) |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
Company's loss for the financial year | (6,538 | ) | (31,152 | ) |
The financial statements were approved by the director and authorised for issue on |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 January 2021 | 300 | (7,644,413 | ) | - | (7,644,113 | ) |
Changes in equity |
Total comprehensive income | - | 1,668,797 | (1,130,745 | ) | 538,052 |
Balance at 31 December 2021 | 300 | (5,975,616 | ) | (1,130,745 | ) | (7,106,061 | ) |
Changes in equity |
Total comprehensive income | - | 1,487,338 | (5,565 | ) | 1,481,773 |
Balance at 31 December 2022 | 300 | (4,488,278 | ) | (1,136,310 | ) | (5,624,288 | ) |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2021 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2021 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2022 | ( |
) | ( |
) |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
31/12/22 | 31/12/21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (295,741 | ) | (1,655,421 | ) |
Interest paid | (59,618 | ) | (142,280 | ) |
Tax paid | 5,595 | (84,219 | ) |
Net cash from operating activities | (349,764 | ) | (1,881,920 | ) |
Cash flows from investing activities |
Interest received | 361,249 | 345,736 |
Net cash from investing activities | 361,249 | 345,736 |
Cash flows from financing activities |
Amount introduced by directors | - | 1,366,994 |
Amount withdrawn by directors | (245,468 | ) | - |
Net cash from financing activities | (245,468 | ) | 1,366,994 |
Decrease in cash and cash equivalents | (233,983 | ) | (169,190 | ) |
Cash and cash equivalents at beginning of year |
2 |
964,006 |
1,133,196 |
Cash and cash equivalents at end of year | 2 | 730,023 | 964,006 |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31/12/22 | 31/12/21 |
£ | £ |
Profit before taxation | 1,562,065 | 955,682 |
Depreciation charges | 26,167 | 45,362 |
Decrease in amounts owed to related part | (5,565 | ) | (417,630 | ) |
Finance costs | 59,618 | 142,280 |
Finance income | (361,249 | ) | (345,736 | ) |
1,281,036 | 379,958 |
Decrease/(increase) in trade and other debtors | 8,024,686 | (9,324,072 | ) |
(Decrease)/increase in trade and other creditors | (9,601,463 | ) | 7,288,693 |
Cash generated from operations | (295,741 | ) | (1,655,421 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 730,023 | 964,006 |
Year ended 31 December 2021 |
31/12/21 | 1/1/21 |
£ | £ |
Cash and cash equivalents | 964,006 | 1,133,196 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/1/22 | Cash flow | At 31/12/22 |
£ | £ | £ |
Net cash |
Cash at bank | 964,006 | (233,983 | ) | 730,023 |
964,006 | (233,983 | ) | 730,023 |
Total | 964,006 | (233,983 | ) | 730,023 |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | STATUTORY INFORMATION |
Knowledge to Action (Holdings) Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3). |
Going concern |
There is a net liabilities position on the balance sheet amounting to £5,624,288 (2021: £7,106,061), which may cast doubt over the company's ability to continue as a going concern.. |
The group has become profitable in 2021 and 2022 making a group profit of £1,481,773 (2021: £538,052) and continues to rebuild trade post COVID. The directors forecast that the company will continue to be profitable in future periods which will enable the group companies to continue to meet their liabilities as they fall due. |
Considering the improved trading position, the continued support of the director and support of other connected and associated entities, the director is satisfied that the Group has adequate financial resources to continue to trade and develop the business. For these reasons, the director believes that it is appropriate to continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
Basis of consolidation |
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. lntercompany transactions and balances between group companies are therefore eliminated in full. |
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases. |
Joint ventures |
An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control. |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Associates |
An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions. |
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated statement of comprehensive income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated balance sheet, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition. |
Any premium on acquisition is dealt with in accordance with the goodwill policy. |
Significant judgements and estimates |
The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Statement of Financial Position date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. On this background, the directors consider there to be judgments applied only on depreciation policy of the fixed assets and the depreciation rates are based upon the expected useful life of the assets. There are no other judgments in any other accounting policies that might have a material effect on the balances held at the Statement of Financial Position date. |
Turnover |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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: |
Turnover comprises revenue generated from training and coaching services, exclusive of Value Added Tax and trade discounts. |
These revenues are recognised upon attendance of a course or coaching session by the delegates in question, and so any advance payments are deferred in advance of this. All fees are to be paid in full in advance of attendance of any seminar or coaching session, therefore any trade debtor balances as at the balance sheet date will also be deferred. |
Deposits held for a period in excess of twelve months will continued to be deferred, however a proportion will be recognised as turnover using a statistical model based on prior year trends for older deposits being converted into recognised income. |
Tangible fixed assets |
Fixtures and fittings | - |
Computer equipment | - |
Financial instruments |
The Group 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 non-puttable ordinary shares. |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
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. |
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset. |
Pension costs and other post-retirement benefits |
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. |
The contributions are recognised as an expense in the Consolidated statement of comprehensive income 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 Group in independently administered funds. |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Exceptional items |
Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence. |
Debtors and creditors |
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. |
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. |
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 Consolidated 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 Group's cash management. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
31/12/22 | 31/12/21 |
£ | £ |
Training and coaching services | 27,711,201 | 19,075,240 |
27,711,201 | 19,075,240 |
An analysis of turnover by geographical market is given below: |
31/12/22 | 31/12/21 |
£ | £ |
United Kingdom | 8,484,857 | 7,692,605 |
Rest of the world | 19,226,344 | 11,382,635 |
27,711,201 | 19,075,240 |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
4. | EMPLOYEES AND DIRECTORS |
31/12/22 | 31/12/21 |
£ | £ |
Wages and salaries | 1,511,385 | 1,105,109 |
Social security costs | 305,249 | 248,006 |
1,816,634 | 1,353,115 |
The average number of employees during the year was as follows: |
31/12/22 | 31/12/21 |
Administration and client services | 6 | 5 |
Sales, marketing and events | 15 | 15 |
Finance and IT | 3 | 5 |
Director | 1 | 1 |
The average number of employees by undertakings that were proportionately consolidated during the year was 25 (2021 - 26 ) . |
31/12/22 | 31/12/21 |
£ | £ |
Director's remuneration | 22,500 | 50,000 |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
31/12/22 | 31/12/21 |
£ | £ |
Other operating leases | 62,445 | 124,698 |
Depreciation - owned assets | 26,167 | 45,362 |
Auditors remuneration | 30,194 | 50,240 |
Foreign exchange differences | 244,236 | - |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31/12/22 | 31/12/21 |
£ | £ |
Interest payable | 59,618 | 142,280 |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31/12/22 | 31/12/21 |
£ | £ |
Current tax: |
Overseas tax | 74,727 | 50,433 |
Tax on profit | 74,727 | 50,433 |
Tax effects relating to effects of other comprehensive income |
31/12/22 |
Gross | Tax | Net |
£ | £ | £ |
Reserves movement | (5,565 | ) | - | (5,565 | ) |
31/12/21 |
Gross | Tax | Net |
£ | £ | £ |
Reserves movement | (367,197 | ) | - | (367,197 | ) |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
9. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Short | and | Computer |
leasehold | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2022 |
and 31 December 2022 | 67,337 | 130,833 | 13,208 | 211,378 |
DEPRECIATION |
At 1 January 2022 | 67,337 | 88,767 | 13,208 | 169,312 |
Charge for year | - | 26,167 | - | 26,167 |
At 31 December 2022 | 67,337 | 114,934 | 13,208 | 195,479 |
NET BOOK VALUE |
At 31 December 2022 | - | 15,899 | - | 15,899 |
At 31 December 2021 | - | 42,066 | - | 42,066 |
10. | FIXED ASSET INVESTMENTS |
Group | Company |
31/12/22 | 31/12/21 | 31/12/22 | 31/12/21 |
£ | £ | £ | £ |
Shares in group undertakings | - | - |
Participating interests | 1,203,287 | 1,203,287 |
Other investments not loans | 120,000 | 120,000 |
1,323,287 | 1,323,287 |
Additional information is as follows: |
Group |
Interest |
in joint |
venture |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 | 1,203,287 |
NET BOOK VALUE |
At 31 December 2022 | 1,203,287 |
At 31 December 2021 | 1,203,287 |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
10. | FIXED ASSET INVESTMENTS - continued |
Group |
Investments (neither listed nor unlisted) were as follows: |
31/12/22 | 31/12/21 |
£ | £ |
Other investments | 120,000 | 120,000 |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: UK |
Nature of business: |
% |
Class of shares: | holding |
31/12/22 | 31/12/21 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Profit for the year |
Registered office: Australia |
Nature of business: |
% |
Class of shares: | holding |
31/12/22 | 31/12/21 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
10. | FIXED ASSET INVESTMENTS - continued |
Registered office: UK |
Nature of business: |
% |
Class of shares: | holding |
31/12/22 | 31/12/21 |
£ | £ |
Aggregate capital and reserves |
Registered office: UK |
Nature of business: |
% |
Class of shares: | holding |
31/12/22 | 31/12/21 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Registered office: UK |
Nature of business: |
% |
Class of shares: | holding |
31/12/22 | 31/12/21 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31/12/22 | 31/12/21 | 31/12/22 | 31/12/21 |
£ | £ | £ | £ |
Trade debtors | 1,683,937 | 754,233 |
Amounts owed by related parties | 6,961,505 | 4,580,452 | - | - |
Amounts owed by group undertakings | - | - |
Amounts owed by participating interests | - | - | - | 94,389 |
Other debtors | 146,230 | 147,318 |
Related Parties | - | 11,378,346 | 94,389 | - |
VAT | 30,197 | - |
Prepayments | 81,847 | 68,053 |
8,903,716 | 16,928,402 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31/12/22 | 31/12/21 | 31/12/22 | 31/12/21 |
£ | £ | £ | £ |
Trade creditors | 2,282,411 | 1,253,101 |
Amounts owed to group undertakings | - | - |
Taxation | 1,588,716 | 1,499,565 |
Social security and other taxes | 72,394 | 69,863 |
VAT | - | 511,930 | - | - |
Other creditors | 95,101 | 344,111 |
Amounts owed by related parties | 6,052,964 | 12,683,240 | - | - |
Directors' current accounts | 793,026 | 1,038,494 | - | - |
Accruals and deferred income | 5,514,513 | 8,591,524 |
Accrued expenses | 198,088 | 363,165 |
16,597,213 | 26,354,993 |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31/12/22 | 31/12/21 |
£ | £ |
Taxation | - | 8,829 |
14. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31/12/22 | 31/12/21 |
value: | £ | £ |
Ordinary | 1 | 300 | 300 |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
15. | RESERVES |
Group |
Retained | Other |
earnings | reserves | Totals |
£ | £ | £ |
At 1 January 2022 | (5,975,616 | ) | (1,130,745 | ) | (7,106,361 | ) |
Profit for the year | 1,487,338 | 1,487,338 |
Exchange rate difference | - | (5,565 | ) | (5,565 | ) |
At 31 December 2022 | (4,488,278 | ) | (1,136,310 | ) | (5,624,588 | ) |
16. | RELATED PARTY DISCLOSURES |
The below amounts were owed by/(to) Related Parties by the Group as at the balance sheet date: |
Debtor Balances | 2022 | 2021 |
£ | £ |
Smart Charts (Malta) | 5,870,488 | 4,140,054 |
The Greg Secker Foundation | 193,368 | 186,568 |
K2AF Trading Limited | 41,097 | 37,459 |
Learn to Trade Limited | 124,819 | 95,489 |
Capital Index Holdings Limited | 26,028 | 25,317 |
Learn to Trade International Holdings Limited | 69,413 | 55,912 |
Learn to Trade Pty Limited (South Africa) | 344,045 |
Schubi Computer Software Trading LLC | 39,654 | 39,654 |
EMC Events | 254,125 |
Learn To Trade Smart Charts Consulting (Philippines) | (1,532 | ) |
6,961,505 | 4,580,453 |
Creditor Balances |
2022 | 2021 |
£ | £ |
Smart Charts Malta | 3,447,309 | - |
Learn to Trade (Philippines) | 213,754 | 219,216 |
Capital Index Global Limited | 414,148 | 219,335 |
EmpowerU | 1,192,940 | 701,672 |
Smart Charts SC Limited | 784,813 | 159,540 |
Learn to Trade PTY Limited (South Africa) | 5,133 |
6,052,965 | 1,085,561 |
KNOWLEDGE TO ACTION (HOLDINGS) LIMITED (REGISTERED NUMBER: 06952258) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
17. | ULTIMATE CONTROLLING PARTY |
The controlling party is G J Secker. |
At the year end the director of the company was owed £793,027 ( 2021: £1,038,494). |