New Commercial Arts London Limited
Annual Report and Financial Statements
For the year ended 31 December 2023
Company Registration No. 12482753 (England and Wales)
New Commercial Arts London Limited
Company Information
Directors
J Murphy
N Hofer
I Heartfield
D Golding
M Craigie
R Curran
Company number
12482753
Registered office
Ground Floor
33-37 University Street
London
WC1E 6JL
Auditor
Moore Kingston Smith LLP
Charlotte Building
17 Gresse Street
London
W1T 1QL
New Commercial Arts London Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 20
New Commercial Arts London Limited
Strategic Report
For the year ended 31 December 2023
Page 1

The directors present the strategic report for the year ended 31 December 2023.

Principal activities and review of the business

The principal activity of the company continued to be that of the provision of customer experience design and advertising services.

The company continues to successfully build relationships with its existing client base, win new clients and invest in quality staff to service existing clients and take advantage of new business opportunities in 2023. This resulted in strong performance and growth with the company gross profit increasing by 25%.

Operating costs continue to be managed effectively, in order to deliver year-on-year improvements in pre-tax profitability.

At the year end the company's robust balance sheet reflects the focus placed on managing the cash and costs. The net asset position as at 31st December 2023 is £8.7m (up from £5.9m in 2022) and cashflow forecasts looking ahead show that the company is able to meet all its liabilities and the company is in a strong position.

 

The company plans to continue its current activities and have made a good start to 2024 building on the existing client base with income showing an increase over 2023. Looking ahead to the second half of 2024 and beyond, we expect clients to remain cautious, despite the possibility of interest rate cuts, and the company is focused on exploring market opportunities to enable it to expand the current client base.

Principal risks and uncertainties

Principal risks to the company would be a loss of a key client, retaining key talent and keeping ahead of technological advances in the industry. At this stage there are no principal uncertainties.

Market

The market in which we participate is highly competitive. Key competitive considerations for keeping existing business and winning new business include our ability to develop creative solutions to meet client needs, the quality and effectiveness of the services we offer, and our ability to efficiently service clients. It is key to remain competitive and win new business to continue the company’s growth trajectory and the directors believe we are well placed to continue into 2024 and beyond.

 

Staff

Our staff are our most important assets, and it is important that we continue our ability to attract and retain those employees as we all as attract the best in the market going forward. The business continues to react quickly to the changing nature of business and is always focused on protecting its staff and their wellbeing.

 

Credit risk

The company’s credit risk is primarily attributable to client receivables and to protect liquidity, the company seeks upfront billing from clients on all production spend made on the client's behalf. The company monitors all payments against contractual agreements and has an excellent record of client receivables being collected on a prompt basis.

New Commercial Arts London Limited
Strategic Report (Continued)
For the year ended 31 December 2023
Page 2
Key performance indicator

The key financial indicators that the company focus on are revenue, gross profit, profit after tax and the margin of operating profit against gross profit.

2023 gross profit of £12,726,985 shows an increase of 25% over £10,153,584 in 2022.

2023 operating profit at £3,394,101 showed a 6% increase over 2022 at £3,206,660.

2023 profit before tax at £3,586,222 showed an 11% increase over £3,236,557 in 2022.

Staff Cost to Gross Profit Ratio (SCR) for 2023 was 59.6%.

The balance sheet shows an increase of net assets to £8,674,588 (2022 £5,941,578).

Charitable donations

During the year the company made £11,729 in charitable donations and it provides some pro bono services to charitable clients which are not reflected in these numbers.

On behalf of the board

J Murphy
Director
22 August 2024
New Commercial Arts London Limited
Directors' Report
For the year ended 31 December 2023
Page 3

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company is that of an advertising agency.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

J Murphy
N Hofer
I Heartfield
D Golding
M Craigie
R Curran
Auditor

The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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

New Commercial Arts London Limited
Directors' Report (Continued)
For the year ended 31 December 2023
Page 4
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
J Murphy
Director
22 August 2024
New Commercial Arts London Limited
Independent Auditor's Report
To the Members of New Commercial Arts London Limited
Page 5
Opinion

We have audited the financial statements of New Commercial Arts London Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

New Commercial Arts London Limited
Independent Auditor's Report (Continued)
To the Members of New Commercial Arts London Limited
Page 6

Opinions on other matters prescribed by the Companies Act 2006

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

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:

 

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

New Commercial Arts London Limited
Independent Auditor's Report (Continued)
To the Members of New Commercial Arts London Limited
Page 7
Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

 

New Commercial Arts London Limited
Independent Auditor's Report (Continued)
To the Members of New Commercial Arts London Limited
Page 8

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

 

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 an auditor's 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.

Esther Carder
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
27 August 2024
Chartered Accountants
Statutory Auditor
Charlotte Building
17 Gresse Street
London
W1T 1QL
New Commercial Arts London Limited
Statement of Comprehensive Income
For the year ended 31 December 2023
Page 9
2023
2022
Notes
£
£
Turnover
3
29,838,962
34,211,046
Cost of sales
(17,111,977)
(24,057,462)
Gross profit
12,726,985
10,153,584
Administrative expenses
(9,332,884)
(6,946,924)
Operating profit
4
3,394,101
3,206,660
Interest receivable and similar income
7
192,121
29,897
Profit before taxation
3,586,222
3,236,557
Tax on profit
8
(853,212)
(630,619)
Profit for the financial year
2,733,010
2,605,938

The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.

New Commercial Arts London Limited
Balance Sheet
As at 31 December 2023
Page 10
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
88,057
135,812
Current assets
Debtors
10
4,380,296
2,497,139
Investments
11
5,692,435
2,000,000
Cash at bank and in hand
6,442,288
10,501,816
16,515,019
14,998,955
Creditors: amounts falling due within one year
12
(7,912,184)
(9,167,385)
Net current assets
8,602,835
5,831,570
Total assets less current liabilities
8,690,892
5,967,382
Provisions for liabilities
Deferred tax liability
13
(16,304)
(25,804)
(16,304)
(25,804)
Net assets
8,674,588
5,941,578
Capital and reserves
Called up share capital
15
1
1
Profit and loss reserves
8,674,587
5,941,577
Total equity
8,674,588
5,941,578
The financial statements were approved by the board of directors and authorised for issue on 22 August 2024 and are signed on its behalf by:
J Murphy
Director
Company Registration No. 12482753
New Commercial Arts London Limited
Statement of Changes in Equity
For the year ended 31 December 2023
Page 11
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
1
3,335,639
3,335,640
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
2,605,938
2,605,938
Balance at 31 December 2022
1
5,941,577
5,941,578
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
2,733,010
2,733,010
Balance at 31 December 2023
1
8,674,587
8,674,588
New Commercial Arts London Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 12
1
Accounting policies
Company information

New Commercial Arts London Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ground Floor, 33-37 University Street, London, WC1E 6JL.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of New Commercial Arts Group Limited. These consolidated financial statements are available from its registered office, Ground Floor, 33-37 University Street, London, United Kingdom, WC1E 6JL.

1.2
Going concern

These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. The directors believe that the company will have sufficient funds to settle all of its liabilities as they fall due for at least 12 months from signing the accounts. true

1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business.
Retainer income
Retainer income is recognised evenly over the period to which it relates to with any amounts recieved in advance included in deferred income.
Production income
Production income comprise fees charged to the client that are equal in value to the costs paid to external suppliers when they are engaged to perform part or all of a production. Production income is recognised at the date at which the work is performed and are included in revenue.
New Commercial Arts London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 13
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
33% straight line
Fixtures and fittings
33% straight line
Computers
50% straight line
Office Equipment
35% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.6
Financial instruments

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

New Commercial Arts London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 14
1.7
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.8
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10
Retirement benefits

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

1.11
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.12
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

New Commercial Arts London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 15
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

Revenue recognition

Turnover is recognised to the extent economic benefits will flow to the company and that turnover can be reliably measured. Turnover represents amounts received or receivable from clients, exclusive of Value Added Tax, for the rendering of services, and comprises charges for fees, commissions and rechargeable expenses and marketing products incurred on behalf of the clients. Turnover derived from retainers is recognised on a straight line basis in accordance with the contract. Where the term of a project straddles the period end, the client has applied an element of judgement to determine the turnover to recognise in the period; being the proportion of deliverables satisfied in line with the contract, costs incurred against budget and time spent against budget.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Advertising
29,838,962
34,211,046
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
29,667,619
32,158,383
Europe
171,343
1,197,387
Rest of the World
-
855,276
29,838,962
34,211,046
2023
2022
£
£
Other significant revenue
Interest income
192,121
29,897
New Commercial Arts London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 16
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
50,510
34,470
Depreciation of owned tangible fixed assets
83,983
65,795
Profit on disposal of intangible assets
(4,685)
-
Operating lease charges
251,118
178,282
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was 63 (2022 - 51).

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
5,255,298
3,847,945
Social security costs
583,471
443,817
Pension costs
554,501
142,629
6,393,270
4,434,391
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
790,159
769,859
Company pension contributions to defined contribution schemes
365,226
24,326
1,155,385
794,185

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 4).

New Commercial Arts London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
6
Directors' remuneration
(Continued)
Page 17
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
120,060
150,000
Company pension contributions to defined contribution schemes
180,000
7,500
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
192,121
29,897
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
862,712
613,457
Deferred tax
Origination and reversal of timing differences
(9,500)
17,162
Total tax charge
853,212
630,619
New Commercial Arts London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
8
Taxation
(Continued)
Page 18

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
3,586,222
3,236,557
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
843,499
614,946
Tax effect of expenses that are not deductible in determining taxable profit
17,251
12,410
Permanent capital allowances in excess of depreciation
-
0
(23,621)
Provision adjustment
(6,969)
9,722
Deferred tax adjustment
-
0
17,162
Fixed asset differences
(252)
-
0
Remeasurement of deferred tax not recognised
(317)
-
0
Taxation charge for the year
853,212
630,619
9
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Office Equipment
Total
£
£
£
£
£
Cost
At 1 January 2023
49,779
31,348
119,590
35,508
236,225
Additions
-
0
2,615
31,158
2,767
36,540
Disposals
-
0
-
0
(3,954)
-
0
(3,954)
At 31 December 2023
49,779
33,963
146,794
38,275
268,811
Depreciation and impairment
At 1 January 2023
7,544
8,864
74,788
9,217
100,413
Depreciation charged in the year
16,593
12,048
43,602
11,740
83,983
Eliminated in respect of disposals
-
0
-
0
(3,642)
-
0
(3,642)
At 31 December 2023
24,137
20,912
114,748
20,957
180,754
Carrying amount
At 31 December 2023
25,642
13,051
32,046
17,318
88,057
At 31 December 2022
42,235
22,484
44,802
26,291
135,812
New Commercial Arts London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 19
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,506,041
2,051,012
Other debtors
199,578
195,494
Prepayments and accrued income
674,677
250,633
4,380,296
2,497,139
11
Current asset investments
2023
2022
£
£
Bank term deposits
5,692,435
2,000,000
12
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Trade creditors
1,179,529
3,069,688
Amounts owed to group undertakings
108,800
108,800
Corporation tax
498,207
279,117
Other taxation and social security
1,624,287
1,068,551
Deferred income
421,533
946,464
Other creditors
131,022
147,426
Accruals and deferred income
3,948,806
3,547,339
7,912,184
9,167,385
13
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
16,304
25,804
New Commercial Arts London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
13
Deferred taxation
(Continued)
Page 20
2023
Movements in the year:
£
Liability at 1 January 2023
25,804
Credit to profit or loss
(9,500)
Liability at 31 December 2023
16,304

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

14
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
554,501
142,629

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
16
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
324,132
318,750
Between two and five years
717,188
1,035,938
1,041,320
1,354,688
17
Ultimate controlling party

The immediate and ultimate controlling company is New Commercial Arts Group Limited. There is no ultimate controlling party.

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