New Commercial Arts Group Limited
Annual Report and Financial Statements
For the year ended 31 December 2023
Company Registration No. 12455030 (England and Wales)
New Commercial Arts Group Limited
Company Information
Directors
J Murphy
D Golding
I Heartfield
R Curran
Company number
12455030
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 Group Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 25
New Commercial Arts Group 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 group continued to be that of the provision of customer experience design and advertising services.

The group 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 group 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 group's robust balance sheet reflects the focus placed on managing the cash and costs. The net asset position as at 31st December 2023 is £8.8m (up from £6m in 2022) and cashflow forecasts looking ahead show that the group is able to meet all its liabilities and the group is in a strong position.

 

The group 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 group 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 group’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 group’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 group monitors all payments against contractual agreements and has an excellent record of client receivables being collected on a prompt basis.

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

The key financial indicators that the group 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 £8,783,387 (2022 £6,050,377).

Charitable donations

During the year the group 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 Group 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 and group is that of an advertising agency.

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
D Golding
I Heartfield
R Curran
Results and dividends

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

Auditor

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

Statement of 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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company 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 auditor of the company is aware of that information.

New Commercial Arts Group Limited
Directors' Report (Continued)
For the year ended 31 December 2023
Page 4
On behalf of the board
J Murphy
Director
22 August 2024
New Commercial Arts Group Limited
Independent Auditor's Report
To the Members of New Commercial Arts Group Limited
Page 5
Opinion

We have audited the financial statements of New Commercial Arts Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Group Statement of Comprehensive Income, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 group and parent 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 group's and parent 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 Group Limited
Independent Auditor's Report (Continued)
To the Members of New Commercial Arts Group 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 group and the parent company and their 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 group's and 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 directors either intend to liquidate the group or parent company or to cease operations, or have no realistic alternative but to do so.

New Commercial Arts Group Limited
Independent Auditor's Report (Continued)
To the Members of New Commercial Arts Group 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 Group Limited
Independent Auditor's Report (Continued)
To the Members of New Commercial Arts Group 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:

Ÿ

 

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 for no purpose other than to draw to the attention of the company’s members those matters we are required to include in an auditor's report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party 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 Group Limited
Group 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
8
192,121
29,897
Profit before taxation
3,586,222
3,236,557
Tax on profit
9
(853,212)
(630,619)
Profit for the financial year
2,733,010
2,605,938
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
New Commercial Arts Group Limited
Group Balance Sheet
As at 31 December 2023
Page 10
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
88,057
135,812
Current assets
Debtors
13
4,380,296
2,497,139
Investments
14
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
15
(7,803,385)
(9,058,586)
Net current assets
8,711,634
5,940,369
Total assets less current liabilities
8,799,691
6,076,181
Provisions for liabilities
Deferred tax liability
(16,304)
(25,804)
(16,304)
(25,804)
Net assets
8,783,387
6,050,377
Capital and reserves
Called up share capital
16
9,400
9,400
Share premium account
99,400
99,400
Profit and loss reserves
8,674,587
5,941,577
Total equity
8,783,387
6,050,377
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:
22 August 2024
J Murphy
Director
New Commercial Arts Group Limited
Company Balance Sheet
As at 31 December 2023
31 December 2023
Page 11
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
11
1
1
Current assets
Debtors
13
108,800
108,800
Creditors: amounts falling due within one year
15
(1)
(1)
Net current assets
108,799
108,799
Net assets
108,800
108,800
Capital and reserves
Called up share capital
16
9,400
9,400
Share premium account
99,400
99,400
Total equity
108,800
108,800

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2022 - £0 profit).

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:
22 August 2024
J Murphy
Director
Company Registration No. 12455030
New Commercial Arts Group Limited
Group Statement of Changes in Equity
For the year ended 31 December 2023
Page 12
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
9,400
99,400
3,335,639
3,444,439
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
2,605,938
2,605,938
Balance at 31 December 2022
9,400
99,400
5,941,577
6,050,377
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
2,733,010
2,733,010
Balance at 31 December 2023
9,400
99,400
8,674,587
8,783,387
New Commercial Arts Group Limited
Company Statement of Changes in Equity
For the year ended 31 December 2023
Page 13
Share capital
Share premium account
Total
£
£
£
Balance at 1 January 2022
9,400
99,400
108,800
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
0
Balance at 31 December 2022
9,400
99,400
108,800
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
0
Balance at 31 December 2023
9,400
99,400
108,800
New Commercial Arts Group Limited
Group Statement of Cash Flows
For the year ended 31 December 2023
Page 14
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
115,951
8,203,896
Income taxes paid
(643,622)
(988,718)
Net cash (outflow)/inflow from operating activities
(527,671)
7,215,178
Investing activities
Proceeds on disposal of intangibles
4,685
-
Purchase of tangible fixed assets
(36,540)
(157,731)
Proceeds on disposal of tangible fixed assets
312
-
Net investment in term deposit accounts
(3,692,435)
(1,000,000)
Interest received
192,121
29,897
Net cash used in investing activities
(3,531,857)
(1,127,834)
Net (decrease)/increase in cash and cash equivalents
(4,059,528)
6,087,344
Cash and cash equivalents at beginning of year
10,501,816
4,414,472
Cash and cash equivalents at end of year
6,442,288
10,501,816
New Commercial Arts Group Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 15
1
Accounting policies
Company information

New Commercial Arts Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Ground Floor, 33-37 University Street, London, WC1E 6JL.

 

The group consists of New Commercial Arts Group Limited and all of its subsidiaries.

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.

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

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

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.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company New Commercial Arts Group Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

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

 

New Commercial Arts Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 16
1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.5
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:

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 recognised in the profit and loss account.

1.6
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
1.7
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.

1.8
Financial instruments

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

1.9
Taxation

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

New Commercial Arts Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 17
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
Employee benefits

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

 

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

 

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

1.11
Retirement benefits

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

1.12
Leases

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

1.13
Foreign exchange

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

New Commercial Arts Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 18
2
Judgements and key sources of estimation uncertainty

In the application of the group’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 revenue
Interest income
192,121
29,897
New Commercial Arts Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 19
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
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 group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
63
51
4
4

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
5,255,298
3,847,945
-
0
-
0
Social security costs
583,471
443,817
-
-
Pension costs
554,501
142,629
-
0
-
0
6,393,270
4,434,391
-
0
-
0
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
6,000
5,750
Audit of the financial statements of the company's subsidiaries
30,000
27,000
36,000
32,750
New Commercial Arts Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 20
7
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 0 (2022 - 0).

Remuneration disclosed above includes 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
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
192,121
29,897

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
192,121
29,897
9
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 Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
9
Taxation
(Continued)
Page 21

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
(252)
-
0
(317)
-
0
Taxation charge
853,212
630,619
10
Tangible fixed assets
Group
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
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
New Commercial Arts Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 22
11
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
1
1
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
1
Carrying amount
At 31 December 2023
1
At 31 December 2022
1
12
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Nature of
Class of
% Held
business
shares held
Direct
New Commercial Arts London Limited
Advertising
Ordinary shares
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Ground Floor, 33-37 University Street, London, United Kingdom, WC1E 6JL
13
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,506,041
2,051,012
-
0
-
0
Amounts owed by group undertakings
-
-
108,800
108,800
Other debtors
199,578
195,494
-
0
-
0
Prepayments and accrued income
674,677
250,633
-
0
-
0
4,380,296
2,497,139
108,800
108,800
New Commercial Arts Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 23
14
Current asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank term deposits
5,692,435
2,000,000
-
-
15
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Trade creditors
1,179,529
3,069,688
-
0
-
0
Corporation tax payable
498,207
279,117
-
0
-
0
Other taxation and social security
1,624,287
1,068,551
-
-
Deferred income
421,533
946,464
-
0
-
0
Other creditors
131,023
147,427
1
1
Accruals and deferred income
3,948,806
3,547,339
-
0
-
0
7,803,385
9,058,586
1
1
16
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A Shares of £1 each
5,000
5,000
5,000
5,000
Ordinary B Shares of £1 each
4,400
4,400
4,400
4,400
9,400
9,400
9,400
9,400
New Commercial Arts Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 24
17
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
324,132
637,500
-
-
Between two and five years
717,188
2,071,876
-
-
1,041,320
2,709,376
-
-
18
Related party transactions

During the year, the company made no related party transactions.

19
Controlling party

There is no ultimate controlling party.

20
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,733,010
2,605,938
Adjustments for:
Taxation charged
853,212
630,619
Investment income
(192,121)
(29,897)
Gain on disposal of intangible assets
(4,685)
-
Depreciation and impairment of tangible fixed assets
83,983
65,795
Movements in working capital:
Increase in debtors
(1,883,157)
(2,039,120)
(Decrease)/increase in creditors
(949,360)
6,198,270
(Decrease)/increase in deferred income
(524,931)
772,291
Cash generated from operations
115,951
8,203,896
New Commercial Arts Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 25
21
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
10,501,816
(4,059,528)
6,442,288
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