Registered number: 00519609
TDG BRAND COMMUNICATIONS LIMITED
UNAUDITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 30 DECEMBER 2023
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TDG BRAND COMMUNICATIONS LIMITED
REGISTERED NUMBER: 00519609
BALANCE SHEET
AS AT 30 DECEMBER 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Capital redemption reserve
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TDG BRAND COMMUNICATIONS LIMITED
REGISTERED NUMBER: 00519609
BALANCE SHEET (CONTINUED)
AS AT 30 DECEMBER 2023
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 September 2024.
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J C Chater
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The notes on pages 3 to 10 form part of these financial statements.
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TDG BRAND COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2023
TDG Brand Communications Limited is a private Company limited by shares, registered in England and Wales, registered number 00519609. The Company's registered office and principal place of business is Mill House, Haddricks Mill Road, Newcastle upon Tyne, NE3 1QL. The Company's principal activities are those of designers, artists and illustrators, press and publicity experts and advertising agents, specialists and consultants.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are presented in GBP rounded to the nearest whole £.
The following principal accounting policies have been applied:
The Company relies on its bank and other loan providers for its day-to-day working capital requirements. The directors have satisfied themselves that the Company will continue to be in a position to service its debt to loan providers and its other commitments for at least the twelve months following the date these financial statements were approved by them. Accordingly the directors are satisfied that these financial statements are properly prepared using the going concern basis of accounting.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
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TDG BRAND COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2023
2.Accounting policies (continued)
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
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.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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TDG BRAND COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2023
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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TDG BRAND COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2023
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Judgements in applying accounting policies and key sources of estimation uncertainty
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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 of the revision and future periods where the revision affects both current and future periods.
A critical judgement has been made as to the outcome of a First Tier Tax Tribunal case relating to an HMRC inquiry into a specific point of the company's tax affairs in respect of prior years. In the opinion of the directors and on the advice of the company's legal advisors, no provision has been made in respect of the outcome of the case, though it has been disclosed as a contingent liability in Note 11 below.
Key sources of estimation uncertainty
Revenue recognition - accrued income
The value of accrued income is derived from estimations and assumptions around the fair value of unbilled work in progress at the period end, having regard to the company's accounting policy for revenue recognition. The amount of accrued income recognised at the year end is £221,018 and is included in Prepayments and accrued income in Note 6 below.
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The average monthly number of employees, including directors, during the year was 40 (2022 - 43).
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TDG BRAND COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2023
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Charge for the year on owned assets
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Amounts owed by group undertakings
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Prepayments and accrued income
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TDG BRAND COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2023
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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The Company's bank holds a debenture on the bank's standard form over the Company's assets. There are no facilities in place or liabilities outstanding which are secured by this debenture.
Other loans are secured by debentures over intellectual property, client databases and the assets and undertakings of the Company. The amount outstanding and due within one year under this security at the year end is £86,514 (2022 - £78,703).
Invoice financing proceeds in other creditors are secured on the book debts to which they relate. The amount outstanding under this security at the year end is £315,524 (2022 - £Nil).
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Creditors: Amounts falling due after more than one year
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Accruals and deferred income
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Other loans are secured by debentures over intellectual property, client databases and the assets and undertakings of the Company. The amount outstanding and due in more than one year under this security at the balance sheet date is £304,555 (2022 - £391,069).
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TDG BRAND COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2023
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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In common with a number of companies and as a result of a thematic review, which has yet to be concluded, there is an open HMRC inquiry into a specific point of the company's tax affairs in respect of prior years. The matter is currently the subject of a First Tier Tribunal appeal, and, based on professional advice, the directors are confident that the Company will not have a liability arising from this inquiry. Should the matter be decided against the Company, the eventual liability including interest could be circa £436,000.
The directors have not provided for this amount in these accounts on the basis that the advice from the company’s legal advisors is that the likelihood of this becoming due is remote.
The directors are not in a position to disclose further information that could prejudice the appeal process.
The Company operates several defined contributions pension schemes. The assets of the schemes are held separately from those of the Company in independently administered funds. The pension cost charge represents contributions payable by the Company to the various funds and amounted to £111,442 (2022 - £163,411).
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TDG BRAND COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2023
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Commitments under operating leases
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At 30 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Transactions with directors
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Included within other debtors due within one year are loans to the following directors:
J Hall - £21,488 (2022 - £47,117)
A Quinn - £31,413 (2022 - £52,364)
G Marshall - £86,085 (2022 - £84,644)
The maximum balances due in the year were as follows:
J Hall - £52,831 (2022 - £55,478)
A Quinn - £84,197 (2022 - £77,393)
G Marshall - £130,627 (2022 - £97,407)
The loans are interest free and repayable on demand.
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Related party transactions
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The Company rents offices from The Design Group Pension Scheme, a scheme of which A Quinn, G Marshall and J Hall are members and trustees.
The rent charged under this arrangement during the period was £40,000 (2022 - £40,000). At the year end £24,000 (2022 - £12,000) was owed to the pension scheme.
The Company also has a loan from the pension scheme, at the year end £391,069 (2022 - £469,771) was owed to the scheme. Interest is charged at 9.5% per annum.
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The ultimate parent Company is TDG Holdings Limited, which owns the Company's entire issued share capital. There is no ultimate controlling party.
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