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Registered number: 07005532










Touch Associates Limited










Annual report and financial statements

For the year ended 31 December 2023

 
Touch Associates Limited
 

Company Information


Directors
P Collins 
C Murphy 
D Bottrill 
D Selden 




Registered number
07005532



Registered office
Q2, The Square
Randall's Way

Leatherhead

Surrey

KT22 7TW




Independent auditors
Kreston Reeves LLP
Chartered Accountants & Statutory Auditor

37 St Margaret's Street

Canterbury

Kent

CT1 2TU





 
Touch Associates Limited
 

Contents



Page
Group strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditors' report
5 - 8
Consolidated statement of comprehensive income
9
Consolidated balance sheet
10
Company balance sheet
11
Consolidated statement of changes in equity
12
Company statement of changes in equity
13
Consolidated statement of cash flows
14
Notes to the financial statements
15 - 37


 
Touch Associates Limited
 

Group strategic report
For the year ended 31 December 2023

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

Business review
 
The primary focus of the group is audience engagement (including live and digital event management, strategy consulting, brand messaging, content and creative, production and associated services).
Trading was below expectations, due primarily to the deferral and cancellation of a few key events. The key performance indicators during the year were:
Gross Margin decreased 9% on the prior year to £8.9m (2022: £9.8m).
Gross Profit decreased to £2.58m from £2.79m in 2022.
Profit before tax decreased 11% to £1.24m.
On 1st July 2023, Touch refined its go to market strategy by creating Life Sciences, Experience and Creative Production departments each headed by an experienced team of long-standing, award-winning individuals supported by the board directors. Each department has a focussed marketing plan and dedicated business development personnel as we look to take advantage of the buoyant market. This gives the Agency focussed management and key growth areas in the core addressable markets of US and Europe.
The Agency is already seeing the benefits of this strategy, and the directors are confident that the business will see associated improvements in 2024.

Principal risks and uncertainties
 
The group has established a risk and financial management framework whose primary objective is to mitigate the group's exposure to risk in order to protect the group from events that may hinder its performance.
The group has exposure to four main areas of risk - foreign exchange exposure, liquidity risk, customer credit exposure and price risk. 
Liquidity risk 
Liquidity risk is the risk that the group will encounter difficulty in meeting its financial obligations as they fall due. The group's objective in managing liquidity risk is to ensure that this does not arise. Having assessed future cash flow requirements the group expects to be able to meet its financial obligations through the cash flows that are generated from its operating activities. The interest rate risk arising from these facilities is considered by the directors to be minimal, and the group has not entered into any derivative instruments designed to mitigate exposure to risk. With these facilities in place the group is in a position to meet it commitments and obligations as they fall due. 

Customer credit exposure
 
The group regularly offers credit terms to its customers which allow for payment of the debt after delivery of the goods or services. The group is at risk to the extent that a customer may be unable to pay the debt within those terms. This risk is mitigated by the strong on-going customer relationships and by only granting credit to customers who are able to demonstrate an appropriate payment history and satisfy credit worthiness procedures. Details of the group's trade debtors are shown in note 16.

Price risk
 
Price risk arises on financial instruments due to fluctuations in commodity prices or equity prices. The group's investment in joint ventures and associates are held at net asset value and are therefore not exposed to price risk.

Page 1

 
Touch Associates Limited
 

Group strategic report (continued)
For the year ended 31 December 2023


This report was approved by the board on 19 July 2024 and signed on its behalf.



P Collins
Director

Page 2

 
Touch Associates Limited
 

 
Directors' report
For the year ended 31 December 2023

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

Results and dividends

The profit for the year, after taxation, amounted to £945,342 (2022 - £1,124,635).

During the year dividends were paid totalling £400,000 (2022 - £500,000). The directors do not recommend the payment of a final dividend for the year ended 31 December 2023.

Directors

The directors who served during the year were:

P Collins 
C Murphy 
D Bottrill 
D Selden 

Disclosure of information to auditors

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

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

Auditors

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

This report was approved by the board on 19 July 2024 and signed on its behalf.
 





P Collins
Director

Page 3

 
Touch Associates Limited
 

Directors' responsibilities statement
For the year ended 31 December 2023

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.

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

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

select suitable accounting policies for the Group's financial statements 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 Group will continue in business.

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

Page 4

 
Touch Associates Limited
 

 
Independent auditors' report to the members of Touch Associates Limited
 

Opinion


We have audited the financial statements of Touch Associates Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2023 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the 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.


Page 5

 
Touch Associates Limited
 

 
Independent auditors' report to the members of Touch Associates Limited (continued)


Other information


The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual reportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the 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 Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept 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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 4, 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 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 directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
Touch Associates Limited
 

 
Independent auditors' report to the members of Touch Associates Limited (continued)


Auditors' responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Capability of the audit in detecting irregularities, including fraud
Based on our understanding of the group and industry, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law, The Civil Aviation (Air Travel Organisers’ Licensing) Regulations 2012. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, management bias in accounting estimates and judgemental areas of the financial statements such as the revenue and margin recognition on long-term contracts. Audit procedures performed by the group engagement team included:
• Discussions with management and assessment of known or suspected instances of non-compliance with   laws and regulations (including health and safety) and fraud, and
• Assessment of identified fraud risk factors; and
• Review of cash and credit card expenditure to confirm no evidence of personal benefit; and
• Confirmation of related parties with management, and review of transactions throughout the period to    identify any previously undisclosed transactions with related parties outside the normal course of     business; and
• Reading minutes of meetings of those charged with governance, reviewing internal audit reports and    reviewing correspondence with relevant tax and regulatory authorities; and
• Review of significant and unusual transactions and evaluation of the underlying financial rationale     supporting the transactions; and
• Identifying and testing journal entries, in particular any manual entries made at the year end for financial    statement preparation; and
•  Performing analytical procedures with automated data analytics tools to identify any unusual or     unexpected relationships, including related party transactions, that may indicate risks of material     misstatement due to fraud; and
• Reviewing management judgements and assumptions adopted in respect of amounts recoverable on long  term contract.
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.
 
Page 7

 
Touch Associates Limited
 

 
Independent auditors' report to the members of Touch Associates Limited (continued)




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


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statementsWe are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.


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.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Tracey Becker (Senior statutory auditor)
  
for and on behalf of
Kreston Reeves LLP
 
Chartered Accountants
Statutory Auditor
  
Canterbury

22 July 2024
Page 8

 
Touch Associates Limited
 

Consolidated statement of comprehensive income
For the year ended 31 December 2023

2023
2022
Note
£
£

  

Turnover
 4 
24,257,540
31,282,330

Cost of goods sold
  
(15,375,461)
(21,469,896)

Gross margin
  
8,882,079
9,812,434

  

Productive labour and associated project costs
  
(6,299,620)
(7,017,943)

Gross profit
  
2,582,459
2,794,491

Administrative expenses
  
(1,350,200)
(1,340,153)

Operating profit
 5 
1,232,259
1,454,338

Interest receivable and similar income
 9 
70,261
-

Interest payable and similar expenses
 10 
(59,894)
(49,552)

Profit before taxation
  
1,242,626
1,404,786

Tax on profit
 11 
(297,284)
(280,151)

Profit for the financial year
  
945,342
1,124,635

  

Currency translation differences
  
(33,060)
81,841

Other comprehensive income for the year
  
(33,060)
81,841

Total comprehensive income for the year
  
912,282
1,206,476

Profit for the year attributable to:
  

Owners of the parent Company
  
945,342
1,124,635

  
945,342
1,124,635

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
912,282
1,206,476

  
912,282
1,206,476

The notes on pages 15 to 37 form part of these financial statements.

Page 9

 
Touch Associates Limited
Registered number: 07005532

Consolidated balance sheet
As at 31 December 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 14 
280,337
344,256

  
280,337
344,256

Current assets
  

Debtors
 16 
4,482,349
4,169,647

Cash at bank and in hand
  
5,490,827
4,222,424

  
9,973,176
8,392,071

Creditors: amounts falling due within one year
 17 
(9,261,260)
(7,329,283)

Net current assets
  
 
 
711,916
 
 
1,062,788

Total assets less current liabilities
  
992,253
1,407,044

Creditors: amounts falling due after more than one year
 18 
(281,250)
(590,625)

Provisions for liabilities
  

Deferred taxation
 20 
(17,559)
(35,257)

  
 
 
(17,559)
 
 
(35,257)

Net assets
  
693,444
781,162


Capital and reserves
  

Called up share capital 
 21 
30,030
30,090

Profit and loss account
 22 
663,414
751,072

  
693,444
781,162


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 July 2024.





P Collins
D Selden
Director
Director

The notes on pages 15 to 37 form part of these financial statements.

Page 10

 
Touch Associates Limited
Registered number: 07005532

Company balance sheet
As at 31 December 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 14 
271,014
343,716

Investments
 15 
62
62

  
271,076
343,778

Current assets
  

Debtors
 16 
4,029,993
3,835,147

Cash at bank and in hand
  
3,834,603
2,538,905

  
7,864,596
6,374,052

Creditors: amounts falling due within one year
 17 
(7,779,292)
(5,906,161)

Net current assets
  
 
 
85,304
 
 
467,891

Total assets less current liabilities
  
356,380
811,669

  

Creditors: amounts falling due after more than one year
 18 
(281,250)
(590,625)

Provisions for liabilities
  

Deferred taxation
 20 
(17,559)
(35,257)

  
 
 
(17,559)
 
 
(35,257)

Net assets
  
57,571
185,787


Capital and reserves
  

Called up share capital 
 21 
30,030
30,090

Profit and loss account brought forward
  
155,697
201,185

Profit for the year
  
871,784
1,104,452

Other changes in the profit and loss account

  

(999,940)
(1,149,940)

Profit and loss account carried forward
  
27,541
155,697

  
57,571
185,787


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 July 2024.





P Collins
D Selden
Director
Director

The notes on pages 15 to 37 form part of these financial statements.

Page 11

 
Touch Associates Limited
 

Consolidated statement of changes in equity
For the year ended 31 December 2023


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£


At 1 January 2022
970
694,536
695,506
695,506


Comprehensive income for the year

Profit for the year

-
1,124,635
1,124,635
1,124,635

Currency translation differences
-
81,841
81,841
81,841


Other comprehensive income for the year
-
81,841
81,841
81,841


Total comprehensive income for the year
-
1,206,476
1,206,476
1,206,476


Contributions by and distributions to owners

Dividends: Equity capital
-
(500,000)
(500,000)
(500,000)

Purchase of own shares
-
(649,940)
(649,940)
(649,940)

Shares issued during the year
29,180
-
29,180
29,180

Shares redeemed during the year
(60)
-
(60)
(60)


Total transactions with owners
29,120
(1,149,940)
(1,120,820)
(1,120,820)



At 1 January 2023
30,090
751,072
781,162
781,162


Comprehensive income for the year

Profit for the year

-
945,342
945,342
945,342

Currency translation differences
-
(33,060)
(33,060)
(33,060)


Other comprehensive income for the year
-
(33,060)
(33,060)
(33,060)


Total comprehensive income for the year
-
912,282
912,282
912,282


Contributions by and distributions to owners

Dividends: Equity capital
-
(400,000)
(400,000)
(400,000)

Purchase of own shares
-
(599,940)
(599,940)
(599,940)

Shares redeemed during the year
(60)
-
(60)
(60)


Total transactions with owners
(60)
(999,940)
(1,000,000)
(1,000,000)


At 31 December 2023
30,030
663,414
693,444
693,444


The notes on pages 15 to 37 form part of these financial statements.

Page 12

 
Touch Associates Limited
 

Company statement of changes in equity
For the year ended 31 December 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
970
201,185
202,155


Comprehensive income for the year

Profit for the year
-
1,104,452
1,104,452


Contributions by and distributions to owners

Dividends: Equity capital
-
(500,000)
(500,000)

Purchase of own shares
-
(649,940)
(649,940)

Shares issued during the year
29,180
-
29,180

Shares redeemed during the year
(60)
-
(60)


Total transactions with owners
29,120
(1,149,940)
(1,120,820)



At 1 January 2023
30,090
155,697
185,787


Comprehensive income for the year

Profit for the year
-
871,784
871,784


Contributions by and distributions to owners

Dividends: Equity capital
-
(400,000)
(400,000)

Purchase of own shares
-
(599,940)
(599,940)

Shares redeemed during the year
(60)
-
(60)


Total transactions with owners
(60)
(999,940)
(1,000,000)


At 31 December 2023
30,030
27,541
57,571


Page 13

 
Touch Associates Limited
 

Consolidated statement of cash flows
For the year ended 31 December 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
945,342
1,124,635

Adjustments for:

Depreciation of tangible assets
139,391
126,671

Loss on disposal of tangible assets
1,555
-

Interest paid
59,894
49,552

Interest received
(70,261)
-

Taxation charge
297,284
280,151

(Increase) in debtors
(312,702)
(1,633,139)

Increase in creditors
1,851,222
2,395,721

Corporation tax (paid)
(234,227)
(388,570)

Foreign exchange difference
(33,060)
81,841

Net cash generated from operating activities

2,644,438
2,036,862


Cash flows from investing activities

Purchase of tangible fixed assets
(77,027)
(182,963)

Interest received
70,261
-

Net cash from investing activities

(6,766)
(182,963)

Cash flows from financing activities

Issue of ordinary shares
-
29,180

Purchase of ordinary shares
(600,000)
(649,940)

Repayment of loans
(309,375)
(337,500)

Dividends paid
(400,000)
(500,000)

Interest paid
(59,894)
(49,552)

Net cash used in financing activities
(1,369,269)
(1,507,812)

Net increase in cash and cash equivalents
1,268,403
346,087

Cash and cash equivalents at beginning of year
4,222,424
3,876,337

Cash and cash equivalents at the end of year
5,490,827
4,222,424


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
5,490,827
4,222,424

5,490,827
4,222,424


Page 14

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

1.


General information

Touch Associates Limited ("the company") is a private company limited by shares and is incorporated in England and Wales with a registration number of 07005532.  The address of the registered office is Q2, The Square, Randalls Way, Leatherhead, Surrey, KT22 7TW.
The company and its subsidiaries (together "the Group") principal activity is audience engagement, production and event management. Further information on the activities of the group is included as part of the strategic report on pages 1 to 2. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The group's financial statements are presented to the nearest Pound. 

The following principal accounting policies have been applied:

 
2.2

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. Intercompany 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.
Entities, other than subsidiary undertakings or joint ventures, in which the group has a participating
interest and over whose operating and financial policies the group exercises a significant influence
are treated as associates. In the group financial statements, associates are accounted for using the
equity method.

 
2.3

Going concern

The use of the going concern basis of accounting is appropriate because there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the group to continue as a going concern. 

Page 15

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

2.Accounting policies (continued)

 
2.4

Revenue

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:

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 Group 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.

These services will include pre-event planning, together with the management of events as they take place. 
In respect of pre-event planning income is recognised to the extent that the company has incurred relevant direct costs for each event, recognising attributable profit where this can be foreseen reliably. The remainder of income receivable for each event is recognised as it takes place.

 
2.5

Tangible fixed assets

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

The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold property
-
Straight line over the life of the lease
Fixtures and fittings
-
Straight line over 3 to 5 years
Office equipment
-
Straight line over 3 to 5 years
Computer equipment
-
Straight line over 3 years
Other fixed assets
-

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.

Page 16

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

2.Accounting policies (continued)

  
2.6

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.7

Valuation of investments

Investments in subsidiary and associated undertakings are measured at cost less accumulated impairment. Where merger relief is applicable, the cost of the investment in a subsidiary undertaking is measured at the nominal value of the shares issued together with the fair value of any additional consideration paid.

 
2.8

Operating leases: the Group as lessee

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.

 
2.9

Debtors

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

Page 17

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

2.Accounting policies (continued)

 
2.10

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.

 
2.11

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Group's Balance sheet when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the
Page 18

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

2.Accounting policies (continued)


2.11
Financial instruments (continued)

impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

Page 19

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

2.Accounting policies (continued)

 
2.12

Creditors

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

 
2.13

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is Pound Sterling.

Transactions and balances

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

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

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

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.

 
2.14

Finance costs

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

 
2.15

Dividends

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

Page 20

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

2.Accounting policies (continued)

 
2.16

Pensions

Defined contribution pension plan

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 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 Group in independently administered funds.

 
2.17

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.18

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.19

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 21

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

2.Accounting policies (continued)

 
2.20

Current and deferred taxation

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 and the Group operate and generate 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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.

Page 22

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires the directors to make judgements, estimates and assumptions that can affect the amounts reported for assets and liabilities, and the results for the year. The nature of estimation is such though that actual outcomes could differ significantly from those estimates. The following judgements have had the most significant impact on amounts recognised in the financial statements:
Lease commitments
The Group has entered into a range of lease commitments in respect of property, plant and equipment. The classification of these leases as either financial or operating leases requires the directors to consider whether the terms and conditions of each leases are such that the Group has acquired the risks and rewards associated with the ownership of the underlying assets.
The following are the Group's key sources of estimation uncertainty:
Tangible fixed assets
The Group has recognised tangible fixed assets with a carrying value of £280,337 (2022 - £344,256) at the reporting date (see note 14).  These assets are stated at their cost less provision for depreciation and impairment.  The Group’s accounting policy sets out the approach to calculating depreciation for immaterial assets acquired.   For material assets such as land and buildings the group determines at acquisition reliable estimates for the useful life of the asset, its residual value and decommissioning costs. These estimates are based upon such factors as the expected use of the acquired asset and market conditions.  At subsequent reporting dates the directors consider whether there are any factors such as technological advancements or changes in market conditions that indicate a need to reconsider the estimates used.
Where there are indicators that the carrying value of tangible assets may be impaired the Group undertakes tests to determine the recoverable amount of assets.  These tests require estimates of the fair value of assets less cost to sell and of their value in use.  Wherever possible the estimate of the fair value of assets is based upon observable market prices less incremental cost for disposing of the asset.  The value in use calculation is based upon a discounted cash flow model, based upon the Group’s forecasts for the foreseeable future which do not include any restructuring activities that the Group is not yet committed to or significant future investments that will enhance the asset’s performance.The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well  expected future cash flows and the growth rate used for extrapolation purposes.
 
Page 23

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

3.Judgements in applying accounting policies (continued)

Amounts recoverable on long term contracts
The Group has entered into a number of contracts in the year. When the outcome of a contract can be estimated reliably, the Group has recognised revenue and costs associated with the contract as revenue and expenses respectively by reference to the stage of completion of the contract activity at the end of the reporting period (often referred to as the percentage of completion method). 
Reliable estimation of the outcome requires reliable estimates of the stage of completion, future costs and collectability of billings. The Group determines the stage of completion of a contract using an estimate of the work performed.


4.


Turnover

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


2023
2022
£
£

Sales
24,257,540
31,282,330

24,257,540
31,282,330


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
6,202,388
16,482,479

Rest of the world
18,055,152
14,799,851

24,257,540
31,282,330



5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
139,364
126,671

Exchange differences
16,042
(55,278)

Other operating lease rentals
342,534
354,978

Defined contribution pension costs
229,697
258,684

Page 24

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

6.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
18,425
18,425

The auditing of accounts of associates of the company pursuant to
legislation
4,950
4,950

All other services
7,825
7,825


7.


Employees

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


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
4,838,869
5,453,965
4,225,339
5,021,205

Social security costs
532,377
638,997
468,710
595,416

Cost of defined contribution scheme
229,697
258,684
213,060
245,986

5,600,943
6,351,646
4,907,109
5,862,607


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



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Employees
82
91
70
82

Page 25

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
834,386
1,017,394

Group contributions to defined contribution pension schemes
79,980
95,815

914,366
1,113,209


During the year retirement benefits were accruing to 4 directors (2022 - 5) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £208,140 (2022 - £341,180).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £19,995 (2022 - £19,167).


9.


Interest receivable

2023
2022
£
£


Other interest receivable
70,261
-

70,261
-


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
59,894
49,552

59,894
49,552

Page 26

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
303,640
251,136

Adjustments in respect of previous periods
6,333
4,389


309,973
255,525

Foreign tax


Foreign tax on income for the year
5,009
6,890

5,009
6,890

Total current tax
314,982
262,415

Deferred tax


Origination and reversal of timing differences
(17,698)
17,736

Total deferred tax
(17,698)
17,736


Tax on profit
297,284
280,151

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - the same as) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,242,626
1,404,786


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
292,266
266,909

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,514
-

Capital allowances for year in excess of depreciation
13,869
-

Adjustments to tax charge in respect of prior periods
6,333
4,758

Short-term timing difference leading to an increase (decrease) in taxation
(17,698)
-

Remeasurement of deferred tax for changes in tax rates
-
4,257

Other differences leading to an increase (decrease) in the tax charge
-
4,227

Total tax charge for the year
297,284
280,151

Page 27

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

12.


Dividends

2023
2022
£
£


Dividends issued on Ordinary A Shares
51,000
75,000


Dividends issued on Ordinary D Shares
99,000
121,000


Dividends issued on Ordinary E Shares
51,000
75,000


Dividends issued on Ordinary F Shares
51,000
75,000


Dividends issued on Ordinary G Shares
49,000
50,000


Dividends issued on Ordinary H Shares
1,000
4,000


Dividends issued on Ordinary J Shares
49,000
50,000


Dividends issued on Ordinary K Shares
49,000
50,000

400,000
500,000


13.


Intangible assets

Group





Development expenditure
Goodwill
Total

£
£
£



Cost


At 1 January 2023
698,125
742,516
1,440,641



At 31 December 2023

698,125
742,516
1,440,641



Amortisation


At 1 January 2023
698,125
742,516
1,440,641



At 31 December 2023

698,125
742,516
1,440,641



Net book value



At 31 December 2023
-
-
-



At 31 December 2022
-
-
-



Page 28

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023
 
           13.Intangible assets (continued)

Company




Goodwill

£



Cost


At 1 January 2023
1,379,114



At 31 December 2023

1,379,114



Amortisation


At 1 January 2023
1,379,114



At 31 December 2023

1,379,114



Net book value



At 31 December 2023
-



At 31 December 2022
-

Page 29

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

14.


Tangible fixed assets

Group






Short-term leasehold property
Fixtures, fittings and equipment
Website development
Total

£
£
£
£



Cost or valuation


At 1 January 2023
369,724
935,739
-
1,305,463


Additions
-
62,177
14,850
77,027


Disposals
-
(11,582)
-
(11,582)


Exchange adjustments
-
(4,218)
-
(4,218)



At 31 December 2023
369,724
982,116
14,850
1,366,690



Depreciation


At 1 January 2023
197,398
763,809
-
961,207


Charge for the year on owned assets
35,606
103,758
-
139,364


Disposals
-
(10,027)
-
(10,027)


Exchange adjustments
-
(4,191)
-
(4,191)



At 31 December 2023
233,004
853,349
-
1,086,353



Net book value



At 31 December 2023
136,720
128,767
14,850
280,337



At 31 December 2022
172,326
171,930
-
344,256

Page 30

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

           14.Tangible fixed assets (continued)


Company






Short-term leasehold property
Fixtures and fittings
Other fixed assets
Total

£
£
£
£

Cost or valuation


At 1 January 2023
369,724
855,678
-
1,225,402


Additions
-
52,213
14,850
67,063


Disposals
-
(11,581)
-
(11,581)



At 31 December 2023

369,724
896,310
14,850
1,280,884



Depreciation


At 1 January 2023
197,398
684,288
-
881,686


Charge for the year on owned assets
35,606
102,605
-
138,211


Disposals
-
(10,027)
-
(10,027)



At 31 December 2023

233,004
776,866
-
1,009,870



Net book value



At 31 December 2023
136,720
119,444
14,850
271,014



At 31 December 2022
172,326
171,390
-
343,716





The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Short leasehold
136,720
172,326

136,720
172,326


Page 31

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
62



At 31 December 2023
62






Net book value



At 31 December 2023
62



At 31 December 2022
62


Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Touch Associates USA Inc
Rockingham Row, Princeton, NJ
Ordinary
100%

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)

Touch Associates USA Inc
635,874
73,559

Page 32

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

16.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Due after more than one year

Other debtors
138,335
138,335
138,335
138,335

138,335
138,335
138,335
138,335

Due within one year

Trade debtors
4,157,778
3,794,692
3,733,313
3,485,731

Other debtors
167,710
221,421
158,345
211,081

Prepayments and accrued income
18,526
15,199
-
-

4,482,349
4,169,647
4,029,993
3,835,147



17.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
337,500
337,500
337,500
337,500

Payments received on account
5,594,608
2,568,822
3,628,073
1,196,034

Trade creditors
1,569,273
1,414,477
1,235,843
1,229,742

Amounts owed to group undertakings
-
-
830,312
356,316

Corporation tax
185,992
105,237
181,100
98,327

Other taxation and social security
546,020
427,157
546,020
427,157

Other creditors
43,867
171,785
41,974
170,336

Accruals and deferred income
984,000
2,304,305
978,470
2,090,749

9,261,260
7,329,283
7,779,292
5,906,161



18.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
281,250
590,625
281,250
590,625

281,250
590,625
281,250
590,625


During 2020, the Group received a Coronavirus Business Interruption Loan totalling £1,350,000 from Barclays Bank Plc. The interest charges for the first 12 months were paid for by the UK Government by way of a Business Interruption Payment (BIP). Repayments commenced from October 2021 when a floating rate of interest began to accrue at 3.5% + floating rate.

Page 33

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

19.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year

Bank loans
337,500
337,500
337,500
337,500


337,500
337,500
337,500
337,500

Amounts falling due 1-2 years

Bank loans
281,250
337,500
281,250
337,500


281,250
337,500
281,250
337,500

Amounts falling due 2-5 years

Bank loans
-
253,125
-
253,125


-
253,125
-
253,125


618,750
928,125
618,750
928,125


Page 34

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

20.


Deferred taxation


Group



2023
2022


£

£






At beginning of year
(35,257)
(17,521)


Charged to profit or loss
17,698
(17,736)



At end of year
(17,559)
(35,257)

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(17,559)
(35,257)
(17,559)
(35,257)

(17,559)
(35,257)
(17,559)
(35,257)


21.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



10,340 (2022 - 10,340) A Ordinary shares of £1.00 each
10,340
10,340
30 (2022 - 90) B Ordinary shares of £1.00 each
30
90
4,340 (2022 - 4,340) D Ordinary shares of £1.00 each
4,340
4,340
4,340 (2022 - 4,340) E Ordinary shares of £1.00 each
4,340
4,340
4,340 (2022 - 4,340) F Ordinary shares of £1.00 each
4,340
4,340
1,660 (2022 - 1,660) G Ordinary shares of £1.00 each
1,660
1,660
1,660 (2022 - 1,660) H Ordinary shares of £1.00 each
1,660
1,660
1,660 (2022 - 1,660) J Ordinary shares of £1.00 each
1,660
1,660
1,660 (2022 - 1,660) K Ordinary shares of £1.00 each
1,660
1,660

30,030

30,090

During the year, the company repurchased 60 Class B (2022: 60 Class B) Ordinary shares for a consideration of £600,000 (2022: £650,000). 
All shares rank pari-passu except for B ordinary shares which carry no voting rights, no income or dividend rights, no pre-emptive rights and no rights to share in the capital of the company.



22.


Reserves

Profit and loss account

This reserve comprises all current and prior period retained profits and losses after deducting any distributions made to the group's shareholders. 
 
Page 35

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

23.


Analysis of net debt




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

4,222,424

1,268,403

5,490,827

Debt due after 1 year

(590,625)

309,375

(281,250)

Debt due within 1 year

(337,500)

-

(337,500)


3,294,299
1,577,778
4,872,077


24.


Pension commitments

The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £229,697 (2022 - £258,684). Contributions totalling £33,641 (2022 - £32,652) were payable to the fund at the balance sheet date. 


25.


Commitments under operating leases

At 31 December 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Not later than 1 year
342,534
389,055
303,586
317,106

Later than 1 year and not later than 5 years
881,062
1,179,161
881,062
1,138,047

1,223,596
1,568,216
1,184,648
1,455,153


26.Other financial commitments

The company has provided a guarantee dated 18 January 2016 comprising a debenture over the assets of both companies in favour of Barclays Bank plc. As at 31 December 2023, liabilities totalling £590,625 (2022: £928,125) which related to this guarantee. 
On 22 October 2021, the company entered into an off-market purchase agreement to repurchase 240 ‘B’ class ordinary shares over four separate tranches. The first payment was made immediately on completion, a second payment was made on 22 October 2022 and a third on 22 October 2023. The remaining payment totalling consideration of £416,776 will be made on the anniversary of the completion date in 2024.

Page 36

 
Touch Associates Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

27.


Related party transactions


2023
2022
£
£

Dividends paid to directors and their close family of the parent company
400,000
500,000
Directors loan account - P Collins
1,557
-

The company advanced Mr P Collins various sums during the year. At the 31 December 2023 the balance outstanding was £1,557, this was repaid by 31 January 2024 and no interest was charged by the company.
All directors who have authority and responsibility for planning, directing and controlling the activities of the group are considered to be key management personnel. Total compensation payable in respect of these individuals is detailed in Note 9.


28.


Controlling party

In the opinion of the directors, there is no overall controlling party. 

Page 37