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Registered number: 08907272
Worldwide Language Resources Ltd
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 31 December 2023
Carroll Accountants
Unit L, BPI House
Cores End Road
Bourne End
Buckinghamshire
SL8 5AS
Financial Statements
Contents
Page
Strategic Report 1—3
Directors' Report 4—5
Independent Auditor's Report 6—9
Profit and Loss Account 10
Statement of Comprehensive Income 11
Balance Sheet 12
Statement of Changes in Equity 13
Cash Flow Statement 14
Notes to the Cash Flow Statement 15
Notes to the Financial Statements 16—20
Page 1
Strategic Report
The directors present their strategic report for the year ended 31 December 2023.
Principal Activity
Worldwide Language Resources Ltd is a leading provider of linguists and specialist cultural advisors, primarily serving the Ministry of Defence in the United Kingdom. 
Review of the Business
The company has recently secured a significant long-standing contract for the third time, reinforcing its strong market position. As the business continues to grow, both in the UK and internationally, it has established itself as a trusted brand in its sector.
Financial Performance
  • Turnover: The company experienced exceptional growth in revenue, with turnover rising from £10.6 million in 2022 to £31.1 million in 2023, marking an increase of nearly 200%. This growth is largely attributed to global geopolitical events, most notably the Ukraine war, which drove demand for the company's services.
  • Cost of Goods Sold (COGS): COGS increased from £7.4 million in 2022 to £20.7 million in 2023. The majority of these costs were related to linguist subcontractors, which amounted to £19.8 million in 2023, compared to £6.9 million in 2022. This rise reflects the scale and increased demand for linguist services over the year.
  • Profit Before Tax: Profit before tax surged from £2.9 million in 2022 to £10 million in 2023. This substantial increase in profitability highlights the company's ability to scale its operations efficiently and manage costs while taking on larger contracts.
Gross Margin Analysis
The company’s gross margin improved from 30.6% in 2022 to 33.6% in 2023. A key driver of this increase was an improved project mix.
Cash Flow and Liquidity
  • Cash Position: The overall cash position decreased from £5.7 million as at 31 December 2022 to £2.3 million as at 31 December 2023. This was primarily driven by £5.2 million in dividends paid to the parent company, compared to £360,000 in the previous year. Despite this large dividend payout, the company continues to maintain strong financial discipline.
  • Cashflow Management: Monthly cashflow forecasts are reviewed to ensure sufficient funds are available to meet creditor obligations before any dividends are paid out. This approach ensures the company’s liquidity and operational stability are maintained, even during periods of substantial dividend distribution.
  • Corporation Tax: Beginning in 2024, corporation tax will be paid in quarterly instalments, which will have an impact on cashflow. The company has adjusted its financial planning to accommodate this change, ensuring continued strong cash management.
Market Position
Worldwide Language Resources Ltd has positioned itself as a leader in the UK defence language services market, with growing recognition in the UK and abroad. The company’s successful renewal of a significant contract for the third time demonstrates its strong client relationships and commitment to service excellence. This renewed contract includes, but is not limited to, face-to-face interpretation and written translation services both globally and in the UK on an ‘as required’ basis.  This contract currently runs until April 2028.
Key Strengths
  • Specialised Expertise: The company’s focus on providing linguists and cultural advisors to sensitive sectors, such as defence, has carved out a niche in the market.
  • Contract Wins: The renewal of a major long-term contract underscores the company’s reliability and reinforces its standing in the industry.
  • Scalability: The rapid growth in revenue and profitability showcases the scalability of the business model, allowing the company to expand quickly and meet rising demand.
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Principal Risks and Uncertainties
  • Limited Availability of Linguists: A key risk is the limited number of qualified linguists available to fill positions. As demand grows, particularly due to global conflicts and political unrest, the company may face difficulties in recruiting enough talent to meet its contractual commitments.
  • Global Security Dependence: The demand for the company’s services is closely tied to global security conditions. Any significant changes in geopolitical stability could either increase or decrease demand. The company’s turnover will be influenced by the scale of future global operations.
Future Developments
Worldwide Language Resources Ltd is well-positioned for continued growth. As geopolitical events evolve, the demand for linguistic and cultural advisory services is expected to remain strong. The company will continue to focus on maintaining high service standards, exploring new markets, and strengthening its position as a leading provider of language services.
We are actively preparing for the upcoming Crown Commercial Service (CCS) framework, which will expand our opportunities in the language services sector, particularly through LOT 5. This framework presents a significant growth opportunity and enables UK government and public sector bodies to access approved suppliers, providing us with increased visibility and the potential to secure new contracts. By securing a place in this lot, we will be well-positioned to offer translation, interpretation, and other linguistic services to public sector clients, building on our strong track record in delivering high-quality solutions.
The company is also committed to maintaining its financial discipline by carefully managing costs and reviewing cashflow forecasts. This proactive approach will ensure continued stability and growth in the coming years.
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Key Performance Indicators (KPIs)
  • Revenue Growth Rate: The company achieved an impressive growth rate of almost 200% in turnover from 2022 to 2023.
  • Gross Profit Margin: The increase in gross margin from 30.6% to 33.6% reflects efficient cost management and the impact of securing higher-margin projects.
  • Profit Before Tax Margin: The profit before tax margin shows the company’s ability to manage costs while significantly increasing profitability, reflecting a strong financial performance in 2023.
In addition to financial performance, we closely track a range of non-financial KPIs to assess the overall health and effectiveness of our operations. These KPIs encompass areas such as client satisfaction, language proficiency and project fulfilment. Our overall score for 2023 was ‘high’ which reflects our strong performance in non-financial areas. This achievement underscores our commitment to maintaining excellence in service delivery which is critical to the long-term success of the business.
IT Security
We are committed to maintaining the highest standards of IT security, evidenced by our CE+ certification and the rigorous annual assessments conducted by UK MOD Government Official Cyber Inspectors. This certification not only demonstrates our adherence to advanced cybersecurity practices but also ensures we are consistently meeting and exceeding the stringent security requirements set by government bodies. The in-depth evaluations performed by these inspectors provide a thorough validation of our security measures and highlight our dedication to safeguarding sensitive information against emerging threats. This ongoing scrutiny reinforces our capability to protect our assets and maintain resilience in a rapidly evolving cyber landscape.
Parent Company Involvement
Worldwide Language Resources, LLC, plays a minimal role in the day-to-day operations of the business, allowing us to function independently in terms of decision-making and overall management. However, daily financial reporting to the parent company, ensures transparency and keeps them informed about the financial health and performance of the business. This structure enables us to maintain operational autonomy while upholding strong communication and accountability on financial matters. The relationship provides a balance between operational independence and financial oversight, ensuring that both entities are aligned without the parent company being directly involved in the business's daily activities.
Human Resources Strategy
Given that linguist costs account for a substantial portion of the company’s expenses, recruiting and retaining high-quality talent is critical. The company is focused on building strong relationships to ensure a pipeline of skilled linguists. 
On behalf of the board
Mr Mark Harry
Director
05/09/2024
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Directors' Report
The directors present their report and the financial statements for the year ended 31 December 2023.
Dividends
The value of dividends paid amounted to £5,150,945 .
The directors recommended a final dividend of £nil.
Directors
The directors who held office during the year were as follows:
Mr Lawrence Costa
Mr Mark Harry
Mr Michael Saulnier
Mrs Debra Harry
Matters covered in the Strategic Report
Disclosures required under s416(4) and s414C(11) of the Companies Act 2006 are commented upon in the Strategic Report as the directors consider them to be of strategic importance to the business.
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' 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, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements the directors are required to:
  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Directors' Report is approved: 
  • so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
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Independent Auditors
The auditors, Rouse Audit LLP, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board
Mr Mark Harry
Director
Mr Michael Saulnier
Director
14/09/2024
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Independent Auditor's Report
Opinion
We have audited the financial statements of Worldwide Language Resources Ltd for the year ended 31 December 2023 which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes of Equity, Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
  • give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit/(loss) 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions Relating to Going Concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of at least 12 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. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on Other Matters Prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
  • the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.
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Matters on Which We Are Required to Report by Exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
  • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
  • the financial statements are not in agreement with the accounting records or 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; or
  • the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemption in preparing the director’s report and from the requirement to prepare a strategic report.
Responsibilities of Directors
As explained more fully in the Directors' Responsibilities Statement set out on page 4—5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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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.
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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
  • the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise noncompliance with applicable laws and regulations;
  • through discussions with the directors and other management and from our commercial knowledge and experience of the manufacture and sale of passive temperature control packaging systems designed for the cold chain transportationsector, we identified the laws and regulations applicable to the company; and
  • focusing on the specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, we assessed the extent of compliance with those laws and regulations identified above through making enquiries of management and inspecting relevant correspondence.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
  • making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
  • considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations
To address the risk of fraud through management bias and override of controls, we:
  • performed analytical procedures to identify any unusual or unexpected relationships;
  • tested journal entries to identify unusual transactions;
  • assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;
  • investigated the rationale behind significant or unusual bank transactions
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
  • agreeing financial statement disclosures to underlying supporting documentation;
  • reading the minutes of meetings of those charged with governance;
  • enquiring of management as to actual and potential litigation and claims;
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at:
https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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Use Of Our Report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters that we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Leighton Bower (Senior Statutory Auditor)
for and on behalf of Rouse Audit LLP , Statutory Auditor
16/09/2024
Rouse Audit LLP
55 Station Road
Beaconsfield
Buckinghamshire
HP9 1QL
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Profit and Loss Account
2023 2022
Notes £ £
TURNOVER 3 31,125,524 10,638,016
Cost of sales (20,657,403 ) (7,376,380 )
GROSS PROFIT 10,468,121 3,261,636
Administrative expenses (476,256 ) (315,419 )
OPERATING PROFIT 4 9,991,865 2,946,217
Loss on disposal of fixed assets - (1,102 )
Other interest receivable and similar income 9 34,849 -
PROFIT BEFORE TAXATION 10,026,714 2,945,115
Tax on Profit 10 (2,358,145 ) (559,944 )
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR 7,668,569 2,385,171
The notes on pages 15 to 20 form part of these financial statements.
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Statement of Comprehensive Income
2023 2022
£ £
PROFIT FOR THE FINANCIAL YEAR 7,668,569 2,385,171
OTHER COMPREHENSIVE INCOME FOR THE YEAR - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 7,668,569 2,385,171
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Balance Sheet
Registered number: 08907272
2023 2022
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 11 1,586 -
1,586 -
CURRENT ASSETS
Debtors 12 6,049,455 580,780
Cash at bank and in hand 2,268,869 5,698,017
8,318,324 6,278,797
Creditors: Amounts Falling Due Within One Year 13 (3,017,652 ) (3,494,163 )
NET CURRENT ASSETS (LIABILITIES) 5,300,672 2,784,634
TOTAL ASSETS LESS CURRENT LIABILITIES 5,302,258 2,784,634
NET ASSETS 5,302,258 2,784,634
CAPITAL AND RESERVES
Called up share capital 14 1,000 1,000
Profit and Loss Account 5,301,258 2,783,634
SHAREHOLDERS' FUNDS 5,302,258 2,784,634
On behalf of the board
Mr Mark Harry
Director
Mr Michael Saulnier
Director
14/09/2024
The notes on pages 15 to 20 form part of these financial statements.
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Statement of Changes in Equity
Share Capital Profit and Loss Account Total
£ £ £
As at 1 January 2022 1,000 759,265 760,265
Profit for the year and total comprehensive income - 2,385,171 2,385,171
Dividends paid - (360,802) (360,802)
As at 31 December 2022 and 1 January 2023 1,000 2,783,634 2,784,634
Profit for the year and total comprehensive income - 7,668,569 7,668,569
Dividends paid - (5,150,945) (5,150,945)
As at 31 December 2023 1,000 5,301,258 5,302,258
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Cash Flow Statement
2023 2022
Notes £ £
Cash flows from operating activities
Net cash generated from operations 1 2,223,337 5,165,895
Tax paid (559,943 ) (128,925 )
Net cash generated from operating activities 1,663,394 5,036,970
Cash flows from investing activities
Purchase of tangible assets (2,362 ) -
Interest received 34,849 -
Net cash generated from investing activities 32,487 -
Cash flows from financing activities
Equity dividends paid (5,150,945 ) (360,802 )
(Decrease)/increase in cash and cash equivalents (3,455,064 ) 4,676,168
Cash and cash equivalents at beginning of year 2 5,698,017 1,037,205
Foreign exchange gains/(losses) on cash and cash equivalents 25,916 (15,356 )
Cash and cash equivalents at end of year 2 2,268,869 5,698,017
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Notes to the Cash Flow Statement
1. Reconciliation of profit for the financial year to cash generated from operations
2023 2022
£ £
Profit for the financial year 7,668,569 2,385,171
Adjustments for:
Tax on profit 2,358,145 559,944
Interest income (34,849 ) -
Depreciation of tangible assets 776 339
Loss on disposal of tangible assets - 1,102
Foreign exchange (gains)/losses (25,916) 15,356
Movements in working capital:
Increase in trade and other debtors (5,468,675 ) (114,340 )
(Decrease)/increase in trade and other creditors (2,274,713 ) 2,318,323
Net cash generated from operations 2,223,337 5,165,895
2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
2023 2022
£ £
Cash at bank and in hand 2,268,869 5,698,017
3. Analysis of changes in net funds
As at 1 January 2023 Cash flows As at 31 December 2023
£ £ £
Cash at bank and in hand 5,698,017 (3,429,148) 2,268,869
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Notes to the Financial Statements
1. General Information
Worldwide Language Resources Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 08907272 . The registered office is 25 High Street, High Wycombe, HP11 2AG.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
2.2. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services. 
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
2.3. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Plant & Machinery 50% straight line basis
Computer Equipment 50% straight line basis
2.4. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.5. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
2.6. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
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2.7. Key Judgments and Critical Estimates
The directors have reviewed the key judgments and critical estimates associated with the company’s financial statements. After a thorough evaluation, we confirm that there are no significant key judgments or critical estimates that materially impact the understanding of the company’s financial position or performance. All financial reporting has been carried out based on straightforward assumptions and established accounting practices, ensuring transparency and consistency in the reported results.
3. Turnover
Analysis of turnover by geographical market is as follows:
2023 2022
£ £
United Kingdom 25,869,210 7,366,476
Europe 903,464 829,524
Asia 4,352,850 2,442,016
31,125,524 10,638,016
4. Operating Profit
The operating profit is stated after charging:
2023 2022
£ £
Depreciation of tangible fixed assets 776 339
5. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2023 2022
£ £
Audit Services
Audit of the company's financial statements 18,500 13,500
6. Staff Costs
Staff costs, excluding directors' remuneration, were as follows:
2023 2022
£ £
Wages and salaries 27,329 50,625
27,329 50,625
Wages and salaries for year ending 31 December 2022 were charged to Cost of Sales as this was for payments to linguists. For year ending 31 December 2023 the wages and salaries relate to head office staff and has therefore been charged to Administrative Expenses.
7. Average Number of Employees
Average number of employees, including directors, during the year was as follows:
2023 2022
Office and administration 5 4
Cost of Sales - 1
5 5
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8. Directors' remuneration
2023 2022
£ £
Amounts paid to third parties in respect of directors' services 176,700 129,200
176,700 129,200
9. Interest Receivable and Similar Income
2023 2022
£ £
Bank interest receivable 34,849 -
34,849 -
10. Tax on Profit
The tax charge on the profit for the year was as follows:
Tax Rate 2023 2022
2023 2022 £ £
Current tax
UK Corporation Tax 23.5% 19.0% 2,358,145 559,944
Total tax charge for the period 2,358,145 559,944
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
2023 2022
£ £
Profit before tax 10,026,714 2,945,115
Tax on profit at 23.5% (UK standard rate) 2,358,338 559,572
Goodwill/depreciation not allowed for tax 183 64
Expenses not deductible for tax purposes 180 308
Capital allowances (556 ) -
Total tax charge for the period 2,358,145 559,944
11. Tangible Assets
Plant & Machinery Computer Equipment Total
£ £ £
Cost
As at 1 January 2023 - - -
Additions 1,265 1,097 2,362
As at 31 December 2023 1,265 1,097 2,362
...CONTINUED
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Depreciation
As at 1 January 2023 - - -
Provided during the period 316 460 776
As at 31 December 2023 316 460 776
Net Book Value
As at 31 December 2023 949 637 1,586
As at 1 January 2023 - - -
12. Debtors
2023 2022
£ £
Due within one year
Trade debtors 5,962,520 519,057
Prepayments and accrued income 78,529 60,517
Other debtors 206 206
Called up share capital not paid - 1,000
Amounts owed by group undertakings 8,200 -
6,049,455 580,780
13. Creditors: Amounts Falling Due Within One Year
2023 2022
£ £
Trade creditors 23,198 6,126
Amounts owed to group undertakings - 1,807,952
Other creditors 257 -
Corporation tax 2,358,145 559,943
Taxation and social security 342,041 1,033,503
Accruals and deferred income 294,011 86,639
3,017,652 3,494,163
14. Share Capital
2023 2022
£ £
Called Up Share Capital not Paid - 1,000
Called Up Share Capital has been paid up 1,000 -
Amount of Allotted, Called Up Share Capital 1,000 1,000
15. Dividends
2023 2022
£ £
On equity shares:
Final dividend paid 5,150,945 360,802
5,150,945 360,802
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16. Related Party Disclosures
Worldwide Language Resources LLCParent companyAt the year ending 31 December 2023 the company owed £0 (2022: £1,807,952) to Worldwide Language Resources LLC. The loan is unsecured, interest free and repayable on demand.

Worldwide Language Resources LLC

Parent company

At the year ending 31 December 2023 the company owed £0 (2022: £1,807,952) to Worldwide Language Resources LLC. The loan is unsecured, interest free and repayable on demand.

Directors' CompaniesDuring the year an amount of £224,200 (2022: £167,200) was paid to companies controlled by directors in respect of remuneration and consultancy services.

Directors' Companies

During the year an amount of £224,200 (2022: £167,200) was paid to companies controlled by directors in respect of remuneration and consultancy services.

Worldwide Language Resources LLC LimitedA Polish company wholly owned by Worldwide Language Resources LLCAt the year ending 31 December 2023 the company was owed £8,200 (2022: £ nil) by Worldwide Language Resources LLC Limited.

Worldwide Language Resources LLC Limited

A Polish company wholly owned by Worldwide Language Resources LLC

At the year ending 31 December 2023 the company was owed £8,200 (2022: £ nil) by Worldwide Language Resources LLC Limited.

17. Controlling Parties
The company's immediate parent undertaking is Worldwide Language Resources LLC .
The ultimate parent undertaking and that of the smallest and largest group for which group accounts are drawn up of which the company is a member is Worldwide Language Resources LLC (incorporated in United States). Its registered office is 308 Person Street, Fayetteville, NC 28301, United States of America .
Copies of the group accounts may be obtained from the company's registered office.
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