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REGISTERED NUMBER: 01444820 (England and Wales)
























FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

FIVE BY FIVE LIMITED

FIVE BY FIVE LIMITED (REGISTERED NUMBER: 01444820)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


FIVE BY FIVE LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: M J Lawton
N M Lawton





REGISTERED OFFICE: 5 Grosvenor Square
Southampton
Hampshire
SO15 2BE





REGISTERED NUMBER: 01444820 (England and Wales)





AUDITORS: TC Group
1st Floor
Ocean Village Innovation Centre
Ocean Way
Southampton
Hampshire
SO14 3JZ

FIVE BY FIVE LIMITED (REGISTERED NUMBER: 01444820)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 51,321 55,987
Tangible assets 5 376,341 235,632
427,662 291,619

CURRENT ASSETS
Debtors 6 3,232,512 3,923,734
Cash at bank and in hand 10,779 10,740
3,243,291 3,934,474
CREDITORS
Amounts falling due within one year 7 831,567 578,705
NET CURRENT ASSETS 2,411,724 3,355,769
TOTAL ASSETS LESS CURRENT LIABILITIES 2,839,386 3,647,388

PROVISIONS FOR LIABILITIES 9 41,349 45,133
NET ASSETS 2,798,037 3,602,255

CAPITAL AND RESERVES
Called up share capital 10 7,500 7,500
Capital redemption reserve 2,500 2,500
Retained earnings 2,788,037 3,592,255
SHAREHOLDERS' FUNDS 2,798,037 3,602,255

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit or Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 13 September 2024 and were signed on its behalf by:





N M Lawton - Director


FIVE BY FIVE LIMITED (REGISTERED NUMBER: 01444820)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023


1. STATUTORY INFORMATION

Five by Five Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

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

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

Going concern
The financial statements have been prepared on a going concern basis. The directors acknowledge that given the currently rapidly changing business and social environment, there are likely to be significant unknown factors which may present themselves. Such factors are considered by the directors to represent a general inherent level of risk in relation to the going concern assumption albeit not quantifiable at this time.

Although losses have been made in the year, Five by Five's pipeline is strong, including 3 live opportunities with new prospects and some further opportunities with existing clients to grow scope. One of the new business opportunities is with a financial services brand. It would be a significant appointment and would become a top 3 client by spend.

As at the point of authorising the accounts, and for the foreseeable future, the directors consider the going concern assumption to still be appropriate.

FIVE BY FIVE LIMITED (REGISTERED NUMBER: 01444820)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

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

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

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

Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

An internally generated intangible asset arising from development is recognised only when all of the following have been demonstrated:
- technical feasibility of completing the intangible so that it is available for use or sale
- intention to complete the development to use it or sell it
- the ability to use the intangible asset
- how the intangible asset will generate probable future economic benefits
- availability of adequate technical, financial and other resources to complete the development.
- the ability to measure reliably the expenditure attribute to the intangible assets during its development

The amount initially recognised for internally generated assets is the sum of the expenditure incurred from the date when the intangible assets meets the recognition criteria listed above. Where no internally generated intangible assets can be recognised, development expenditure is recognised in profit and loss in the period in which it is incurred.

Subsequent to initial recognition, internally generated intangible assets are reported at cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.

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

Software development5 years straight line years

At each reporting date the group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use.

FIVE BY FIVE LIMITED (REGISTERED NUMBER: 01444820)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property- Straight line over 12 years
Plant and machinery- Straight line over 4 years
Fixtures and fittings- Straight line over 3 years
Motor vehicles- Straight line over 4 years
Computer equipment- Straight line over 3 years

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'administrative expenses' in the statement of income and retained earnings.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use.

Financial instruments
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from bank and other third parties, loan's to related parties and investments in ordinary shares.

Short term debtors and creditors are measured at the transaction price. Other financial instruments, including loans, 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.

Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form.

Financial assets and liabilities are offset and 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit or Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

FIVE BY FIVE LIMITED (REGISTERED NUMBER: 01444820)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

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

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

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

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 46 (2022 - 54 ) .

4. INTANGIBLE FIXED ASSETS
Software
development
£   
COST
At 1 January 2023
and 31 December 2023 55,987
AMORTISATION
Amortisation for year 4,666
At 31 December 2023 4,666
NET BOOK VALUE
At 31 December 2023 51,321
At 31 December 2022 55,987

FIVE BY FIVE LIMITED (REGISTERED NUMBER: 01444820)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


5. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and
property machinery fittings
£    £    £   
COST
At 1 January 2023 278,892 6,361 70,402
Additions 5,194 - 71,737
Disposals - - -
At 31 December 2023 284,086 6,361 142,139
DEPRECIATION
At 1 January 2023 97,229 5,174 68,503
Charge for year 23,602 475 13,534
Eliminated on disposal - - -
At 31 December 2023 120,831 5,649 82,037
NET BOOK VALUE
At 31 December 2023 163,255 712 60,102
At 31 December 2022 181,663 1,187 1,899

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 January 2023 - 296,909 652,564
Additions 135,043 20,208 232,182
Disposals - (23,805 ) (23,805 )
At 31 December 2023 135,043 293,312 860,941
DEPRECIATION
At 1 January 2023 - 246,026 416,932
Charge for year 19,667 31,586 88,864
Eliminated on disposal - (21,196 ) (21,196 )
At 31 December 2023 19,667 256,416 484,600
NET BOOK VALUE
At 31 December 2023 115,376 36,896 376,341
At 31 December 2022 - 50,883 235,632

FIVE BY FIVE LIMITED (REGISTERED NUMBER: 01444820)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


6. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 398,024 434,826
Amounts owed by group undertakings 2,493,776 3,215,221
Other debtors - 5,000
Tax 55,000 -
Prepayments and accrued income 226,178 268,687
3,172,978 3,923,734

Amounts falling due after more than one year:
Prepayments 59,534 -

Aggregate amounts 3,232,512 3,923,734

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 157,229 102,748
Corporation tax - 17,081
Social security and other taxes 233,885 175,696
Other creditors - 44,188
Accruals and deferred income 440,453 238,992
831,567 578,705

8. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 235,220 201,060
Between one and five years 632,835 112,500
868,055 313,560

9. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 41,349 45,133

Deferred
tax
£   
Balance at 1 January 2023 45,133
Credit to Profit or Loss Account during year (3,784 )
Balance at 31 December 2023 41,349

FIVE BY FIVE LIMITED (REGISTERED NUMBER: 01444820)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


10. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
7,500 Ordinary £1 7,500 7,500

11. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Richard Gillespie FCCA (Senior Statutory Auditor)
for and on behalf of TC Group

12. RELATED PARTY DISCLOSURES

The company premises at 5 Grosvenor Square, Southampton is rented from a shareholder. In the year ended 31 December 2023 rent was paid of £67,500 (2022: £90,000).

In accordance with FRS 102 33.1A, transactions with members of the group are not disclosed where the counterparty is a wholly owned subsidiary of the ultimate parent company. The year end balances with group members are detailed in note 6.

During the year, the company had management charges receivable of £ 378,500 (2022: £132,036) from Dragonfish Consulting Limited, a fellow group company. At the balance sheet date, £434,390 (2022: £260,039) is owed by Dragonfish Consulting Limited.

At the balance sheet date, £46,080 (2022: £nil) is owed by Project Tellus Limited, a fellow group company.

During the year, services were provided to Five by Five Limited by a company that the owners family have an interest. The costs were £39,380 (2022: £nil).

13. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Michael J Lawton by virtue of his shareholding in the ultimate parent
company.

The immediate parent company and ultimate parent company is Lawton Communications Group Limited, a company registered in England and Wales.

Lawton Communications Group Limited are the parent of the smallest and largest group for which consolidated financial statements are prepared that include the company. Copies of these consolidated accounts can be obtained from 5 Grosvenor Square, Southampton, SO15 2BE.