Company registration number 03796516 (England and Wales)
EDITEC MARKETING CONSULTING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
EDITEC MARKETING CONSULTING LIMITED
COMPANY INFORMATION
Director
F Attal
Secretary
Mr A Galleri
Company number
03796516
Registered office
The Embassy Tea House
195-205 Union Street
London
SE1 0LN
Auditor
Gravita II LLP
Aldgate Tower
2 Leman Street
London
E1 8FA
EDITEC MARKETING CONSULTING LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4 - 5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Notes to the financial statements
13 - 22
EDITEC MARKETING CONSULTING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The director presents the strategic report for the year ended 31 December 2023.

Review of the business

The results for the year and the financial position at the year end were considered satisfactory by the director who expects continued growth in the foreseeable future.

 

KPIs are based on a year on year comparison making allowance for new projects in the year.

 

Turnover has decreased by 9% to £53,191,353. The gross profit percentage achieved in the year was 52%, compared to 57% in 2022.

 

During the year there was a 74% increase in administration expenses. Resulting in an operating profit of £18,342,993 (2022: £28,176,301 ), which gives a profit percentage of 34% (2022: 48%) before tax.

Principal risks and uncertainties

The company's principal financial instruments comprise bank facilities, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for the company's operations.

 

The main risks arising from the company's financial instruments is exchange rate risk, as exposure arises from trading with overseas countries.

 

The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

 

Liquidity risk is monitored on an ongoing basis and positive cash reserves were held at the year end.

 

Trade debtors are managed in respect of credit and cash flow risk by reviewing and controlling the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet the amounts due.

EDITEC MARKETING CONSULTING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Section 172 statement, stakeholders, director responsibilties

This section describes how the directors have had regard to the matters set out in section 172(1)(a) to (f) Companies Act 2006 in exercising their duty to promote the success of the Company for the benefit of its members as a whole.

 

The company delivered results on its core operations in line with expectations as noted below.

 

Our purpose, strategy and consideration of the consequences of any decision in the long term

Our purpose/core operations include: providing maintenance for transactional systems and marketing services for the products sold through those systems, mainly gaming and airtime (GSM and internet) units.

 

Our strategy is to continue to expand our customer base in Africa and help new customers set up in different territories within the continent. We provide customers with favourable credit terms when they are setting up as it is in our mutual interest for them to succeed.

 

The operations and financial results of the Company are influenced by the economic situation on the international markets. The factors that have a particular impact on the Company’s operations include GDP growth, the level of consumer spending of households in our customers’ home territories, the ability for customers to open in new territories and require our services, the level of expenditure on the services provided by the Company, the unemployment rate, and the rate of growth of real wages and salaries.

 

The interests of the company’s employees and co-workers

The operations and development of the Company depend on the knowledge and experience of its directors, key management and co-workers. Co-workers are consultants, agents and within the company and those subcontracted to customers. Conducting this type of activity requires well-qualified senior managers. The loss or lack of possibility to find qualified subcontractors for key positions with our customers may have a significant adverse impact on the operating activities or further development prospects of the Company.

 

The Company seeks to prevent the loss of key management and co-workers by offering them remuneration which is attractive compared to that offered on the market.

 

The Company takes due care to ensure appropriate, safe working conditions and to provide development opportunities for its key management and co-workers. The Management Board is aware that success depends on many factors, starting with diversity and respect for each other. The Company’s structures are built by people with different backgrounds, experiences and worldviews.

EDITEC MARKETING CONSULTING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The need to foster the company’s business relationships with suppliers, customers and others

 

Customers

Key customers are our partners operating establishments in Africa.

 

The Company’s revenue consists of the fees paid by customers for service of maintenance, and marketing on a monthly basis.

 

The agreements with the key customers are on a rolling basis.

 

The impact of the company’s operations on the community and the environment

Directors are committed to playing a responsible role in our communities. The aim of the Company's operations is to inspire and challenge the behaviour of our viewers and audience to promote social, environmental and personal change.

 

The desirability of the company maintaining a reputation for high standards of business conduct

In 2015, the company implemented the Anti-Corruption and Bribery Policy. This policy will support and give guidance on how to conduct business in an honest and ethical manner. The Directors take a zero-tolerance approach to bribery and corruption and want to promote acting professionally, fairly and with integrity in all the Company’s business dealings and relationships.

 

The need to act fairly as between members of the company

The Director’s aim is for its employees and co-workers to represent all sections of society, and for everyone to be and feel respected. These principles are governed by the company’s “Diversity Policy”, which all employees and collaborators are required to comply with.

 

On behalf of the board

F Attal
Director
21 August 2024
EDITEC MARKETING CONSULTING LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The director presents his annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company consists of providing maintenance services for transactional systems and marketing services for the products sold through those systems, mainly gaming and airtime (GSM and internet) units.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £21,710,812 (2022: £17,025,624). The director recommends a final dividend of €30,000,000 to Editec Software Solutions.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

F Attal
Future developments

The company constantly responds to changing markets and tries to always be ahead of its competitors, by improving services to customers and developing more products to offer to customers. This includes expanding into new markets.

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 these financial statements, the director is required to:

 

 

The director is 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. He is 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.

EDITEC MARKETING CONSULTING LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the director has taken all the necessary steps that they ought to have taken as director in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
F Attal
Director
21 August 2024
EDITEC MARKETING CONSULTING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EDITEC MARKETING CONSULTING LIMITED
- 6 -
Opinion

We have audited the financial statements of Editec Marketing Consulting Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 director's 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 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.

However, because not all future events or conditions can be predicted this statement is not a guarantee as to the

company's ability to continue as a going concern.

 

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

EDITEC MARKETING CONSULTING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EDITEC MARKETING CONSULTING LIMITED (CONTINUED)
- 7 -
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 director's report.

 

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

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

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.

However, the primary responsibility for the prevention and detection of fraud rests with both those charged with

governance of the entity and management.

EDITEC MARKETING CONSULTING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EDITEC MARKETING CONSULTING LIMITED (CONTINUED)
- 8 -
The extent to which the audit was considered capable of detecting irregularities including fraud

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:

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

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 by for example forgery, or intentional misrepresentation or through collusion. Our

audit procedures are designed to detect material misstatement. We are not responsible for preventing noncompliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

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.

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 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.

EDITEC MARKETING CONSULTING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EDITEC MARKETING CONSULTING LIMITED (CONTINUED)
- 9 -
Ian Hughes ACA
Senior Statutory Auditor
For and on behalf of Gravita II LLP
23 August 2024
Chartered Accountants
Statutory Auditor
Aldgate Tower
2 Leman Street
London
E1 8FA
EDITEC MARKETING CONSULTING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
53,191,353
58,560,232
Cost of sales
(25,688,323)
(25,084,665)
Gross profit
27,503,030
33,475,567
Administrative expenses
(9,201,297)
(5,299,266)
Operating profit
4
18,301,733
28,176,301
Interest receivable and similar income
41,260
-
0
Profit before taxation
18,342,993
28,176,301
Tax on profit
7
(4,389,687)
(3,434,244)
Profit for the financial year
13,953,306
24,742,057

The income statement has been prepared on the basis that all operations are continuing operations.

EDITEC MARKETING CONSULTING LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
19,411
39,709
Current assets
Stocks
10
-
1,341,447
Debtors
11
9,248,232
9,145,255
Cash at bank and in hand
33,205,811
41,459,954
42,454,043
51,946,656
Creditors: amounts falling due within one year
12
(3,212,499)
(4,967,904)
Net current assets
39,241,544
46,978,752
Net assets
39,260,955
47,018,461
Capital and reserves
Called up share capital
14
100
100
Profit and loss reserves
15
39,260,855
47,018,361
Total equity
39,260,955
47,018,461
The financial statements were approved and signed by the director and authorised for issue on 21 August 2024
F Attal
Director
Company registration number 03796516 (England and Wales)
EDITEC MARKETING CONSULTING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100
39,301,928
39,302,028
Year ended 31 December 2022:
Profit and total comprehensive income
-
24,742,057
24,742,057
Dividends
8
-
(17,025,624)
(17,025,624)
Balance at 31 December 2022
100
47,018,361
47,018,461
Year ended 31 December 2023:
Profit and total comprehensive income
-
13,953,306
13,953,306
Dividends
8
-
(21,710,812)
(21,710,812)
Balance at 31 December 2023
100
39,260,855
39,260,955
EDITEC MARKETING CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Editec Marketing Consulting Limited is a private company limited by shares registered and incorporated in England and Wales. The registered office is The Embassy Tea House, 195-205 Union Street, London, SE1 0LN.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Editec Software Solutions Limited. These consolidated financial statements are available from its registered office, 70 Sir John Rogerson's Quay, Dublin 2, Dublin, D02 R296.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover
Turnover represents amounts receivable for goods and services. Income is recognised in accordance with maintenance and service agreements. Commission receivable in respect of gaming centres is recognised in the period in which it arises.
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Land and buildings Leasehold
10% straight line
Fixtures, fittings & equipment
25% straight line
Computer equipment
33% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

EDITEC MARKETING CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Stocks

Stocks consist of crypto currency acquired in the normal course of business. These are stated at the lower of cost and estimated selling price.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Financial instruments

The company has taken advantage of the exemptions available to subsidiaries under Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’

 

Financial instruments are recognised in the company's statement of financial position when the company 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Loans and receivables

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

EDITEC MARKETING CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Taxation

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

EDITEC MARKETING CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

 

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

1.10
Employee benefits

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

 

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

 

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

1.11
Retirement benefits

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

1.12
Leases

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

1.13
Foreign exchange

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

EDITEC MARKETING CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sale of services and related equipment
53,191,353
58,560,232
2023
2022
£
£
Turnover analysed by geographical market
Africa
49,633,384
51,490,183
Middle East
3,557,969
7,070,049
53,191,353
58,560,232
2023
2022
£
£
Other revenue
Interest income
41,260
-
EDITEC MARKETING CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
396,639
(1,791,059)
Depreciation of owned tangible fixed assets
26,036
141,040
Operating lease charges
252,030
373,342

 

5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
43,040
26,000
For other services
Taxation compliance services
-
0
10,550
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Sales
1
1
Administrative
27
37
Director
1
1
Total
29
39

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,965,061
3,552,388
Social security costs
416,144
648,744
Pension costs
31,007
36,602
3,412,212
4,237,734
EDITEC MARKETING CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
3,557,353
3,065,948
Adjustments in respect of prior periods
(14,316)
10,987
Total UK current tax
3,543,037
3,076,935
Foreign current tax on profits for the current period
846,650
357,309
Total current tax
4,389,687
3,434,244

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
18,342,993
28,176,301
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
4,310,603
5,353,497
Tax effect of expenses that are not deductible in determining taxable profit
97,216
74,331
Adjustments in respect of prior years
(14,316)
10,987
Group relief
(822,500)
(2,375,000)
Permanent capital allowances in excess of depreciation
6,119
21,771
Foreign tax
846,650
357,309
Relief on WHT treated as an expense
(34,085)
(8,651)
Taxation charge for the year
4,389,687
3,434,244
8
Dividends
2023
2022
£
£
Interim paid
21,710,812
17,025,624
EDITEC MARKETING CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
9
Tangible fixed assets
Land and buildings Leasehold
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
363,741
205,988
449,391
99,830
1,118,950
Additions
-
0
-
0
5,738
-
0
5,738
At 31 December 2023
363,741
205,988
455,129
99,830
1,124,688
Depreciation and impairment
At 1 January 2023
363,741
205,988
409,682
99,830
1,079,241
Depreciation charged in the year
-
0
-
0
26,036
-
0
26,036
At 31 December 2023
363,741
205,988
435,718
99,830
1,105,277
Carrying amount
At 31 December 2023
-
0
-
0
19,411
-
0
19,411
At 31 December 2022
-
0
-
0
39,709
-
0
39,709
10
Stocks
2023
2022
£
£
Crypto currency
-
0
1,341,447
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
6,964,909
5,182,447
Corporation tax recoverable
1,727,402
1,366,833
Other debtors
63,345
343,549
Prepayments and accrued income
492,576
2,252,426
9,248,232
9,145,255
EDITEC MARKETING CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
12
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,109,182
3,117,158
Taxation and social security
452,250
419,882
Other creditors
35,498
17,004
Accruals and deferred income
1,615,569
1,413,860
3,212,499
4,967,904
13
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
31,007
36,602

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

14
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
100
100
100
100
15
Profit and loss reserves

Profit and loss reserves represents accumulated comprehensive income for the year and prior periods.

16
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
272,482
263,268
Between two and five years
115,157
387,639
387,639
650,907
EDITEC MARKETING CONSULTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
17
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sale of goods
Purchase of goods
2023
2022
2023
2022
£
£
£
£
Entities with common control
1,349,261
1,873,487
14,777,146
10,251,355

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts owed to related parties
£
£
Entities with common control
991,939
36,441
991,939
36,441

The following amounts were outstanding at the reporting end date:

2023
2022
Balance
Balance
Amounts owed by related parties
£
£
Entities with common control
280,728
65,096

 

The following amounts were recognised as an expense in the period in respect of bad and doubtful debts due from related parties:

2023
2022
£
£
Entities with common control
392,307
-

The company has taken advantage of the exemptions from disclosure available to subsidiary undertakings under section 33.1A of FRS 102 in connection with intra group transactions.

18
Ultimate controlling party

The controlling party is Editec Software Solutions Limited, incorporated in Ireland, by nature of its 100% shareholding.

2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100F AttalMr A Gallerifalsefalse037965162023-01-012023-12-3103796516bus:Director12023-01-012023-12-3103796516bus:CompanySecretary12023-01-012023-12-3103796516bus:RegisteredOffice2023-01-012023-12-31037965162023-12-31037965162022-01-012022-12-3103796516core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3103796516core:RetainedEarningsAccumulatedLosses2023-01-012023-12-31037965162022-12-3103796516core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3103796516core:FurnitureFittings2023-12-3103796516core:ComputerEquipment2023-12-3103796516core:MotorVehicles2023-12-3103796516core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3103796516core:FurnitureFittings2022-12-3103796516core:ComputerEquipment2022-12-3103796516core:MotorVehicles2022-12-3103796516core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3103796516core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3103796516core:CurrentFinancialInstruments2023-12-3103796516core:CurrentFinancialInstruments2022-12-3103796516core:ShareCapital2023-12-3103796516core:ShareCapital2022-12-3103796516core:RetainedEarningsAccumulatedLosses2023-12-3103796516core:RetainedEarningsAccumulatedLosses2022-12-3103796516core:ShareCapital2021-12-3103796516core:RetainedEarningsAccumulatedLosses2021-12-3103796516core:LandBuildingscore:LongLeaseholdAssets2023-01-012023-12-3103796516core:FurnitureFittings2023-01-012023-12-3103796516core:ComputerEquipment2023-01-012023-12-3103796516core:MotorVehicles2023-01-012023-12-3103796516core:UKTax2023-01-012023-12-3103796516core:UKTax2022-01-012022-12-3103796516core:ForeignTax2023-01-012023-12-3103796516core:ForeignTax2022-01-012022-12-310379651612023-01-012023-12-310379651612022-01-012022-12-310379651622023-01-012023-12-310379651622022-01-012022-12-3103796516core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3103796516core:FurnitureFittings2022-12-3103796516core:ComputerEquipment2022-12-3103796516core:MotorVehicles2022-12-31037965162022-12-3103796516core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3103796516core:WithinOneYear2023-12-3103796516core:WithinOneYear2022-12-3103796516core:BetweenTwoFiveYears2023-12-3103796516core:BetweenTwoFiveYears2022-12-3103796516bus:PrivateLimitedCompanyLtd2023-01-012023-12-3103796516bus:FRS1022023-01-012023-12-3103796516bus:Audited2023-01-012023-12-3103796516bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP