IRIS Accounts Production v24.1.9.2 04170578 director 1.1.23 31.12.23 31.12.23 true false true true false false false true false Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh041705782022-12-31041705782023-12-31041705782023-01-012023-12-31041705782021-12-31041705782022-01-012022-12-31041705782022-12-3104170578ns15:EnglandWales2023-01-012023-12-3104170578ns14:PoundSterling2023-01-012023-12-3104170578ns10:Director12023-01-012023-12-3104170578ns10:PrivateLimitedCompanyLtd2023-01-012023-12-3104170578ns10:FRS1022023-01-012023-12-3104170578ns10:Audited2023-01-012023-12-3104170578ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-01-012023-12-3104170578ns10:LargeMedium-sizedCompaniesRegimeForAccounts2023-01-012023-12-3104170578ns10:FullAccounts2023-01-012023-12-310417057812023-01-012023-12-3104170578ns10:OrdinaryShareClass12023-01-012023-12-3104170578ns10:CompanySecretary12023-01-012023-12-3104170578ns10:RegisteredOffice2023-01-012023-12-3104170578ns5:CurrentFinancialInstruments2023-12-3104170578ns5:CurrentFinancialInstruments2022-12-3104170578ns5:ShareCapital2023-12-3104170578ns5:ShareCapital2022-12-3104170578ns5:RetainedEarningsAccumulatedLosses2023-12-3104170578ns5:RetainedEarningsAccumulatedLosses2022-12-3104170578ns5:ShareCapital2021-12-3104170578ns5:RetainedEarningsAccumulatedLosses2021-12-3104170578ns5:RetainedEarningsAccumulatedLosses2022-01-012022-12-3104170578ns5:RetainedEarningsAccumulatedLosses2023-01-012023-12-310417057812023-01-012023-12-310417057812022-01-012022-12-3104170578ns5:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3104170578ns5:OwnedAssets2023-01-012023-12-3104170578ns5:OwnedAssets2022-01-012022-12-3104170578ns5:PatentsTrademarksLicencesConcessionsSimilar2023-01-012023-12-3104170578ns5:PatentsTrademarksLicencesConcessionsSimilar2022-01-012022-12-3104170578ns5:PatentsTrademarksLicencesConcessionsSimilar2022-12-3104170578ns5:PatentsTrademarksLicencesConcessionsSimilar2023-12-3104170578ns5:PatentsTrademarksLicencesConcessionsSimilar2022-12-3104170578ns5:FurnitureFittings2022-12-3104170578ns5:ComputerEquipment2022-12-3104170578ns5:FurnitureFittings2023-01-012023-12-3104170578ns5:ComputerEquipment2023-01-012023-12-3104170578ns5:FurnitureFittings2023-12-3104170578ns5:ComputerEquipment2023-12-3104170578ns5:FurnitureFittings2022-12-3104170578ns5:ComputerEquipment2022-12-3104170578ns5:UnlistedNon-exchangeTradedns5:CostValuation2022-12-3104170578ns5:UnlistedNon-exchangeTraded2023-12-3104170578ns5:UnlistedNon-exchangeTraded2022-12-3104170578ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-12-3104170578ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-12-3104170578ns10:OrdinaryShareClass12023-12-3104170578ns5:RetainedEarningsAccumulatedLosses2022-12-31
REGISTERED NUMBER: 04170578 (England and Wales)











Strategic Report,

Report of the Director and

Financial Statements

for the Year Ended 31 December 2023

for

LEADSCALE SERVICES LIMITED

LEADSCALE SERVICES LIMITED (REGISTERED NUMBER: 04170578)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Strategic Report 2

Report of the Director 4

Report of the Independent Auditors 5

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 15


LEADSCALE SERVICES LIMITED

Company Information
for the Year Ended 31 December 2023







DIRECTOR: Mr R J Caller





SECRETARY: Mr E Lee





REGISTERED OFFICE: Unit 1, 6 Owen Street
London
London
EC1V 7JX





REGISTERED NUMBER: 04170578 (England and Wales)





AUDITORS: Jeff Lermer & Associates
Chartered Accountants
Statutory Auditors
42 Lytton Road
Barnet
Hertfordshire
EN5 5BY

LEADSCALE SERVICES LIMITED (REGISTERED NUMBER: 04170578)

Strategic Report
for the Year Ended 31 December 2023

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

Fair review of the business

The business saw a decrease in revenue of 21%. Gross profit margins remained consistent and due to savings made on overheads, the reduction in turnover was recovered. Overall, the Company has maintained a solid position over the previous year and once again produce a healthy bottom line profit.

Principal risks and uncertainties

The major risks and uncertainties result from higher inflation rates, which in turn affects client marketing spend. Other factors include rising interest rates, and the company is also exposed to foreign exchange fluctuations. The combined effect on the economy and advertising represents the largest overall risk.

The impact of inflation as it rose into double figures during the second half of 2022 saw many Advertisers hesitate to commit their marketing budgets as they reacted to economic uncertainties. The company experience this, as some clients reduced advertising spend and waited for greater economic clarity to return. This trend has carried forward into the first part of 2023, with the overall media and advertising sector being affected. Leadscale remained cautious, while anticipating that media budgets would recover when inflation begins to ease.

The company carries out significant business in USD and EURO. Foreign exchange rates fluctuated throughout the year, and unfortunately in 2023 this resulted in an overall exchange loss for the company, in comparison to 2022 where there was an exchange rate gain. This is a risk the company must bear as currency from some campaigns are dictated by the clients. The pounds position going forward will dictate the fluctuation month to month. At the time of writing in 2023, we have again seen some exchange losses as the pound has shown a stronger position against USD. We continue to account for these fluctuations with care and attention.

Going forward into 2023 and beyond, the uncertainty surrounding the cost of living, increased interest rates and the economy in general remains. The company held large cash reserves at year end 2022, and is well placed to react to any future economic difficulties which may arise, as well as take advantage of commercial opportunities that may arise while others are forced to make cuts.

Analysis using financial key performance indicators

During the financial year 2023 company sales ended at £12.2m, with a decrease of 21% on 2022 revenue. Even with the decrease in turnover, the company recorded a healthy bottom-line profit of £675K for the year, which was consistent with 2022. As a result of the decrease in profit, the directors have decided not to declare a dividend this year.

The uncertainty in the economy and increased inflation and interest rates has been well managed throughout the year, enabling the company to hold a strong position looking forward into 2023.

Cash held in the bank at the end of the year rose above £2.3m. This is a healthy figure, particularly considering the business also increased its working capital by £500k.

A fair balance was maintained between trade debtors and trade creditors.

Future developments

The company will look to develop upon the positive performance over the last two years and carry this forward into 2024, with plans to expand both the local team while also establishing a formal corporate presence in the US together with US staff.

The company also intends to invest in the next generation of the proprietary technology, building on the foundations of the third and fourth generation software that has provided an uncommon set of capabilities to date.

ON BEHALF OF THE BOARD:



Mr R J Caller - Director



LEADSCALE SERVICES LIMITED (REGISTERED NUMBER: 04170578)

Strategic Report
for the Year Ended 31 December 2023

24 September 2024

LEADSCALE SERVICES LIMITED (REGISTERED NUMBER: 04170578)

Report of the Director
for the Year Ended 31 December 2023

The director presents his report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of advertising agencies.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

DIRECTOR
Mr R J Caller held office during the whole of the period from 1 January 2023 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Strategic Report, the Report of the Director 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:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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 him 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Jeff Lermer & Associates, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr R J Caller - Director


24 September 2024

Report of the Independent Auditors to the Members of
Leadscale Services Limited

Opinion
We have audited the financial statements of Leadscale Services Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

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 director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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 the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Leadscale Services Limited


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 Report of the Director.

We have nothing to report in respect of the following matters where 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 and returns; or
- certain disclosures of director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page four, 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 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.

Report of the Independent Auditors to the Members of
Leadscale Services Limited


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

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 partner and engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and affect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management.

The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining on 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;
- And considering the measures 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 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 that were
indicative of potential bias.
- Performed substantive testing on management expenses and 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;
- Enquiring of management as to actual and potential litigation and claims
- And reviewing available correspondence with HMRC and the company's legal advisors.

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 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 for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Leadscale Services Limited


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 a Report of the Auditors 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.




Jeffrey Ian Lermer FCA (Senior Statutory Auditor)
for and on behalf of Jeff Lermer & Associates
Chartered Accountants
Statutory Auditors
42 Lytton Road
Barnet
Hertfordshire
EN5 5BY

25 September 2024

LEADSCALE SERVICES LIMITED (REGISTERED NUMBER: 04170578)

Income Statement
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   

TURNOVER 12,233,673 15,644,393

Cost of sales 9,830,083 13,068,965
GROSS PROFIT 2,403,590 2,575,428

Administrative expenses 1,770,298 925,889
OPERATING PROFIT 4 633,292 1,649,539

Interest receivable and similar income 42,077 914
PROFIT BEFORE TAXATION 675,369 1,650,453

Tax on profit 5 371 287,837
PROFIT FOR THE FINANCIAL YEAR 674,998 1,362,616

LEADSCALE SERVICES LIMITED (REGISTERED NUMBER: 04170578)

Other Comprehensive Income
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   

PROFIT FOR THE YEAR 674,998 1,362,616


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

674,998

1,362,616

LEADSCALE SERVICES LIMITED (REGISTERED NUMBER: 04170578)

Balance Sheet
31 December 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 7 4,589 3,193
Tangible assets 8 5,845 6,445
Investments 9 67,151 67,151
77,585 76,789

CURRENT ASSETS
Debtors 10 3,984,745 3,278,636
Cash at bank 2,281,981 2,506,105
6,266,726 5,784,741
CREDITORS
Amounts falling due within one year 11 2,949,744 3,141,961
NET CURRENT ASSETS 3,316,982 2,642,780
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,394,567

2,719,569

CAPITAL AND RESERVES
Called up share capital 12 1 1
Retained earnings 13 3,394,566 2,719,568
SHAREHOLDERS' FUNDS 3,394,567 2,719,569

The financial statements were approved by the director and authorised for issue on 24 September 2024 and were signed by:





Mr R J Caller - Director


LEADSCALE SERVICES LIMITED (REGISTERED NUMBER: 04170578)

Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 1 1,706,952 1,706,953

Changes in equity
Dividends - (350,000 ) (350,000 )
Total comprehensive income - 1,362,616 1,362,616
Balance at 31 December 2022 1 2,719,568 2,719,569

Changes in equity
Total comprehensive income - 674,998 674,998
Balance at 31 December 2023 1 3,394,566 3,394,567

LEADSCALE SERVICES LIMITED (REGISTERED NUMBER: 04170578)

Cash Flow Statement
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 625,161 801,749
Tax paid (164,851 ) (392,683 )
Net cash from operating activities 460,310 409,066

Cash flows from investing activities
Purchase of intangible fixed assets (3,584 ) (1,004 )
Purchase of tangible fixed assets (3,453 ) (6,157 )
Purchase of fixed asset investments (7,682 ) (28,792 )
Sale of tangible fixed assets - 120
Sale of fixed asset investments 7,682 21,110
Inter-company loan (719,474 ) (516,735 )
Interest received 42,077 914
Net cash from investing activities (684,434 ) (530,544 )

Cash flows from financing activities
Equity dividends paid - (350,000 )
Net cash from financing activities - (350,000 )

Decrease in cash and cash equivalents (224,124 ) (471,478 )
Cash and cash equivalents at beginning
of year

2

2,506,105

2,977,583

Cash and cash equivalents at end of
year

2

2,281,981

2,506,105

LEADSCALE SERVICES LIMITED (REGISTERED NUMBER: 04170578)

Notes to the Cash Flow Statement
for the Year Ended 31 December 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
31.12.23 31.12.22
£    £   
Profit before taxation 675,369 1,650,453
Depreciation charges 6,242 2,757
Finance income (42,077 ) (914 )
639,534 1,652,296
Decrease in trade and other debtors 13,364 258,815
Decrease in trade and other creditors (27,737 ) (1,109,362 )
Cash generated from operations 625,161 801,749

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 2,281,981 2,506,105
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 2,506,105 2,977,583


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 2,506,105 (224,124 ) 2,281,981
2,506,105 (224,124 ) 2,281,981
Total 2,506,105 (224,124 ) 2,281,981

LEADSCALE SERVICES LIMITED (REGISTERED NUMBER: 04170578)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Leadscale Services 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
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and Companies Act 2006.

The preparation of financial statements in compliance with FRS102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.

Revenue
Revenue is recognised to the extend that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of service

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all the following conditions are satisfied:

- the amount of revenue can be measured reliably
- it is probable that the Company will receive the consideration due under the contract
- the stage of completion of the contract at the end of the reporting period can be measured reliably, and
- the costs incurred and the costs to complete the contract can be measured reliably.

Intangible assets
The company's domain names are initially recognised at cost. After recognition, under the cost model, the Company's domain names are measured at cost less any accumulated amortisation land any accumulated impairment losses.

The estimated useful lives of the Company's domain is 3 years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

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

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

Depreciation is provided on the following basis:

Fixtures and fittings - 33% straight line
Computer equipment - 33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting.

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

LEADSCALE SERVICES LIMITED (REGISTERED NUMBER: 04170578)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

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 banks and other third parties, loans to related parties and investments in ordinary shares.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

Unrelieved tax losses and other 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.

Foreign currencies
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 of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.


LEADSCALE SERVICES LIMITED (REGISTERED NUMBER: 04170578)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Share based payments
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

The value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).

Where the terms and conditions of option are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.

Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
Interest Income

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


Finance costs

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


Valuation of investments

Investment in unlisted company shares, whose market value can be reliably determined, are measured to market value at each balance sheet date. Gains and losses on revaluation are recognised in the statement of comprehensive income for the period, Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
Debtors

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


Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.









Creditors


LEADSCALE SERVICES LIMITED (REGISTERED NUMBER: 04170578)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

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

3. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 768,772 580,232
Social security costs 90,613 82,512
Other pension costs 18,849 17,359
878,234 680,103

The average number of employees during the year was as follows:
31.12.23 31.12.22

Sales 9 8
Admin 3 3
12 11

31.12.23 31.12.22
£    £   
Director's remuneration - -

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.23 31.12.22
£    £   
Depreciation - owned assets 4,053 2,717
Patents and licences amortisation 2,188 39
Auditors' remuneration 10,500 9,100
Foreign exchange differences 79,039 (233,909 )

5. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.23 31.12.22
£    £   
Current tax:
UK corporation tax - 287,837
Over/under prov in prior year 371 -

Tax on profit 371 287,837

LEADSCALE SERVICES LIMITED (REGISTERED NUMBER: 04170578)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

5. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.23 31.12.22
£    £   
Profit before tax 675,369 1,650,453
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2022 - 19%)

168,842

313,586

Effects of:
Expenses not deductible for tax purposes 12,827 7,053
Depreciation in excess of capital allowances 634 -
Group Relief (182,303 ) (32,802 )
Under provision in prior year 371 -
Total tax charge 371 287,837

6. DIVIDENDS

The company paid final dividend NIL (2022: £350,000)

7. INTANGIBLE FIXED ASSETS
Patents
and
licences
£   
COST
At 1 January 2023 8,943
Additions 3,584
At 31 December 2023 12,527
AMORTISATION
At 1 January 2023 5,750
Amortisation for year 2,188
At 31 December 2023 7,938
NET BOOK VALUE
At 31 December 2023 4,589
At 31 December 2022 3,193

LEADSCALE SERVICES LIMITED (REGISTERED NUMBER: 04170578)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

8. TANGIBLE FIXED ASSETS
Fixtures
and Computer
fittings equipment Totals
£    £    £   
COST
At 1 January 2023 45,114 37,439 82,553
Additions 2,944 509 3,453
At 31 December 2023 48,058 37,948 86,006
DEPRECIATION
At 1 January 2023 44,282 31,826 76,108
Charge for year 1,405 2,648 4,053
At 31 December 2023 45,687 34,474 80,161
NET BOOK VALUE
At 31 December 2023 2,371 3,474 5,845
At 31 December 2022 832 5,613 6,445

9. FIXED ASSET INVESTMENTS

31.12.23 31.12.22
£    £   
Other investments not loans 67,151 67,151

Additional information is as follows:
Unlisted
investments
£   
COST
At 1 January 2023
and 31 December 2023 30,677
NET BOOK VALUE
At 31 December 2023 30,677
At 31 December 2022 30,677

Investments (neither listed nor unlisted) were as follows:
31.12.23 31.12.22
£    £   
Other investments b/f 36,474 28,792
Other investments - 7,682
36,474 36,474

LEADSCALE SERVICES LIMITED (REGISTERED NUMBER: 04170578)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade debtors 2,128,422 2,349,383
Amounts owed by group undertakings 1,518,350 798,877
Other debtors 96,838 47,133
Tax 32,472 32,472
Prepayments and accrued income 208,663 50,771
3,984,745 3,278,636

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade creditors 1,538,937 1,312,741
Tax - 164,480
Social security and other taxes 241,696 185,752
Other creditors 5,461 -
Accruals and deferred income 1,163,650 1,478,988
2,949,744 3,141,961

12. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
1 Ordinary 1 1 1

13. RESERVES
Retained
earnings
£   

At 1 January 2023 2,719,568
Profit for the year 674,998
At 31 December 2023 3,394,566