REGISTERED NUMBER: 10808392 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
FUTURESOURCE HOLDINGS LIMITED |
REGISTERED NUMBER: 10808392 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
FUTURESOURCE HOLDINGS LIMITED |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
For The Year Ended 31 December 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
FUTURESOURCE HOLDINGS LIMITED |
COMPANY INFORMATION |
For The Year Ended 31 December 2022 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
1 Rushmills |
Bedford Road |
Northampton |
Northamptonshire |
NN4 7YB |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
GROUP STRATEGIC REPORT |
For The Year Ended 31 December 2022 |
The director presents her strategic report of the company and the group for the year ended 31 December 2022. |
REVIEW OF BUSINESS |
Principal activity |
The principal activity of the group is the provision of specialist market research, market tracking, strategic market reports and consulting services to the global entertainment, consumer electronics and business electronics industries. |
Result and performance |
The results for the year ending 31 December 2022 show an increase in revenue of 1.875% (2021: Increase of 19.36%) and a decrease in profit before taxation of 0.51% (2021: Increase of 51.63%). |
The directors are satisfied with the performance of the business. The global pandemic causes a surge in demand for technology from its clients in the sector which translated into strong demand for research and consulting services. The business maintains a high renewal rate across a loyal customer base which, along with a focus on account management and experience workforce, allows it to benefit from this sector confidence. There are flags for a more challenging year ahead with businesses in the technology sector reacting to slowing demand and expected to cut budgets. However, the directors are confident that the range of services and diversified client contracts will allow to maintain a positive performance. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group's operations expose it to a variety of financial risks that include the effects of changes in price risk, credit risk, liquidity risk, currency risk and interest rate risk. The group has processes and internal controls that seek to limit the adverse effects on the financial performance of the group. The board of directors are responsible for monitoring financial risks that the group faces. |
Price risk |
The group is exposed to price risk due to normal inflationary increases in the purchase price of goods and services. The group has no exposure to equity securities price risk as it holds no listed or other equity instruments. |
Credit risk |
The primary credit risks faced by the group are trade debtors and cash reserves. Trade debtor risk is managed by credit control procedures which are monitored by the board of directors and further mitigated by the financial strength of our blue-chip client base. Risks associated with cash reserves are limited as the y has group deposits with banks that have solid credit ratings. |
Liquidity risk |
The group manages liquidity risk by managing cash flow and cash reserves to maintain sufficient funds for operations and planned expansions. |
Currency risk |
The group's exposure to exchange rate changes is mitigated by invoicing a substantial percentage of customers in pounds sterling. We also invoice in other major currencies, but these do not usually suffer large swings against the pound within typical collection periods. The business also incurs operating expenses in these currencies which further mitigates the risk. |
Interest rate risk |
The group holds cash balances which earn very low rates of interest due to the present economic situation. Therefore, exposure to interest rate drops is negligible. |
Economic risk |
The global economy is showing signs of stabilising after several years of significant disruption. The directors monitor rising inflation but see limited impact to the business. Increasing geopolitical tensions are a cause for some concern with the potential impact on supply chains and subsequent impact on the technology sector. The Futuresource Senior Management team maintain a number of cash flow forecast scenarios to help understand the impact economic downfall on the business. |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
GROUP STRATEGIC REPORT |
For The Year Ended 31 December 2022 |
FINANCIAL KEY PERFORMANCE INDICATORS |
2022 | 2021 |
Revenue | 8,528,431 | 8,258,375 |
Pre-tax profit | 1,152,902 | 1,097,370 |
FUTURE DEVELOPMENTS |
The group intends to perform under the guidance of its new board of directors and trustee. |
SUBSEQUENT EVENTS |
There has been changes in the group structure of the group in January 2023. The group is now ultimately under a trust and is being managed by trustee and board of directors. In April and May 2024, there has been changes in the trustee and board of directors. |
RESEARCH & DEVELOPMENT |
The directors are optimistic that the investment in development of new services will create greater marketing opportunities and increased sales. |
ON BEHALF OF THE BOARD: |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
REPORT OF THE DIRECTOR |
For The Year Ended 31 December 2022 |
The director presents her report with the financial statements of the company and the group for the year ended 31 December 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the group is the provision of specialist market research, market tracking, strategic market reports and consulting services to the global entertainment, consumer electronics and business electronics industries. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2022 is £nil (2021: £2,103,641). |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors who have held office during the period from 1 January 2022 to the date of this report are as follows: |
R B Gaddy, G Kutwaroo, S Gilroy and H L Block were appointed as directors after 31 December 2022 but prior |
to the date of this report. |
M H Greenspan, J G Holbrook, S Gilroy and H L Block ceased to be directors after 31 December 2022 but prior |
to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
As permitted by Paragraph 1A of schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and reports) Regulations 2008 certain matters which are required to be disclosed in the directors' report have been omitted as they are included in the strategic report |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group 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 she is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable her to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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 group's auditors are unaware, and each director has taken all the steps that she ought to have taken as a director in order to make aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
REPORT OF THE DIRECTOR |
For The Year Ended 31 December 2022 |
AUDITORS |
The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FUTURESOURCE HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Futuresource Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2022 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the 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 Group 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 Group 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 Group 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 |
FUTURESOURCE HOLDINGS LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FUTURESOURCE HOLDINGS 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. |
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: |
- We obtained an understanding of the legal and regulatory frameworks that are applicable to the parent company and group and determined that the most significant frameworks which are directly relevant so specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK. |
- We understood how the parent company and group are complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance. |
- We assess the susceptibility of the parent company's and group's financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the parent company and group has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets. |
- Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above. |
- We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
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. |
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. |
for and on behalf of |
1 Rushmills |
Bedford Road |
Northampton |
Northamptonshire |
NN4 7YB |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
For The Year Ended 31 December 2022 |
2022 | 2021 |
Notes | £ | £ |
TURNOVER | 3 | 8,528,431 | 8,258,375 |
Administrative expenses | 7,582,179 | 7,323,511 |
946,252 | 934,864 |
Other operating income | 36,909 | 49,477 |
OPERATING PROFIT | 5 | 983,161 | 984,341 |
Interest receivable and similar income | 169,741 | 114,673 |
1,152,902 | 1,099,014 |
Interest payable and similar expenses | 6 | - | 1,644 |
PROFIT BEFORE TAXATION | 1,152,902 | 1,097,370 |
Tax on profit | 7 | 525,286 | 515,950 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
Foreign exchange movement | - | (1,800 | ) |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
- |
(1,800 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
627,616 |
579,620 |
Profit attributable to: |
Owners of the parent | 627,616 | 581,420 |
Total comprehensive income attributable to: |
Owners of the parent | 627,616 | 579,620 |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
CONSOLIDATED BALANCE SHEET |
31 December 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 6,336,688 | 7,771,570 |
Tangible assets | 11 | 101,831 | 94,172 |
Investments | 12 | - | - |
6,438,519 | 7,865,742 |
CURRENT ASSETS |
Debtors | 13 | 7,502,828 | 5,625,178 |
Cash at bank and in hand | 320,718 | 606,341 |
7,823,546 | 6,231,519 |
CREDITORS |
Amounts falling due within one year | 14 | 2,870,936 | 3,201,496 |
NET CURRENT ASSETS | 4,952,610 | 3,030,023 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 11,391,129 | 10,895,765 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(124,529 |
) |
(254,876 |
) |
PROVISIONS FOR LIABILITIES | 17 | (24,854 | ) | (26,759 | ) |
NET ASSETS | 11,241,746 | 10,614,130 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 9,951 | 9,951 |
Share premium | 19 | 12,644,806 | 12,644,806 |
Capital redemption reserve | 19 | 4,525 | 4,525 |
Other reserves | 19 | (3,825 | ) | (3,825 | ) |
Retained earnings | 19 | (1,413,711 | ) | (2,041,327 | ) |
11,241,746 | 10,614,130 |
The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2024 and were signed by: |
G Kutwaroo - Director |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
COMPANY BALANCE SHEET |
31 December 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 13 |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Share premium | 19 |
Retained earnings | 19 |
Company's profit for the financial year | 561,218 | 2,193,970 |
The financial statements were approved by the Board of Directors and authorised for issue on |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
For The Year Ended 31 December 2022 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 January 2021 | 9,966 | (519,106 | ) | 12,644,806 |
Changes in equity |
Issue of share capital | (15 | ) | - | - |
Dividends | - | (2,103,641 | ) | - |
Total comprehensive income | - | 581,420 | - |
Balance at 31 December 2021 | 9,951 | (2,041,327 | ) | 12,644,806 |
Changes in equity |
Total comprehensive income | - | 627,616 | - |
Balance at 31 December 2022 | 9,951 | (1,413,711 | ) | 12,644,806 |
Capital |
redemption | Other | Total |
reserve | reserves | equity |
£ | £ | £ |
Balance at 1 January 2021 | 4,525 | (2,025 | ) | 12,138,166 |
Changes in equity |
Issue of share capital | - | - | (15 | ) |
Dividends | - | - | (2,103,641 | ) |
Total comprehensive income | - | (1,800 | ) | 579,620 |
Balance at 31 December 2021 | 4,525 | (3,825 | ) | 10,614,130 |
Changes in equity |
Total comprehensive income | - | - | 627,616 |
Balance at 31 December 2022 | 4,525 | (3,825 | ) | 11,241,746 |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
For The Year Ended 31 December 2022 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 January 2021 |
Changes in equity |
Issue of share capital | ( |
) | - | ( |
) |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 December 2021 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 December 2022 |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
CONSOLIDATED CASH FLOW STATEMENT |
For The Year Ended 31 December 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,345,192 | 2,584,089 |
Interest paid | - | (1,644 | ) |
Tax paid | (846,594 | ) | (305,757 | ) |
Net cash from operating activities | 1,498,598 | 2,276,688 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (600 | ) | - |
Purchase of tangible fixed assets | (46,029 | ) | - |
Interest received | 169,741 | 114,673 |
Related party loan movements | (1,907,333 | ) | (241,833 | ) |
Net cash from investing activities | (1,784,221 | ) | (127,160 | ) |
Cash flows from financing activities |
Equity dividends paid | - | (2,103,641 | ) |
Net cash from financing activities | - | (2,103,641 | ) |
(Decrease)/increase in cash and cash equivalents | (285,623 | ) | 45,887 |
Cash and cash equivalents at beginning of year |
2 |
606,341 |
560,454 |
Cash and cash equivalents at end of year |
2 |
320,718 |
606,341 |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
For The Year Ended 31 December 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
£ | £ |
Profit before taxation | 1,152,902 | 1,097,370 |
Depreciation charges | 1,473,380 | 1,485,363 |
Loss on disposal of fixed assets | 473 | 9 |
Foreign exchange differences | - | (1,800 | ) |
Finance costs | - | 1,644 |
Finance income | (169,741 | ) | (114,673 | ) |
2,457,014 | 2,467,913 |
Decrease/(increase) in trade and other debtors | 12,662 | (890,477 | ) |
(Decrease)/increase in trade and other creditors | (124,484 | ) | 1,006,653 |
Cash generated from operations | 2,345,192 | 2,584,089 |
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 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 320,718 | 606,341 |
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 606,341 | 560,454 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.22 | Cash flow | At 31.12.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 606,341 | (285,623 | ) | 320,718 |
606,341 | (285,623 | ) | 320,718 |
Total | 606,341 | (285,623 | ) | 320,718 |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
For The Year Ended 31 December 2022 |
1. | STATUTORY INFORMATION |
Futuresource Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
There were no material departures that standard. |
Functional and presentational currency |
The Company's functional and presentational currency is GBP. |
Significant judgements and estimates |
The group makes estimates and assumptions concerning the future. The resulting accounting |
estimates will, by definition, seldom equal the related actual results. We have considered the estimates |
and assumptions made by the company and have not identified any which are deemed to have a |
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within |
the next financial year. |
There are significant intercompany and related party receivables held in the balance sheet of the company. The directors consider that the recoverability of these represents a significant point of judgement within the presentation of the financial statements. |
Those balances due from it's UK holding companies are considered to be potentially settled at a later date through the issue of dividends from the company to the UK parent companies, and the company and it's subsidiary retains sufficient reserves to do so. There have been no provisions against intercompany receivables. |
Those balances due to the group from overseas related parties have been given personal support by the ultimate shareholder of the related entities. There have been no provisions against related party receivables. |
The useful economic life of Goodwill represents a matter of judgement on the part of the directors and the ongoing carrying value of goodwill is deemed to be not impaired based on the level of activity and ongoing operations of the business. |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover represents the value, net of value added tax, of goods and services supplied to customers during the year. Sales are recognised at the point at which the company has fulfilled its contractual obligations. |
The group recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the customer; (b) the entity retains no continuing involvement or control over the services; (c) the amount of revenue can be measured reliably and (d) it is probable that future economic benefits will flow to the group. |
Goodwill |
Goodwill is the difference between the fair value of consideration paid for an acquired entry and the aggregate fair value of that entity's identifiable assets and liabilities. |
Positive goodwill is capitalised, classed as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable |
Amortisation is calculated so as to write off the cost of an asset, net of anticipated disposal proceeds, over the estimated useful economic life of that asset as follows: |
Goodwill - 10% straight line |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Computer software is amortised over 3 years straight line. |
Tangible fixed assets |
Tangible fixed assets are stated at cost less depreciation. Cost represents purchase price together with any incidental costs of acquisition. |
Depreciation is calculated so as to write off the cost or revaluation of an assets, net of anticipated disposal proceeds, over the useful economic life of that asset as follows: |
Improvements to property - lease term |
Fixtures & fittings - 20% straight line |
Office equipment - 20% straight line |
Software - 33% straight line |
Tangible fixed assets are initially recorded at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses. |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Basic financial assets, including trade and other receivables, cash and bank balances and investments, are |
initially recognised at transaction price, 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. Basic financial assets, including trade and other receivables, cash and bank balances and investments, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
Basic financial liabilities, including trade and other payables, bank loans and loans from fellow Group companies, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
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 Consolidated Statement of Comprehensive Income, 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. |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred, except that development expenditure incurred on an individual project is carried forward when its future recoverability can reasonably be regarded as assured. Any expenditure carried forward is amortised in line with the expected future sales from the related project. |
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. |
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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Going concern |
The directors have considered the impact of the current economic environment (including any residual issues relating to the COVID-19 pandemic) in relation to their assessment of going concern and in their opinion have taken all reasonable steps to mitigate these factors. As at the point of authorising the accounts, and for the foreseeable future, the directors consider the going concern assumption to still be appropriate. 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. |
The ultimate shareholder of the related entities has agreed to support the recovery of balances with |
overseas related party entities should this be required. Support is also available, if required, from an |
additional related party entity. |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2022 | 2021 |
£ | £ |
United Kingdom | 487,622 | 660,670 |
Europe | 1,327,126 | 1,321,340 |
Rest of world | 6,713,683 | 6,276,365 |
8,528,431 | 8,258,375 |
4. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries | 3,020,005 | 3,123,649 |
Social security costs | 398,244 | 332,294 |
Other pension costs | 161,746 | 193,565 |
3,579,995 | 3,649,508 |
The average number of employees during the year was as follows: |
2022 | 2021 |
Research | 34 | 35 |
IT/Technology | 4 | 5 |
Sales and marketing | 12 | 9 |
Operations | 2 | 2 |
2022 | 2021 |
£ | £ |
Directors' remuneration | - | - |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Other operating leases | 190,166 | 186,044 |
Depreciation - owned assets | 37,897 | 42,261 |
Loss on disposal of fixed assets | - | 9 |
Goodwill amortisation | 1,420,508 | 1,420,510 |
Computer software amortisation | 14,974 | 22,592 |
Auditors' remuneration | 16,770 | 8,750 |
Auditors' remuneration for non audit work | 8,990 | 5,700 |
Foreign exchange differences | (81,107 | ) | 84,416 |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Other interest | - | 1,644 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax | 480,615 | 503,922 |
Over/under provision | 46,576 | 14,602 |
Total current tax | 527,191 | 518,524 |
Deferred tax | (1,905 | ) | (2,574 | ) |
Tax on profit | 525,286 | 515,950 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2022 | 2021 |
£ | £ |
Profit before tax | 1,152,902 | 1,097,370 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
219,051 |
208,500 |
Effects of: |
Expenses not deductible for tax purposes | 270,207 | 283,735 |
Income not taxable for tax purposes | (7,319 | ) | (623 | ) |
Capital allowances in excess of depreciation | (1,324 | ) | - |
Depreciation in excess of capital allowances | - | 12,310 |
Adjustments to tax charge in respect of previous periods | 46,576 | 14,602 |
Deferred tax movement | (1,905 | ) | (2,574 | ) |
Total tax charge | 525,286 | 515,950 |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 31 December 2022. |
2021 |
Gross | Tax | Net |
£ | £ | £ |
Foreign exchange movement | (1,800 | ) | - | (1,800 | ) |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
7. | TAXATION - continued |
At Spring Budget 2021, the government announced an increase in the Corporation Tax main rate from 19% to 25% for companies with profits over £250,000. There is a small company rate of 19% for taxable profits under £50,000 and marginal relief available for profits falling between £50,000 - £250,000 with effect from 1 April 2023. Deferred tax has therefore been calculated at the future rate of 25%. |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2022 | 2021 |
£ | £ |
shares of each |
Interim | - | 2,103,641 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 1 January 2022 | 14,714,146 | 292,942 | 15,007,088 |
Additions | - | 600 | 600 |
At 31 December 2022 | 14,714,146 | 293,542 | 15,007,688 |
AMORTISATION |
At 1 January 2022 | 6,960,533 | 274,985 | 7,235,518 |
Amortisation for year | 1,420,508 | 14,974 | 1,435,482 |
At 31 December 2022 | 8,381,041 | 289,959 | 8,671,000 |
NET BOOK VALUE |
At 31 December 2022 | 6,333,105 | 3,583 | 6,336,688 |
At 31 December 2021 | 7,753,613 | 17,957 | 7,771,570 |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
11. | TANGIBLE FIXED ASSETS |
Group |
Improvements | Fixtures |
to | Office | and |
property | equipment | fittings | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2022 | 203,143 | 221,573 | 7,455 | 432,171 |
Additions | - | 46,029 | - | 46,029 |
Disposals | (106,337 | ) | (100,696 | ) | (3,475 | ) | (210,508 | ) |
At 31 December 2022 | 96,806 | 166,906 | 3,980 | 267,692 |
DEPRECIATION |
At 1 January 2022 | 149,255 | 182,350 | 6,394 | 337,999 |
Charge for year | 9,681 | 27,476 | 740 | 37,897 |
Eliminated on disposal | (106,337 | ) | (100,223 | ) | (3,475 | ) | (210,035 | ) |
At 31 December 2022 | 52,599 | 109,603 | 3,659 | 165,861 |
NET BOOK VALUE |
At 31 December 2022 | 44,207 | 57,303 | 321 | 101,831 |
At 31 December 2021 | 53,888 | 39,223 | 1,061 | 94,172 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: 4 Beaconsfield Road, St Albans, Hertfordshire, AL1 3RD |
Nature of business: |
% |
Class of shares: | holding |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
12. | FIXED ASSET INVESTMENTS - continued |
Futuresource US LLC |
Registered office: 2140 S Dupont Highway, Camden, Kent County, Delaware 19934 |
Nature of business: Consulting services |
% |
Class of shares: | holding |
Units of membership interest | 100.00 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Trade debtors | 1,459,018 | 1,407,597 |
Amounts owed by group undertakings | 2,022,819 | 2,015,595 |
Other debtors | 3,394,502 | 1,493,263 |
Tax | 748 | 17,769 |
VAT | 88,418 | 25,205 |
Prepayments and accrued income | 537,323 | 665,749 |
7,502,828 | 5,625,178 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Trade creditors | 673,545 | 262,219 |
Amounts owed to group undertakings | - | - |
Corporation tax | 46,546 | 336,423 |
Social security and other taxes | - | 5,444 |
Other creditors | 31,427 | 36,402 |
Accruals and deferred income | 2,119,418 | 2,561,008 |
2,870,936 | 3,201,496 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2022 | 2021 |
£ | £ |
Accruals and deferred income | 124,529 | 254,876 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
Group |
Non-cancellable | operating leases |
2022 | 2021 |
£ | £ |
Within one year | 170,200 | 170,200 |
Between one and five years | 581,517 | 680,800 |
In more than five years | - | 70,917 |
751,717 | 921,917 |
17. | PROVISIONS FOR LIABILITIES |
Group |
2022 | 2021 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 24,854 | 26,759 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2022 | 26,759 |
Credit to Statement of Comprehensive Income during year | (1,905 | ) |
Balance at 31 December 2022 | 24,854 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal Value: | 2022 | 2021 |
£ | £ | £ |
7,510 | A Ordinary | £1 | 7,510 | 7,510 |
1,500 | B Ordinary | £1 | 1,500 | 1,500 |
30 | B1 Ordinary | £1 | 30 | 30 |
510 | C Ordinary | £1 | 510 | 510 |
401 | D Ordinary | £1 | 401 | 401 |
9,951 | 9,951 |
19. | RESERVES |
Group |
Capital |
Retained | Share | redemption | Other |
earnings | premium | reserve | reserves | Totals |
£ | £ | £ | £ | £ |
At 1 January 2022 | (2,041,327 | ) | 12,644,806 | 4,525 | (3,825 | ) | 10,604,179 |
Profit for the year | 627,616 | 627,616 |
At 31 December 2022 | (1,413,711 | ) | 12,644,806 | 4,525 | (3,825 | ) | 11,231,795 |
FUTURESOURCE HOLDINGS LIMITED (REGISTERED NUMBER: 10808392) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
19. | RESERVES - continued |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2022 | 12,761,352 |
Profit for the year |
At 31 December 2022 | 13,322,570 |
20. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme.The pension charge for the year represents contributions payable by the company to the scheme and amounted to £161,746 (2021: £193,565). |
Contributions totalling £24,854 (2021: £10.883) were payable to the scheme at the end of the period and are included in other creditors. |
21. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
During the year the group incurred management charges from related parties of £1,036,973 (2021: |
£474,558) and recharged costs to related parties of £281,566 (2021: £nil). At the year end an amount of |
£241,906 (2021: £194,395) was owed to the related party. |
During the year the group increased the loan to a related party at an interest rate of 5%. At the year |
end £1,602,585 (2021: £110,498) is due from the related party and is included in other debtors. |
During the year the group increased the loan to another related party at an interest rate of LIBOR + 8%. At the year end £1,486,875 (2021: £1,364,198) is due from the related party and is included in other debtors. |
22. | POST BALANCE SHEET EVENTS |
In January 2023, joint provisional liquidators of four Bermuda based insurance companies filed a complaint in the United States bankruptcy court (Southern District of New York) against certain individuals and all affiliated companies in the wider group of which the company is part. The directors consider that it is unclear what the plaintiffs allege as to the company's direct involvement, if anything. At this time the directors and legal counsel are not aware that this claim on members of the group has any implication for, or impact on, the company but have disclosed the matter for the purposes of transparency. |
23. | ULTIMATE CONTROLLING PARTY |
The immediate controlling party is Global Data Insights Limited. |
From 27 January 2023 the ultimate controlling party is Robert Gaddy as sole beneficiary of the Futuresource Group Trust. (Previously G E Lindberg). |