The Client Relationship Consultancy Limited
Financial Statements
For the year ended 31 December 2023
Pages for Filing with Registrar
Company Registration No. 09865115 (England and Wales)
The Client Relationship Consultancy Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 10
The Client Relationship Consultancy Limited
Balance Sheet
As at 31 December 2023
Page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
6
160,923
123,681
Current assets
Debtors
7
2,488,015
3,003,050
Cash at bank and in hand
1,608,941
843,546
4,096,956
3,846,596
Creditors: amounts falling due within one year
8
(4,066,936)
(3,653,640)
Net current assets
30,020
192,956
Total assets less current liabilities
190,943
316,637
Provisions for liabilities
(43,129)
(43,129)
Net assets
147,814
273,508
Capital and reserves
Called up share capital
9
100
100
Profit and loss reserves
147,714
273,408
Total equity
147,814
273,508

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

The financial statements were approved by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
P Cowan
Director
Company Registration No. 09865115
The Client Relationship Consultancy Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 2
1
Accounting policies
Company information

The Client Relationship Consultancy Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6 Valentine Place, London, England, SE1 8QH.

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 as applicable to companies subject to the small companies regime.

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.

1.2
Going concern

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

1.3
Turnover

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

 

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

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

1.4
Intangible fixed assets other than goodwill

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

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

At 31 December 2023, the net book value of the intangible assets were nil however, these assets are still in use by the company.

The Client Relationship Consultancy Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 3
1.5
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:

Leasehold land and buildings
Written down over the life of the lease (10 years)
Computers
33% 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.

1.6
Cash and cash equivalents

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

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet 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.

The Client Relationship Consultancy Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 4
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.

The Client Relationship Consultancy Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 5
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.8
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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.

1.9
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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.

The Client Relationship Consultancy Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 6
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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are 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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Revenue recognition

Revenue from contracts is assessed on an individual basis with revenue earned being ascertained based on the stage of completion of the contract which is estimated using a combination of the milestones in the contract and the time spent to date compared to the total time expected to be required to undertake the contract. Estimates of the total time required to undertake the contracts are made on a regular basis and subject to management review.

3
Operating loss
2023
2022
Operating loss for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
44,117
54,475
Depreciation of tangible fixed assets
49,743
49,012
Exchange losses
3,534
267,942
The Client Relationship Consultancy Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 7
4
Employees

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

2023
2022
Number
Number
Total
57
55
5
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(183,001)

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

2023
2022
£
£
Loss before taxation
(125,694)
(447,704)
Expected tax credit based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
(29,538)
(85,064)
Tax effect of expenses that are not deductible in determining taxable profit
2,765
(97,937)
Group relief
26,773
-
0
Taxation charge/(credit) for the year
-
(183,001)
The Client Relationship Consultancy Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 8
6
Tangible fixed assets
Leasehold land and buildings
Computers
Total
£
£
£
Cost
At 1 January 2023
142,690
512,105
654,795
Additions
39,800
47,185
86,985
At 31 December 2023
182,490
559,290
741,780
Depreciation and impairment
At 1 January 2023
77,575
453,539
531,114
Depreciation charged in the year
9,177
40,566
49,743
At 31 December 2023
86,752
494,105
580,857
Carrying amount
At 31 December 2023
95,738
65,185
160,923
At 31 December 2022
65,115
58,566
123,681

At 31 December 2023, the company had intangibles assets with a net book value of Nil however, these assets are still in use.

7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
179,439
1,560,347
Corporation tax recoverable
182,761
329,864
Amounts owed by group undertakings
1,808,018
795,343
Other debtors
1,714
83,126
Prepayments and accrued income
316,083
234,370
2,488,015
3,003,050
The Client Relationship Consultancy Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 9
8
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
248,465
389,614
Amounts owed to group undertakings
2,736,461
2,523,892
Taxation and social security
340,903
299,249
Accruals and deferred income
741,107
440,885
4,066,936
3,653,640
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100

 

10
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Esther Carder
Statutory Auditor:
Moore Kingston Smith LLP
11
Operating lease commitments
Lessee

At 31 December 2023, the Company has lease agreements in respect of land and buildings which payments extend over a number of years. The Company enters into these arrangements as these are a cost-efficient way of obtaining the short-term benefits of these assets. There are no other material off-balance sheet arrangements.

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

2023
2022
£
£
883,511
1,083,021
12
Related party transactions
The Client Relationship Consultancy Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
12
Related party transactions
(Continued)
Page 10

The company has taken the exemption under Section 33 Related Party Disclosures paragraph 33.1A from disclosing transactions with other members of a wholly owned group.

 

13
Parent company

The immediate parent company is The Client Relationship Consultancy Group Limited, a company registered in England & Wales, with the address 6 Valentine Place, London, SE1 8QH.

 

The ultimate parent company is Patron Topco Limited, a company registered in England & Wales, with the address 6 Valentine Place, London, England, SE1 8QH. There is no single ultimate controlling party.

 

14
Fixed and Floating charges

On 2 December 2022, a charge was registered in favour of Coniston Capital I LP. The registered charge is a fixed charge, a floating charge covering all the property and undertakings of the company and a negative pledge. The charge is over Patron Topco Limited, Patron Bidco Limited, The Client Relationship Consultancy Group Limited, The Customer Relationship Consultancy Limited, The Client Relationship Consultancy Limited,The Client Relationship Consultancy Inc, CRC Latam Limited, CRC USA Limited, The Client Relationship Asia PTE Ltd, and The Client Relationship Consultancy Mexico S.A. de C.V. The amount of the Loan Note Instruments covered by the charges is £3,267,000.

 

On 19 December 2022, a charge was registered in favour of (E) Equal Consultancy Limited. The

registered charge is a fixed charge, a floating charge covering all the property and undertakings of the company and a negative pledge. The charge is over Patron Topco Limited, Patron Bidco Limited, The Client Relationship Consultancy Group Limited,The Client Relationship Consultancy Limited,The Client Relationship Consultancy Inc, CRC Latam Limited, CRC USA Limited, The Client Relationship Asia PTE Ltd, and The Client Relationship Consultancy Mexico S.A. de C.V. The amount of the Loan Note Instruments covered by the charges is £3,267,000.

 

On 19 December 2022, a charge was registered in favour of Coniston Capital I LP.The registered charge is a fixed charge, a floating charge covering all the property and undertakings of the company and a negative pledge. The charge is over Patron Topco Limited, Patron Bidco Limited, The Client Relationship Consultancy Group Limited,The Client Relationship Consultancy Limited,The Client Relationship Consultancy Inc, CRC Latam Limited, CRC USA Limited, The Client Relationship Asia PTE Ltd, and The Client Relationship Consultancy Mexico S.A. de C.V. The amount of the Loan Note Instruments covered by the charges is £3,267,000.

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