Registered number:
For the year ended
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Fresh Approach (UK) Limited
Company Information
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Fresh Approach (UK) Limited
Contents
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Fresh Approach (UK) Limited
Strategic Report
For the year ended 31 December 2023
The directors present their Strategic Report for the year ending 31 December 2023.
The principal activity of the company is that of a global brand experience agency. The company creates and delivers immersive experiences through brand activations, events and creative communications through multiple channels including strategy, content, experiential, design, film, digital and exhibitions.
Business review Given the tough economic climate and challenges in our sector the directors are delighted with the overall performance of the business in the year to 31 December 2023. Following very strong years in 2021 and 2022, 2023 was always going to be difficult to emulate and build upon due to some of the one-off nature of the projects that were delivered in 2022. The trading sales decreased by £6,311,882 to £11,467,268 (2022 - £17,779,150) in the year to 31 December 2023. This reduction in sales is largely due to the one-off nature projects being delivered in 2022. A significant proportion of the reduced sales were 3rd party supplier costs being passed through the business. Despite our actual gross profit decreasing by £945,416 to £5,266,164 (2022 - £6,211,580), the gross margin increased by 11.0% to 45.9% (2022 – 34.9%) due to these reduced 3rd party pass through costs. This increased gross profit margin, together with careful and considered cost management, has ensured that the resulting profit before tax wasn’t impacted too much from the reduction in sales, reducing by £875,431 to £611,093 for the year to 31 December 2023. This has then filtered down to an overall reduction in the net profit margin of 3.1% to 5.3% (2022 – 8.4%) During the year the business’s liquidity and cash flow remained strong enabling us to continue to invest in our team, hardware, software, and services, all whilst carefully controlling the cost base. The significant time invested in pitch work and getting closer to our existing clients during 2023 has resulted in the award of several multiyear contracts for some key clients and well-known global brands. We will continue to develop and build on these successes to further grow and develop over the coming years. A key strategic focus for the business during 2023 was working towards delivering environmentally friendly and sustainable events. The business is proud to have achieved IS20121 in Sustainable Event Management, in addition to a silver award by EcoVardis, this to manage and control the social, economic, and environmental impact of our events, in addition to offsetting our carbon footprint by investing in and supporting the UK’s various reforestation schemes.
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Fresh Approach (UK) Limited
Strategic Report (continued)
For the year ended 31 December 2023
The events, marketing and corporate communications industry is one that is highly competitive which can subject the business to increased risk together with increased opportunities. Although many of our clients are long-standing, these businesses will often put their services out for competitive review or will simply make cost savings internally and cancel events for a multitude of reasons.
Our employees are the most important assets within the business and the retention and recruitment of high caliber talent is key to our future. This fresh talent is instrumental in delivering our creative services, building client relationships, and winning new business. We provide a competitive rewards package, a modern creative workspace and ongoing training and development programs. The loss of key talent could potentially impact the quality of services provided leading to a potentially damaged reputation, loss of clients and ultimately revenues. As the business trades in the service industry, and mainly the retail sector, the performance of the business will often depend on the financial health of its clients and the economic climate in which they may operate. The company seeks to mitigate these risks by operating across diverse sectors together with widening the current client base. Key performance indicators The business uses several financial and non-financial key performance indicators to monitor the business performance:
This report was approved by the board and signed on its behalf.
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Fresh Approach (UK) Limited
Directors' Report
For the year ended 31 December 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements 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 directors are 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 to enable them to ensure that the financial statements comply with the Companies Act 2006. They are 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.
The profit for the year, after taxation, amounted to £488,051 (2022 - £1,276,444).
Dividends totalling £nil (2022: £nil) were paid during the year. The directors do not recommend the payment of a final dividend (2022: £nil).
The directors who served during the year were:
Details of the likely future developments in the Company's business are included in the Strategic Report.
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Fresh Approach (UK) Limited
Directors' Report (continued)
For the year ended 31 December 2023
The Company's principal financial instruments comprise bank balances, trade creditors, trade debtors and intercompany
loans. The main purpose of these instruments is to finance the Company's operations. The Company's approach to managing other risks applicable to the financial instruments concerned is shown below. In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexible borrowing. The company manages liquidity risk by ensuring there are sufficient funds to meet the payments. The intercompany loan has been extended to the Company's parent, and is repayable when finance is required by the Company. The directors are aware of the Company's finance requirements and have determined that these will only be repaid, in whole or in part, when finance is available. Trade debtors are managed in respect of credit and cashflow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
There have been no post balance sheet events.
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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Fresh Approach (UK) Limited
Independent Auditors' Report to the Members of Fresh Approach (UK) Limited
We have audited the financial statements of Fresh Approach (UK) Limited (the 'Company') for the year ended 31 December 2023, which comprise the statement of comprehensive income, the statement of financial position, the statement of cash flows, the statement of changes in equity and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the directors' 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 directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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Fresh Approach (UK) Limited
Independent Auditors' Report to the Members of Fresh Approach (UK) Limited (continued)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 directors' report.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
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Fresh Approach (UK) Limited
Independent Auditors' Report to the Members of Fresh Approach (UK) Limited (continued)
Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
∙The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
∙The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud.
∙Supporting documentation relating to the Company's policies and procedures for:
°Identifying, evaluating, and complying with laws and regulations
°Detecting and responding to the risks of fraud
∙The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
∙The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
∙The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Antibribery and Corruption.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
∙Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
∙Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
∙Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
∙Enquiring of management about any actual and potential litigation and claims.
∙Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
We have also considered the risk of fraud through management override of controls by:
∙Testing the appropriateness of journal entries and other adjustments.
∙Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
∙Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members
and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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Fresh Approach (UK) Limited
Independent Auditors' Report to the Members of Fresh Approach (UK) Limited (continued)
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 auditors' report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants & Statutory Auditors
3 Stockport Exchange
SK1 3GG
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Fresh Approach (UK) Limited
Statement of Comprehensive Income
For the year ended 31 December 2023
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Fresh Approach (UK) Limited
Registered number: 05210250
Statement of Financial Position
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 27 form part of these financial statements.
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Fresh Approach (UK) Limited
Statement of Changes in Equity
For the year ended 31 December 2023
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Fresh Approach (UK) Limited
Statement of Cash Flows
For the year ended 31 December 2023
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Fresh Approach (UK) Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Fresh Approach (UK) Limited is a private company limited by members capital incorporated in England and Wales. The address of the registered office and principal place of business is Fin House, 1 Oakwater Avenue, Cheadle Royal Business Park, Cheadle, Cheshire, SK8 3SR. The company's registration number is 05210250.
The nature of the company's operation and principal activity is that of the creation and delivery of creative communications through live events, strategy and content, experiential, design, film, digital and exhibitions.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3). The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Fresh Approach (UK) Holdings Limited as at 31 December 2023 and these financial statements may be obtained from Companies House.
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Fresh Approach (UK) Limited
Notes to the Financial Statements
For the year ended 31 December 2023
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
When the outcome of contracts can be estimated reliably, contract revenue and contract costs are recognised as revenue and expenses respectively by reference to the stage of completion at the end of the reporting period. Reliable estimation of the outcome of contracts requires reliable estimates of the stage of completion, future costs, and collectability of billings. When the outcome of a contract cannot be estimated reliably, revenue is only recognised to the extent of contract costs incurred that it is probable will be recoverable. When it is probable that the total contract costs will exceed total contract revenue on a contract, the expected loss shall be recognised as an expense immediately, with a corresponding provision for an onerous contract. Revenue in respect of variations to contracts and incentive payments is recognised when it is probable it will be agreed by the customer. Where costs incurred plus recognised profits less recognised losses exceed progress billing, the balance is shown within debtors. Where progress billings exceed costs incurred plus recognised profits less recognised losses, the balance is shown within creditors.
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Fresh Approach (UK) Limited
Notes to the Financial Statements
For the year ended 31 December 2023
2.Accounting policies (continued)
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Fresh Approach (UK) Limited
Notes to the Financial Statements
For the year ended 31 December 2023
2.Accounting policies (continued)
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:
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 date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
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Fresh Approach (UK) Limited
Notes to the Financial Statements
For the year ended 31 December 2023
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The tax expense for the year comprises current and deferred tax. Tax is recognised in the statement of comprehensive income, except that a change attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the statement of financial position date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's statement of financial position when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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Fresh Approach (UK) Limited
Notes to the Financial Statements
For the year ended 31 December 2023
2.Accounting policies (continued)
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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, and loans to related parties.
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Fresh Approach (UK) Limited
Notes to the Financial Statements
For the year ended 31 December 2023
2.Accounting policies (continued)
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
Management discussed with the directors the development, selection and disclosure of the Company's critical accounting policies and estimates and the application of these policies and estimates. The key sources of estimation, uncertainty and critical accounting judgements in applying the Company's policies are discussed below: Revenue recognition and work in progress The Company's revenue recognition and margin recognition policies, which are set out in note 2.4, are central to how the Company values the work it has carried out in each financial year. These policies require forecasts to be made of contract outcomes, which require assessment and judgements to be made in respect of budgeted costs and final margins. The Company reviews and, when necessary, revises the estimates of revenue and costs as the contract progresses.
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Fresh Approach (UK) Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Analysis of turnover by country of destination:
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Fresh Approach (UK) Limited
Notes to the Financial Statements
For the year ended 31 December 2023
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Fresh Approach (UK) Limited
Notes to the Financial Statements
For the year ended 31 December 2023
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Fresh Approach (UK) Limited
Notes to the Financial Statements
For the year ended 31 December 2023
There were no factors that may affect future tax charges.
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Fresh Approach (UK) Limited
Notes to the Financial Statements
For the year ended 31 December 2023
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Fresh Approach (UK) Limited
Notes to the Financial Statements
For the year ended 31 December 2023
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Fresh Approach (UK) Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Share premium account
Capital redemption reserve
Profit and loss account
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Fresh Approach (UK) Limited
Notes to the Financial Statements
For the year ended 31 December 2023
The company has given a cross-guarantee over its assets in respect of loan notes issued by its parent company, Fresh Approach (UK) Holdings Limited, which are secured by a debenture over the assets of the group. The amount outstanding on these loan notes at 31 December 2023 was £2,986,484 (2022: £3,155,858).
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £108,954 (2022: £131,755). Contributions totalling £20,500 (2022: £51,907) were payable to the fund at the balance sheet date and are included in creditors.
The ultimate parent undertaking and controlling party is Fresh Approach (UK) Holdings Limited, a company incorporated in England and Wales, registration number 9005926. There is no overall controlling party of Fresh Approach (UK) Holdings Limited.
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