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Registration number: 03117757

St Luke's Holdings Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 December 2023

 

St Luke's Holdings Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Consolidated Profit and Loss Account

11

Consolidated Balance Sheet

12

Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Statement of Changes in Equity

15

Consolidated Statement of Cash Flows

16

Notes to the Financial Statements

17 to 31

 

St Luke's Holdings Limited

Company Information

Directors

N Henderson

A Young

Registered office

7th Floor
Imperial House
8 Kean Street
LONDON
WC2B 4AS

Auditors

McBrides Accountants LLP
Nexus House
Cray Road
Sidcup
Kent
DA14 5DA

 

St Luke's Holdings Limited

Strategic Report for the Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

We aim to present a balanced and comprehensive review of the development and performance of our business during the period and its position at the year end.

Our review is consistent with the size and non complex nature of our business and is written in the context of the risks and uncertainties we face.

We consider that the group's profit margin is the key performance indicator that demonstrates the strength of the group and its financial performance.

Principal activity

The company is a non-trading holding company, and the principal activity of the subsidiary, St Luke's Communications Limited, is that of an advertising agency.

Fair review of the business

The group has suffered a loss before tax in the year of £366k (2022: £503k).

The directors note the following key performance indicators which are used by management to actively and effectively run the business with the joint aims of maximising stakeholder value and profitability.

Gross profit

The directors note that gross profit decreased by 26% from £7.05m in 2022 to £5.2m in 2023, and gross margin is 64% compared to 54% in 2022.

Administrative expenses

The directors note that administrative expenses have decreased by £773k. This was due to a reduction in staffing costs which is in line with a reduction in the number of employees as a result of the decline in business as the markets slow down.

Principal risks and uncertainties

Whilst client satisfaction is key to our ethos, a small amount of client turnover is an inevitable risk we have in common with all our competitors. Client losses can happen for a variety of reasons and, whilst our client profile is well diversified to mitigate this risk, we continue to focus on converting new leads using our reputation for service delivery, the creative excellence of our staff, and the breadth of our offering. There is also the risk, as a result of wider economic factors, that advertising budgets and fees are reduced or clients cease trading or run out of funding after work has begun. We seek to reduce this risk by selecting our client relationships carefully and carrying out thorough due diligence checks when necessary. The other risks the group faces include the financial risks noted in the Directors’ Report, the risk that key staff move on, and the risk that regulatory and legal changes might affect our own industry or our clients’ appetite for using our services.

 

St Luke's Holdings Limited

Strategic Report for the Year Ended 31 December 2023

Approved by the Board on 25 September 2024 and signed on its behalf by:


N Henderson
Director

 

St Luke's Holdings Limited

Directors' Report for the Year Ended 31 December 2023

The directors present their report and the for the year ended 31 December 2023.

Directors of the group

The directors who held office during the year were as follows:

N Henderson

A Young

Financial instruments

Objectives and policies

The group's principal financial instruments are trade debtors and trade creditors arising directly from operations.

Investments of cash surpluses and borrowings are made through banks and institutions which must fulfil credit rating criteria approved by the Board. All customers who wish to trade on credit terms are subject to credit verification procedures and trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary.

Price risk, credit risk, liquidity risk and cash flow risk

The group operates a treasury function which is responsible for managing the liquidity and interest risks associated with its operations.

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring it has sufficient liquid resources to meet the operating needs of the business.

Future developments

Client satisfaction remains at the heart of the company's ethos and as one part of enhancing this, the group is increasing its brand awareness and range of services it offers. The group continues to actively invest in identifying and developing new business opportunities as they arise.

 

St Luke's Holdings Limited

Directors' Report for the Year Ended 31 December 2023

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the group's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved by the Board on 25 September 2024 and signed on its behalf by:


N Henderson
Director

 

St Luke's Holdings Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and 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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

St Luke's Holdings Limited

Independent Auditor's Report to the Members of St Luke's Holdings Limited

Opinion

We have audited the financial statements of St Luke's Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and 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).

Opinion on the financial statements

In our opinion the financial statements:

give a true and fair view of the state of the group's and the company's affairs as at 31 December 2023 and of the group's loss 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 Auditor’s 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 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 group'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.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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.

 

St Luke's Holdings Limited

Independent Auditor's Report to the Members of St Luke's Holdings Limited

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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 directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities (set out on page 6), the directors are 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 directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are 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 directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

 

St Luke's Holdings Limited

Independent Auditor's Report to the Members of St Luke's Holdings Limited

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.

it is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the business.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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 auditor's report.

 

St Luke's Holdings Limited

Independent Auditor's Report to the Members of St Luke's Holdings Limited

Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.





Nick Paterno (Senior Statutory Auditor)
For and on behalf of McBrides Accountants LLP, Statutory Auditor

Nexus House
Cray Road
Sidcup
Kent
DA14 5DA

27 September 2024

 

St Luke's Holdings Limited

Consolidated Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

8,188,989

13,119,762

Cost of sales

 

(2,972,734)

(6,069,635)

Gross profit

 

5,216,255

7,050,127

Administrative expenses

 

(5,673,986)

(6,447,658)

Operating (loss)/profit

4

(457,731)

602,469

Other interest receivable and similar income

6

91,499

11,521

Exceptional items

5

-

(111,249)

(Loss)/profit before tax

 

(366,232)

502,741

Taxation

10

15,875

(100,605)

(Loss)/profit for the financial year

 

(350,357)

402,136

 

St Luke's Holdings Limited

(Registration number: 03117757)
Consolidated Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

11

78,546

143,655

Current assets

 

Stocks

13

255,286

120,070

Debtors

14

1,745,075

3,054,644

Cash at bank and in hand

 

2,901,874

3,207,104

 

4,902,235

6,381,818

Creditors: Amounts falling due within one year

16

(3,286,468)

(4,148,893)

Net current assets

 

1,615,767

2,232,925

Total assets less current liabilities

 

1,694,313

2,376,580

Provisions for liabilities

17

(31,563)

(57,862)

Net assets

 

1,662,750

2,318,718

Capital and reserves

 

Called up share capital

19

4,000

4,000

Share premium reserve

98,423

98,423

Profit and loss account

1,560,327

2,216,295

Total equity

 

1,662,750

2,318,718

Approved and authorised by the Board on 25 September 2024 and signed on its behalf by:



N Henderson

Director

 

St Luke's Holdings Limited

(Registration number: 03117757)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Investments

12

1,642,468

1,642,468

Capital and reserves

 

Called up share capital

19

4,000

4,000

Share premium reserve

98,423

98,423

Retained earnings

1,540,045

1,540,045

Shareholders' funds

 

1,642,468

1,642,468

The company has taken the exemption in s408 from producing an individual Profit and Loss Account.

The company made a profit after tax for the financial year of £305,611 (2022 - profit of £316,800).

Approved and authorised by the Board on 25 September 2024 and signed on its behalf by:
 



N Henderson

Director

 

St Luke's Holdings Limited

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

Share capital
£

Share premium
£

Profit and loss account
£

Total
£

At 1 January 2023

4,000

98,423

2,216,295

2,318,718

Loss for the year

-

-

(350,357)

(350,357)

Total comprehensive income

-

-

(350,357)

(350,357)

Dividends

-

-

(305,611)

(305,611)

At 31 December 2023

4,000

98,423

1,560,327

1,662,750

Share capital
£

Share premium
£

Profit and loss account
£

Total
£

At 1 January 2022

4,000

98,423

2,130,959

2,233,382

Profit for the year

-

-

402,136

402,136

Total comprehensive income

-

-

402,136

402,136

Dividends

-

-

(316,800)

(316,800)

At 31 December 2022

4,000

98,423

2,216,295

2,318,718

 

St Luke's Holdings Limited

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

Share capital
£

Share premium
£

Profit and loss account
£

Total
£

At 1 January 2023

4,000

98,423

1,540,045

1,642,468

Profit for the year

-

-

305,611

305,611

Total comprehensive income

-

-

305,611

305,611

Dividends

-

-

(305,611)

(305,611)

At 31 December 2023

4,000

98,423

1,540,045

1,642,468

Share capital
£

Share premium
£

Retained earnings
£

Total
£

At 1 January 2022

4,000

98,423

1,540,045

1,642,468

Profit for the year

-

-

316,800

316,800

Dividends

-

-

(316,800)

(316,800)

At 31 December 2022

4,000

98,423

1,540,045

1,642,468

 

St Luke's Holdings Limited

Consolidated Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

(Loss)/profit for the year

 

(350,357)

402,136

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

74,194

75,949

Finance income

6

(91,499)

(11,521)

Income tax expense

10

(15,875)

100,605

 

(383,537)

567,169

Working capital adjustments

 

Increase in stocks

13

(135,216)

(120,070)

Decrease in trade and other debtors

14

1,309,569

2,124,181

Decrease in trade and other creditors

16

(760,567)

(3,219,953)

(Decrease)/increase in provisions

17

(10,424)

10,424

Cash generated from operations

 

19,825

(638,249)

Income taxes paid

10

(101,858)

(225,440)

Net cash flow from operating activities

 

(82,033)

(863,689)

Cash flows from investing activities

 

Interest received

91,499

11,521

Acquisitions of tangible assets

(9,085)

(67,923)

Net cash flows from investing activities

 

82,414

(56,402)

Cash flows from financing activities

 

Dividends paid

(305,611)

(316,800)

Net decrease in cash and cash equivalents

 

(305,230)

(1,236,891)

Cash and cash equivalents at 1 January

 

3,207,104

4,443,995

Cash and cash equivalents at 31 December

 

2,901,874

3,207,104

 

St Luke's Holdings Limited

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

1

General information

The company is a private company limited by share capital, incorporated in England.

The principal activity of the individual company and group is disclosed in the Strategic Report.

The address of its registered office and principal place of business is:
7th Floor
Imperial House
8 Kean Street
LONDON
WC2B 4AS

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Basis of preparation

These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, Financial Reporting Standard 102 - 'The Financial Reporting standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006.

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2023.

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

 

St Luke's Holdings Limited

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

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

No profit and loss account is presented for the company as permitted by Section 408 of the Companies Act 2006.

Going concern

After reviewing the group's forecasts and projections, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing its financial statements.

 

St Luke's Holdings Limited

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

Critical accounting judgements and key sources of estimation uncertainty

In the application of the group's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historic experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

Specifically, judgements and estimates are required in determining the useful economic lives of fixed assets and the recoverability of trade debtors.

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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The group recognises revenue when:
- the amount of revenue can be reliably measured;
- it is probable that future economic benefits will flow to the entity;
- and specific criteria have been met for each of the company's activities.

Fees are recognised in the period to which activity relates.

Third party costs not yet billed on to clients at the year end have been recognised in the profit and loss account as accrued income with a corresponding cost of sale. To the extent that costs have been incurred in excess of income billed or accrued, these costs are carried in work-in-progress in the balance sheet. Where clients have been billed in advance for third party costs, then such revenues are deferred until the corresponding costs have been incurred or until such time as the company satisfies conditions to be able to recognise income.

Other sales revenue is recognised by reference to the stage of completion at the balance sheet date and if a right to consideration has been obtained through performance. Consideration accrues as contract activity progresses by reference to the value of work performed. Hence, revenue in respect of service contracts represents the cost appropriate to the stage of completion of each contract plus attributable profits, less amounts recognised in previous years where relevant.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

 

St Luke's Holdings Limited

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

Tax

The tax charge for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation 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 taxable income.

Deferred corporation tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred corporation tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Short leasehold

Straight line over the term of the lease

Plant and machinery

20% straight line

Fixtures and fittings

20% straight line

Computer equipment

20% - 33% straight line

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

 

St Luke's Holdings Limited

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

Financial instruments

Classification
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Financial assets are classified as financial assets at fair value through profit or loss, loans and debtors, held-to-maturity investments, available-for-sale financial assets, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The company determines the classification of its financial assets at initial recognition.

Financial liabilities are classified as financial liabilities at fair value through profit and loss, loans and borrowings, trade and other creditors, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The company determines the classification of its financial liabilities at initial recognition.

 Recognition and measurement
All financial instruments are recognised initially at fair value plus transaction costs. Thereafter financial instruments are stated at amortised cost using the effective interest rate method (less impairment where appropriate) unless the effect of discounting would be immaterial in which case they are stated at cost (less impairment where appropriate). The exception to this are those financial instruments where it is a requirement to continue recording them at fair value through profit and loss.

 Impairment
Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when 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 of the asset have been affected.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade and other debtors

Trade and other debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. In such cases debtors are stated at transaction price less impairment losses. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the transaction.

 

St Luke's Holdings Limited

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

Work in progress

Work in progress is stated at the lower of cost and estimated selling price less costs to complete and sell.

The cost of work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the work in progress to its present location and condition. At each reporting date, work in progress is assessed for impairment. If work in progress 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.

Trade and other creditors

Trade and other creditors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, except where the effect of discounting would be immaterial. In such cases creditors are stated at transaction price.

Provisions

Provisions are recognised when the group has an obligation at the reporting date as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distributions to the group’s shareholders are recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due.

 

St Luke's Holdings Limited

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

3

Turnover

The analysis of the group's turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

8,188,989

13,119,762

The analysis of the group's turnover for the year by market is as follows:

2023
£

2022
£

UK

8,188,989

13,119,762

4

Operating (loss)/profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

74,194

75,949

Operating lease expense - property

581,784

560,834

5

Loss/profit before tax

Arrived at after charging/(crediting)

2023
£

2022
£

Exceptional administrative expenses

-

111,249

Exceptional administrative expenses related to one-off redundancy costs incurred during the year of £Nil (2022: £111,249).
 

6

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

91,499

11,521

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

 

St Luke's Holdings Limited

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

2023
£

2022
£

Wages and salaries

3,250,217

3,815,586

Social security costs

372,863

469,809

Pension costs, defined contribution scheme

156,550

102,495

3,779,630

4,387,890

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and support

47

66

47

66

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

337,002

209,429

Contributions paid to money purchase schemes

74,080

-

411,082

209,429

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

2

2

In respect of the highest paid director:

2023
£

2022
£

Remuneration

44,079

105,183

9

Auditors' remuneration

2023
£

2022
£

Audit of these financial statements

1,100

1,000


 

 

St Luke's Holdings Limited

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

10

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

-

102,121

Deferred taxation

Arising from origination and reversal of timing differences

(15,875)

(1,516)

Tax (receipt)/expense in the income statement

(15,875)

100,605

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 25% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

(Loss)/profit before tax

(366,232)

502,741

Corporation tax at standard rate

(91,558)

95,521

Effect of expense not deductible in determining taxable profit (tax loss)

5,091

7,022

Effect of tax losses

67,419

-

Increase in UK and foreign current tax from unrecognised tax loss or credit

1,308

-

Deferred tax credit from unrecognised temporary difference from a prior period

(15,875)

(1,516)

Tax increase/(decrease) from effect of capital allowances and depreciation

15,875

(253)

Tax increase/(decrease) from other short-term timing differences

1,865

(169)

Total tax (credit)/charge

(15,875)

100,605

Unused tax losses on which no deferred tax asset has been recognised amount to £250,872.

 

St Luke's Holdings Limited

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

Deferred tax

Group

Deferred tax assets and liabilities

2023

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

17,804

17,804

2022

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

33,679

33,679

Deferred tax is measured at 25% (2022: 25%).

11

Tangible assets

Group

Leasehold improvements
£

Furniture, fittings and equipment
 £

Other property, plant and equipment
 £

Total
£

Cost or valuation

At 1 January 2023

127,138

324,422

20,368

471,928

Additions

-

9,085

-

9,085

At 31 December 2023

127,138

333,507

20,368

481,013

Depreciation

At 1 January 2023

53,216

257,212

17,845

328,273

Charge for the year

30,282

43,189

723

74,194

At 31 December 2023

83,498

300,401

18,568

402,467

Carrying amount

At 31 December 2023

43,640

33,106

1,800

78,546

At 31 December 2022

73,922

67,210

2,523

143,655

 

St Luke's Holdings Limited

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

12

Investments

Company

2023
£

2022
£

Investments in subsidiaries

1,642,468

1,642,468

Subsidiaries

£

Cost or valuation

At 1 January 2023 & 31 December 2022

1,642,468

Carrying amount

At 1 January 2022 & 31 December 2023

1,642,468

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Country of incorporation

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

St Luke's Communications Limited

Ordinary

100%

100%

 

England

     

St Luke's Amsterdam B.V.

Ordinary

100%

100%

 

The Netherlands

     

The principal activity of St Luke's Communications Limited is that of an advertising agency. St Luke's Amsterdam B.V. is currently non-trading.

13

Stocks

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Work in progress

255,286

120,070

-

-

 

St Luke's Holdings Limited

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

14

Debtors

 

Group

Company

Current

2023
£

2022
£

2023
£

2022
£

Trade debtors

650,481

2,575,057

-

-

Other debtors

196,379

178,166

-

-

Prepayments and accrued income

898,215

301,421

-

-

 

1,745,075

3,054,644

-

-

15

Cash and cash equivalents

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Cash on hand

209

401

-

-

Cash at bank

2,901,665

3,206,703

-

-

2,901,874

3,207,104

-

-

16

Creditors

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Due within one year

Trade creditors

323,937

217,932

-

-

Social security and other taxes

309,438

537,414

-

-

Other creditors

306,541

20,781

-

-

Accruals and deferred income

2,346,289

3,270,645

-

-

Corporation tax liability

263

102,121

-

-

3,286,468

4,148,893

-

-

 

St Luke's Holdings Limited

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

17

Deferred tax and other provisions

Group

Deferred tax
£

Other provisions
£

Total
£

At 1 January 2023

33,679

24,183

57,862

Increase (decrease) in existing provisions

(15,875)

(10,424)

(26,299)

At 31 December 2023

17,804

13,759

31,563

18

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £156,550 (2022 - £102,495).

19

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary A shares of £0.01 each

399,950

4,000

399,950

4,000

         

Rights, preferences and restrictions

Ordinary A shares have the following rights, preferences and restrictions:
The holders of Ordinary A shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All Ordinary A shares rank equally with regard to the company's residual assets.

 

St Luke's Holdings Limited

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

20

Obligations under leases and hire purchase contracts

Group

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

244,262

244,262

Later than one year and not later than five years

122,215

366,477

366,477

610,739

The amount of non-cancellable operating lease payments recognised as an expense during the year was £195,612 (2022 - £195,612).

21

Share-based payments

Enterprise Management Incentive (EMI) scheme

Scheme details and movements

The company has established an EMI scheme which will vest at the earliest of the the sale of the company, the sale of the company's business or a fundamental re-organisation.

No options have been exercised at the end of the reporting period.

22

Dividends

   

2023

 

2022

   

£

 

£

Interim dividends

 

305,611

 

316,800

         
 

St Luke's Holdings Limited

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

23

Related party transactions

Group

Summary of transactions with other related parties

The company has taken advantage of the exemption in FRS 102 33.1A "Related Party Disclosures" from disclosing transactions with other members of the group.
 

24

Control

In the opinion of the directors there is no ultimate controlling party.