Registration number:
Strata Creative Holdings Limited
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Brebners
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Strata Creative Holdings Limited
Contents
Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Income Statement |
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Consolidated Statement of Financial Position |
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Statement of Financial Position |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Strata Creative Holdings Limited
Company Information
Directors |
C J Mulkerrins S X Hambley H J Phillips |
Registered office |
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Auditor |
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Strata Creative Holdings Limited
Strategic Report for the Year Ended 31 December 2023
The directors present their strategic report for the year ended 31 December 2023.
Principal activity
The principal activity of the group is that of brand communications and the organisation of live experiences.
Fair review of the business
Strata Creative Group is a brand experience, event production and live event group of companies, with a uniquely broad offering that can coexist and collaborate to deliver individual or integrate service offerings across a broad sector of customers and activities, both in the UK and internationally.
FY23 was the fifth year of operation for Strata as it seeks to establish itself as the number one challenger in its sector.
The year delivered the expected growth in sales and profit - a result of the continued success of the strategy; to build a strong single touchpoint for corporate businesses operating at scale who want to maximise the return on investment in human connections with consumers, customers and their people, through rich, immersive and creative brand experiences and events and combining organic growth with active acquisition to deliver continued improvements to the offering, outcomes to clients, and growth in both revenue and profit.
The success of the strategy is reflected in the results for the year, which saw a turnover growth of 31% and an increase in operating profit to £1.37m from £1.16m in 2022 and an overall increase in the number of customers, average customer spends and average tenure of customers.
Organic sales continued to deliver positive results. During the year Strata was successful in strengthening its key client sectors of Pharmaceutical and Automotive, with multiple new customers won in both sectors, and the benefit of full year activity with customers won in FY22. In addition, it also won significant new customers in the technology, government and professional services sectors.
We continue to invest in the business to support growth - developing the management structure and leadership at all levels in anticipation of continued growth and development of the group offering.
Key hires made in FY22 and early in FY23, including a Director of People and a Financial Director, added to the cultural and financial performance of the business. Recruitment costs have been significantly reduced by minimising the use of recruitment consultants and utilising technology. Retention and overall employee satisfaction scores remain better than industry average – a result of investing to create a vibrant forward-looking culture and continued improvements in people strategies and management across the business. The new Financial Director has implemented a suite of improvements to financial management and reporting that has improved visibility and management of commercial performance and reduced cumbersome and outdated management processes.
In the middle of Q2 2023 the group acquired ON Event Productions Co Limited, broadening the overall group offering by adding audio visual, virtual and fabrication services. ON will continue to operate under its own brand, following a strategy of coexistence and collaboration. By the end of the year the benefits envisaged were already being enjoyed with growing collaboration on projects and inter group referrals.
A key strategic step taken in FY23 was the appointment of a full-time sustainability / ESG officer, responsible for the policies and procedures that will embed a comprehensive ESG strategy across the business and all its operations and activities.
The business made a conscious decision to invest more into sales and marketing, with the objective to build the new business pipeline for FY25 and beyond and to strengthen its market presence, building brand equity and attracting best-in-class talent to the business. By year end it had recruited a marketing and sales team and had implemented a strategy that was continuing to build momentum and a pipeline of opportunity.
Strata Creative Holdings Limited
Strategic Report for the Year Ended 31 December 2023
Looking to the future, the ambition and trend are continued sales growth and investment in people, processes and systems to support this.
With a growing client base, and pursuing its strategy of broaden and elevate, the organic growth trend in existing customers will continue in FY24. The continued investment in sales, adding a pipeline of new customers, also helps to derisk the client portfolio and protect against any unforeseen events.
We will continue to invest in people to meet the growth in business and to improve utilisation internally, which will result in reduced reliance of contractors, improved client contact consistency, and growth in operating margins.
During FY23, Strata began the development of its own proprietary intellectual property and technology product, Sherbet - a rewards and recognition technology platform that will challenge the legacy market with new ways to recognise, retain and reward people. Not only will this add further to the offering but is an exciting and bold step for the business that will accelerate growth in the years ahead. In June 2024 it launched to market and successfully began to deliver services to its first client.
To add to organic growth there is a continued pipeline of acquisition opportunities developing that will strengthen the offering. At the end of 2023 the business was working to acquire Trinity Event Solutions Limited, a recognised best in class venue sourcing and strategic meetings management provider. This acquisition completed in June 2024. In October 2024, it also completed the acquisition of Element London Limited, a leading provider of prize, rewards and incentive events in the UK.
Finally, the business undertook its first independent audit of client satisfaction across all its customers, using the recognised industry benchmark Radar report. We are pleased to say that the results show that Strata scores well above the average industry measure, with an overall RADAR score of 6.0 out of 7 vs. an average score in the wider market of 5.5.
Principal risks and uncertainties
The board of directors work continually to identify any trading risks and their impact on the business. Commercial and operational controls are regularly reviewed and updated to ensure any risks are identified as quickly as possible and any effect on the business mitigated.
- Competitive risk
Strata operates in competitive markets and has a number of key competitors. The group manages this risk by providing high quality services at competitive prices. We place a large emphasis on building long- term relationships, with both our customers, and our core suppliers.
As an extra safeguard, the trading subsidiary also carries out an independent annual audit of our client service and satisfaction using recognised marketing industry specialists ‘Relationship Audits’. This identifies key areas of risk through either service gaps/needs or areas of improvement which we can then work to mitigate.
- Economic outlook and market risk
While there are well documented economic challenges in the global economy potentially affecting marketing investment, the macro 10 year view for brand experiences and events is that there will be continued and sustained growth in global demand for these services, with the market forecast to double over the next ten years.
This growth in demand should outweigh any short-term budget tightening and we are seeing this reflected in future client plans and order book. There is macro risk of the business being affected by force-majeure events, that could affect or limit travel. However, the group has demonstrated it can mitigate the effect on trading in past years by switching to alternative revenue streams including virtual events and diversifying to supply a wider range of more varied products to customers. The group continues to recognise and recommend additional, complementary products to our customers including data capture & reporting, online booking systems for delegate registration and customer engagement, and brand immersion campaigns.
- Credit risk and financial instruments
Strata offers limited credit facilities to its customers. Billing is normally spread on a 45%/45%/10% basis throughout the lifecycle of an event. The group aims to receive customer funds in prior to paying out for event services to third party suppliers. At the final billing stage, the remaining 10% will be for the balance of services delivered in the final stages of the event. All of our customers are large, often global, companies and with our strong client relationships and budget management throughout the job lifecycle, debt collection issues are mitigated and rare.
Strata Creative Holdings Limited
Strategic Report for the Year Ended 31 December 2023
- Foreign exchange risk
The group does have some exposure to FX risk. A proportion of client events do take place outside the UK and will therefore have some purchases in currency. In addition, some customers may request billing in USD or Euro. Initial budgets will be built using a predicted rate for the date of any predicted 3rd party spend with a caveat to the client that sterling values could change if the currency rates fluctuate.
Budgets are monitored regularly throughout the lifecycle of any project and if there is a significant fluctuation in a currency rate, the budget is updated, and the client is informed. USD and Euro bank accounts are revalued monthly.
- Liquidity risk
Strata’s objective in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The trading subsidiary runs daily cash flow forecasts to ensure that liquidity is maintained to the required level and action are taken to mitigate any shortfall as it arises in the cash flow forecast. The trading subsidiary has a £1m overdraft facility with Virgin Money/Clydesdale to assist during peaks/troughs of cash requirements which occur due to the nature of seasonal event delivery. In addition, the group also has an RLS loan in place which it does not use consistently but may require from time to time, to mitigate low levels of cash in line with event delivery requirements throughout the year.
- Health and safety risk
The group regularly reviews its health and safety policies and procedures to ensure they adequately address the risks faced. Staff members receive regular health and safety training, and risk assessments are conducted as needed for work carried out by staff members and contractors.
The risk is greater in our warehouse operations facility and onsite as part of event delivery, and as such, the group ensures all additional levels of health & safety training and certification is completed.
- Contract risk
The group takes on risks within its commitment to client delivery and the payment for and delivery of all services related to each event or client program. This risk is mitigated by back to backing of associated risks with sub-contractors / third party suppliers and by internal review and sign off on all new customer contracts to ensure they are priced appropriately, and that all operational delivery is achievable to timescales and within budget.
Approved by the
.........................................
Director
Strata Creative 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:
Dividends
Interim dividends declared and paid in the year amounted to £228,000 (2021: £191,895). No final dividend is proposed.
Information included in the Strategic Report
The Group has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the group's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of financial instruments and future developments.
Directors' liabilities
The directors have the benefit of an indemnity which is a qualifying third party indemnity provision as defined by section 234 of the Companies Act 2006. The indemnity was in force throughout the financial year and as at the date of this report.
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 company'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
.........................................
Director
Strata Creative 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; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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 enable them to ensure that the financial statements comply with the Companies Act 2006 and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.
Strata Creative Holdings Limited
Independent Auditor's Report to the Members of
Strata Creative Holdings Limited
Opinion
We have audited the financial statements of Strata Creative Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023, which comprise the Consolidated Income Statement, Consolidated Statement of Financial Position, Statement of Financial Position, 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).
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 profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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.
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.
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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.
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 |
Strata Creative Holdings Limited
Independent Auditor's Report to the Members of
Strata Creative Holdings Limited
• |
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 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor 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.
Strata Creative Holdings Limited
Independent Auditor's Report to the Members of
Strata Creative Holdings Limited
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:
Based on our understanding of the Group and the industry in which it operates, we determined that the principal risks of non-compliance with laws and regulations related to the reporting framework (FRS 102 and the Companies Act 2006), UK corporate taxation laws, employment laws, consumer rights legislation and data protection legislation, These risks were communicated to our audit team and we remained alert to any indications of non-compliance throughout our audit.
We understood how the Group is complying with relevant legislation by making enquiries of management. We also considered the results of our audit procedures and to what extent these corroborate this understanding and assessed the susceptibility of the company’s financial statements to material misstatement. This included consideration of how fraud might occur and evaluation of management’s incentives and opportunities for fraudulent manipulation of the financial statements.
We designed our audit procedures to identify any non-compliance with laws and regulations. Such procedures included, but were not limited to, inspection of any regulatory or legal correspondence; challenging assumptions and judgements made by management; identifying and testing journal entries with a focus on large or unusual transactions as determined based on our understanding of the business; and identifying and assessing the effectiveness of controls in place to prevent and detect fraud.
Owing to the inherent limitations of an audit, there remains a risk that a material misstatement may not have been detected, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance with laws and regulations and cannot be expected to detect all instances of non-compliance.
The primary responsibility for the detection and prevention of fraud rests with those responsible for governance and management. The further removed non-compliance with laws and regulations is from the events reflected in the financial statements, the less likely the auditor will become aware of it.
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, collusion, omission, misrepresentation or forgery.
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.
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.
......................................
For and on behalf of
130 Shaftesbury Avenue
London
W1D 5AR
Strata Creative Holdings Limited
Consolidated Income Statement for the Year Ended 31 December 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
- |
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
(93,567) |
(73,809) |
||
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
The group has no recognised gains or losses for the year other than the results above.
Strata Creative Holdings Limited
Consolidated Statement of Financial Position as at 31 December 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
- |
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
142 |
142 |
|
Share premium reserve |
230,671 |
230,671 |
|
Capital redemption reserve |
52 |
52 |
|
Retained earnings |
534,156 |
(106,178) |
|
Equity attributable to owners of the company |
765,021 |
124,687 |
|
Shareholders' funds |
765,021 |
124,687 |
Approved and authorised by the
.........................................
Director
Company registration number: 10886992
Strata Creative Holdings Limited
Statement of Financial Position as at 31 December 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
142 |
142 |
|
Share premium reserve |
230,671 |
230,671 |
|
Capital redemption reserve |
52 |
52 |
|
Retained earnings |
61,694 |
53,797 |
|
Shareholders' funds |
292,559 |
284,662 |
The company made a profit after tax for the financial year of £235,897 (2022 - profit of £433,723).
Approved and authorised by the
......................................... |
Company registration number: 10886992
Strata Creative Holdings Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 December 2023
Equity attributable to the parent company
Share capital |
Share premium |
Capital redemption reserve |
Retained earnings |
Total |
Total equity |
|
At 1 January 2023 |
|
|
|
( |
|
|
Profit for the year |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
( |
( |
( |
At 31 December 2023 |
|
|
|
|
|
|
Share capital |
Share premium |
Capital redemption reserve |
Retained earnings |
Total |
Total equity |
|
At 1 January 2022 |
|
|
- |
( |
( |
( |
Profit for the year |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
( |
( |
( |
Purchase of own share capital |
(52) |
- |
52 |
(49,948) |
(49,948) |
(49,948) |
At 31 December 2022 |
142 |
230,671 |
52 |
(106,178) |
124,687 |
124,687 |
Strata Creative Holdings Limited
Statement of Changes in Equity for the Year Ended 31 December 2023
Share capital |
Share premium |
Capital redemption reserve |
Retained earnings |
Total |
|
At 1 January 2023 |
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
Dividends |
- |
- |
- |
( |
( |
At 31 December 2023 |
|
|
|
|
|
Share capital |
Share premium |
Capital redemption reserve |
Retained earnings |
Total |
|
At 1 January 2022 |
|
|
- |
|
|
Prior period adjustment |
- |
- |
- |
( |
( |
At 1 January 2022 (As restated) |
|
|
- |
( |
|
Profit for the year |
- |
- |
- |
|
|
Dividends |
- |
- |
- |
( |
( |
Purchase of own share capital |
(52) |
- |
52 |
(49,948) |
(49,948) |
At 31 December 2022 |
142 |
230,671 |
52 |
53,797 |
284,662 |
Strata Creative Holdings Limited
Consolidated Statement of Cash Flows for the Year Ended 31 December 2023
Note |
2023 |
2022 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
- |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Decrease in stocks |
|
- |
|
Increase in trade and other debtors |
( |
( |
|
(Decrease)/increase in trade and other creditors |
( |
|
|
Increase in provisions |
- |
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
( |
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
- |
|
Acquisition of intangible assets |
( |
( |
|
Acquisition of subsidiaries |
(322,293) |
- |
|
Cash acquired with subsidiary |
482,679 |
- |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Payments for purchase of own shares |
- |
( |
|
Proceeds from bank borrowing draw downs |
- |
|
|
Repayment of bank borrowing |
- |
( |
|
Proceeds from other borrowing draw downs |
|
- |
|
Repayment of other borrowing |
- |
( |
|
Payments to finance lease creditors |
- |
( |
|
Pref shares |
- |
(250,000) |
|
Dividends paid |
- |
( |
|
Net cash flows from financing activities |
|
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 January |
|
|
|
Cash and cash equivalents at 31 December |
2,554,037 |
2,539,893 |
Strata Creative Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal activity of the group is that of brand communications and the organisation of live experiences.
Accounting policies |
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.
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.
Summary of disclosure exemptions
The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosure exemptions available under FRS 102:
(a) No cash flow statement has been presented for the company
(b) Disclosures in respect of financial instruments of the company have not been prepared.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December each year.
Strata Creative Holdings Limited
Notes to the Financial Statements for the Year Ended 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 Income Statement 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.
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.
Going concern
The group made a profit of £868,334 for the year ended 31 December 2023 and had net assets at that date amounting to £765,021. The group's cash flow forecasts show that it has sufficient working capital for a period exceeding 12 months from the date of approval of these financial statements.
Having made sufficient enquiries, and based upon the above, the directors have a reasonable expectation that the compand and group have adequate resources to continue operating in the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.
Judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events, that are believed to be reasonable under the circumstances.
Other than those involving estimations there are no judgements that management has made in the process of applying the entity's accounting policies that have a significant effect on the amounts recognised in the financial statements.
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
- Carrying values of tangible and intangible fixed assets
The group exercises judgement to determine the useful lives and residual values of fixed assets. The group also exercises judgement in its review for indicators of impairment and the impact upon the useful economic lives and residual values.
Strata Creative Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the group's activities. Turnover is shown net of value added tax, rebates and discounts.
Revenue in connection with delivering events is recognised once the event has taken place as this final act is so significant in relation to the service transaction taken as a whole. Retainer revenue is recognised in the period to which the retainer relates. The group recognises all other revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the entity.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
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 group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the statement of financial position 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 |
Furniture, fittings and equipment |
15-25% straight line |
Plant and machinery |
15-33% straight line |
Motor vehicles |
25% straight line |
Strata Creative Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Intangible assets
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Computer software |
5 years straight line |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
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.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.
Strata Creative Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
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. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Statement of Financial Position as a finance lease obligation.
Lease payments are apportioned between finance costs in the Income Statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Assets held under hire purchase contracts are capitalised at the lesser of fair value or present value of minimum lease payments in the statement of financial position. The present value of the minimum lease payments is calculated using the interest rate implicit in the lease. A corresponding liability is recognised at the same value in the statement of financial position. The asset is then depreciated over its useful life.
The minimum lease payments are apportioned between the finance charge recognised in the income statement and the reduction of the outstanding liability using the effective interest method. The finance charge in each period is allocated so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 distribution to the group’s shareholders is 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. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Strata Creative Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Turnover |
The analysis of the group's turnover for the year from continuing operations is as follows:
2023 |
2022 |
|
Rendering of services |
|
|
The analysis of the group's turnover for the year by market is as follows:
2023 |
2022 |
|
UK |
|
|
Europe |
|
|
Rest of world |
|
|
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2023 |
2022 |
|
Miscellaneous other operating income |
|
- |
Other gains and losses |
The analysis of the group's other gains and losses for the year is as follows:
2023 |
2022 |
|
Gain on disposal of tangible assets |
|
- |
Operating profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Research and development cost |
|
|
Foreign exchange losses/(gains) |
|
( |
Operating lease expense - plant and machinery |
|
|
Other interest receivable and similar income |
2023 |
2022 |
|
Interest income on bank deposits |
|
- |
Other finance income |
|
|
|
|
Strata Creative Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Interest payable and similar expenses |
2023 |
2022 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
- |
Interest expense on other finance liabilities |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2023 |
2022 |
|
Sales, marketing and client services |
|
|
Operations and delivery |
|
|
Administration |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
59,717 |
382,551 |
In respect of the highest paid director:
2023 |
2022 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
Strata Creative Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Auditor's remuneration |
2023 |
2022 |
|
Audit of these financial statements |
6,000 |
8,000 |
Other fees to auditors |
||
Audit of subsidiary undertakings financial statements |
|
|
Other services |
|
|
|
|
Taxation |
Tax charged/(credited) in the consolidated income statement
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
|
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
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
The differences are reconciled below:
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Tax increase from effect of capital allowances and depreciation |
|
|
Tax increase from other short-term timing differences |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Effect of tax losses |
( |
( |
Total tax charge |
|
|
Strata Creative Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Deferred tax
Group
Deferred tax assets and liabilities
2023 |
Liability |
Accelerated capital allowances |
|
|
2022 |
Liability |
Accelerated capital allowances |
|
|
Intangible assets |
Group
Goodwill |
Software development |
Total |
|
Cost or valuation |
|||
At 1 January 2023 |
|
|
|
Additions internally developed |
- |
|
|
Additions acquired separately |
|
- |
|
At 31 December 2023 |
|
|
|
Amortisation |
|||
At 1 January 2023 |
|
- |
|
Amortisation charge |
|
- |
|
At 31 December 2023 |
|
- |
|
Carrying amount |
|||
At 31 December 2023 |
|
|
|
At 31 December 2022 |
|
|
|
Strata Creative Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Tangible assets |
Group
Furniture, fittings and equipment |
Motor vehicles |
Plant and machinery |
Total |
|
Cost or valuation |
||||
At 1 January 2023 |
|
|
|
|
Additions |
|
|
|
|
Acquired through business combinations |
|
|
|
|
Disposals |
( |
( |
( |
( |
At 31 December 2023 |
|
|
|
|
Depreciation |
||||
At 1 January 2023 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
( |
( |
( |
( |
At 31 December 2023 |
( |
|
|
|
Carrying amount |
||||
At 31 December 2023 |
|
|
|
|
At 31 December 2022 |
|
|
|
|
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2023 |
2022 |
|
Motor vehicles |
112,332 |
50,418 |
Investments |
Company
2023 |
2022 |
|
Investments in subsidiaries |
|
|
Strata Creative Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Subsidiaries |
£ |
Cost or valuation |
|
At 1 January 2023 and 31 December 2022 |
|
Carrying amount |
|
At 31 December 2023 |
|
At 31 December 2022 |
|
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:
Subsidiary undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
2022 |
|||
|
Unit 9 Featherbed Court, Mixbury, Brackley, Northants, NN13 5RN |
|
|
|
|
42 Rue De Barcelone, 38070 St Quentin Fallavier France |
|
|
|
|
Commercial House, Millbank Business Park, Lucan, Dublin K78 X5W6 Ireland |
|
|
|
|
Unit 9 Featherbed Court, Mixbury, Brackley, Northants, NN13 5RN |
|
|
|
|
Unit 9 Featherbed Court, Mixbury, Brackley, Northants, NN13 5RN |
|
|
|
*indirect holding.
The principal activity of each subsidiary undertaking is that of brand communications and the organisation of live events, with the exception of Sherbet Rewards & Motivation Technologies Limited whose principal activity is the operation of an employee engagement and recognition platform and On Event Production Co Limited whose principal actvity is the provision of audio visual production services.
Exemption has been taken under paragraph 9.9A of FRS 102 from including the results of Strata Creative Communications France, Strata Creative International Limited and Sherbet Rewards & Motivation Technologies Limited in these consolidated financial statements on the grounds that their inclusion is not material for the purpose of giving a true and fair view.
Strata Creative Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Business combinations |
On
On Event Production Co Limited contributed £
The goodwill arising is being amortised over 10 years based on the directors' assessment of the useful economic life of the business combination.
The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are as set out in the table below:
Book value |
Fair value |
|
Assets and liabilities acquired |
||
Financial assets |
2,265,370 |
|
Stocks |
21,321 |
|
Tangible assets |
463,423 |
|
Financial liabilities |
(886,092) |
( |
Total identifiable assets |
1,864,022 |
|
Goodwill |
2,243,203 |
|
Total consideration |
4,107,225 |
4,107,225 |
Satisfied by: |
||
Cash |
322,293 |
|
Debt instruments |
2,289,932 |
2,289,932 |
Contingent consideration |
1,318,450 |
|
Other |
176,550 |
|
Total consideration transferred |
4,107,225 |
|
|
Debtors |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Trade debtors |
|
|
- |
- |
Other debtors |
|
|
|
|
Prepayments |
|
|
|
- |
Gross amount due from customers for contract work |
|
|
- |
- |
|
|
|
|
Strata Creative Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Cash and cash equivalents |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Cash at bank |
|
|
|
|
Short-term deposits |
|
- |
- |
- |
|
|
|
|
Creditors |
Group |
Company |
||||
Note |
2023 |
2022 |
2023 |
2022 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
- |
- |
|
Trade creditors |
|
|
|
- |
|
Amounts due to group undertakings |
- |
- |
|
|
|
Social security and other taxes |
|
|
|
- |
|
Other payables |
|
|
|
|
|
Accruals |
|
|
|
|
|
Corporation tax liability |
414,358 |
349,406 |
79,445 |
144,623 |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
- |
- |
|
Other non-current financial liabilities |
|
- |
- |
- |
|
|
|
- |
- |
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 £
Strata Creative Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
- |
- |
- |
- |
|
|
27.64 |
|
27.64 |
|
- |
- |
- |
- |
|
|
12.18 |
|
11.92 |
|
|
27.73 |
|
27.64 |
|
|
8.32 |
|
8.67 |
|
|
27.14 |
|
27.14 |
|
|
27.14 |
|
27.14 |
|
- |
- |
- |
- |
|
|
11.92 |
|
11.92 |
|
|
|
|
Only the A, B, C, D and E Ordinary shares confer voting rights. The holders of A, B, C, D, E, F G, H and I Ordinary shares are entitled to separate dividend distribution at the discretion of the directors. A right to a fixed preferential dividend is attached to the Preference share. Upon winding up, return of assets on liquidation, capital reduction or otherwise, the assets of the company available for distribution to the Shareholders and after payment of its liabilities are to be distributed in the following order of priority: first paying to the holders of the A, B, C, D, E, F, G, H and I Ordinary shares in respect of the nominal values of those shares and thereafter to the holders of the A, B, C, D and E Ordinary shares.
Loans and borrowings |
Non-current loans and borrowings
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Bank borrowings |
|
|
- |
- |
HP and finance lease liabilities |
|
|
- |
- |
Other borrowings |
- |
|
- |
- |
|
|
- |
- |
Current loans and borrowings
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Bank borrowings |
|
|
- |
- |
HP and finance lease liabilities |
|
|
- |
- |
|
|
- |
- |
Strata Creative Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Group
Included in the loans and borrowings are the following amounts due after more than five years:
2023 |
2022 |
|
After more than five years by instalments |
- |
|
- |
- |
Bank loans are secured by a fixed and floating charge over the assets and undertakings of the company. Obligations under hire purchase contracts are secured on the assets concerned.
Commitments and guarantees |
Group
The total of future minimum lease payments under operating leases is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
Dividends |
Dividends paid
2023 |
2022 |
|||
Dividend of £Nil (2022 - £ |
- |
|
||
Dividend of £Nil (2022 - £ |
- |
|
||
Dividend of £ |
|
- |
||
Dividend of £ |
|
- |
||
|
|
Strata Creative Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Analysis of changes in net debt |
Group
At 1 January 2023 |
Net financing cash flows |
Acquisition of subsidiaries |
Other changes |
At 31 December 2023 |
|
Cash and cash equivalents |
|||||
Cash |
2,539,893 |
(101,713) |
160,386 |
(44,529) |
2,554,037 |
Borrowings |
|||||
Long term borrowings |
892,495 |
833,194 |
- |
- |
1,725,689 |
Short term borrowings |
188,099 |
(4,525) |
- |
- |
183,574 |
Lease liabilities |
33,008 |
73,968 |
105,680 |
- |
212,656 |
1,113,602 |
902,637 |
105,680 |
- |
2,121,919 |
|
|
|||||
|
|
|
( |
|
Related party transactions |
Exemption is taken under FRS 102 paragraph 33.1A not to disclose transactions or amounts falling due between companies wholly owned within the group.
Group
At 31 December 2023 an amount of £62 (2022: £194,731) was due from the group to a pension scheme where certain directors are Trustees. Interest payable in the year amounted to £15,394 (2022: £26,001).
At 31 December 2023 an amount of £Nil (2022: £47,552) was due to the group from a company under common control.
At 31 December 2023 an amount of £528,975 (2022: £231,303) was due to the group from an entity of which the parent company is an associate.
At 31 December 2023 an amount of £Nil (2022:£191,895) was due from the group to trusts whose beneficiaries are close family members of directors.
The dividends shown in note 24 were paid to trusts whose beneficiaries are close family members of directors.
Control |
The ultimate controlling party is S X Hambley.
Non adjusting events after the financial period |
|
|
Strata Creative Holdings Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Transactions with directors |
Group
During the year there were advances to directors of £1,138,013 and repayments of £760,026. At 31 December 2023 an amount of £914,330 (2022: £461,111) was due to the group. Interest amounting to £20,845 (2022: £8,649) was charged to the directors at a rate of 3-4% and there are no agreed terms.
Company
During the year there were advances to directors of £1,088,013 and repayments of £690,026. At 31 December 2023 an amount of £914,330 (2022: £441,111) was due to the company. Interest amounting to £20,845 (2021: £8,649) was charged to the directors at a rate of 3-4% and there are no agreed terms.
Strata Creative Holdings Limited
Detailed Consolidated Income Statement
for the Year Ended 31 December 2023
2023 |
2022 |
|
Turnover |
28,983,311 |
22,129,350 |
Cost of sales |
(23,035,069) |
(18,800,190) |
Gross profit |
5,948,242 |
3,329,160 |
Gross profit (%) |
20.52% |
15.04% |
Administrative expenses |
||
Employment costs |
(1,767,926) |
(695,491) |
Establishment costs |
(797,290) |
(446,655) |
General administrative expenses |
(1,576,676) |
(628,390) |
Finance charges |
(33,908) |
(33,359) |
Depreciation costs |
(702,909) |
(366,734) |
Other expenses |
12,578 |
- |
(4,866,131) |
(2,170,629) |
|
Other operating income (analysed below) |
291,663 |
- |
Operating profit |
1,373,774 |
1,158,531 |
Other interest receivable and similar income |
25,946 |
8,649 |
Interest payable and similar expenses |
(119,513) |
(82,458) |
(93,567) |
(73,809) |
|
Profit before tax |
1,280,207 |
1,084,722 |
Strata Creative Holdings Limited
Detailed Consolidated Income Statement
for the Year Ended 31 December 2023
2023 |
2022 |
Turnover |
||
Rendering of services, UK |
20,986,263 |
15,347,976 |
Rendering of services, Europe |
5,847,502 |
5,371,524 |
Rendering of services, rest of world |
2,149,546 |
1,409,850 |
28,983,311 |
22,129,350 |
Cost of sales |
||
Purchases |
1 |
- |
Direct costs |
(19,309,513) |
(15,583,031) |
Wages and salaries |
(3,266,921) |
(2,827,287) |
Employers national insurance contributions |
(372,508) |
(327,413) |
Staff pension contributions |
(86,128) |
(62,459) |
(23,035,069) |
(18,800,190) |
Employment costs |
||
Wages and salaries (excluding directors) |
(1,251,765) |
(68,498) |
Employers national insurance contributions |
(95,975) |
51,954 |
Directors remuneration |
(58,467) |
(323,995) |
Directors' national insurance contributions |
(53,332) |
(42,045) |
Staff pensions (Defined contribution) |
(37,445) |
(6,087) |
Directors pensions (Defined contribution) |
(1,250) |
(58,556) |
Subcontract cost |
(109,786) |
(72,360) |
Staff training |
(62,868) |
(33,125) |
Staff welfare |
(97,038) |
(142,779) |
(1,767,926) |
(695,491) |
Establishment costs |
||
Rent |
(411,677) |
(283,284) |
Rates |
(111,646) |
(48,791) |
Light, heat and power |
(34,846) |
(13,441) |
Insurance |
(144,160) |
(79,915) |
Repairs and maintenance |
(94,961) |
(21,224) |
(797,290) |
(446,655) |
Strata Creative Holdings Limited
Detailed Consolidated Income Statement
for the Year Ended 31 December 2023
2023 |
2022 |
General administrative expenses |
||
Telephone |
(83,212) |
(81,171) |
Computer software and maintenance costs |
(180,317) |
(111,915) |
Printing, postage and stationery |
(6,583) |
(8,318) |
Trade subscriptions |
(33,336) |
(34,812) |
Charitable donations |
(2,101) |
- |
Equipment hire |
(6,833) |
(12,821) |
Sundry expenses |
(11,412) |
(1,785) |
Research and development |
(30,431) |
(10,686) |
Motor expenses |
(34,494) |
(20,314) |
Travel and subsistence |
(170,733) |
(71,022) |
Advertising |
(262,646) |
(55,563) |
Staff entertaining |
(35,567) |
(37,882) |
Customer entertaining |
(94,992) |
- |
Accountancy fees |
(69,358) |
(32,136) |
Auditor's remuneration - The audit of the company's annual accounts |
(7,384) |
- |
Legal and professional fees |
(236,205) |
(69,556) |
Bad debts written off |
(50,688) |
17,745 |
Foreign currency gains/(losses) |
(36,349) |
30,329 |
Exceptional administrative expenses |
(224,035) |
(128,483) |
(1,576,676) |
(628,390) |
Finance charges |
||
Bank charges |
(33,908) |
(33,359) |
Depreciation costs |
||
Amortisation of goodwill |
(455,263) |
(296,702) |
Depreciation of plant and machinery |
(1) |
- |
Depreciation of fixtures and fittings |
(247,645) |
(70,032) |
(702,909) |
(366,734) |
Other expenses |
||
Profit/(loss) on disposal of tangible fixed assets |
12,578 |
- |
Other operating income |
||
Other operating income |
291,663 |
- |
Other interest receivable and similar income |
||
Bank interest receivable |
5,101 |
- |
Other interest receivable |
20,845 |
8,649 |
25,946 |
8,649 |
Strata Creative Holdings Limited
Detailed Consolidated Income Statement
for the Year Ended 31 December 2023
2023 |
2022 |
Interest payable and similar expenses |
||
Bank interest payable |
(6,654) |
23 |
Bank loan interest payable |
(72,448) |
(48,928) |
Hire purchase interest |
(4,425) |
- |
Other interest payable |
(35,986) |
(33,553) |
(119,513) |
(82,458) |