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Registration number: 10886992

Strata Creative Holdings Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 December 2023

Brebners
Chartered Accountants & Statutory Auditor
130 Shaftesbury Avenue
London
W1D 5AR

 

Strata Creative Holdings Limited

Contents

Company Information

1

Strategic Report

2 to 4

Directors' Report

5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 9

Consolidated Income Statement

10

Consolidated Statement of Financial Position

11

Statement of Financial Position

12

Consolidated Statement of Changes in Equity

13

Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Notes to the Financial Statements

16 to 32

 

Strata Creative Holdings Limited

Company Information

Directors

C J Mulkerrins

S X Hambley

H J Phillips

Registered office

Unit 9
Featherbed Court
Mixbury
Brackley
NN13 5RN

Auditor

Brebners
Chartered Accountants & Statutory Auditor
130 Shaftesbury Avenue
London
W1D 5AR

 

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 Board on 28 October 2024 and signed on its behalf by:

.........................................
S X Hambley
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:

C J Mulkerrins

S X Hambley

H J Phillips (appointed 30 August 2023)

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 Board on 28 October 2024 and signed on its behalf by:

.........................................
S X Hambley
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.

......................................
Martin Widdowson (Senior Statutory Auditor)
For and on behalf of

Brebners, Statutory Auditor
130 Shaftesbury Avenue
London
W1D 5AR

28 October 2024

 

Strata Creative Holdings Limited

Consolidated Income Statement for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

28,983,311

22,129,350

Cost of sales

 

(23,035,069)

(18,800,190)

Gross profit

 

5,948,242

3,329,160

Administrative expenses

 

(4,866,131)

(2,170,629)

Other operating income

4

291,663

-

Operating profit

6

1,373,774

1,158,531

Other interest receivable and similar income

7

25,946

8,649

Interest payable and similar expenses

8

(119,513)

(82,458)

   

(93,567)

(73,809)

Profit before tax

 

1,280,207

1,084,722

Tax on profit

12

(411,873)

(270,790)

Profit for the financial year

 

868,334

813,932

Profit/(loss) attributable to:

 

Owners of the company

 

868,334

813,932

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

13

3,819,440

1,812,420

Tangible assets

14

903,002

171,525

 

4,722,442

1,983,945

Current assets

 

Stocks

14,389

-

Debtors

17

6,931,004

4,429,033

Cash at bank and in hand

 

2,554,037

2,539,893

 

9,499,430

6,968,926

Creditors: Amounts falling due within one year

19

(11,436,995)

(7,835,784)

Net current liabilities

 

(1,937,565)

(866,858)

Total assets less current liabilities

 

2,784,877

1,117,087

Creditors: Amounts falling due after more than one year

19

(1,804,758)

(926,840)

Provisions for liabilities

12

(215,098)

(65,560)

Net assets

 

765,021

124,687

Capital and reserves

 

Called up share capital

21

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 Board on 28 October 2024 and signed on its behalf by:
 

.........................................

S X Hambley
Director

Company registration number: 10886992

 

Strata Creative Holdings Limited

Statement of Financial Position as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Investments

15

3,183,227

3,183,227

Current assets

 

Debtors

17

1,603,246

898,412

Cash at bank and in hand

 

4,998

4,743

 

1,608,244

903,155

Creditors: Amounts falling due within one year

19

(4,498,912)

(3,801,720)

Net current liabilities

 

(2,890,668)

(2,898,565)

Net assets

 

292,559

284,662

Capital and reserves

 

Called up share capital

21

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 Board on 28 October 2024 and signed on its behalf by:
 

.........................................
S X Hambley
Director

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

142

230,671

52

(106,178)

124,687

124,687

Profit for the year

-

-

-

868,334

868,334

868,334

Dividends

-

-

-

(228,000)

(228,000)

(228,000)

At 31 December 2023

142

230,671

52

534,156

765,021

765,021

Share capital
£

Share premium
£

Capital redemption reserve
£

Retained earnings
£

Total
£

Total equity
£

At 1 January 2022

194

230,671

-

(678,267)

(447,402)

(447,402)

Profit for the year

-

-

-

813,932

813,932

813,932

Dividends

-

-

-

(191,895)

(191,895)

(191,895)

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

142

230,671

52

53,797

284,662

Profit for the year

-

-

-

235,897

235,897

Dividends

-

-

-

(228,000)

(228,000)

At 31 December 2023

142

230,671

52

61,694

292,559

Share capital
£

Share premium
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 January 2022

194

230,671

-

111,917

342,782

Prior period adjustment

-

-

-

(250,000)

(250,000)

At 1 January 2022 (As restated)

194

230,671

-

(138,083)

92,782

Profit for the year

-

-

-

433,723

433,723

Dividends

-

-

-

(191,895)

(191,895)

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

 

868,334

813,932

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

702,909

366,734

Profit on disposal of tangible assets

5

(12,578)

-

Finance income

7

(25,946)

(8,649)

Finance costs

8

119,513

82,458

Income tax expense

12

411,873

270,790

 

2,064,105

1,525,265

Working capital adjustments

 

Decrease in stocks

7,380

-

Increase in trade and other debtors

17

(719,528)

(2,298,320)

(Decrease)/increase in trade and other creditors

19

(1,289,771)

3,028,418

Increase in provisions

-

65,560

Cash generated from operations

 

62,186

2,320,923

Income taxes paid

12

(313,239)

(229,052)

Net cash flow from operating activities

 

(251,053)

2,091,871

Cash flows from investing activities

 

Interest received

25,946

8,649

Acquisitions of tangible assets

(521,938)

(141,106)

Proceeds from sale of tangible assets

 

18,960

-

Acquisition of intangible assets

13

(219,081)

(142,676)

Acquisition of subsidiaries

 

(322,293)

-

Cash acquired with subsidiary

 

482,679

-

Net cash flows from investing activities

 

(535,727)

(275,133)

Cash flows from financing activities

 

Interest paid

 

(119,513)

(82,458)

Payments for purchase of own shares

 

-

(50,000)

Proceeds from bank borrowing draw downs

 

-

1,100,000

Repayment of bank borrowing

 

-

(890,610)

Proceeds from other borrowing draw downs

 

920,437

-

Repayment of other borrowing

 

-

(122,256)

Payments to finance lease creditors

 

-

(10,633)

Pref shares

 

-

(250,000)

Dividends paid

-

(191,895)

Net cash flows from financing activities

 

800,924

(497,852)

Net increase in cash and cash equivalents

 

14,144

1,318,886

Cash and cash equivalents at 1 January

 

2,539,893

1,221,007

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

1

General information

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

The address of its registered office is:
Unit 9
Featherbed Court
Mixbury
Brackley
NN13 5RN

The principal activity of the group is that of brand communications and the organisation of live experiences.

2

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

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 rate on the date when the fair value is re-measured.

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

3

Turnover

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

2023
£

2022
£

Rendering of services

28,983,311

22,129,350

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

2023
£

2022
£

UK

20,986,263

15,347,976

Europe

5,847,502

5,371,524

Rest of world

2,149,546

1,409,850

28,983,311

22,129,350

4

Other operating income

The analysis of the group's other operating income for the year is as follows:

2023
£

2022
£

Miscellaneous other operating income

291,663

-

5

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

12,578

-

6

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

247,646

70,032

Amortisation expense

455,263

296,702

Research and development cost

30,431

10,686

Foreign exchange losses/(gains)

36,349

(30,329)

Operating lease expense - plant and machinery

6,833

12,821

7

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

5,101

-

Other finance income

20,845

8,649

25,946

8,649

 

Strata Creative Holdings Limited

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

8

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

79,102

48,905

Interest on obligations under finance leases and hire purchase contracts

4,425

-

Interest expense on other finance liabilities

35,986

33,553

119,513

82,458

9

Staff costs

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

2023
£

2022
£

Wages and salaries

4,577,153

3,219,780

Social security costs

521,815

317,504

Pension costs, defined contribution scheme

124,823

127,102

Other employee expense

159,906

175,904

5,383,697

3,840,290

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

2023
No.

2022
No.

Sales, marketing and client services

14

7

Operations and delivery

72

45

Administration

14

8

100

60

10

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

58,467

323,995

Contributions paid to money purchase schemes

1,250

58,556

59,717

382,551

In respect of the highest paid director:

2023
£

2022
£

Remuneration

41,667

21,987

Company contributions to money purchase pension schemes

1,250

160,000

 

Strata Creative Holdings Limited

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

11

Auditor's remuneration

2023
£

2022
£

Audit of these financial statements

6,000

8,000

Other fees to auditors

Audit of subsidiary undertakings financial statements

29,000

22,000

Other services

136,594

92,468

165,594

114,468


 

12

Taxation

Tax charged/(credited) in the consolidated income statement

2023
£

2022
£

Current taxation

UK corporation tax

378,191

205,230

Deferred taxation

Arising from origination and reversal of timing differences

33,682

65,560

Tax expense in the income statement

411,873

270,790

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 23.5% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

1,280,207

1,084,722

Corporation tax at standard rate

300,849

206,097

Tax increase from effect of capital allowances and depreciation

38,167

37,344

Tax increase from other short-term timing differences

33,682

65,560

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

42,584

9,960

Effect of tax losses

(3,409)

(48,171)

Total tax charge

411,873

270,790

 

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

215,098

215,098

2022

Liability
£

Accelerated capital allowances

65,560

65,560

13

Intangible assets

Group

Goodwill
 £

Software development
 £

Total
£

Cost or valuation

At 1 January 2023

2,967,024

142,676

3,109,700

Additions internally developed

-

219,080

219,080

Additions acquired separately

2,243,203

-

2,243,203

At 31 December 2023

5,210,227

361,756

5,571,983

Amortisation

At 1 January 2023

1,297,280

-

1,297,280

Amortisation charge

455,263

-

455,263

At 31 December 2023

1,752,543

-

1,752,543

Carrying amount

At 31 December 2023

3,457,684

361,756

3,819,440

At 31 December 2022

1,669,744

142,676

1,812,420

 

Strata Creative Holdings Limited

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

14

Tangible assets

Group

Furniture, fittings and equipment
 £

Motor vehicles
 £

Plant and machinery
£

Total
£

Cost or valuation

At 1 January 2023

44,593

105,843

229,500

379,936

Additions

180,947

79,668

261,323

521,938

Acquired through business combinations

115,261

53,257

294,906

463,424

Disposals

(101,403)

(29,568)

(142,264)

(273,235)

At 31 December 2023

239,398

209,200

643,465

1,092,063

Depreciation

At 1 January 2023

24,295

55,425

128,691

208,411

Charge for the year

52,183

41,054

154,410

247,647

Eliminated on disposal

(101,147)

(25,618)

(140,232)

(266,997)

At 31 December 2023

(24,669)

70,861

142,869

189,061

Carrying amount

At 31 December 2023

264,067

138,339

500,596

903,002

At 31 December 2022

20,298

50,418

100,809

171,525

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

   

15

Investments

Company

2023
£

2022
£

Investments in subsidiaries

3,183,227

3,183,227

 

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

3,183,227

Carrying amount

At 31 December 2023

3,183,227

At 31 December 2022

3,183,227

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

Strata Creative Communications Limited

Unit 9 Featherbed Court, Mixbury, Brackley, Northants, NN13 5RN

Ordinary & A Ordinary £1 shares

100%

100%

Strata Creative Communications France

42 Rue De Barcelone, 38070 St Quentin Fallavier

France

Ordinary €1 shares

100%

100%

Strata Creative International Limited

Commercial House, Millbank Business Park, Lucan, Dublin K78 X5W6

Ireland

Ordinary €1 shares

100%

100%

Sherbet Rewards & Motivation Technologies Limited

Unit 9 Featherbed Court, Mixbury, Brackley, Northants, NN13 5RN

Ordinary £1 shares

86%

0%

On Event Production Co Limited*

Unit 9 Featherbed Court, Mixbury, Brackley, Northants, NN13 5RN

Ordinary £1 shares

100%

0%

*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

16

Business combinations

On 17 April 2023, Strata Creative Communications Limited acquired 100% of the issued share capital of On Event Production Co Limited, obtaining control. This was accounted for in the consolidated financial statements as an acquisition.

On Event Production Co Limited contributed £3,200,922 revenue and £383,035 to the group's profit for the period between the date of acquisition and the Statement of Financial Position date.

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
2023
£

Fair value
2023
£

Assets and liabilities acquired

Financial assets

2,265,370

2,265,370

Stocks

21,321

21,321

Tangible assets

463,423

463,423

Financial liabilities

(886,092)

(886,092)

Total identifiable assets

1,864,022

1,864,022

Goodwill

2,243,203

2,243,203

Total consideration

4,107,225

4,107,225

Satisfied by:

Cash

322,293

322,293

Debt instruments

2,289,932

2,289,932

Contingent consideration

1,318,450

1,318,450

Other

176,550

176,550

Total consideration transferred

4,107,225

4,107,225

17

Debtors

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Trade debtors

3,054,126

3,024,959

-

-

Other debtors

2,766,859

995,364

1,596,936

898,412

Prepayments

223,698

98,131

6,310

-

Gross amount due from customers for contract work

886,321

310,579

-

-

6,931,004

4,429,033

1,603,246

898,412

 

Strata Creative Holdings Limited

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

18

Cash and cash equivalents

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Cash at bank

2,354,037

2,539,893

4,998

4,743

Short-term deposits

200,000

-

-

-

2,554,037

2,539,893

4,998

4,743

19

Creditors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Due within one year

 

Loans and borrowings

22

250,547

208,027

-

-

Trade creditors

 

1,601,412

947,019

9,591

-

Amounts due to group undertakings

 

-

-

4,392,633

3,537,491

Social security and other taxes

 

883,547

646,966

15,975

-

Other payables

 

1,589,193

693,084

237

89,606

Accruals

 

6,697,938

4,991,282

1,031

30,000

Corporation tax liability

 

414,358

349,406

79,445

144,623

 

11,436,995

7,835,784

4,498,912

3,801,720

Due after one year

 

Loans and borrowings

22

704,886

926,840

-

-

Other non-current financial liabilities

 

1,099,872

-

-

-

 

1,804,758

926,840

-

-

20

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 £124,823 (2022 - £127,102).
 

 

Strata Creative Holdings Limited

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

21

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Preference shares of £0.01 each

-

-

-

-

A Ordinary shares of £0.01 each

2,764

27.64

2,764

27.64

B Ordinary shares of £0.01 each

-

-

-

-

C Ordinary shares of £0.01 each

1,218

12.18

1,192

11.92

D Ordinary shares of £0.01 each

2,773

27.73

2,764

27.64

E Ordinary shares of £0.01 each

832

8.32

867

8.67

F Ordinary shares of £0.01 each

2,714

27.14

2,714

27.14

G Ordinary shares of £0.01 each

2,714

27.14

2,714

27.14

H Ordinary shares of £0.01 each

-

-

-

-

I Ordinary shares of £0.01 each

1,192

11.92

1,192

11.92

 

14,207

142

14,207

142

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.

22

Loans and borrowings

Non-current loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Bank borrowings

625,817

804,625

-

-

HP and finance lease liabilities

79,069

34,346

-

-

Other borrowings

-

87,869

-

-

704,886

926,840

-

-

Current loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Bank borrowings

183,574

188,099

-

-

HP and finance lease liabilities

66,973

19,928

-

-

250,547

208,027

-

-

 

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

-

70,921

-

-

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.

23

Commitments and guarantees

Group

The total of future minimum lease payments under operating leases is as follows:

2023
£

2022
£

Not later than one year

295,098

132,897

Later than one year and not later than five years

1,234,322

301,920

Later than five years

276,760

352,240

1,806,180

787,057

24

Dividends

Dividends paid

   

2023
£

 

2022
£

Dividend of £Nil (2022 - £78.78) per C Ordinary share

 

-

 

93,901

Dividend of £Nil (2022 - £35.45) per D Ordinary share

 

-

 

97,994

Dividend of £104.03 (2022 - £Nil) per F Ordinary share

 

124,000

 

-

Dividend of £38.32 (2022 - £Nil) per I Ordinary share

 

104,000

 

-

   

228,000

 

191,895

 

Strata Creative Holdings Limited

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

25

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

 

3,653,495

800,924

266,066

(44,529)

4,675,956

26

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.

27

Control

The ultimate controlling party is S X Hambley.

28

Non adjusting events after the financial period

Subsequent to 31 December 2023 the company and its subsidiary undertakings Strata Creative Communications Limited and On Event Production Co Limited entered into a guarantee in respect of group borrowings amounting to £1,000,000 secured by a fixed and floating charge over the assets and undertakings of each company.

Subsequent to 31 December 2023 dividends amounting to £606,948 were declared and paid.

 

Strata Creative Holdings Limited

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

29

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)