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Registered number: 03419892












PURPLE PUBLIC RELATIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

 

PURPLE PUBLIC RELATIONS LIMITED

CONTENTS



Page
Company information
 
1
Strategic report
 
2 - 5
Directors' report
 
6
Directors' responsibilities statement
 
7
Independent auditor's report
 
8 - 11
Profit and loss account
 
12
Balance sheet
 
13 - 14
Statement of changes in equity
 
15
Notes to the financial statements
 
16 - 36


 

PURPLE PUBLIC RELATIONS LIMITED
 
COMPANY INFORMATION


Directors
K L Barnea 
S R King 
C Kurtzke 
A F G Lawlor 
A E Lister 
C M Lynch 
N M Oakley 
G G Wilson 




Company secretary
A F G Lawlor



Registered number
03419892



Registered office
Seventh Floor
1 Kingsway

London

England

WC2B 6XD




Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH




Page 1

 

PURPLE PUBLIC RELATIONS LIMITED
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report for the company for the year ended 31 December 2023. 
In February 2021, Together Group Holdings PLC through its subsidiary, Together Group Studios Limited, entered into an agreement to purchase the share capital of London-based Purple Public Relations Limited and its subsidiaries in the US (with offices in New York, Miami, Los Angeles) and Hong Kong.
Purple results are now consolidated within the Together Group Holdings PLC accounts and therefore the consolidation of the Purple Group of companies is no longer required. This annual report presents the results of the UK-based entity unlike the years prior to 2021 which showed consolidated results including US, UK and Hong Kong based entities.
In October 2022, Purple Public Relations Limited transferred 100% of its share capital in Purple USA, Inc. to TG Studios US, LLC, a fellow Together Group entity, for consideration of $11.5m.

Business review
 
The company’s principal trade is public relations and associated services, such as events management services.
Performance and Position
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.
Performance – Management Metrics
To review management metrics we have elected to exclude the impact of the unrealised FX loss on the TG Studios US, LLC loan of £501k (2022: £648k).
The company had a successive year of strong Turnover growth (17%). The company achieved an increase in operating profit of 3% to £1.203m (2022: £1.173) when excluding the contingent consideration and the unrealised FX loss. The company achieved this despite relocating to a new office and incurring relocation costs and a 3-month period of rent at two properties.
Performance – Strategic results
The company incurred an increase in its operating profit in the year to £702k (2022: £525k), as a result of including the impact of the unrealised FX loss on the loan to TG Studios US, LLC.
The company ended the period with a strong balance sheet position showing net current assets of £12.9m (2022: £11.9m), net assets of £13.2m (2022: £12.1m) and cash balances of £0.7m (2022: £0.9m). 
The company undertook significant operational enhancements in 2023, relocating to a new, state-of-the-art office space in London that enabled the entire UK Team to operate seamlessly on a single floor. This transition facilitated greater collaboration and efficiency across departments. Additionally, the company successfully finalised migrating its entire IT infrastructure to the cloud, enhancing system resilience, scalability, and supporting the continued focus on digital innovation and security. These strategic moves have positioned the company for greater operational flexibility and future growth.
Going concern 
Due to the uncertainty arising from the potential future economic climate, the directors have reviewed the company’s ability to continue as a going concern taking into account the potential impact on the company's future cash flows.

 
Page 2

 

PURPLE PUBLIC RELATIONS LIMITED

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Business review (continued)
The directors have stress tested the cash flows to December 2025 as part of its going concern analyses over Together Group Holdings PLC. Based on the results of the testing, the directors believe the company has sufficient resources to continue as a going concern for the foreseeable future and as such consider the going concern basis for the preparation of the financial statements to be appropriate.

Financial key performance indicators

We consider that our key performance indicators are those which communicate the financial performance and strengths of the company as a whole, these being turnover £9.6m (2022: £8.1m)  and gross margin.

Principle risks and uncertainties
 
The business operates in a market where there can be a certain amount of uncertainty in respect of outside influences and public perceptions and trends. With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen events outside of our control. The company regularly reviews the business risks and uses its best efforts to mitigate these through its systems, governance processes and through the definition of appropriate actions.
In particular, the directors have identified the following key risks:
Macroeconomic and geo-political risk
With its current focus on agencies operating mainly in the UK and in the US, the business is inherently dependent on the (macro)-economic climate in these markets. To mitigate the regional risk, the company is planning to drive a carefully-controlled further regional diversification over time into Europe, Middle East and into Asia-Pacific markets. As such, in 2023 the group opened its Singapore office, to build the Asia-Pacific profile. 
In addition, current geopolitical events with global impact such as the war in the Ukraine with its direct and indirect consequences also affect our targeted markets and therefore the performance, outlook and risk for our businesses. 
Pandemic risk (incl Covid 19 and following)
Regional, international or even global health crises such as Covid 19 and followings remain a significant risk for our businesses - both in terms of increasing internal risk exposure for our staff as well as affecting client spendings and client project timelines. Depending on the regional situations and regulatory policies, the situations in markets can change very quickly, introducing a further uncertainty into the quality of our cash-flow forecasts. To mitigate such risk, the company is carefully implementing all applicable regulatory requirements and taking specific actions to protect its staff, and it is monitoring the situation in its target markets. Whenever necessary, we work with the businesses to quickly adapt to changing market conditions by focusing on more resilient clients or by adapting the service portfolio and business models.
Past crises have shown that the luxury and high-end sectors that the company is targeting on the client side tend to show significantly higher resilience and faster recovery compared to other industries. We would therefore expect the company‘s business to be less affected compared to other service providers that do not have the same client focus.
Reputational risk (with direct or indirect financial impact)
As the company has a particular focus on clients in the fashion, beauty, luxury, lifestyle, high-end hospitality and property sectors where reputation is of the essence, reputational risk needs to be consciously managed. The rise of social media and the resulting acceleration of the sharing of information, news and of individual opinions and experiences has substantially enhanced this reputational risk. While this constitutes an opportunity for the company for providing additional services on the client side, it also constitutes a key risk for the company itself.

 
Page 3

 

PURPLE PUBLIC RELATIONS LIMITED

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties (continued)
Risk exposure is naturally higher when serving international markets that are governed by their cultural values, norms, expectations and policies. This not only but particularly applies to Greater China, which constitutes one of the most important but equally complex regions in the world. 
To mitigate the above risk, the group has already acquired a specialist agency with in-depth cultural and business expertise in the Greater China markets. In addition, we plan the acquisition of a crisis communication specialist, both to serve the group‘s internal needs as well as to extend the existing scope of service for our clients.
Operational Credit and cash-flow / liquidity risk 
The company is exposed to the typical risk of non-recovery of its debts. Appropriate credit-control policies have been implemented with regular reviews of aged debts, closely liaising with the relevant business managers and the clients. 
Liquidity risk is managed by regularly reviewing cash-flow forecasts and ensuring the availability of sufficient funds as they fall due. At the year-end, the company had £0.9m of cash available. The company’s long-term forecast, cash reserves and existing commitments support the view that the company will have adequate resources to meet its debts as they fall due for the foreseeable future, and for at least 12 months from the signing of these financial statements.
Client-related risk
The company is exposed to the typical client-risk of service businesses. The key risks that our businesses are facing on the client side are risks resulting from external or internal situations that affect the client’s situation or client satisfaction with the quality of service provided. Examples for the former can be changing regulatory requirements like new policies or lockdown during Covid affecting the planned openings of new physical locations or changes in the strategic priorities or at the leadership level on the client-side, which can affect project calendars with the resulting impact on cash-flow forecasts. Due to the global macroeconomic and geopolitical situation, this risk level has increased in the recent past, and we expect it to remain at a higher level in the mid-term. 
By working across multiple sectors the company is able to reduce the impact of global pandemic risk. Whereas Clients operating in the Hospitality and Events Management sectors were significantly impacted during Covid, this was less so within the Beauty and Fashion sectors. Additionally the company has no one Client that generates more than 10% of the company income, reducing its risk exposure.
To minimise the risk of client dissatisfaction and enhance retention, our businesses entertain a close relationship with their clients, and again, the agreement of longer project contracts with clearly agreed milestones or retainers models help to further reduce the risk. It should be noted, however, that project businesses typically have an inherent lifecycle after which the project terminates and the project-related client-relationship comes to an end. 
Staff-related legal and compliance risk
People are at the heart of our business, and as a result, the business faces both internal risk resulting from non-compliant behaviours or conflicts internally as well as externally - on client-facing service interactions such as meetings and events, or from staff communication and exchanges on public social-media channels.
To mitigate that risk, regulatory compliance as well as expected behavioural norms are detailed and clearly communicated to staff and are included in the respective employee handbooks that are made available to all staff. To further mitigate the risk and equally contribute to a positive, collaborative, diverse and inclusive culture, the company plans to further invest into adequate training and other measures, closely collaborating with the agencies’ people and HR representatives.

 
Page 4

 

PURPLE PUBLIC RELATIONS LIMITED

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties (continued)
Key people risk
As the company is a founder-led business, there is an inherently higher dependence on the founders and a key people risk. The directors are mitigating that risk in collaboration with the respective founders, planning for further risk diversification by restructuring roles and responsibilities, internal leadership development or by recruiting appropriate senior-level talent or, where appropriate, engaging in a timely succession planning.
Exchange-rate fluctuations
With the UK and the USA as its primary markets, the company is exposed to exchange-rate fluctuations between the US$ and the GB£ which has caused significant market volatility in recent months and days. The Purple agencies strongly rely on regional offices delivering services close to the client, thereby inherently minimising risk for project and client-service profitability. With further growth, the company will monitor the remaining risk resulting from international business that involves a variety of international offices, and decide whether and when additional hedging might be necessary. 
IP-related, data-breach risk and cyber attacks
The increasing importance of digitally-supported work as well as the growing role of remote working contributes to an enhanced risk of technical intrusion or data-related issues. The current geo-political climate has further increased the risk of cyberattacks. Wherever possible, the company relies on state-of-the-art cloud-based solutions and is working on clear delegations of authority and policies to further mitigate the risk from socially-engineered fraud attempts and attacks.
In addition, the agencies are facing IP-related risks arising from their limited global trademark protection capabilities, which the company will be mitigating in the future.

Outlook

Having considered its results and risk mitigation strategy, the directors are of the view that the company is well positioned in the current economic climate to continue working towards achieving the company’s growth targets.


This report was approved by the Purple Public Relations Limited board and signed on its behalf.



A F G Lawlor
Director

Date: 31 October 2024

Page 5

 

PURPLE PUBLIC RELATIONS LIMITED

DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Results and dividends

The profit for the year, after taxation, amounted to £993,347 (2022 - £10,781,120).

The directors did not declare a dividend during the year. 

Directors

The directors who served during the year were:

K L Barnea 
S R King 
C Kurtzke 
A F G Lawlor 
A E Lister 
C M Lynch 
N M Oakley 
G G Wilson 

Matters covered in the Strategic Report
As permitted by s414c(11) of the Companies Act 2006, the directors have elected to disclose information, required to be in the directors' report by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008', in the strategic report.

Disclosure of information to auditor

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board and signed on its behalf.
 





A F G Lawlor
Director

Date: 31 October 2024

Page 6

 

PURPLE PUBLIC RELATIONS LIMITED
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.

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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. 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 company and of the profit or loss of the company for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies and then 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;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 7

 

PURPLE PUBLIC RELATIONS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PURPLE PUBLIC RELATIONS LIMITED
 FOR THE YEAR ENDED 31 DECEMBER 2023

Opinion


We have audited the financial statements of Purple Public Relations Limited (the 'company') for the year ended 31 December 2023, which comprise the profit and loss account, the balance sheet, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its 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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 8

 

PURPLE PUBLIC RELATIONS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PURPLE PUBLIC RELATIONS LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Other information


The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual reportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters 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 the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the 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 directors' responsibilities statement set out on page 7, 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.


Page 9

 

PURPLE PUBLIC RELATIONS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PURPLE PUBLIC RELATIONS LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Auditor's responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
 
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company's sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and employment legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;
tested a sample of journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in
note 3 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
 
Page 10

 

PURPLE PUBLIC RELATIONS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PURPLE PUBLIC RELATIONS LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Auditor's responsibilities for the audit of the financial statements (continued)
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


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 2006Our 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.





Thomas Dickinson (senior statutory auditor)
  
for and on behalf of
Blick Rothenberg Audit LLP
 
Chartered Accountants
Statutory Auditor
  
16 Great Queen Street
Covent Garden
London
WC2B 5AH

 
Date: 
31 October 2024
Page 11

 

PURPLE PUBLIC RELATIONS LIMITED
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
9,571,773
8,155,499

Gross profit
  
9,571,773
8,155,499

Administrative expenses
  
(9,158,335)
(7,944,286)

Other operating income
 5 
288,333
313,743

Operating profit
 6 
701,771
524,956

Investment (loss)/income
 7 
(12,000)
10,194,972

Interest receivable and similar income
 10 
752,366
264,347

Interest payable and similar expenses
 11 
(392,396)
(174,745)

Profit before taxation
  
1,049,741
10,809,530

Tax on profit
 12 
(56,394)
(28,410)

Profit for the financial year
  
993,347
10,781,120

The notes on pages 16 to 36 form part of these financial statements.


The operating profit shown above includes unrealised foreign exchange losses on an intercompany receivable owed by TG Studios US, LLC. The below reconciliation demonstrates the operating results excluding this figure:

ole7be7.png
The profit and loss account has been prepared on the basis that all activities are continuing operations.
There are no items of other comprehensive income for either the year or the prior year other than the profit for the year. Accordingly, no statement of other comprehensive income has been presented.

Page 12


 
REGISTERED NUMBER:03419892
PURPLE PUBLIC RELATIONS LIMITED

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

  

Fixed assets
  

Tangible assets
 13 
5,650,638
473,450

Investments
 14 
256,224
268,224

  
5,906,862
741,674

Current assets
  

Debtors: amounts falling due after more than one year
 15 
10,654,430
9,801,846

Debtors: amounts falling due within one year
 15 
5,536,252
5,276,521

Cash at bank and in hand
 16 
702,160
863,615

  
16,892,842
15,941,982

Creditors: amounts falling due within one year
 17 
(4,011,811)
(4,081,441)

Net current assets
  
 
 
12,881,031
 
 
11,860,541

Total assets less current liabilities
  
18,787,893
12,602,215

  

Creditors: amounts falling due after more than one year
 18 
(5,503,565)
(456,176)

  
13,284,328
12,146,039

Provisions for liabilities
  

Deferred taxation
 22 
(63,748)
(5,618)

  
 
 
(63,748)
 
 
(5,618)

  

Net assets
  
13,220,580
12,140,421

Page 13


 
REGISTERED NUMBER:03419892
PURPLE PUBLIC RELATIONS LIMITED
    
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Capital and reserves
  

Called up share capital 
 23 
48,571
48,571

Share premium account
 24 
30,235
30,235

Capital redemption reserve
 24 
5,000
5,000

Capital contribution
 24 
1,930,347
1,930,347

Other reserves
 24 
152,625
65,813

Profit and loss account
 24 
11,053,802
10,060,455

Total equity
  
13,220,580
12,140,421


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




A F G Lawlor
Director

Date: 31 October 2024

The notes on pages 16 to 36 form part of these financial statements.

Page 14

PURPLE PUBLIC RELATIONS LIMITED


 
  
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023



Called up share capital
Share premium account
Capital redemption reserve
Capital contribution
Other reserves
Profit and loss account
Total equity


£
£
£
£
£
£
£



At 1 January 2022
48,571
30,235
5,000
1,930,347
-
(720,665)
1,293,488





Profit for the year
-
-
-
-
-
10,781,120
10,781,120


Share based payment expense
-
-
-
-
65,813
-
65,813





At 1 January 2023
48,571
30,235
5,000
1,930,347
65,813
10,060,455
12,140,421





Profit for the year
-
-
-
-
-
993,347
993,347


Share-based payment expense
-
-
-
-
86,812
-
86,812



At 31 December 2023
48,571
30,235
5,000
1,930,347
152,625
11,053,802
13,220,580



The notes on pages 16 to 36 form part of these financial statements.

Page 15
 

PURPLE PUBLIC RELATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Purple Public Relations Limited is a private company limited by shares and is incorporated in England and Wales. The registered office and principal place of business is Seventh Floor, 1 Kingsway, London, England, WC2B 6AN.
The company's principal activity consists of the provision of public relations and events management services.
The financial statements are presented in Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework'  and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).

The company was, at the end of the year, a wholly-owned subsidiary of Together Group Holdings PLC, whose registered address is North Suite Third Floor, 32/34 Great Marlborough Street, London, England, W1F 7JB. Together Group Holdings PLC prepares consolidated financial statements, in which the company and its subsidiaries are included. In accordance with the exemption given in Section 400 of the Companies Act 2006, the company is not required to produce, and has not published, consolidated accounts.

The following principal accounting policies have been applied:

Page 16

 

PURPLE PUBLIC RELATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.2

Financial Reporting Standard 101 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions under FRS 101:
the requirements of paragraphs 45(b) and 46-52 of IFRS 2 Share-based payment
the requirements of IFRS 7 Financial Instruments: Disclosures
the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers
the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
 - paragraph 79(a)(iv) of IAS 1;
 - paragraph 73(e) of IAS 16 Property, Plant and Equipment;
the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
the requirements of IAS 7 Statement of Cash Flows
the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member


 
2.3

Going concern

The directors of the controlling entity, Together Group Holdings Plc, have prepared forecasts until 31 December 2025 which show that the Group will have sufficient cash available from a combination of existing facilities and generated from its principal trading activity in order to settle liabilities in the due course of business and will maintain compliance with covenants with the borrowing facilities (a $55m borrowing facility entered into on 7 April 2023 which is due for repayment in quarterly instalments commencing on 31 March 2025 and a $65m borrowing facility entered into on 19 May 2024 which is due for repayment on 19 October 2029).
Group management has performed sensitivity analysis on these forecasts which show that if growth, which is forecast by the Group’s acquired agencies, were not achieved in the timeframe which is expected the Group would continue to maintain compliance with its borrowing covenants.
 
Accordingly, the directors have prepared the financial statements on the going concern basis, having assessed that the Group and the company has a reasonable expectation of continuing to settle liabilities as they fall due for a period of at least twelve months from the date of approval of the financial statements. 

Page 17

 

PURPLE PUBLIC RELATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Rendering of services

Revenue from providing services is recognised in the accounting period in which the services are rendered. Revenue is adjusted for amounts invoiced to customers in advance or arrears at both the beginning and end of the year, such that the revenue is recognised in line with the performance obligations under the contract.
Amounts invoiced to customers in advance of services being provided are included within creditors until the promised services are transferred to the customer. The company does not expect to have any contracts where the period between the transfer of the promised services to the customer and payment by the customer exceeds one year. As a consequence, the company does not adjust any of the transaction prices for the time value of money.

Pass through costs
Gross revenue comprises all amounts receivable exclusive of sales taxes. Pass-through costs incurred on behalf of clients where the group is acting as agent for the delivery of the recharged services are excluded from gross revenue and do not form part of revenue presented in the financial statements.

 
2.5

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is Sterling (£).

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

Foreign exchange gains and losses are presented in profit or loss within 'administrative expenses'.

Page 18

 

PURPLE PUBLIC RELATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Leases

The company as a lessee

At the inception of a contract, the company assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. 
The company recognises a right-of-use asset and a lease liability at the commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement day and any initial direct costs, less any lease incentives received. The assets are depreciated over the shorter period of lease term and useful life of the underlying asset on a straight line basis. The lease term includes periods covered by an option to extend if the company is reasonably certain to exercise that option.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the company uses its incremental borrowing rate.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in the future lease payments arising in rate, extension or termination options.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected to apply the practical expedient not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low value assets. The lease payments associated with these leases are recognised as an expense on a straight-line basis over the lease term.

 
2.7

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 19

 

PURPLE PUBLIC RELATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.11

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 20

 

PURPLE PUBLIC RELATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold property
-
Length of the lease
Fixtures and fittings
-
5 years
Computer equipment
-
3 years
Right-of-use assets
-
Length of the lease

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

Cash

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. 

Page 21

 

PURPLE PUBLIC RELATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.15

Financial instruments



The company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The company's accounting policies in respect of financial instruments transactions are explained below:

Financial assets and financial liabilities are initially measured at fair value. 

Financial assets

All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.
Trade and other receivables
Trade and other receivables where payment is due within one year do not constitute a financing transaction and are recorded at the undiscounted amount expected to be received, less attributable transaction costs. Any subsequent impairment is recognised as an expense in profit or loss. If payment is due after more than one year or if there is any other indication of a financing transaction, trade and other receivables are recorded initially at fair value less attributable transaction costs. In this situation, fair value is equal to the amount expected to be received, discounted at a market related interest rate.
All trade and other receivables are subsequently measured at amortised cost, net of impairment.
Impairment and write-offs
The company makes an estimate of the recoverable value of trade and other receivables. When assessing impairment of trade and other receivables, management considers factors including the credit rating of the receivable, the ageing profile of receivables and historical experience. The company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected credit loss allowance for all trade receivables. See note 15 for the net carrying amount of the receivables and associated impairment provision.
The company writes off a receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy proceedings, or in the case of trade receivables, when the amounts are over one year past due, whichever occurs sooner. Financial assets written off are still subject to enforcement activities. Any recoveries made are recognised in profit or loss.

Financial liabilities

Trade and other payables
Trade and other payables are initially recognised at fair value less attributable transaction costs. They are subsequently measured at amortised cost.

Page 22

 

PURPLE PUBLIC RELATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, that management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
Impairment of trade receivables
The company makes an estimate of the recoverable value of trade and other receivables. When assessing impairment of trade and other receivables, management considers factors including the credit rating of the receivable, the ageing profile of receivables and historical experience. The company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected credit loss allowance for all trade receivables. See note 15 for the net carrying amount of the receivables and associated impairment provision.
Incremental borrowing rate
The company makes an estimate of the incremental borrowing rate which is used to calculate the present value of lease obligations on agreements entered that do not contain an implicit rate of interest. When assessing the incremental borrowing rate management consider current interest rates on group loans and interest rates available in the market place. Any adjustment to the discount rate would have an impact on the value of the financial liabilities. See note 20 for the future minimum lease payments and the present value of minimum lease payments.
Share-based payments
The company operates an equity settled share-based payment arrangement in which share options were issued to employees of the company in respect of ordinary shares of the parent company, Together Group Holdings PLC, as part of an Enterprise Management Incentive scheme. The options are subject to a veting period of 3 years in total, but can only be exercised in the event of an exit. The fair value of the options was determined at the grant date using the Binomial model. The key assumptions of this model are the market value of the shares at grant date, which takes into consideration EBITDA multiples of listed entities operating in similar industries with a non-marketability deduction applied thereon, an annual volatility of 40%, and an annual risk-free rate of 0.3 - 3.7%. 

Page 23

 

PURPLE PUBLIC RELATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Provision of public relations and event management services
9,571,773
8,155,499


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
5,063,486
4,386,501

Rest of Europe
2,679,161
2,170,056

Rest of the world
1,829,126
1,598,942

9,571,773
8,155,499



5.


Other operating income

2023
2022
£
£

Intra-group management charges
-
254,596

Other operating income
87,991
59,147

Rent contributions
200,342
-

288,333
313,743


Other operating income comprises rental income, and other event income.
Rent contributions comprise amounts received from the outgoing tenant of the company's premises as an incentive for the company to take on a lease assignment.

Page 24

 

PURPLE PUBLIC RELATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
567,349
350,557

Exchange differences
490,290
772,209

Defined contribution pension cost
153,060
130,788

Fees payable to the company's auditor for the audit of the company's financial statements
30,000
28,600

The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.


7.


Investment income

2023
2022
£
£



(Loss)/gain on disposal of unlisted investment
(12,000)
10,194,972


The 2022 gain on disposal of investment relates to the disposal of Purple USA Inc. which occurred on 3 October 2022. The company's 100% shareholding was transferred to Together Group Studios US, LLC, for consideration of $11.5M. The company recognised a profit on disposal of £10,194,972.


8.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
5,039,913
4,555,489

Social security costs
551,476
544,291

Cost of defined contribution scheme
153,060
130,788

5,744,449
5,230,568


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Directors
8
4



Employees
97
84

105
88

Page 25

 

PURPLE PUBLIC RELATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
895,238
1,015,174

Company contributions to defined contribution pension schemes
55,698
48,276

950,936
1,063,450


During the year retirement benefits were accruing to 3 directors (2022 - 4) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £332,855 (2022 - £274,093).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £18,931 (2022 - £7,998).

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the company. There are no members of key management personnel for the company besides the directors.


10.


Interest receivable

2023
2022
£
£


Interest receivable from group companies
696,750
209,212

Other interest receivable
55,616
55,135

752,366
264,347


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
50,356
36,317

Loans from group undertakings
113,924
113,119

Interest on lease liabilities
228,116
25,309

392,396
174,745

Page 26

 

PURPLE PUBLIC RELATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
(1,736)
-


Total current tax
(1,736)
-

Deferred tax


Origination and reversal of timing differences
58,130
28,410


Taxation on profit on ordinary activities
56,394
28,410

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%)From 1 April 2023, the corporation tax rate increased to 25% for companies with profits over £250,000. A small profits rate was also introduced for companies with profits of £50,000 or less so that they will continue to pay corporation tax at 19%. From this date companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective corporation tax rate. For the financial year ended 31 December 2023, the current weighted average tax rate was 23.5%. Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements. The differences are explained below: 

2023
2022
£
£


Profit on ordinary activities before tax
1,049,741
10,809,530


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
246,689
2,053,811

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
26,321
6,345

Capital allowances for year in excess of depreciation
-
(3,833)

Short-term timing difference leading to an increase (decrease) in taxation
(63,748)
5,873

Other timing differences leading to an increase (decrease) in taxation
43,598
28,410

Non-taxable income
-
(1,937,045)

Group relief
(196,466)
(125,151)

Total tax charge for the year
56,394
28,410


Factors that may affect future tax charges

Page 27

 

PURPLE PUBLIC RELATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
12.Taxation (continued)

There were no factors that may affect future tax charges.


13.


Tangible fixed assets





Short-term leasehold property
Fixtures and fittings
Computer equipment
Right of use assets
Total

£
£
£
£
£



Cost


At 1 January 2023
149,740
286,906
309,154
897,223
1,643,023


Additions
813,558
71,149
43,486
4,961,037
5,889,230


Disposals
(149,740)
(400)
-
(869,925)
(1,020,065)



At 31 December 2023

813,558
357,655
352,640
4,988,335
6,512,188



Depreciation


At 1 January 2023
135,495
238,475
235,756
559,847
1,169,573


Charge for the year
22,453
5,855
45,290
493,751
567,349


Disposals
(149,740)
-
-
(725,632)
(875,372)



At 31 December 2023

8,208
244,330
281,046
327,966
861,550



Net book value



At 31 December 2023
805,350
113,325
71,594
4,660,369
5,650,638



At 31 December 2022
14,245
48,431
73,398
337,376
473,450

Page 28

 

PURPLE PUBLIC RELATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Fixed asset investments





Investments in subsidiary companies

£



Cost


At 1 January 2023
268,224


Amounts written off
(12,000)



At 31 December 2023
256,224





Subsidiary undertaking


The following was a subsidiary undertaking of the company:

Name

Registered office

Class of shares

Holding

Purple (APAC) Limited
23/F, 299QRC, 299 Queen's Road Central, Sheung Wan, HK.
Common stock
100%



Page 29

 

PURPLE PUBLIC RELATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Debtors

2023
2022
£
£

Due after more than one year

Amounts owed by group undertakings
9,874,430
9,720,975

Other debtors
780,000
80,871

10,654,430
9,801,846


2023
2022
£
£

Due within one year

Trade debtors
1,612,397
2,311,223

Amounts owed by group undertakings
3,172,983
2,214,323

Other debtors
404,825
686,632

Prepayments and accrued income
346,047
64,343

5,536,252
5,276,521


Trade debtors are stated after provisions for expected credit losses of £100,742 (2022: £66,843).
Included within amounts owed by group undertakings due after more than one year is £9,874,430 (2022: £9,720,975) bearing interest at 3% per annum. The remaining amounts owed by group undertakings due within one year are unsecured, interest-free and are repayable on demand. They are stated after provisions for expected credit losses of £nil (2022: £nil).


16.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
702,160
863,615


Page 30

 

PURPLE PUBLIC RELATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
170,000
169,998

Payments received on account
(3,955)
-

Trade creditors
178,667
562,275

Amounts owed to group undertakings
1,561,881
1,660,253

Corporation tax
(126,676)
-

Other taxation and social security
506,668
357,143

Lease liabilities
623,178
223,119

Other creditors
297,302
266,796

Accruals and deferred income
804,746
841,857

4,011,811
4,081,441


Included in amounts owed to group undertakings is £1,391,998 (2022: £1,359,981) bearing interest at 10% per annum and repayable on demand. The remaining amounts included in amounts owed to group undertakings are unsecured, interest-free and are repayable on demand.


18.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
255,000
424,986

Lease liabilities
4,555,157
31,190

Accruals and deferred income
693,408
-

5,503,565
456,176


Page 31

 

PURPLE PUBLIC RELATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
170,000
169,998

Amounts falling due 1-2 years

Bank loans
170,000
169,978

Amounts falling due 2-5 years

Bank loans
85,000
255,008


425,000
594,984


The bank loan bears interest at a rate of 3.99% over the Bank of England Base Rate per annum, is repayable in monthly instalments of £14,167 and the balance is repayable by June 2026.


20.


Lease liabilities

The company has entered into leases for office space in London which is recognised as a Right of Use Asset.
Lease liabilities in respect of this office space are due as follows:

2023
2022
£
£
Not later than one year

454,344

223,119
 
Between one year and five years

2,271,397

31,190
 
Greater than five years

2,022,867

-
 
4,748,608

254,309
 

Page 32

 

PURPLE PUBLIC RELATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

Lease liabilities (continued)
Contractual undiscounted cash flows are due as follows:

2023
2022
£
£
Not later than one year

878,718

236,774
 
Between one year and five years

3,514,872

32,715
 
Greater than five years

2,376,150

-
 
6,769,740

269,489
 

Included with contractual undiscounted cash flows shown above is unearned interest totalling £2,021,132 (2022: £15,180).
The directors do not perceive there to be a significant liquidity risk in respect of the company’s leasing arrangements. Liquidity risk is monitored as part of the overall process of managing cash flows.

The following amounts in respect of leases, where the company is a lessee, have been recognised in the profit or loss: 

2023
2022
£
£
Interest expense on lease liabilities

228,116

25,309
 
Expenses relating to short-term leases

53,550

-
 
281,666

25,309
 


21.


Hire purchase and finance leases



Future minimum lease payments is analysed as follows:

2023
2022
£
£


Within one year
168,834
-

Between 1-5 years
260,893
-

429,727
-

The finance leases relate to equipment used in the conduct of business. The remaining lease term is 2.5 years.

Page 33

 

PURPLE PUBLIC RELATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Deferred taxation




2023
2022


£

£






At beginning of year
(5,618)
22,792


Charged to the profit or loss
(58,130)
(28,410)



At end of year
(63,748)
(5,618)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(133,743)
(32,376)

Short term timing differences
69,995
26,758

(63,748)
(5,618)


23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



48,571 (2022 - 48,571) Ordinary shares of £1 each
48,571
48,571

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.


Page 34

 

PURPLE PUBLIC RELATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

24.


Reserves

Share premium account

The share premium reserve includes any premium received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

Capital redemption reserve

The capital redemption reserve is a non-distributable reserve arising from the redemption or purchase of a company's own shares.

Capital contribution

The capital contribution reserve represents amounts contributed to the equity of the company by its parent entity with no requirement for repayment of those amounts.

Other reserves

Amounts included in other reserves have arisen from the share-based payment charge. The shares over which the options were issued are that of the ultimate parent company. 

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses.


25.


Share-based payments

The company operates an equity settled share-based payment arrangement in which share options were issued to employees of the company in respect of ordinary shares of the parent company, Together Group Holdings PLC, as part of an Enterprise Management Incentive scheme. The options are subject to a veting period of 3 years in total, but can only be exercised in the event of an exit. The fair value of the options was determined at the grant date using the Binomial model. All options granted have an exercise price of £0.00001.





2023
2022
£
£


Equity-settled schemes
86,612
65,813


26.


Pension commitments

The company operates a defined contributions pension scheme. the assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £153,060 (2022: £130,788). Contributions totalling £127,355 (2022: £41,217) were payable to the fund at the reporting date and are included in creditors.

Page 35

 

PURPLE PUBLIC RELATIONS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

27.


Related party transactions

As permitted by FRS 101, the company has taken advantage of the exemption contained in IAS 24 Related Party Disclosures to not disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member. 
Directors' remuneration is disclosed in note 9.


28.


Controlling party

The immediate parent undertaking is . The parent's registered office is North Suite Third Floor, 32/34 Great Marlborough Street, London, England, W1F 7JB.
The ultimate parent undertaking and for which group financial statements are drawn up and of which the company is a member is Together Group Holdings PLC, whose registered office is at North Suite Third Floor, 32/34 Great Marlborough Street, London, England, W1F 7JB. Copies of the group financial statements are available to the public from Companies House, Crown Way, Cardiff, CF14 3UZ.

 
Page 36