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Registration number: 07944059

Advertising Principles Holdings Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2024

 

Advertising Principles Holdings Limited

Contents

Strategic Report

1 to 2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 8

Profit and Loss Account and Statement of Retained Earnings

9

Balance Sheet

10

Statement of Cash Flows

11

Notes to the Financial Statements

12 to 23

 

Advertising Principles Holdings Limited

Strategic Report for the Year Ended 31 March 2024

The directors present their strategic report for the year ended 31 March 2024.

Principal activity

The principal activity of the company is digital marketing agency

Fair review of the business

In the past 12 months the company has increased its focus upon the provision of digital marketing services, in line with increasing investment in digital channels across the wider economy.

Enhanced responsibility has been given to the senior managers with a focus to:

• Ensuring the continuous improvement in the day to day operations including development of the personnel they manage

• Increasing the conversion of new business and grow existing clients

• Developing the awareness of the business in the macro economy

The business’s largest customer has given notice to move to an alternative provider. This has had a significant impact on the business both commercially and financially. Considerable planning has been carried out to ensure the financial stability of the business. Losing a large client provides an opportunity to review the business operations and agree a revised way forward. The board of directors have agreed to:

• Increase the spread of clients to avoid a reliance on one large client

• Look to increase networking activity to replace the missing income

• Focus on a strategy to win new business

• Ensure all future clients pay for their own media directly with the provider

• Increase fee based income.

This approach has already delivered results with the winning of new work from new customers – this will replace a significant amount of the income lost after losing the large client.

The Board of Directors meet regularly to monitor key performance indicators of our business; gross profit margin (12.75% for the year ended 31 March 2024) which shows a small increase on prior year. Cash management (Net current liabilities of £811k as at 31 March 2024) an increase of £67k on FY23. Cash management continues to be a major focus. All creditors are being paid to terms and debtors remain low at c20 days.

When reviewing the profitability of the business there are items that need to be understood as they are not immediately obvious. Included in administrative expenses is a goodwill amortisation charge of £288k. The underlying Earnings Before Interest, Tax, Depreciation and Amortisation is £495k.

Overall net assets have increased to £460k in 2024 from £361k in 2023. The group has the support of its shareholders and loan note holders and based on this, we believe the group will continue to trade for at least 12 months from the approval date of the financial statements. The financial statements have been prepared on a going concern basis.

 

Advertising Principles Holdings Limited

Strategic Report for the Year Ended 31 March 2024

Principal risks and uncertainties

Macro-economic uncertainty around energy supplies and other global events continue to affect client confidence, the result being marketing budgets impacted and spending being more tightly controlled.

Continued volatility in the credit insurance market has affected both potential and current clients with credit limits under review as the company continues to require all activity to be fully insured.

Our finance function has introduced further controls on costs and cash flow. Enhanced reporting has enabled the company to focus on areas where commercial advantage can be leveraged.

Approved and authorised by the Board on 13 November 2024 and signed on its behalf by:
 

.........................................
D M Bywater
Director

 

Advertising Principles Holdings Limited

Directors' Report for the Year Ended 31 March 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

Directors of the company

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

M Curtis (resigned 30 September 2023)

C Goodwin

B May

D M Bywater (appointed 20 March 2024)

Disclosure of information to the auditors

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 auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 13 November 2024 and signed on its behalf by:
 

.........................................
D M Bywater
Director

 

Advertising Principles 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 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom 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. 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.

 

Advertising Principles Holdings Limited

Independent Auditor's Report to the Members of Advertising Principles Holdings Limited

Opinion

We have audited the financial statements of Advertising Principles Holdings Limited (the 'company') for the year ended 31 March 2024, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, 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 company's affairs as at 31 March 2024 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 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 company'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.

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.

 

Advertising Principles Holdings Limited

Independent Auditor's Report to the Members of Advertising Principles Holdings Limited

Opinion on other matter prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

adequate accounting records have not been kept, 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 Statement of Directors' Responsibilities [set out on page 4], 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.

 

Advertising Principles Holdings Limited

Independent Auditor's Report to the Members of Advertising Principles 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.

In planning and designing our audit tests, we identify and assess the risks of material misstatement within the financial statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the industry and sector, the control environment and the business performance along with the results of our enquiries of management, about their own identification and assessment of the risks of irregularities. We are also required to perform specific procedures to respond to the risk of management override.

Following this assessment we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in evaluating the revenue and deferred income.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the company operates, to enable us to identify the key laws and regulations applicable to the company. 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, data protection, anti-bribery, employment, environmental and health and safety legislation.

We then performed audit procedures after consideration of the above risks which included the following:

obtaining a detailed understanding of the methodology adopted by management and key assumptions underpinning the calculation of amounts recoverable on contracts including gaining assurance over cut off and deferred income;

enquiring of management concerning actual and potential litigation and claims;

reviewing correspondence with HMRC and the company’s legal advisors;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

reading minutes of meetings of those charged with governance; and;

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

All engagement team members were informed of the relevant laws and regulations and potential fraud risks at the planning stage and reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify such items.

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.

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.

 

Advertising Principles Holdings Limited

Independent Auditor's Report to the Members of Advertising Principles Holdings Limited

Use of our report

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

......................................
Andrew Padgett BFP ACA FCCA (Senior Statutory Auditor)
For and on behalf of Watson Buckle Limited,
Statutory Auditors & Chartered Accountants
Bradford

13 November 2024

 

Advertising Principles Holdings Limited

Profit and Loss Account and Statement of Retained Earnings for the Year Ended 31 March 2024

Note

2024
£

2023
£

Turnover

3

13,259,256

14,334,705

Cost of sales

 

(11,569,265)

(12,583,753)

Gross profit

 

1,689,991

1,750,952

Administrative expenses

 

(1,516,065)

(1,633,903)

Other operating income

4

26,008

4,749

Operating profit

5

199,934

121,798

Other interest receivable and similar income

6

-

Interest payable and similar charges

6

(61,060)

(45,020)

Profit before tax

 

138,880

76,778

Taxation

10

(39,538)

(10,037)

Profit for the financial year

 

99,342

66,741

Retained earnings brought forward

 

(1,109,217)

(1,175,958)

Retained earnings carried forward

 

(1,009,875)

(1,109,217)

 

Advertising Principles Holdings Limited

(Registration number: 07944059)
Balance Sheet as at 31 March 2024

Note

2024
£

2023
£

           

Fixed assets

   

 

Intangible assets

11

 

2,599,008

 

2,887,787

Tangible assets

12

 

11,216

 

9,771

Investments

13

 

1

 

1

   

2,610,225

 

2,897,559

Current assets

   

 

Debtors

14

3,282,206

 

2,489,675

 

Cash at bank and in hand

 

84,005

 

30,960

 

 

3,366,211

 

2,520,635

 

Creditors: Amounts falling due within one year

16

(4,177,078)

 

(3,264,660)

 

Net current liabilities

   

(810,867)

 

(744,025)

Total assets less current liabilities

   

1,799,358

 

2,153,534

Creditors: Amounts falling due after more than one year

16

 

(1,335,882)

 

(1,792,400)

Provisions for liabilities

18

 

(3,000)

 

-

Net assets

   

460,476

 

361,134

Capital and reserves

   

 

Called up share capital

100

 

100

 

Share premium reserve

21

1,470,251

 

1,470,251

 

Retained earnings

21

(1,009,875)

 

(1,109,217)

 

Shareholders' funds

   

460,476

 

361,134

Approved and authorised by the Board on 13 November 2024 and signed on its behalf by:
 

.........................................
D M Bywater
Director

 

Advertising Principles Holdings Limited

Statement of Cash Flows for the Year Ended 31 March 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

99,342

66,741

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

295,465

298,235

Profit on disposal of tangible assets

-

(5,377)

Finance income

(6)

-

Finance costs

6

61,060

45,020

Income tax expense

10

39,538

10,037

 

495,399

414,656

Working capital adjustments

 

Decrease in stocks

-

1,429

(Increase)/decrease in trade debtors

14

(792,531)

1,330,171

Increase/(decrease) in trade creditors

16

778,689

(1,480,679)

Cash generated from operations

 

481,557

265,577

Income taxes paid

10

(10,038)

(130,151)

Net cash flow from operating activities

 

471,519

135,426

Cash flows from investing activities

 

Interest received

6

-

Acquisitions of tangible assets

(8,131)

(8,821)

Proceeds from sale of tangible assets

 

-

22,201

Net cash flows from investing activities

 

(8,125)

13,380

Cash flows from financing activities

 

Interest paid

6

(61,060)

(45,020)

Repayment of bank borrowing

 

(45,455)

(45,455)

Repayment of other borrowing

 

(228,259)

(10,831)

Net cash flows from financing activities

 

(334,774)

(101,306)

Net increase in cash and cash equivalents

 

128,620

47,500

Cash and cash equivalents at 1 April

 

(751,900)

(799,400)

Cash and cash equivalents at 31 March

 

(623,280)

(751,900)

 

Advertising Principles Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

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:
White Rose House
Otley Road
Headingley
Leeds
LS6 2AD

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

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' and the Companies Act 2006.

Basis of preparation

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

The company's functional and presentation currency is pound sterling.

Summary of disclosure exemptions

The company has taken advantage of the exemptions available under FRS 102, Section 33 Related party disclosures and UK Statutory Instruments, 1 Sch.72 from disclosing transactions and balances with fellow group undertakings that are wholly owned.

Group accounts not prepared

The company is exempt from preparing consolidated accounts as the group it heads is a small group.

Going concern

Despite negative current liabilities at the balance sheet date, the directors have prepared the financial statements on a going concern basis. The company has the support of its shareholders and loan note holders and based on this, the directors are of the opinion that the company will continue to trade for at least the next 12 months from the date of approval of the financial statements.

Revenue recognition

Turnover is measured at fair value of the consideration received or receivable, net of discounts and value added taxes.
All turnover is generated from the rendering of services.

Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at
the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be
reliably estimated, revenue is recognised only to the extent that expenses recognisable are recoverable.

Tax

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

 

Advertising Principles Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the 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 balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

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

Depreciation

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

Asset class

Depreciation method and rate

Leasehold improvements

20% straight line basis

Fixtures, fittings and equipment

20% straight line basis

Office equipment

33% straight line basis

Motor vehicles

18% straight line basis

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 company’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

Separately acquired trademarks and licences are shown at historical cost.

Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are
recognised at fair value at the acquisition date.

Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less
accumulated amortisation and any accumulated impairment losses.

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:

 

Advertising Principles Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Asset class

Amortisation method and rate

Goodwill

9 years remaining

Other intangible assets

20% straight line basis

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.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

The cost of work in progress comprises labour costs and those overheads that have been incurred in bringing the jobs to their present location and condition.

Leases

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

Share capital

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

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company 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.

 

Advertising Principles Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Financial instruments

Financial assets

Basic financial assets, including trade and other receivables, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar asset. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss and any subsequent reversal is recognised in profit or loss.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

3

Turnover

The analysis of the company's Turnover for the year by market is as follows:

2024
£

2023
£

UK

13,259,256

14,334,705

4

Other operating income

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

2024
£

2023
£

Miscellaneous other operating income

26,008

4,749

 

Advertising Principles Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

5

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

6,686

9,456

Amortisation expense

288,779

288,779

Operating lease expense - plant and machinery

1,443

1,072

Profit on disposal of property, plant and equipment

-

(5,377)

6

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

41,179

30,001

Interest expense on other finance liabilities

19,881

15,019

61,060

45,020

7

Staff costs

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

2024
£

2023
£

Wages and salaries

775,517

812,982

Social security costs

71,713

82,758

Pension costs, defined contribution scheme

35,643

68,070

882,873

963,810

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

2024
No.

2023
No.

Administration and support

24

25

24

25

 

Advertising Principles Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

74,524

86,171

Contributions paid to money purchase schemes

8,000

39,960

82,524

126,131

9

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

11,500

15,800


 

10

Taxation

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

2024
£

2023
£

Current taxation

UK corporation tax

36,500

10,000

UK corporation tax adjustment to prior periods

38

37

36,538

10,037

Deferred taxation

Arising from origination and reversal of timing differences

3,000

-

Tax expense in the income statement

39,538

10,037

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

138,880

76,778

Corporation tax at standard rate

34,720

14,588

Tax decrease from other short-term timing differences

(1,470)

(2,120)

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

4,280

4,569

Tax increase/(decrease) from other tax effects

2,008

(7,000)

Total tax charge

39,538

10,037

 

Advertising Principles Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Deferred tax

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Accelerated capital allowances

-

3,000

-

3,000

2023

Asset
£

Liability
£

Accelerated capital allowances

-

2,000

Other timing differences

6,000

-

Losses

-

1,000

6,000

3,000

The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £1,666 (2023 - £1,428).

 

Advertising Principles Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

11

Intangible assets

Goodwill
 £

Other intangible assets
 £

Total
£

Cost or valuation

At 1 April 2023

5,263,425

4,804

5,268,229

At 31 March 2024

5,263,425

4,804

5,268,229

Amortisation

At 1 April 2023

2,375,638

4,804

2,380,442

Amortisation charge

288,779

-

288,779

At 31 March 2024

2,664,417

4,804

2,669,221

Carrying amount

At 31 March 2024

2,599,008

-

2,599,008

At 31 March 2023

2,887,787

-

2,887,787

12

Tangible assets

Leasehold improvements
£

Furniture, fittings and equipment
 £

Office equipment
 £

Total
£

Cost or valuation

At 1 April 2023

76,729

2,559

89,113

168,401

Additions

-

-

8,131

8,131

Disposals

-

-

(19,291)

(19,291)

At 31 March 2024

76,729

2,559

77,953

157,241

Depreciation

At 1 April 2023

76,729

1,581

80,320

158,630

Charge for the year

-

235

6,451

6,686

Eliminated on disposal

-

-

(19,291)

(19,291)

At 31 March 2024

76,729

1,816

67,480

146,025

Carrying amount

At 31 March 2024

-

743

10,473

11,216

At 31 March 2023

-

978

8,793

9,771

 

Advertising Principles Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

13

Investments

2024
£

2023
£

Investments in subsidiaries

1

1

Subsidiaries

£

Cost or valuation

At 1 April 2023

1

Provision

Carrying amount

At 31 March 2024

1

At 31 March 2023

1

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2024

2023

Subsidiary undertakings

Principles Communications Limited

White Rose House
Otley Road
Headingley
Leeds
LS6 2AD

Ordinary

100%

100%

14

Debtors

Current

2024
£

2023
£

Trade debtors

3,025,922

2,240,063

Other debtors

182,888

185,717

Prepayments

26,967

17,466

Corporation tax asset

46,429

46,429

 

3,282,206

2,489,675

 

Advertising Principles Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

15

Cash and cash equivalents

2024
£

2023
£

Cash on hand

209

234

Cash at bank

83,796

30,726

84,005

30,960

Bank overdrafts

(707,285)

(782,860)

Cash and cash equivalents in statement of cash flows

(623,280)

(751,900)

16

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

17

707,285

782,860

Trade creditors

 

2,178,495

1,657,081

Amounts due to related parties

 

98,485

143,940

Social security and other taxes

 

704,040

481,858

Outstanding defined contribution pension costs

 

-

3,330

Other creditors

 

228,259

-

Accruals

 

224,014

185,591

Corporation tax liability

 

36,500

10,000

 

4,177,078

3,264,660

Due after one year

 

Other non-current financial liabilities

 

1,335,882

1,792,400

A debenture dated 19 April 2012 creating a fixed and floating charge over the assets of the company and its subsidiary undertakings is in place to secure the other creditors and other non-current financial liabilities in less than one year of £228,259 (2023 - £Nil) and more than one year of £1,335,882 (2023 - £1,792,400).

17

Loans and borrowings

Current loans and borrowings

2024
£

2023
£

Invoice discounting

707,285

782,860

Invoice discounting liabilities of £707,285 (2023 - £782,860) are secured by way of a fixed and floating charge over the assets of the company.

 

Advertising Principles Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

18

Provisions for liabilities

Deferred tax
£

Total
£

Additional provisions

3,000

3,000

At 31 March 2024

3,000

3,000

19

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £35,643 (2023 - £68,070).

Contributions totalling £Nil (2023 - £3,330) were payable to the scheme at the end of the year and are included in creditors.

20

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

       

21

Reserves

Share capital

Represents the nominal value of issued shares

Share premium

Represents the amount paid for issued ordinary shares in excess of their par value

Profit and loss account

Includes all current and prior periods distributable profits and losses including capital contributions by shareholders relating to waived interest on loan notes

 

Advertising Principles Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

22

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

12,600

12,600

Later than one year and not later than five years

2,100

14,700

14,700

27,300

The amount of non-cancellable operating lease payments recognised as an expense during the year was £12,600 (2023 - £12,600).

23

Related party transactions

Expenditure with and payables to related parties

2024

Other related parties
£

Rendering of services

7,500

Amounts payable to related party

(9,000)

Loans from related parties

2024

Other related parties
£

Total
£

At start of period

1,792,400

1,792,400

Repaid

(228,259)

(228,259)

At end of period

1,564,141

1,564,141

2023

Other related parties
£

Total
£

At start of period

1,803,231

1,803,231

Repaid

(40,000)

(40,000)

Interest transactions

29,169

29,169

At end of period

1,792,400

1,792,400