Company registration number 13240232 (England and Wales)
BICYCLE LONDON LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
BICYCLE LONDON LIMITED
COMPANY INFORMATION
Directors
P Avery
M Jarvis
E Mari
G Douglas
H Daglish
Company number
13240232
Registered office
North House
198 High Street
Tonbridge
Kent
TN9 1BE
Auditor
Lindeyer Francis Ferguson Limited
North House
198 High Street
Tonbridge
Kent
TN9 1BE
Business address
1st Floor
300 St John Street
London
EC1V 4PA
BICYCLE LONDON LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 27
BICYCLE LONDON LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

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

Executive summary

Founded in 2021, Bicycle London is a communications agency driven by the mission to leave the media industry better than we found it. Built on the principle of "the power of and," we seamlessly integrate brand and performance media, creative strategy, and creative production.

In our third financial year (FY3), we delivered exceptional growth, highlighted by a 13% increase in gross profit to £4.06m. This growth was driven by significant client wins, including Tate & Lyle, Branston, Carwow, and the Royal British Legion. Over three years, we have consistently achieved strong financial performance, maintaining an EBITDA of over £1m before non-recurring expenditures and bonuses.

FY3 also marked the introduction of an MBO scheme for our senior leadership team, separate from the agency-wide bonus scheme. This initiative was designed to acknowledge their strategic contributions to client income growth and ensure meaningful recognition for their efforts. EBITDA before non-recurring expenses and bonuses reached £1.09m, reflecting a 18% gross profit margin.

Our core values Drive, Balance, and Freedom; underpin everything we do, helping us attract top talent, build lasting client relationships, and deliver exceptional results. Looking ahead, our strategic priorities focus on expanding our client base, developing innovative services, and investing in our people to sustain our success.

Principal activities

Bicycle London’s principal activity is the provision of integrated media planning and buying services, creative solutions, and data-driven communication strategies. Our commitment to the "power of and" ensures seamless integration across disciplines, delivering value in technology, data, and digital innovation.

Company overview

Bicycle London is fully independent and self-funded, operating with a unique ownership model that ensures collective risk and opportunity. Our agency model is built on three core differentiators:

  1. The Power of "And": Operating seamlessly across brand and performance, data and digital, media and creative.

  2. People Over Users: Recognising that media is about connecting with humans, not just targeting demographics.

  3. Brand and Performance: Leveraging data to inform strategy and refine buying processes, ensuring creativity and effectiveness.

Financial performance

Key financial highlights for FY3:

This performance exceeded our initial projections, driven by major client wins, expanded service offerings, and operational efficiency.

BICYCLE LONDON LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Principal risks and uncertainties
Client portfolio and new business

Our diverse client portfolio showcases our ability to deliver impactful results:

At Bicycle, our new business strategy emphasises the power of personal recommendations, fostering direct relationships, and executing highly targeted pitches. This approach has been instrumental in securing high-value clients, including the Transport UK account (Greater Anglia Trains and Stansted Express) last quarter, further driving our growth and industry impact.

We prioritise stakeholder interests by delivering value, ensuring alignment, and fostering mutual success in every partnership. Over the past year, we conducted multiple 360-degree client reviews, creating structured opportunities to align objectives, address challenges early, and drive collaborative growth. These reviews directly inform tailored and collective action plans to refine our services and offerings.

Our Work & Industry Recognition

The quality of the work we have provided to our clients has been widely recognised across the industry. One highlight was our Sarson’s ‘Fryday’ campaign, which won the Chair’s Award at the Newsworks Awards. The agency was also highly commended for both Best Places to Work and Agency of the Year in the Global Drum Agency Business Awards.

This was also the year we became B Corp™ certified - making us one of only four UK agencies with this highly coveted accreditation.

We were also featured in Campaign Magazine’s School Report for the first time, achieving an overall score of 7 (out of 9).

BICYCLE LONDON LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
People and Culture

Our greatest asset is our people—our "peloton." At the date of the report, the team has grown to over 35, with 55% women and 35% non-white employees. We operate with no gender or BAME pay gaps and have been a London Living Wage employer since February 2024.

We foster a culture built on our values:

Flexible working models and a focus on belonging contribute to a high employee NPS of 85% and staff turnover of under 10%. Last year, over 90% of our staff completed DE&I training, which empowered them to address unconscious bias. Alongside securing Gold status from the IPA (Institute Practitioners of Advertising) for our CPD programme.

In March 2024, we awarded all staff an end-of-year bonus, ensuring everyone shares in the company’s financial success and reinforcing our commitment to rewarding exceptional talent.

Environmental and Social Responsibility
Environmental Impact
Social Responsibility
Operations and Innovation

Operational excellence and innovation are central to our success. Key initiatives included:

BICYCLE LONDON LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Future Outlook and Strategic Goals

Financial Targets:

Growth Strategies:

  1. Expand into new geographical markets and establish "Centres of Excellence."

  2. Develop new services, including long-form content production and offerings focused on key specialist sectors.

  3. Invest in talent acquisition and development in data engineering, analysis, and creative strategy.

Challenges and Opportunities:

Conclusion

Bicycle London’s first three years have been marked by remarkable growth and success, driven by our mission to leave the media industry better than we found it. Our unique blend of artistry and data-driven strategies positions us well for continued innovation and success. By fostering a culture of inclusion, creativity, and excellence, we aim to build on our achievements and shape the future of media experience design.

On behalf of the board

P Avery
Director
28 January 2025
BICYCLE LONDON LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -

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

Principal activities

Bicycle London’s principal activity is the provision of integrated media planning and buying services, creative solutions, and data-driven communication strategies. Our commitment to the "power of and" ensures seamless integration across disciplines, delivering value in technology, data, and digital innovation.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £345,000 (2023 - £483,667). The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

P Avery
M Jarvis
E Mari
G Douglas
H Daglish
Financial instruments

The group's credit risk is primarily attributable to its trade receivables. Credit risk is managed by advance billing on projects where possible, running credit checks on new clients, taking into consideration clients funding, current financial health, country of domicile, and by monitoring payments against contractual agreements.

 

The principle business risks affecting the group are considered to relate to:

Auditor

Lindeyer Francis Ferguson Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

BICYCLE LONDON LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
P Avery
Director
28 January 2025
BICYCLE LONDON LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BICYCLE LONDON LIMITED
- 7 -
Opinion

We have audited the financial statements of Bicycle London Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent 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.

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 report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

BICYCLE LONDON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BICYCLE LONDON LIMITED
- 8 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

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.

We obtained an understanding of the legal and regulatory framework applicable to the preparation of the financial statements of the group, and the procedures that management adopt to ensure compliance. We have considered the extent to which non-compliance might have a material effect on the financial statements, and in particular we identified: the Companies Act 2006 and Financial Reporting Standard 102.

We have also identified other laws and regulations that do not have a direct effect on the amounts or disclosures within the financial statements, but for which compliance is fundamental to the group's operations and to avoid material penalties, including the General Data Protection Regulation, employment law, health and safety and the Advertising Standards Authority's (ASA) advertising code.

Having reviewed the laws and regulations applicable to the group, we designed and performed audit procedures to obtain sufficient appropriate audit evidence. Specifically, we:

 

BICYCLE LONDON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BICYCLE LONDON LIMITED
- 9 -

We assessed the susceptibility of the group’s financial statements to material misstatement, including considering how fraud might occur. This was performed by:

We then designed audit procedures in response to the risks identified, including performing substantive testing on all material income streams, tracing post year end receipts to confirm the recoverability of debtors and reviewing journal entries and accounting estimates for signs of management bias or override of controls.

The audit has been planned and performed in accordance with auditing standards, however, because of the inherent limitations of audit procedures there remains a risk that we will not detect all irregularities, including those that may lead to material misstatements in the financial statements. There are inherent difficulties in detecting irregularities, and irregularities that result from fraud may be more difficult to detect than irregularities that result from error, for example due to concealment, override of controls, collusion or misrepresentations. In addition, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less audit procedures are able to identify it.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters which we are required to address

The prior period financial statements and the corresponding comparative figures included within these financial statements were not audited.

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.

Jonathan Healey FCA (Senior Statutory Auditor)
For and on behalf of Lindeyer Francis Ferguson Limited
28 January 2025
Chartered Accountants
Statutory Auditor
North House
198 High Street
Tonbridge
Kent
TN9 1BE
BICYCLE LONDON LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
21,955,160
24,132,456
Cost of sales
(17,899,168)
(20,550,279)
Gross profit
4,055,992
3,582,177
Administrative expenses
(3,195,644)
(2,389,931)
Exceptional item
4
-
0
(1,700)
Operating profit
5
860,348
1,190,546
Interest receivable and similar income
99,686
19,882
Profit before taxation
960,034
1,210,428
Tax on profit
8
(241,711)
(232,610)
Profit for the financial year
718,323
977,818
Profit for the financial year is all attributable to the owners of the parent company.

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

BICYCLE LONDON LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
5,733
7,371
Tangible assets
11
42,268
35,441
48,001
42,812
Current assets
Debtors
14
1,812,792
1,084,682
Cash at bank and in hand
7,516,906
7,764,459
9,329,698
8,849,141
Creditors: amounts falling due within one year
15
(8,218,926)
(8,106,503)
Net current assets
1,110,772
742,638
Net assets
1,158,773
785,450
Capital and reserves
Called up share capital
17
1,000
1,000
Share premium account
289,432
289,432
Profit and loss reserves
868,341
495,018
Total equity
1,158,773
785,450

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 28 January 2025 and are signed on its behalf by:
28 January 2025
P Avery
Director
Company registration number 13240232 (England and Wales)
BICYCLE LONDON LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 12 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
10
5,733
7,371
Tangible assets
11
42,268
35,441
Investments
12
200
100
48,201
42,912
Current assets
Debtors
14
2,802,789
2,061,669
Cash at bank and in hand
5,879,111
6,474,781
8,681,900
8,536,450
Creditors: amounts falling due within one year
15
(7,845,935)
(7,924,118)
Net current assets
835,965
612,332
Net assets
884,166
655,244
Capital and reserves
Called up share capital
17
1,000
1,000
Share premium account
289,432
289,432
Profit and loss reserves
593,734
364,812
Total equity
884,166
655,244

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £573,922 (2023 - £847,612 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 28 January 2025 and are signed on its behalf by:
28 January 2025
P Avery
Director
Company registration number 13240232 (England and Wales)
BICYCLE LONDON LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
1,000
289,432
867
291,299
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
977,818
977,818
Dividends
9
-
-
(483,667)
(483,667)
Balance at 31 March 2023
1,000
289,432
495,018
785,450
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
718,323
718,323
Dividends
9
-
-
(345,000)
(345,000)
Balance at 31 March 2024
1,000
289,432
868,341
1,158,773
BICYCLE LONDON LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
1,000
289,432
867
291,299
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
847,612
847,612
Dividends
9
-
-
(483,667)
(483,667)
Balance at 31 March 2023
1,000
289,432
364,812
655,244
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
573,922
573,922
Dividends
9
-
-
(345,000)
(345,000)
Balance at 31 March 2024
1,000
289,432
593,734
884,166
BICYCLE LONDON LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
254,730
4,764,187
Income taxes paid
(231,973)
(8,326)
Net cash inflow from operating activities
22,757
4,755,861
Investing activities
Purchase of intangible assets
-
(8,190)
Purchase of tangible fixed assets
(24,996)
(24,037)
Interest received
99,686
19,882
Net cash generated from/(used in) investing activities
74,690
(12,345)
Financing activities
Dividends paid to equity shareholders
(345,000)
(483,667)
Net cash used in financing activities
(345,000)
(483,667)
Net (decrease)/increase in cash and cash equivalents
(247,553)
4,259,849
Cash and cash equivalents at beginning of year
7,764,459
3,504,610
Cash and cash equivalents at end of year
7,516,906
7,764,459
BICYCLE LONDON LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
20
(124,077)
3,474,609
Income taxes paid
(201,183)
(8,326)
Net cash (outflow)/inflow from operating activities
(325,260)
3,466,283
Investing activities
Purchase of intangible assets
-
0
(8,190)
Purchase of tangible fixed assets
(24,996)
(24,037)
Purchase of shares in subsidiaries
(100)
(100)
Interest received
99,686
19,882
Net cash generated from/(used in) investing activities
74,590
(12,445)
Financing activities
Dividends paid to equity shareholders
(345,000)
(483,667)
Net cash used in financing activities
(345,000)
(483,667)
Net (decrease)/increase in cash and cash equivalents
(595,670)
2,970,171
Cash and cash equivalents at beginning of year
6,474,781
3,504,610
Cash and cash equivalents at end of year
5,879,111
6,474,781
BICYCLE LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
1
Accounting policies
Company information

Bicycle London Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is North House, 198 High Street, Tonbridge, Kent, TN9 1BE. The principal place of business is 1st Floor, 300 St John Street, London, EC1V 4PA.

 

The group consists of Bicycle London Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the group. Monetary amounts in these financial statements are rounded to the nearest pound.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Bicycle London Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

BICYCLE LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.5
Turnover

Turnover represents the value for gross billings, net of value added tax, and fair value to the right of consideration in exchange for the performance of its contractual obligations in respect of services provided to customers.

 

Specifically, commissions are recognised as income when the related advertisements appear. Fees are recognised as income when earned in accordance with the contractual agreement with the client. Where revenue has been earned before the end of an accounting period but not billed, it is accrued in the financial statements.

 

The group acts as principal, controlling and negotiating services provided by third parties to clients, such as media costs. Revenue is recorded as the cost-to-client amount billed and is recognised based on costs incurred, reflecting the proportion of the contract performed to date.

In relation to creative advertising agency services, the nature of scope of the service will determine the revenue recognition policy to adopt. It will be adopted on either percentage of completion or on a straight line basis.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computer software
20% Straight Line
1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
25% Straight Line
Computers
33% Straight Line
Office Equipment
33% Straight Line

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

 

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

 

BICYCLE LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

The group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, and loans from other third parties.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

1.12
Dividends

Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Taxation

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

1.14
Retirement benefits

The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions to a separate entity. Once the contributions are paid, the group has no further obligations. Contributions are recognised as an expense in profit or loss when they fall due. Unpaid amounts are shown in other creditors as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

BICYCLE LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Advertising services
21,472,546
24,132,456
Creative services
482,614
-
21,955,160
24,132,456
2024
2023
£
£
Other revenue
Interest income
99,686
19,882
4
Exceptional item
2024
2023
£
£
Expenditure
Exceptional item - company setup costs
-
1,700
5
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Exchange losses
11,238
9,103
Fees payable to the group's auditor for the audit of the group's financial statements
11,700
-
Depreciation of owned tangible fixed assets
18,169
11,845
Amortisation of intangible assets
1,638
819
Operating lease charges
86,194
75,968
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
25
18
24
17
BICYCLE LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Employees
(Continued)
- 21 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,722,831
1,220,607
1,670,302
1,156,755
Social security costs
170,572
141,501
165,520
134,983
Pension costs
27,841
18,495
27,351
18,064
1,921,244
1,380,603
1,863,173
1,309,802
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
420,081
487,675
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
108,333
125,000
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
241,711
232,610
BICYCLE LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Taxation
(Continued)
- 22 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
960,034
1,210,428
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
240,009
229,981
Tax effect of expenses that are not deductible in determining taxable profit
4,706
6,316
Permanent capital allowances in excess of depreciation
(1,707)
(3,687)
Under/(over) provided in prior years
(637)
-
0
Tax at marginal rate
(660)
-
0
Taxation charge
241,711
232,610
9
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
345,000
483,667
10
Intangible fixed assets
Group and company
Computer software
£
Cost
At 1 April 2023 and 31 March 2024
8,190
Amortisation and impairment
At 1 April 2023
819
Amortisation charged for the year
1,638
At 31 March 2024
2,457
Carrying amount
At 31 March 2024
5,733
At 31 March 2023
7,371
BICYCLE LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
11
Tangible fixed assets
Group and company
Fixtures and fittings
Computers
Office Equipment
Total
£
£
£
£
Cost
At 1 April 2023
14,348
32,707
1,249
48,304
Additions
10,400
14,596
-
0
24,996
At 31 March 2024
24,748
47,303
1,249
73,300
Depreciation and impairment
At 1 April 2023
609
11,956
298
12,863
Depreciation charged in the year
3,588
14,164
417
18,169
At 31 March 2024
4,197
26,120
715
31,032
Carrying amount
At 31 March 2024
20,551
21,183
534
42,268
At 31 March 2023
13,739
20,751
951
35,441
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
200
100
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023
100
Additions
100
At 31 March 2024
200
Carrying amount
At 31 March 2024
200
At 31 March 2023
100
BICYCLE LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
13
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Bicycle International Limited
England and Wales
Ordinary
100.00
Bicycle Studio Limited
England and Wales
Ordinary
100.00
14
Debtors
Group
Company
As restated
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,245,017
540,526
1,178,075
540,526
Amounts owed by group undertakings
-
-
1,226,322
1,187,985
Other debtors
477,233
232,880
307,850
54,890
Prepayments and accrued income
90,542
311,276
90,542
278,268
1,812,792
1,084,682
2,802,789
2,061,669
15
Creditors: amounts falling due within one year
Group
Company
As restated
2024
2023
2024
2023
Notes
£
£
£
£
Trade creditors
2,702,852
1,698,113
2,685,205
1,696,696
Amounts owed to group undertakings
-
0
-
0
19,681
-
0
Corporation tax payable
242,348
232,610
195,094
201,820
Other taxation and social security
104,531
101,685
57,198
98,906
Deferred income
982,767
763,231
982,767
763,231
Other creditors
898,107
1,678,282
808,013
1,650,833
Accruals
3,288,321
3,632,582
3,097,977
3,512,632
8,218,926
8,106,503
7,845,935
7,924,118
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
27,841
18,495

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

BICYCLE LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
17
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
1,000 Ordinary shares of £1 each
1,000
1,000
1,000
1,000
18
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
91,612
109,935
91,612
109,935
Between two and five years
41,226
41,225
41,226
41,225
132,838
151,160
132,838
151,160
19
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
718,323
977,818
Adjustments for:
Taxation charged
241,711
232,610
Investment income
(99,686)
(19,882)
Amortisation and impairment of intangible assets
1,638
819
Depreciation and impairment of tangible fixed assets
18,169
11,845
Movements in working capital:
Increase in debtors
(728,110)
(916,432)
(Decrease)/increase in creditors
(116,851)
6,434,696
Increase/(decrease) in deferred income
219,536
(1,957,287)
Cash generated from operations
254,730
4,764,187
BICYCLE LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
20
Cash (absorbed by)/generated from operations - company
2024
2023
As restated
£
£
Profit for the year after tax
573,922
847,612
Adjustments for:
Taxation charged
194,457
201,820
Investment income
(99,686)
(19,882)
Amortisation and impairment of intangible assets
1,638
819
Depreciation and impairment of tangible fixed assets
18,169
11,845
Movements in working capital:
Increase in debtors
(741,120)
(542,262)
(Decrease)/increase in creditors
(290,993)
5,589,064
Increase/(decrease) in deferred income
219,536
(2,614,407)
Cash (absorbed by)/generated from operations
(124,077)
3,474,609
21
Analysis of changes in net funds - group
31
1 April 2023
Cash flows
March 2024
£
£
£
Cash at bank and in hand
7,764,459
(247,553)
7,516,906
22
Analysis of changes in net funds - company
31
1 April 2023
Cash flows
March 2024
£
£
£
Cash at bank and in hand
6,474,781
(595,670)
5,879,111
BICYCLE LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
23
Prior period adjustment

During the preparation of the financial statements, five adjustments were identified in relation to prior year balances. These have been amended and the restatement is set out as follows:

 

 

 

 

 

 

The net impact of these adjustments has no impact on equity brought forward, and has been summarised in the table below.

Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Mar 2023
£
£
£
Debtors due within one year
Trade debtors
220,668
319,858
540,526
Amounts owed by group undertakings
1,009,995
177,990
1,187,985
Other debtors
219,314
(164,424)
54,890
Prepayments and accrued income
564,607
(286,339)
278,268
2,014,584
47,085
2,061,669
Creditors due within one year
Trade creditors
(5,515,795)
3,819,099
(1,696,696)
Corporation tax
(201,820)
-
(201,820)
Other taxation and social security
(85,340)
(13,566)
(98,906)
Deferred income
(1,590,915)
827,684
(763,231)
Other creditors
(111,709)
(1,539,124)
(1,650,833)
Accruals
(371,454)
(3,141,178)
(3,512,632)
7,877,033
47,085
7,924,118
Capital and reserves
Total equity
655,244
-
655,244
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