Company registration number 05771009 (England and Wales)
Forsman & Bodenfors London Ltd
Financial Statements
For The Year Ended 31 December 2023
Pages For Filing With Registrar
Forsman & Bodenfors London Ltd
Contents
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 10
Forsman & Bodenfors London Ltd
Balance Sheet
As At 31 December 2023
Page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
6
25,579
107,302
Current assets
Debtors
7
4,949,296
3,923,867
Cash at bank and in hand
1,657,935
3,209,588
6,607,231
7,133,455
Creditors: amounts falling due within one year
8
(1,791,371)
(3,519,060)
Net current assets
4,815,860
3,614,395
Net assets
4,841,439
3,721,697
Capital and reserves
Called up share capital
7,320,563
7,320,563
Other reserves
10
26,460
Profit and loss reserves
10
(2,505,584)
(3,598,866)
Total equity
4,841,439
3,721,697
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 17 February 2025 and are signed on its behalf by:
Mrs H Ward
Director
Company registration number 05771009 (England and Wales)
Forsman & Bodenfors London Ltd
Statement Of Changes In Equity
For The Year Ended 31 December 2023
Page 2
Share capital
Share based payment reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
7,320,563
-
(5,487,582)
1,832,981
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
1,888,716
1,888,716
Balance at 31 December 2022
7,320,563
-
(3,598,866)
3,721,697
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
1,053,599
1,053,599
Transfers
-
66,143
39,683
105,826
Other movements
-
(39,683)
-
(39,683)
Balance at 31 December 2023
7,320,563
26,460
(2,505,584)
4,841,439
Forsman & Bodenfors London Ltd
Notes To The Financial Statements
For The Year Ended 31 December 2023
Page 3
1
Accounting policies
Company information
Forsman & Bodenfors London Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor, 110 Southwark Street, London, SE1 0SU.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.
Turnover is recognised when goods are physically delivered to the customer and the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the value of the consideration due.
Where payments are received from customers in advance of services provided, the amounts are recorded as Deferred Income and included as part of Creditors due within one year.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
Forsman & Bodenfors London Ltd
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2023
1
Accounting policies
(Continued)
Page 4
1.4
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:
Land and buildings Leasehold
over the remaining term of the lease
Fixtures, fittings & equipment
3, 5 & 7 years straight line
Computer equipment
3 years straight line
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 credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
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, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Forsman & Bodenfors London Ltd
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2023
1
Accounting policies
(Continued)
Page 5
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted. The deferred tax on timing differences has been offset against the deferred tax asset on trading losses.
Forsman & Bodenfors London Ltd
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2023
1
Accounting policies
(Continued)
Page 6
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Share-based payments
The Share based payment reserve represents the cumulative charge for share-based payments made to employees of the Company, where the share options relate to shares in the parent company, Stagwell Inc. The share options have been granted as part of a group-wide share-based payment scheme in accordance with the requirements of FRS 102, Section 26 "Share-based Payment".
The reserve comprises the cumulative value of share options that have been granted, adjusted for any options that have lapsed. The charge to the Profit and Loss for share options is based on the fair value of the options at the grant date, and is recognised over the vesting period of the options. Although the options are over shares in the parent company, the charge is recognised in the financial statements of the Company as the employees provide services to the Company.
If any options lapse or expire without being exercised, the related amount in the Share based payment reserve is transferred to retained earnings.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Forsman & Bodenfors London Ltd
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2023
1
Accounting policies
(Continued)
Page 7
1.15
Research expenditure is written off to the profit and loss account in the year in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation the expenditure is deferred and amortised over the period during which the company is expected to benefit.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
33
30
4
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
144,200
10,710
5
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
1,162,792
Amortisation and impairment
At 1 January 2023 and 31 December 2023
1,162,792
Carrying amount
At 31 December 2023
At 31 December 2022
Forsman & Bodenfors London Ltd
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2023
Page 8
6
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
291,999
282,118
574,117
Additions
15,839
15,839
Disposals
(291,999)
(252,220)
(544,219)
At 31 December 2023
45,737
45,737
Depreciation and impairment
At 1 January 2023
229,539
237,276
466,815
Depreciation charged in the year
10,086
19,598
29,684
Eliminated in respect of disposals
(239,625)
(236,716)
(476,341)
At 31 December 2023
20,158
20,158
Carrying amount
At 31 December 2023
25,579
25,579
At 31 December 2022
62,460
44,842
107,302
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
821,551
180,485
Amounts owed by group undertakings
3,895,122
3,386,892
Other debtors
151,638
275,505
4,868,311
3,842,882
2023
2022
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
80,985
80,985
Total debtors
4,949,296
3,923,867
Forsman & Bodenfors London Ltd
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2023
Page 9
8
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
615,308
972,363
Amounts owed to group undertakings
114,258
267,709
Corporation tax
144,200
15,059
Other taxation and social security
683,032
899,378
Other creditors
234,573
1,364,551
1,791,371
3,519,060
9
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
7,571
10
Reserves
Share based payment reserve
The Share based payment reserve represents the cumulative charge for share-based payments made to employees of the Company, where the share options relate to shares in the parent company, Stagwell Inc. The share options have been granted as part of a group-wide share-based payment scheme in accordance with the requirements of FRS 102, Section 26 "Share-based Payment".
The reserve comprises the cumulative value of share options that have been granted, adjusted for any options that have lapsed. The charge to the Profit and Loss for share options is based on the fair value of the options at the grant date, and is recognised over the vesting period of the options. Although the options are over shares in the parent company, the charge is recognised in the financial statements of the Company as the employees provide services to the Company.
If any options lapse or expire without being exercised, the related amount in the Share based payment reserve is transferred to retained earnings.
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Mr Athos Louca FCCA, ICPAC
Statutory Auditor:
Loucas
Date of audit report:
17 February 2025
Forsman & Bodenfors London Ltd
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2023
Page 10
12
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
1,653,000
13
Parent company
The parent company of Forsman & Bodenfors London Ltd is Midas Corporate Holdco (US) Inc and its registered office is 1209 Orange Street, Wilmington, New Castle Country, Delware, 19801, US.
The smallest and largest company in which the reporting entity is consolidated into is Stagwell Inc. Stagwell Inc are also the ultimate parent company. Copies of the consolidated accounts can be obtained from their registered office One World Trade Centre, Floor 65, New York, 10007.
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