REGISTERED NUMBER: 11790377 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Audited |
Consolidated Financial Statements |
for the Year Ended 30th June 2024 |
for |
Echo House Limited |
REGISTERED NUMBER: 11790377 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Audited |
Consolidated Financial Statements |
for the Year Ended 30th June 2024 |
for |
Echo House Limited |
Echo House Limited (Registered number: 11790377) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30th June 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 18 |
Echo House Limited |
Company Information |
for the Year Ended 30th June 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Certified Accountants |
& Statutory Auditor |
Sovereign House |
155 High Street |
Aldershot |
Hampshire |
GU11 1TT |
Echo House Limited (Registered number: 11790377) |
Group Strategic Report |
for the Year Ended 30th June 2024 |
The directors present their strategic report of the company and the group for the year ended 30th June 2024. |
REVIEW OF BUSINESS |
The Group's principal activity continues to be that of a graphic design and retail production house. |
RESULTS AND PERFORMANCE |
The results of the Group for the period, set out on pages 10 to 32, show a profit on ordinary activities before taxation of £2,772,916 (2023 : £1,682,171).The shareholders' funds of the Group total £11,346,984 (2023 : £10,852,620). |
The directors consider the results for the year ended 30 June 2024 to be satisfactory. |
BUSINESS ENVIRONMENT |
The design and print industry, in which the Group operates, particularly the retail and travel sectors, has remained a very competitive and fast evolving environment and has been impacted by global financial pressures. The Group has continued to consolidate in its target markets by expanding its range of solutions offered to clients particularly by offering a greater range of services as well as focusing on sustainable design and technology solutions, thus the Group has kept pace with new developments and changing demands of the market. |
STRATEGY |
The Group's success has, and will continue to, depend on being able to provide the best quality product by taking advantage of the most up to date equipment and technologies as well as through innovation and creativity. In addition, the Group has continued to focus on the development of sustainable solutions for its clients by offering a range of high-quality sustainable products and services that will help maintain its status as an industry market leader. The Group has also focused on consolidating new revenue streams and increasing its operational footprint which has led to a broadening of the Company' client base and geographical reach. The Group' strategy is to continue to seek opportunities to expand its services to an increasingly global market with a focus on more international projects.. |
KEY PERFORMANCE INDICATORS (KPI'S) |
We have made significant progress throughout the year in relation to key elements of our strategy. The Board |
monitors the progress of the Group by reference to following KPIs |
2024 (2023) |
Net Revenue £20,517,155 (£16,927,332) |
Gross margin 71.74% (65.63%) |
In common with many businesses, the Group was affected by the impact of global factors on supply chains resulting in increases in the price of many raw materials and services. Despite this, the financial performance during the year has been very robust and has continued to recover from the impact of the global pandemic. |
Sustainability |
The Group is increasingly measuring performance by reference to KPI's linked to environmental sustainability and has made good progress in maximising the percentage of materials obtained from sustainable sources, recycling, and reducing net energy consumption and carbon emissions. |
FINANCIAL INSTRUMENTS |
The Group has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are conducted largely in sterling. The Group does not enter into formally designated hedging arrangements. |
Echo House Limited (Registered number: 11790377) |
Group Strategic Report |
for the Year Ended 30th June 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The process of risk acceptance and risk management is addressed through robust internal policies, procedures and controls. |
The board manages cash and working capital to ensure the Group has the financial strength to meet its requirements and support the growth of the business as well as manage the impact of the pandemic crisis. |
ON BEHALF OF THE BOARD: |
Echo House Limited (Registered number: 11790377) |
Report of the Directors |
for the Year Ended 30th June 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30th June 2024. |
PRINCIPAL ACTIVITY |
The Group's principal activity continues to be that of a graphic design and retail production house. |
DIVIDENDS |
There were interim dividends in total of £1.20 per share paid during the year. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 30th June 2024 will be £1,200,000. |
FUTURE DEVELOPMENTS |
These are set out in the strategic report under strategy. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st July 2023 to the date of this report. |
GOING CONCERN |
No material uncertainties that may cast significant doubt about the ability of the Group to continue as a going concern have been identified by the directors. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Echo House Limited (Registered number: 11790377) |
Report of the Directors |
for the Year Ended 30th June 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Whiteleys, are deemed to be re-appointed under section 487(2) of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Echo House Limited |
Opinion |
We have audited the financial statements of Echo House Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30th June 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30th June 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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. |
Report of the Independent Auditors to the Members of |
Echo House Limited |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Echo House Limited |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
The extent to which the audit was considered capable of detecting irregularities including fraud |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, |
including fraud and non-compliance with laws and regulations, was as follows: |
- | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- | we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the business sector; |
- | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation; |
- | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where available; and |
- | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company’s financial statements to material misstatement, including |
obtaining an understanding of how fraud might occur, by: |
- | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed |
procedures which included, but not were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | reading the minutes of meetings of those charged with governance; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HMRC, relevant regulators, and the company’s legal advisors, where available. |
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 indentify non-compliance with laws and |
Report of the Independent Auditors to the Members of |
Echo House Limited |
regulations to enquiry of the directors and other management and the inspection of regulatory and legal |
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 Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Certified Accountants |
& Statutory Auditor |
Sovereign House |
155 High Street |
Aldershot |
Hampshire |
GU11 1TT |
Echo House Limited (Registered number: 11790377) |
Consolidated |
Statement of Comprehensive |
Income |
for the Year Ended 30th June 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 4 | 20,517,155 | 16,927,332 |
Cost of sales | 5,797,478 | 5,818,488 |
GROSS PROFIT | 14,719,677 | 11,108,844 |
Administrative expenses | 11,918,085 | 9,368,030 |
2,801,592 | 1,740,814 |
Other operating income | 3,604 | 6,935 |
OPERATING PROFIT | 6 | 2,805,196 | 1,747,749 |
Interest receivable and similar income | 87,206 | 34,704 |
2,892,402 | 1,782,453 |
Interest payable and similar expenses | 7 | 119,486 | 100,282 |
PROFIT BEFORE TAXATION | 2,772,916 | 1,682,171 |
Tax on profit | 8 | 1,078,552 | 655,729 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
Restatement of loan to present value | - | (159 | ) |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
- |
(159 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,694,364 |
1,026,283 |
Profit attributable to: |
Owners of the parent | 1,694,364 | 1,026,442 |
Total comprehensive income attributable to: |
Owners of the parent | 1,694,364 | 1,026,283 |
Echo House Limited (Registered number: 11790377) |
Consolidated Balance Sheet |
30th June 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | 3,332,720 | 4,725,436 |
Tangible assets | 12 | 3,296,793 | 3,400,618 |
Investments | 13 | 130,958 | 101 |
6,760,471 | 8,126,155 |
CURRENT ASSETS |
Stocks | 14 | 220,076 | 252,393 |
Debtors | 15 | 5,411,960 | 4,989,127 |
Cash at bank and in hand | 4,525,377 | 3,638,167 |
10,157,413 | 8,879,687 |
CREDITORS |
Amounts falling due within one year | 16 | 4,034,904 | 5,747,429 |
NET CURRENT ASSETS | 6,122,509 | 3,132,258 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
12,882,980 |
11,258,413 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(1,125,000 |
) |
- |
PROVISIONS FOR LIABILITIES | 21 | (410,996 | ) | (405,793 | ) |
NET ASSETS | 11,346,984 | 10,852,620 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 1,000,000 | 1,000,000 |
Share premium | 23 | 10,119,292 | 10,119,292 |
Retained earnings | 23 | 227,692 | (266,672 | ) |
SHAREHOLDERS' FUNDS | 11,346,984 | 10,852,620 |
The financial statements were approved by the Board of Directors and authorised for issue on 10th March 2025 and were signed on its behalf by: |
M D Cardwell - Director |
Echo House Limited (Registered number: 11790377) |
Company Balance Sheet |
30th June 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Share premium | 23 |
Retained earnings | 23 | ( |
) |
SHAREHOLDERS' FUNDS |
Company's (loss)/profit for the financial year |
(122,940 |
) |
398,242 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Echo House Limited (Registered number: 11790377) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30th June 2024 |
Called up |
share | Retained | Share | Other | Total |
capital | earnings | premium | reserves | equity |
£ | £ | £ | £ | £ |
Balance at 1st July 2022 | 1,000,000 | (393,114 | ) | 10,119,292 | 159 | 10,726,337 |
Changes in equity |
Dividends | - | (900,000 | ) | - | - | (900,000 | ) |
Total comprehensive income | - | 1,026,442 | - | (159 | ) | 1,026,283 |
Balance at 30th June 2023 | 1,000,000 | (266,672 | ) | 10,119,292 | - | 10,852,620 |
Changes in equity |
Dividends | - | (1,200,000 | ) | - | - | (1,200,000 | ) |
Total comprehensive income | - | 1,694,364 | - | - | 1,694,364 |
Balance at 30th June 2024 | 1,000,000 | 227,692 | 10,119,292 | - | 11,346,984 |
Echo House Limited (Registered number: 11790377) |
Company Statement of Changes in Equity |
for the Year Ended 30th June 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1st July 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30th June 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 30th June 2024 | ( |
) |
Echo House Limited (Registered number: 11790377) |
Consolidated Cash Flow Statement |
for the Year Ended 30th June 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 5,126,115 | 3,109,538 |
Interest paid | (119,344 | ) | (100,088 | ) |
Interest element of hire purchase or finance lease rental payments paid |
(142 |
) |
(194 |
) |
Tax paid | (562,117 | ) | (470,890 | ) |
Net cash from operating activities | 4,444,512 | 2,538,366 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (20,892 | ) | (44,223 | ) |
Purchase of tangible fixed assets | (454,274 | ) | (933,910 | ) |
Purchase of fixed asset investments | (130,857 | ) | - |
Sale of tangible fixed assets | 88,867 | 18,203 |
Sale of fixed asset investments | - | 50,000 |
Interest received | 87,206 | 34,704 |
Net cash from investing activities | (429,950 | ) | (875,226 | ) |
Cash flows from financing activities |
Hire purchase | - | (4,763 | ) |
Amount introduced by directors | 20,000 | 53,297 |
Amount withdrawn by directors | (121,088 | ) | (39,160 | ) |
Debenture loan | (426,412 | ) | (275,000 | ) |
Bank loans | (419,545 | ) | (119,807 | ) |
Equity dividends paid | (1,200,000 | ) | (900,000 | ) |
Net cash from financing activities | (2,147,045 | ) | (1,285,433 | ) |
Increase in cash and cash equivalents | 1,867,517 | 377,707 |
Cash and cash equivalents at beginning of year |
2 |
2,244,771 |
1,867,064 |
Cash and cash equivalents at end of year |
2 |
4,112,288 |
2,244,771 |
Echo House Limited (Registered number: 11790377) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30th June 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 2,772,916 | 1,682,171 |
Depreciation charges | 1,864,720 | 1,856,467 |
Profit on disposal of fixed assets | (15,882 | ) | (25,139 | ) |
Capital contribution-restatement of DLA | - | (159 | ) |
Impairment computer software | 34,005 | 90,464 |
Finance costs | 119,486 | 100,282 |
Finance income | (87,206 | ) | (34,704 | ) |
4,688,039 | 3,669,382 |
Decrease/(increase) in stocks | 32,317 | (45,391 | ) |
Increase in trade and other debtors | (321,748 | ) | (1,040,838 | ) |
Increase in trade and other creditors | 727,507 | 526,385 |
Cash generated from operations | 5,126,115 | 3,109,538 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30th June 2024 |
30.6.24 | 1.7.23 |
£ | £ |
Cash and cash equivalents | 4,525,377 | 3,638,167 |
Bank overdrafts | (413,089 | ) | (1,393,396 | ) |
4,112,288 | 2,244,771 |
Year ended 30th June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 3,638,167 | 2,637,778 |
Bank overdrafts | (1,393,396 | ) | (770,714 | ) |
2,244,771 | 1,867,064 |
Echo House Limited (Registered number: 11790377) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30th June 2024 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.7.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,638,167 | 887,210 | 4,525,377 |
Bank overdrafts | (1,393,396 | ) | 980,307 | (413,089 | ) |
2,244,771 | 1,867,517 | 4,112,288 |
Debt |
Debts falling due within 1 year | (2,095,957 | ) | 1,970,957 | (125,000 | ) |
Debts falling due after 1 year | - | (1,125,000 | ) | (1,125,000 | ) |
(2,095,957 | ) | 845,957 | (1,250,000 | ) |
Total | 148,814 | 2,713,474 | 2,862,288 |
Echo House Limited (Registered number: 11790377) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30th June 2024 |
1. | STATUTORY INFORMATION |
Echo House Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The principal place of business of the company is Echo House, Red Lion Business Park, Surbiton, Surrey KT6 7RD. |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been 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. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
As set out in the strategic report, the directors believe that the company is well placed to manage its business risks successfully. |
Accordingly, they have a firm expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements. |
Basis of consolidation |
The company acquired the entire share capital of Echo Studios Holdings Limited and its subsidiaries on 2nd April 2019. |
Echo Studios Holdings Limited and it subsidiaries have been consolidated using the purchase method of consolidation. Dormant subsidiaries have not been included. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable and represents amounts |
receivable for services rendered, stated net of discounts and of Value Added Tax. |
The Group recognises revenue when the amount of revenue can be measured reliably, when it is probable |
that future economic benefits will flow to the entity and the costs incurred in respect of the transaction can be measured reliably. |
A provision is included for any non-completed contracts at the period end. Income is also accrued for any contracts completed at the period end but not invoiced until the new accounting year. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of the entire issued share capital of Echo Studios Holdings Ltd, its subsidiaries Echo Studios Ltd and 25012019 Ltd (Dormant Company), on the 2nd April 2019, is being amortised evenly over its estimated useful life of eight years. |
Echo House Limited (Registered number: 11790377) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30th June 2024 |
3. | ACCOUNTING POLICIES - continued |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
An impairment loss has been recognised in the Consolidated Statement of Comprehensive Income, following an assessment at the Consolidated Balance Sheet date indicating the recoverable amount was less than its carrying value. |
Tangible fixed assets |
Tangible fixed assets are carried at cost less accumulated depreciation and accumulated impairment losses. |
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over their estimated useful lives as follows: |
Plant and machinery | - | 15% on cost |
Freehold property | - | 2% on cost |
Fixtures and fittings | - | 25% on cost |
Motor vehicles | - | 25% on cost |
Computer equipment | - | 15% / 25% on cost |
Leasehold improvements | - | Straight line over the term of the lease. |
On disposal, the difference between the net disposal proceeds and the carrying amount of the item sold is recognised in profit or loss. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Stocks |
Stocks are measured at the lower of cost and selling price less cost to complete and sell. |
Cost is calculated on a first in, first out basis and includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Echo House Limited (Registered number: 11790377) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30th June 2024 |
3. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the |
transaction. |
At the end of each reporting period foreign currency monetary items are translated at the closing rate of |
exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
Hire purchase and leasing commitments |
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to |
ownership. All other leases are classified as operating leases. |
The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. |
Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. |
Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. |
Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Echo House Limited (Registered number: 11790377) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30th June 2024 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference |
between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date. |
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an 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. |
Impairment of non-financial assets |
At each reporting date non-financial assets not carried at fair value, like goodwill and plant, property and |
equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss. |
Stocks are also assessed for impairment at each reporting date. The carrying amount of each item of stock, or group of similar items, is compared with its selling price less costs to complete and sell. If an item of stock or group of similar items is impaired, its carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is recognised immediately in profit or loss. |
If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in profit or loss. |
Echo House Limited (Registered number: 11790377) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30th June 2024 |
3. | ACCOUNTING POLICIES - continued |
Related parties |
For the purposes of these financial statements, a party is considered to be related to the company if: |
(i) the party has the ability, directly or indirectly, through one or more intermediaries, to control the company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the company. |
(ii) the company and the party are subject to common control; |
(iii) the party is a member of key management personnel of the company, or a close family member of such an individual, or is in an entity under the control, joint control or significant influence of such individuals. |
Close family members of an individual are those family members who may be expected to influence, |
or be influenced by, that individual in their dealings with the entity. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 6,828,246 | 4,786,289 |
Social security costs | 724,251 | 489,881 |
Other pension costs | 128,218 | 92,806 |
7,680,715 | 5,368,976 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Office and administration | 18 | 11 |
Production and design | 164 | 149 |
The average number of employees by undertakings that were proportionately consolidated during the year was 182 (2023 - 160 ) . |
2024 | 2023 |
£ | £ |
Directors' remuneration | 1,250,844 | 560,040 |
Directors' pension contributions to money purchase schemes | 15,004 | 10,154 |
Echo House Limited (Registered number: 11790377) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30th June 2024 |
5. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 336,516 | 158,291 |
Pension contributions to money purchase schemes | - | 1,320 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets | 485,114 | 472,090 |
Depreciation - assets on hire purchase contracts or finance leases | - | 4,768 |
Profit on disposal of fixed assets | (15,882 | ) | (25,139 | ) |
Goodwill amortisation | 1,379,608 | 1,379,608 |
Auditors remuneration - audit | 23,946 | 25,100 |
Auditors remuneration - other | 1,300 | 1,288 |
Foreign exchange differences | 4,428 | 5,331 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest | 114,447 | 92,515 |
Other interest payable | - | 459 |
HMRC interest payable | 2,002 | 1,137 |
Debenture interest | 2,895 | 5,977 |
Hire purchase | 142 | 194 |
119,486 | 100,282 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 1,073,349 | 486,406 |
Deferred tax | 5,203 | 169,323 |
Tax on profit | 1,078,552 | 655,729 |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 30th June 2024. |
Echo House Limited (Registered number: 11790377) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30th June 2024 |
8. | TAXATION - continued |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Restatement of loan to present value | (159 | ) | - | (159 | ) |
9. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
10. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary-A shares of £1.00 each |
Interim | 1,200,000 | 900,000 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 1st July 2023 | 11,036,865 | 48,995 | 11,085,860 |
Additions | - | 20,892 | 20,892 |
Impairments | - | (34,000 | ) | (34,000 | ) |
At 30th June 2024 | 11,036,865 | 35,887 | 11,072,752 |
AMORTISATION |
At 1st July 2023 | 6,342,244 | 18,180 | 6,360,424 |
Amortisation for year | 1,379,608 | - | 1,379,608 |
At 30th June 2024 | 7,721,852 | 18,180 | 7,740,032 |
NET BOOK VALUE |
At 30th June 2024 | 3,315,013 | 17,707 | 3,332,720 |
At 30th June 2023 | 4,694,621 | 30,815 | 4,725,436 |
Goodwill, being the amount paid in connection with the acquisition of the entire issued share capital of Echo Studios Holdings Ltd, its subsidiaries Echo Studios Ltd and 25012019 Ltd (Dormant Company), on the 2nd April 2019, is being amortised evenly over its estimated useful life of eight years. |
The goodwill was valued by the directors at the amount paid for the acquisition in excess of the assets acquired and liabilities and provisions for contingent liabilities assumed. |
Echo House Limited (Registered number: 11790377) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30th June 2024 |
12. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1st July 2023 | 1,904,477 | 106,697 | 2,159,567 |
Additions | - | 22,406 | 55,563 |
Disposals | - | - | (467,685 | ) |
At 30th June 2024 | 1,904,477 | 129,103 | 1,747,445 |
DEPRECIATION |
At 1st July 2023 | 80,541 | 56,436 | 1,226,090 |
Charge for year | 18,951 | 14,072 | 227,726 |
Eliminated on disposal | - | - | (443,833 | ) |
At 30th June 2024 | 99,492 | 70,508 | 1,009,983 |
NET BOOK VALUE |
At 30th June 2024 | 1,804,985 | 58,595 | 737,462 |
At 30th June 2023 | 1,823,936 | 50,261 | 933,477 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1st July 2023 | 201,706 | 272,116 | 491,669 | 5,136,232 |
Additions | 72,370 | 202,241 | 101,694 | 454,274 |
Disposals | - | (126,101 | ) | (96,893 | ) | (690,679 | ) |
At 30th June 2024 | 274,076 | 348,256 | 496,470 | 4,899,827 |
DEPRECIATION |
At 1st July 2023 | 121,763 | 137,672 | 113,112 | 1,735,614 |
Charge for year | 34,232 | 64,859 | 125,274 | 485,114 |
Eliminated on disposal | - | (76,968 | ) | (96,893 | ) | (617,694 | ) |
At 30th June 2024 | 155,995 | 125,563 | 141,493 | 1,603,034 |
NET BOOK VALUE |
At 30th June 2024 | 118,081 | 222,693 | 354,977 | 3,296,793 |
At 30th June 2023 | 79,943 | 134,444 | 378,557 | 3,400,618 |
Echo House Limited (Registered number: 11790377) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30th June 2024 |
13. | FIXED ASSET INVESTMENTS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Shares in group undertakings | 101 | 101 |
Other investments not loans | 130,857 | - |
130,958 | 101 |
Additional information is as follows: |
Group |
Shares in |
group |
undertakings |
£ |
COST |
At 1st July 2023 |
and 30th June 2024 | 101 |
NET BOOK VALUE |
At 30th June 2024 | 101 |
At 30th June 2023 | 101 |
Investments (neither listed nor unlisted) were as follows: |
2024 | 2023 |
£ | £ |
Fine arts | 130,857 | - |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st July 2023 |
and 30th June 2024 |
NET BOOK VALUE |
At 30th June 2024 |
At 30th June 2023 |
Echo House Limited (Registered number: 11790377) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30th June 2024 |
13. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Sovereign House, 155 High Street, Aldershot, Hampshire GU11 1TT |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Griffin House,135 High Street,Crawley,West Sussex,RH10 1DQ |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Registered office: Griffin House,135 High Street,Crawley,West Sussex,RH10 1DQ |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
14. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Stocks | 220,076 | 252,393 |
The company has allowed a floating charge over the company’s assets, including stocks as security for the bank. |
Echo House Limited (Registered number: 11790377) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30th June 2024 |
15. | DEBTORS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 3,745,736 | 3,488,262 |
Other debtors | 150,441 | 97,461 |
Directors' current accounts | 166,980 | 47,967 | - | - |
Prepayments and accrued income | 1,231,314 | 1,215,931 |
5,294,471 | 4,849,621 |
Amounts falling due after more than one | year: |
Other debtors | 29,647 | 33,739 |
Directors' loan accounts | 87,842 | 105,767 | 87,842 | 105,767 |
117,489 | 139,506 |
Aggregate amounts | 5,411,960 | 4,989,127 |
The company has allowed a floating charge over the company’s assets, including stocks as security for the bank. |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Debentures (see note 18) | - | 426,412 |
Bank loans and overdrafts (see note 18) | 538,089 | 3,062,941 |
Trade creditors | 761,126 | 876,566 |
Other creditors | 30,650 | 23,516 | - | - |
Amounts owed to group undertakings | - | - |
Tax | 791,400 | 280,168 |
Social security and other taxes | 700,479 | 470,446 |
VAT | 38,360 | 25,786 | - | - |
Accruals and deferred income | 1,174,800 | 581,594 |
4,034,904 | 5,747,429 |
Echo House Limited (Registered number: 11790377) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30th June 2024 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 18) | 1,125,000 | - |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Debentures | - | 426,412 | - | 426,412 |
Bank overdrafts | 413,089 | 1,393,396 |
Bank mortgage loan | 125,000 | 1,669,545 |
538,089 | 3,489,353 |
Amounts falling due between two and five | years: |
Bank mortgage loan 2-5 years | 1,125,000 | - |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable | operating leases |
2024 | 2023 |
£ | £ |
Within one year | 270,138 | 272,867 |
Between one and five years | 931,312 | 470,075 |
1,201,450 | 742,942 |
Echo House Limited (Registered number: 11790377) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30th June 2024 |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Debentures | - | 426,412 |
Bank overdrafts | 413,089 | 1,393,396 |
Bank loans | 1,250,000 | 1,669,545 |
1,663,089 | 3,489,353 |
The bank has a fixed and floating charge over the company’s assets to secure the invoice discounting loan ,overdraft and other loans. |
The loans in respect of the hire purchase agreements are secured against the assets to which they relate. |
Together with its fellow group companies, the company has provided guarantees and security in support of group borrowings from Barclays Bank PLC. |
The security provided comprises fixed and floating charges over all property and undertaking of the business. |
21. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 410,996 | 405,793 |
Group |
Deferred |
tax |
£ |
Balance at 1st July 2023 | 405,793 |
Charge to Statement of Comprehensive Income during year | 5,203 |
Balance at 30th June 2024 | 410,996 |
Echo House Limited (Registered number: 11790377) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30th June 2024 |
22. | CALLED UP SHARE CAPITAL |
Called up share capital |
Number | Class | Nominal Value | £ |
1,000,000 | Ordinary-A | £1.00 | 1,000,000 |
On 25 January 2019 6 subscriber shares were issued at par. On 8 March 2019 a further 994 shares were issued at par. |
On 3 April 2019 999,000 shares were issued uncalled; 299,700 were issued at a price of £3.062 per share. During the year £44,606 was received and credited to share capital and share premium.The remaining 699,300 shares were issued in exchange for shares in Echo Studios Holdings Limited valued at £10,200,000 and this value has been credited, as fully paid, to share capital and share premium. |
23. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1st July 2023 | (266,672 | ) | 10,119,292 | 9,852,620 |
Profit for the year | 1,694,364 | 1,694,364 |
Dividends | (1,200,000 | ) | (1,200,000 | ) |
At 30th June 2024 | 227,692 | 10,119,292 | 10,346,984 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1st July 2023 | 10,205,405 |
Deficit for the year | ( |
) | ( |
) |
Dividends | ( |
) | ( |
) |
At 30th June 2024 | ( |
) | 8,882,465 |
24. | CONTINGENT LIABILITIES |
Together with its fellow group companies, the company has provided guarantees and security in support of group borrowings from Barclays Bank PLC. |
The security provided comprises fixed and floating charges over all property and undertaking of the business. |
Echo House Limited (Registered number: 11790377) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30th June 2024 |
25. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
The company's key management personnel are considered to be the directors. |
The controlling party is M D Cardwell. |