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COMPANY REGISTRATION NUMBER: 03307620
The Outsider Limited
Filleted Financial Statements
31 December 2023
The Outsider Limited
Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
6
9,581
8,084
Current assets
Stocks
41,750
215,812
Debtors
8
1,508,074
1,578,795
Cash at bank and in hand
891,605
1,721,782
------------
------------
2,441,429
3,516,389
Creditors: amounts falling due within one year
9
( 1,311,246)
( 2,107,639)
------------
------------
Net current assets
1,130,183
1,408,750
------------
------------
Total assets less current liabilities
1,139,764
1,416,834
Provisions
( 3,756)
( 3,755)
------------
------------
Net assets
1,136,008
1,413,079
------------
------------
Capital and reserves
Called up share capital
100
100
Profit and loss account
1,135,908
1,412,979
------------
------------
Shareholders funds
1,136,008
1,413,079
------------
------------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements were approved by the board of directors and authorised for issue on 24 March 2025 , and are signed on behalf of the board by:
P Frescobaldi
Director
Company registration number: 03307620
The Outsider Limited
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 10 Orange Street, Haymarket, London, WC2H 7DQ.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The Group and its subsidiaries, alongside our peers in the industry, operate in an increasingly challenging market. Uncertainty comes from the global market conditions that have affected the advertising and brand activations sector with a considerable reduction in spend, which in the last 12 months have created significant instability, with large project cancellations. The company has experienced a significant reduction in revenue in its digital consulting arm, especially from the big tech sector, which has been affected over the last 24 months by large shifts and considerable cuts in staff and spending. Also a contributing factor in the unstable market conditions came from the Generative AI sphere which led to a bubble that initially reduced project offers. We have taken this challenge head on and are now integrating this technology as part of our creative services. However, despite the overall uncertainty, it is a reason for optimism that most of the group’s business units have managed to continue to be cash positive, with the group’s offers remaining relevant, with clients booking projects in all our services: content, digital and events. Post year end, in order to re-align the business with the new market conditions, the Directors have taken pro-active steps in restructuring the group, such as re-financing bank and third-party debt, reviewing their operating lease (rental) commitments and actively reducing administrative overheads. As part of the restructure, Unit 9 Digital Consulting Ltd went into voluntary liquidation, alongside Unit9 Creative Services Sp. Zoo. These business units had been the ones mostly affected by the unstable market conditions and which required a significant level of financial support from the Group. Most of the restructure has been focused on the administrative and operations side, to protect the group’s ability to service its clients and keep its market positioning. Client continuity and services have been protected seamlessly during this period; 2025 sees new client wins and business being delivered more effectively. The Directors are pleased to note that the above measures, initiated to reflect changes in market conditions rather than restrict the company’s offering, have maintained the quality and variety of output which clients associated with the Unit9 brand, but now with greater flexibility, reduced overheads and reduced financial pressure. Commercial visibility has also now returned in line with the historical trends of the group.
Going concern (continued)
The company's shareholders have continued to support the company, and such a support is likely to continue in the medium term.
The Directors have completed a detailed cashflow forecast for the year ending 31st December 2025 and beyond. These forecasts are based on historic performance and anticipated new business wins. Whilst the Directors have confidence in their forecasts and future strategy, they acknowledge that these new business wins are not certain and are based on the current economic environment and current facilities available to the company.
Therefore, the Directors maintain a reasonable expectation that the Company will have access to resources to continue in operational existence for the foreseeable future and have therefore continued to adopt the going concern basis in preparing the financial statements.
Consolidation
The entity has taken advantage of the exemption from preparing consolidated financial statements contained in Section 400 of the Companies Act 2006 on the basis that it is a subsidiary undertaking and its immediate parent undertaking is established under the law of the United Kingdom. The company is included in the consolidated accounts of the ultimate parent undertaking as specified in the controlling party note below.
Judgements and key sources of estimation uncertainty
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. i) Revenue Management continually assess the projected total costs of production, which is the basis used for revenue recognition. Where productions are in progress at the year-end and where the billing exceeds the value of the work completed, the excess is classified as deferred income and is shown within creditors. Similarly, where the amount billed is less than the value of the work completed, revenue is accrued and held within debtors. ii) Allowance for doubtful accounts Management continually assesses the recoverability of debtor balances. Where management have concluded that the recoverability of a debtor balance is not virtually certain, a full bad debt provision allowance would be made in the financial statements. When a doubtful debtor balance is recovered, the bad debt provision would be reversed and shown separately from administration costs in the financial statements
Revenue recognition
Revenue is measured to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied - the amount of revenue can be measured reliably; - it is probable that the company will receive the consideration due under the contract; - the stage of completion of the contract at the end of the reporting period can be measured reliably; and - the costs incurred and the costs to complete the contract can be measured reliably. Revenue represents amounts receivable from the multimedia operations and is recognised over the period of production, in accordance with the underlying signed contract. The revenue is recognised based on the amount of costs incurred as a percentage of total expected costs at completion.
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Long leasehold property
-
20% straight line
Fixtures and fittings
-
25% reducing balance
Equipment
-
25% reducing balance
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Investments in associates
Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition.
Investments in joint ventures
Investments in jointly controlled entities accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in jointly controlled entities accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the joint venture arising before or after the date of acquisition.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Work in progress
Work in progress is measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the work in progress to its present location and condition.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of future cash flows and subsequently at amortised cost using the effective interest rate method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be be paid or received. 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 evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
Deferred taxation
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.
4. Other income
Other operating income in the current year relates to insurance claims of £3,967 (2022: £Nil), and miscellaneous income of £413 (2022: £Nil).
5. Employee numbers
The average number of persons employed by the company during the year amounted to 12 (2022: 11 ).
6. Tangible assets
Long leasehold property
Fixtures and fittings
Equipment
Total
£
£
£
£
Cost
At 1 January 2023
24,965
52,988
77,953
Additions
1,200
6,339
7,539
Disposals
( 1,185)
( 1,185)
--------
-------
--------
--------
At 31 December 2023
24,965
1,200
58,142
84,307
--------
-------
--------
--------
Depreciation
At 1 January 2023
24,133
45,736
69,869
Charge for the year
832
250
4,417
5,499
Disposals
( 642)
( 642)
--------
-------
--------
--------
At 31 December 2023
24,965
250
49,511
74,726
--------
-------
--------
--------
Carrying amount
At 31 December 2023
950
8,631
9,581
--------
-------
--------
--------
At 31 December 2022
832
7,252
8,084
--------
-------
--------
--------
7. Investments
Shares in group undertakings
£
Cost
At 1 January 2023
Additions
1
----
At 31 December 2023
1
----
Impairment
At 1 January 2023
Impairment losses
1
----
At 31 December 2023
1
----
Carrying amount
At 31 December 2023
----
At 31 December 2022
----
The addition in the year was for a 100% ownership of the Ordinary share capital in Saint Boy Limited, a company registered in England and Wales, with registered office at 12 Swan Yard, London, United Kingdom N1 1SD.
This was fully impaired in the year, and was disposed on 3 December 2024, subsequent to year end.
8. Debtors
2023
2022
£
£
Trade debtors
620,601
1,216,535
Amounts owed by group undertakings
721,503
230,533
Other debtors
165,970
131,727
------------
------------
1,508,074
1,578,795
------------
------------
The debtors above include the following amounts falling due after more than one year:
2023 2022
£ £
Other debtors 33,638
---- --------
33,638
Amounts owed by group are interest free, unsecured and repayable on demand.
9. Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
489,889
890,704
Amounts owed to group undertakings
2,000
Social security and other taxes
224,929
427,613
Other creditors
594,428
789,322
------------
------------
1,311,246
2,107,639
------------
------------
Amounts owed to group are interest free, unsecured and repayable on demand.
10. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
42,331
----
--------
During the year, the above lease pertaining to rental costs concluded, and was not renewed. The company now occupies space provided by its immediate parent, and is recharged for the cost thereof.
11. Contingencies
Coutts & Co hold a fixed and floating charge over the entity as security against loans provided to The Outsider Limited 's parent company, Unit 9 (UK) Limited.
12. Events after the end of the reporting period
Subsequent to year end, on 3 December 2024, the investment in Saint Boy Limited was disposed, with no financial impact following the impairment of the £1 shareholding in the year.
13. Summary audit opinion
The auditor's report, dated 24 March 2025 , was unqualified .
The report drew attention to the following matter:
In forming our opinion, we have considered the adequacy of the disclosure made in note 3 to the financial statements, which indicates a difficult challenging market which may cast doubt on its ability to continue as a going concern. This event, along with the other matters as set forth in note 3, indicate that a material uncertainty exists that may cast doubt on the company's ability as a going concern. Our opinion is not modified in respect of this matter.
The senior statutory auditor was Terrence Bourne , for and on behalf of Shipleys LLP .
14. Related party transactions
During the year, related party transactions were undertaken with group entities. All transactions arose on an arm's length basis through the normal course of business and therefore the directors have taken advantage of the disclosure exemption available under paragraph 1AC.35 of FRS102. No further transactions with related parties were undertaken such as are required to be disclosed under FRS 102 Section 1A.
15. Controlling party
The immediate parent company is Unit 9 (UK) Limited , a company incorporated in England and Wales. The address of the registered office of Unit 9 (UK) Ltd is 10 Orange Street, Haymarket, London, WC2H 7DQ. The ultimate controlling party is Unit 9 (Holdings) Limited , a company incorporated in England and Wales. The address of the registered office of Unit 9 (Holdings) Ltd is 10 Orange Street, Haymarket, London, WC2H 7DQ.