DJE Consulting Ltd
Financial Statements
For the year ended 30 June 2024
Pages for Filing with Registrar
Company Registration No. 01983028 (England and Wales)
DJE Consulting Ltd
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 7
DJE Consulting Ltd
Balance Sheet
As at 30 June 2024
Page 1
2024
2023
Notes
£
£
£
£
Current assets
Debtors
3
2,378,854
2,927,770
Creditors: amounts falling due within one year
4
(2,712,643)
(3,450,584)
Net current liabilities
(333,789)
(522,814)
Capital and reserves
Called up share capital
5
1,000
1,000
Profit and loss reserves
(334,789)
(523,814)
Total equity
(333,789)
(522,814)
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 21 March 2025 and are signed on its behalf by:
V A Malanga
Director
Company Registration No. 01983028
DJE Consulting Ltd
Notes to the Financial Statements
For the year ended 30 June 2024
Page 2
1
Accounting policies
Company information
DJE Consulting Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Francis House, 11 Francis Street, London, England, SW1P 1DE.
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 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. The principal accounting policies adopted are set out below.
1.2
Going concern
The company has both net current liabilities and net liabilities at the reporting date of £333,789 (2023: £522,814), after making a profit after tax for the year ended 30 June 2024 of £189,025 (2023: loss after tax of £284,677). The directors confirm that they are satisfied that the company has adequate resources to continue in business for the foreseeable future. true
They have considered the company's profits in the year, net current liabilities, future profits projected, the company's ongoing cash requirements, the availability of cash through the group cash pooling arrangement and the written letter of support received from the ultimate parent, Daniel J. Edelman Holdings, Inc.
As a result of the review which includes an assessment of the ability and confirmation of the ultimate parent to provide this support, the directors are confident the company has sufficient resources to continue as a going concern for at least 12 months from the date of signing these financial statements and on this basis, they consider that it is appropriate to prepare the financial statements on the going concern basis.
1.3
Turnover
Turnover represents amounts receivable for services, net of value added tax and trade discounts.
The company includes a transfer pricing recharge within its turnover balance. The recharge relates to goods and services which are provided to other Edelman group companies and is completed on a quarterly basis.
Turnover is normally recognised at the point at which the service is provided and the value can be determined. In those instances where there is no formal arrangement in place, however the services have begun, the turnover is deferred until the arrangement is formalised. To the extent that services have been invoiced but the service has not been provided in the financial year covered by these financial statements, that turnover will be held as deferred income until the service has been provided.
DJE Consulting Ltd
Notes to the Financial Statements (Continued)
For the year ended 30 June 2024
1
Accounting policies
(Continued)
Page 3
Unbilled turnover on client assignments is included as accrued income within trade and other debtors. These timing differences can arise where there are differences between billing arrangements (i.e. invoicing) and the timing of the delivery of the service and thus the turnover recognition, resulting in either assets or liabilities. Accrued income is only recognised if a scope of work has been agreed with a client. Liabilities relating to client deposits, where a client has paid in advance for expected third party supplier costs on a project, are held for a period of up to two years during which they are written back to turnover if, after investigation, it is found that no further liability exists.
The company acts as the principal in all services offered and controls the service provided to the client. The company therefore recognises both the turnover and related party costs within these financial statements.
Third party costs comprise costs incurred to service client projects, including costs recharged from related parties for work performed on behalf of the ultimate client. Gross profit therefore represents net fees and commissions earned during the year. Gross profit is presented separately in the profit and loss account to provide further understanding of the financial performance of the company.
1.4
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.
1.5
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
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.
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 rate 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.
DJE Consulting Ltd
Notes to the Financial Statements (Continued)
For the year ended 30 June 2024
1
Accounting policies
(Continued)
Page 4
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 rate method.
1.6
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.
1.7
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 tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
DJE Consulting Ltd
Notes to the Financial Statements (Continued)
For the year ended 30 June 2024
1
Accounting policies
(Continued)
Page 5
1.8
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.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
11
9
3
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
561,081
1,054,153
Corporation tax recoverable
402,346
Amounts owed by group undertakings
963,172
752,258
Other debtors
8,561
34
Prepayments and accrued income
550,654
97,815
2,083,468
2,306,606
Deferred tax asset
29,667
93,613
2,113,135
2,400,219
DJE Consulting Ltd
Notes to the Financial Statements (Continued)
For the year ended 30 June 2024
3
Debtors
(Continued)
Page 6
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
265,719
527,551
Total debtors
2,378,854
2,927,770
4
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
92,854
35,692
Amounts owed to group undertakings
2,092,257
2,115,551
Taxation and social security
6,281
Accruals and deferred income
527,532
1,293,060
Total creditors
2,712,643
3,450,584
5
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
6
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:
Esther Carder
Statutory Auditor:
Moore Kingston Smith LLP
7
Financial commitments, guarantees and contingent liabilities
The company together with certain other Edelman group companies has entered into a cash pooling arrangement with JP Morgan Chase Bank, NA. JP Morgan Chase Bank, NA has the right to apply positive cash balances of the company against indebtedness or liabilities of any of the other companies named in the agreement. This facility is limited to the amount in an overdraft agreement with JP Morgan Chase Bank, NA which is guaranteed by Daniel J. Edelman Inc., a fellow group company.
DJE Consulting Ltd
Notes to the Financial Statements (Continued)
For the year ended 30 June 2024
Page 7
8
Related party transactions
The company has taken advantage of the exemption as per paragraph 33.1A of FRS102, 'Related Party Disclosures', from disclosing transactions with related parties, which are wholly owned within the Daniel J. Edelman Holdings, Inc. Group.
9
Parent company
The company's immediate parent undertaking is Edelman Europe Holdings B.V.. The ultimate controlling party is Daniel J. Edelman Holdings, Inc., a company registered in the USA, which is the largest group to consolidate these financial statements and the parent undertaking of A&R Coöperatie U.A. which is the smallest group to consolidate these financial statements.
Copies of the financial statements of Daniel J. Edelman Holdings, Inc. can be obtained from 111 N. Canal Street, Suite 1100,Chicago, IL 60606, United States. Copies of the financial statements of A&R Coöperatie U.A. can be obtained from Gustav Mahlerhaan 2970, Amsterdam, 1081 LA, Netherlands.