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Registered number: 14678351














FREUD 4.0 LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

 
FREUD 4.0 LIMITED
 
 
COMPANY INFORMATION


Directors
M R Freud 
A O Brady 
R N W Bankes 




Registered number
14678351



Registered office
1 Stephen Street

London

W1T 1AL




Independent auditors
Sopher + Co LLP
Chartered Accountants & Statutory Auditors

5 Elstree Gate

Elstree Way

Borehamwood

Hertfordshire

WD6 1JD




Bankers
Coutts & Co
440 Strand

London

WC2R 0QS





 
FREUD 4.0 LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Directors' Responsibilities Statement
 
5
Independent Auditors' Report
 
6 - 9
Consolidated Statement of Comprehensive Income
 
10 - 11
Consolidated Statement of Financial Position
 
12 - 13
Company Statement of Financial Position
 
14
Consolidated Statement of Changes in Equity
 
15
Company Statement of Changes in Equity
 
16
Consolidated Statement of Cash Flows
 
17 - 18
Consolidated Analysis of Net Debt
 
19
Notes to the Financial Statements
 
20 - 37


 
FREUD 4.0 LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The Directors present their strategic report on the Group for the year ended 31 December 2024.

Business review
 
Following the restructuring and demerger in 2023 the Group has continued to focus on Marketing and Communications as its core activities.
The business has performed well. Despite turnover falling from £44.7m to £43m, operating profits have increased from £9.44m to £9.74m. Total operating profits, that is operating profits adjusted for share of profits in joint venture, was £10.10m (2023 - £9.74m). 

Principal risks and uncertainties
 
The Directors consider the principal risks and uncertainties facing the Group to be the loss of key employees or inability to recruit staff of the appropriate calibre in view of the expected future growth of the Group, or the loss of status or reputation of the Group and its directors.

Financial key performance indicators
 
The Directors regard gross profit and operating profit as the key financial performance indicators of the Group.

Directors' statement of compliance with duty to promote the success of the Group
 
The Directors consider the successful running of the Group and the Company centres around the long-term strategy of maintaining a sustainable, profitable business. The Directors consider that they and the Directors of the various group companies (“the Directors”) have acted in the way they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole (having regard to the stakeholders and matters set out in S172(1)(a-f) of the Act) in the decisions taken during the financial year ended 31 December 2024. 
In coming to this conclusion, the Directors have considered the following:
• Consideration of long-term consequences are an inherent part of the Group's decision-making processes.  As a privately-owned Group, the Directors consider that the interests of the Group and the shareholder are  aligned in seeking sustainable value creation over the longer term through the Group's operations, 
 promoting long term strategic decision-making.
• The Directors continue to ensure that a reputation for high standards of business conduct with customers 
 and other stakeholders is maintained.
• The Group has continued throughout the year to provide employees with relevant information and to seek 
 their views on matters of common concern. Priority is given to ensuring that employees are aware of all 
 significant matters affecting the Group.
• When taking decisions, the Directors consider the potential impact the decisions they take may have on 
 the community and environment and socially.
• The integrity of the Group is underpinned with policies in relation to bribery and corruption, data protection,  equality, diversity, fraud and whistleblowing, each of which is reinforced through appropriate training.
• The Directors confirm that throughout the year they have acted in the way they consider, in good faith, to 
 be most likely to promote the success of the Company and Group for the benefit of the members as a 
 whole.

Page 1

 
FREUD 4.0 LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024


This report was approved by the board on 29 May 2025 and signed on its behalf.



M R Freud
Director

Page 2

 
FREUD 4.0 LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

Principal activity

The principal activity of the Group continued to be the provision of public relations and other media services.

Results and dividends

The profit for the year, after taxation and minority interests, amounted to £7,297,831 (2023 - £7,586,493).

The Directors do not recommend a final dividend.

Directors

The directors who served during the year were:

M R Freud 
A O Brady 
R N W Bankes 

Future developments

There are no plans which will significantly change the activities and risks of the Group.

Engagement with employees

Management encourages the involvement and participation of the employees in the Group and make every effort to ensure regular contact and exchange of information with staff. It is the Group's policy to give full and fair consideration to suitable applications from disabled persons for employment. Where employees become disabled in the course of their employment, they will continue to be employed, wherever practicable, in the same job or, if this is not practicable, every effort will be made to find suitable alternative employment and to provide appropriate training.

Engagement with suppliers, customers and others

Delivering the Group's strategy requires strong mutually beneficial relationships with contractors, suppliers, customers, and providers of finance and the directors seek the promotion and application of certain general principles in such relationships. These principles involve integrity and fairness in all aspects of the Group’s/Company’s business. The ability to promote these principles effectively is an important factor in the decision to enter into or remain in such relationships.

Greenhouse gas emissions, energy consumption and energy efficiency action

The Group has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as its energy consumption in the United Kingdom for the year is 40,000kWh or lower.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Page 3

 
FREUD 4.0 LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Subsequent events

There have been no significant events affecting the Group since the year end.

Auditors

Under section 487(2) of the Companies Act 2006Sopher + Co LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 29 May 2025 and signed on its behalf.
 





M R Freud
Director

Page 4

 
FREUD 4.0 LIMITED
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 5

 
FREUD 4.0 LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FREUD 4.0 LIMITED
 

Opinion


We have audited the financial statements of FREUD 4.0 LIMITED (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Group Statement of Comprehensive Income, the Group and Company Statements of Financial Position, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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's affairs as at 31 December 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 United Kingdom, including the Financial Reporting Council'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 or 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 included in the Annual Report, other than the financial statements and our Auditors' Report 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 statementsour 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 there is a material
Page 6

 
FREUD 4.0 LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FREUD 4.0 LIMITED (CONTINUED)

misstatement in the financial statements or a material misstatement of the other information. 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.


Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report 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 Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


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 Directors' Responsibilities Statement set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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.


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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities,
Page 7

 
FREUD 4.0 LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FREUD 4.0 LIMITED (CONTINUED)

including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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 and Group through discussions with directors and other management, and from our commercial knowledge and experience of the public relations 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 and Group, including the Companies Act 2006, taxation legislation and data protection, anti-bribery and employment legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; 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 and Group'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; 
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and 
understanding the design of the Company’s and Group's remuneration policies. 

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 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 and Group's legal advisors. 

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 identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and 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
Page 8

 
FREUD 4.0 LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FREUD 4.0 LIMITED (CONTINUED)

Auditors' Report.


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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Stephen Iseman FCA (Senior Statutory Auditor)
  
for and on behalf of
Sopher + Co LLP
 
Chartered Accountants
Statutory Auditors
  
5 Elstree Gate
Elstree Way
Borehamwood
Hertfordshire
WD6 1JD

29 May 2025
Page 9

 
FREUD 4.0 LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024


2024
2023
Note
£
£

Turnover
  

Group and share of joint ventures' turnover
  
48,971,594
49,844,271

Less: share of joint ventures' turnover
 4 
(5,980,542)
(5,148,347)

Group turnover
  
42,991,052
44,695,924

Cost of sales
  
(557,330)
(583,742)

Gross profit
  
42,433,722
44,112,182

Administrative expenses
  
(32,695,935)
(34,763,279)

Other operating income
 5 
-
93,333

Operating profit
 6 
9,737,787
9,442,236

Share of profit in joint venture
  
362,890
295,126

Total operating profit
  
10,100,677
9,737,362

Interest receivable and similar income
 10 
302,733
371,521

Interest payable and similar expenses
 11 
(334,541)
(826,416)

Profit before taxation
  
10,068,869
9,282,467

Tax on profit
 12 
(2,499,264)
(1,560,348)

Profit for the financial year
  
7,569,605
7,722,119

  

Currency translation differences
  
37,124
(184,946)

Total comprehensive income for the year
  
7,606,729
7,537,173

Profit for the year attributable to:
  

Non-controlling interests
  
271,774
135,626

Owners of the parent Company
  
7,297,831
7,586,493

  
7,569,605
7,722,119

Total comprehensive income for the year attributable to:
  

Non-controlling interest
  
279,303
113,530

Owners of the parent Company
  
7,327,426
7,423,643

  
7,606,729
7,537,173

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

Page 10

 
FREUD 4.0 LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

The notes on pages 20 to 37 form part of these financial statements.

Page 11

 
FREUD 4.0 LIMITED
REGISTERED NUMBER:14678351

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 14 
95,013
207,413

Tangible assets
 15 
2,121,079
2,447,255

Investments
 16 
723,255
940,404

  
2,939,347
3,595,072

Current assets
  

Stocks
 17 
1,411,797
979,380

Debtors
 18 
48,273,210
36,527,878

Cash at bank and in hand
  
8,091,586
14,577,376

  
57,776,593
52,084,634

Current liabilities
  

Creditors: amounts falling due within one year
 19 
(18,762,366)
(19,222,155)

Net current assets
  
 
 
39,014,227
 
 
32,862,479

Total assets less current liabilities
  
41,953,574
36,457,551

Creditors: amounts falling due after more than one year
 20 
(1,416,667)
(3,116,667)

Provisions for liabilities
  

Deferred taxation
 22 
(90,679)
(105,771)

Net assets
  
40,446,228
33,235,113


Capital and reserves
  

Called up share capital 
  
10
10

Merger reserve
 24 
(26,252,581)
(26,252,581)

Profit and loss account
 24 
65,887,130
58,554,939

Equity attributable to owners of the parent Company
  
39,634,559
32,302,368

Non-controlling interests
  
811,669
932,745

  
40,446,228
33,235,113


Page 12

 
FREUD 4.0 LIMITED
REGISTERED NUMBER:14678351
    
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 May 2025.




M R Freud
Director

The notes on pages 20 to 37 form part of these financial statements.

Page 13

 
FREUD 4.0 LIMITED
REGISTERED NUMBER:14678351

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 16 
10
10

Current assets
  

Debtors
 18 
35,316,643
401,298

Current liabilities
  

Creditors: amounts falling due within one year
 19 
(35,327,050)
(401,298)

Net current (liabilities)/assets
  
 
 
(10,407)
 
 
-

Net (liabilities)/assets
  
(10,397)
10


Capital and reserves
  

Called up share capital 
  
10
10

Profit and loss account carried forward
  
(10,407)
-

  
(10,397)
10


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 May 2025.




M R Freud
Director

The notes on pages 20 to 37 form part of these financial statements.

Page 14
 

FREUD 4.0 LIMITED
 
 
 


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024



Called up share capital
Merger reserve
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity


£
£
£
£
£
£



At 1 January 2023
10
(26,252,581)
51,131,296
24,878,725
828,205
25,706,930





Profit for the year
-
-
7,586,493
7,586,493
135,626
7,722,119


Currency translation differences
-
-
(162,850)
(162,850)
(22,096)
(184,946)


Dividends: non-controlling interest
-
-
-
-
(9,619)
(9,619)


Shares issued to non-controlling interest in subsidiary
-
-
-
-
629
629





At 1 January 2024
10
(26,252,581)
58,554,939
32,302,368
932,745
33,235,113





Profit for the year
-
-
7,297,831
7,297,831
271,776
7,569,607


Currency translation differences
-
-
29,595
29,595
7,529
37,124


Purchase of minority interest
-
-
4,765
4,765
(4,765)
-


Dividends: non-controlling interest
-
-
-
-
(395,616)
(395,616)



At 31 December 2024
10
(26,252,581)
65,887,130
39,634,559
811,669
40,446,228



The notes on pages 20 to 37 form part of these financial statements.

Page 15
 
FREUD 4.0 LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

Shares issued during the year
10
-
10



At 1 January 2024
10
-
10



Loss for the year
-
(10,407)
(10,407)


At 31 December 2024
10
(10,407)
(10,397)


The notes on pages 20 to 37 form part of these financial statements.

Page 16

 
FREUD 4.0 LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
7,569,605
7,722,119

Adjustments for:

Amortisation of intangible assets
112,403
117,681

Depreciation of tangible assets
549,711
534,638

Loss on disposal of tangible assets
(962)
(3,056)

Loss on disposal of intangible assets
-
3,750

Grants received
-
(33,333)

Taxation charge
2,499,264
1,560,348

(Increase)/decrease in stocks
(432,417)
1,636,040

(Increase)/decrease in debtors
(549,816)
3,552,279

Increase in amounts owed by joint ventures
-
(462)

Decrease in creditors
(445,546)
(4,249,997)

Share of operating profit in joint ventures and associates
(362,890)
(295,126)

Corporation tax paid
(1,508,877)
(1,624,984)

Interest receivable
(302,733)
(371,521)

Interest payable
334,541
826,416

Foreign exchange
34,335
(177,762)

Net cash generated from operating activities

7,496,618
9,197,030


Cash flows from investing activities

Purchase of intangible fixed assets
-
(3,550)

Purchase of tangible fixed assets
(244,295)
(612,258)

Proceeds from sale of tangible fixed assets
24,503
20,057

Interest received
301,042
350,782

Advances made to related parties
(11,620,951)
(2,345,973)

Net cash from investing activities

(11,539,701)
(2,590,942)

Cash flows from financing activities

Repayment of loans
(1,700,000)
(5,533,333)

Interest paid
(347,091)
(479,440)

Dividends paid to non-controlling interests
(395,616)
(9,619)

Net cash used in financing activities
(2,442,707)
(6,022,392)

Net (decrease)/increase in cash and cash equivalents
(6,485,790)
583,696

Cash and cash equivalents at beginning of year
14,577,376
13,993,680

Cash and cash equivalents at the end of year
8,091,586
14,577,376
Page 17

 
FREUD 4.0 LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024


2024
2023

£
£



Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
8,091,586
14,577,376


The notes on pages 20 to 37 form part of these financial statements.

Page 18

 
FREUD 4.0 LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024





At 1 January 2024
Cash flows
Acquisition and disposal of subsidiaries
At 31 December 2024
£

£

£

£

Cash at bank and in hand

14,577,376

(6,485,790)

-

8,091,586

Debt due after 1 year

(3,116,667)

-

1,700,000

(1,416,667)

Debt due within 1 year

(1,700,000)

1,700,000

(1,700,000)

(1,700,000)


9,760,709
(4,785,790)
-
4,974,919

The notes on pages 20 to 37 form part of these financial statements.

Page 19

 
FREUD 4.0 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Freud 4.0 Limited is a private company, limited by shares, incorporated in England and Wales. Its registered office and principal place of business is 1 Stephen Street, London, W1T 1AL.
The Company was incorporated on 21 February 2023 (Note 2.2). It is a holding company.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

Following a restructuring of the group headed Freud 3.0 Limited on 3 July 2023, the Company became the ultimate parent company of a new group. The group controlled by the Company includes some, but not all, of the entities previously in the Freud 3.0 Limited group. There was no change in ultimate control.
Under FRS 102, the accounting policy to account for business combinations of entities following a restructuring with no change in control is merger accounting. The acquired assets and liabilities are stated at historical cost and are included in the consolidated financial statements from the beginning of the earliest period presented as if the entities had always formed a group. The consolidated financial information for the year ended 31 December 2023 reflects the full year results of all entities despite the restructuring happening during the year.
The consolidated financial statements present the results of the Company and its subsidiaries as if they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

 
2.3

Revenue

Turnover comprises revenue recognised by the Group in respect of services supplied during the year, exclusive of Value Added Tax.
Revenue for retainer fees is recognised over the life of the retainer on a straight line basis. Revenue in respect of projects is recognised over the life of the project on a percentage of completion basis.

Page 20

 
FREUD 4.0 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.4

Intangible assets

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.
Web development costs are initially recognised at cost. After recognition, under the cost model, they are measured at cost less any accumulated amortisation and any accumulated impairment losses. Amortisation is provided at rates calculated to write off cost over the expected useful life of no more than 10 years.

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
Over the life of the lease
Motor vehicles
-
20% straight line
Fixtures and fittings
-
15% to 25% straight line
Computer equipment
-
33% straight line

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

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.6

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 21

 
FREUD 4.0 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.7

Joint ventures

An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control.

An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Statement of Financial Position, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition.
Any premium on acquisition is dealt with in accordance with the goodwill policy.

 
2.8

Grants

Grants are accounted under the accruals model as permitted by FRS 102.
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.

 
2.9

Work in progress and stock

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase. Work in progress, which comprises third party costs, is valued at the lower of cost and net realisable value.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.10

Debtors

Short-term debtors are measured at the transaction price, less any impairment.

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty. 

 
2.12

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 22

 
FREUD 4.0 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.13

Financial instruments

The Group 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 and 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 the future cash flows and subsequently at amortised cost using the effective interest 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 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 objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date.


 
2.14

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.


Deferred balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 23

 
FREUD 4.0 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.15

Foreign currency translation

The Company and Group's functional and presentational currency is £ Sterling.
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.16

Finance costs

Finance costs are charged to the Consolidated Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.

 
2.17

Dividends

Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.18

Pensions

Defined contribution pension plan
The Group contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in the Consolidated Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.19

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 24

 
FREUD 4.0 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.20

Interest income

Interest income is recognised in profit or loss using the effective interest method.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Group's accounting policies described above, the Directors are required to make judgments, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may be different. These estimates are reviewed on an ongoing basis. Revisions to these estimates are recognised in the period in which the estimate is revised if the revision only affects that period, or in the period of revision and future periods if the revision affects both future and current periods.
In preparing these financial statements, the Directors have made the following judgments:
When determining whether there are indicators of impairment of the Group's tangible and intangible assets, factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the assets.
In preparing these financial statements, the Directors have considered the following key sources of estimation uncertainty:
Tangible and intangible assets are depreciated and amortised respectively over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, maintenance programmes and expected future cash flows are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and estimated disposal values.


4.


Turnover

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
23,022,754
22,482,803

Rest of Europe
6,340,255
5,779,599

United States of America
9,584,691
11,505,456

Rest of the world
4,043,352
4,928,066

42,991,052
44,695,924


Page 25

 
FREUD 4.0 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

5.


Other operating income

2024
2023
£
£

Rent receivable
-
60,000

Grants receivable
-
33,333

-
93,333



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
100,710
467,220

Other operating lease rentals
2,596,320
2,807,756


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
80,000
80,000

Fees payable to the Company's auditors in respect of:

All non-audit services not included above
33,000
33,000

Page 26

 
FREUD 4.0 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

8.


Employees

Staff costs were as follows:


Group
Group
2024
2023
£
£


Wages and salaries
20,426,540
21,469,867

Social security costs
2,517,928
2,759,227

Cost of defined contribution scheme
674,910
692,691

23,619,378
24,921,785


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Public relations
222
230



Administrative
49
56

271
286

The Company has no employees other than the directors, who did not receive any remuneration (2023 - £Nil).


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
750,000
750,000

Group contributions to defined contribution pension schemes
30,000
28,667

780,000
778,667


During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension scheme.
The highest paid director received remuneration of £400,000 (2023 - £400,000).
The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £30,000 (2023 - £28,667).

Page 27

 
FREUD 4.0 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

10.


Interest receivable

2024
2023
£
£


Bank interest receivable
254,634
275,663

Other interest receivable
48,099
95,858

302,733
371,521


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
307,442
446,541

Interest payable to related parties
-
368,924

Other interest payable
27,099
10,951

334,541
826,416


12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
2,418,944
1,912,928

Adjustments in respect of previous periods
10,498
(686,771)

2,429,442
1,226,157


Group taxation relief
-
267,290


Share of tax in joint venture
84,914
73,352

Total current tax
2,514,356
1,566,799

Deferred tax


Origination and reversal of timing differences
(15,092)
(6,451)


Tax on profit
2,499,264
1,560,348
Page 28

 
FREUD 4.0 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard (2023 - composite) rate of corporation tax in the UK of 25% (2023 - 23.50%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
10,068,869
9,282,467


Profit on ordinary activities multiplied by the standard (2023 - composite) rate of corporation tax in the UK of 25% (2023 - 23.50%)
2,517,217
2,182,126

Effects of:


Non-tax deductible amortisation of goodwill and impairment
(2,180)
23,883

Expenses not deductible for tax purposes
70,250
47,778

Depreciation charge for the year in excess of capital allowances
39,720
21,641

Adjustments to tax charge in respect of prior periods
10,498
(686,771)

Short-term timing difference leading to an increase (decrease) in taxation
(1,277)
(3,953)

Non-taxable income, including partnership income, less expenses not deductible for tax
(65,862)
(26,358)

Factors affecting the tax charge in joint venture
(5,808)
3,997

Unrelieved tax losses carried forward
(11,388)
6,105

Difference in tax rates on foreign subsidiaries
(40,284)
(1,578)

Over provision of tax charge
3,470
-

Marginal relief
-
(71)

Deferred tax movement
(15,092)
(6,451)

Total tax charge for the year
2,499,264
1,560,348


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The loss after tax of the parent Company for the year was £10,407 (2023 -£Nil).

Page 29

 
FREUD 4.0 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

14.


Intangible assets

Group and Company





Website development
Goodwill
Total

£
£
£



Cost


At 1 January 2024
367,816
1,016,310
1,384,126


Foreign exchange movement
108
-
108



At 31 December 2024

367,924
1,016,310
1,384,234



Amortisation


At 1 January 2024
346,727
829,986
1,176,713


Charge for the year on owned assets
10,772
101,631
112,403


Foreign exchange movement
104
-
104



At 31 December 2024

357,603
931,617
1,289,220



Net book value



At 31 December 2024
10,321
84,693
95,014



At 31 December 2023
21,089
186,324
207,413



Page 30

 
FREUD 4.0 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

15.


Tangible fixed assets

Group






Long-term leasehold property
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost


At 1 January 2024
1,287,992
332,877
5,221,133
6,842,002


Additions
-
-
244,295
244,295


Disposals
-
(130,492)
(18,719)
(149,211)


Exchange adjustments
-
-
7,634
7,634



At 31 December 2024

1,287,992
202,385
5,454,343
6,944,720



Depreciation


At 1 January 2024
591,747
249,353
3,553,647
4,394,747


Charge for the year on owned assets
116,227
38,261
395,223
549,711


Disposals
-
(107,873)
(17,797)
(125,670)


Exchange adjustments
-
-
4,853
4,853



At 31 December 2024

707,974
179,741
3,935,926
4,823,641



Net book value



At 31 December 2024
580,018
22,644
1,518,417
2,121,079



At 31 December 2023
696,245
83,524
1,667,486
2,447,255

 Included in the group's fixtures and fittings are artwork and antiques at a cost of £450,190 (2023 - £446,057) which are not depreciated. 

Page 31

 
FREUD 4.0 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

16.


Fixed asset investments

Group





Investment in joint ventures

£



Cost


At 1 January 2024
940,404


Dividends received
(495,126)


Share of profit
277,976



At 31 December 2024

723,254






Net book value



At 31 December 2024
723,254



At 31 December 2023
940,404

Company





Investments in subsidiary companies

£



Cost


At 1 January 2024
10



At 31 December 2024

10






Net book value



At 31 December 2024
10



At 31 December 2023
10

Page 32

 
FREUD 4.0 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

Direct subsidiary undertaking


The following was a direct subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Freud 3.0 Limited
10242323
Holding company
Ordinary
100%


Indirect subsidiary undertakings


The following were indirect subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Freuds Group Limited
09801605
Holding company
Ordinary
100%
Freud Communications Limited
02478112
Public relations
Ordinary
100%
Freuds Inc.
N/A
Holding company
Ordinary
100%
True Colors Limited*
10772594
Product sourcing
Ordinary
100%
Atomized Studios Limited
10471166
Video production
Ordinary
75%
The Brewery (London) Limited*
08787991
Public relations
Ordinary
100%
Freuds Republic Limited
13761404
Public relations
Ordinary
100%
Freud + Limited
13761191
Public relations
Ordinary
100%
Freuds LLC
N/A
Public relations
N/A
100%
The One Nine Three Group LLC
N/A
Public relations
N/A
80%
The One Nine Three Group Limited*
14236415
Public relations
Ordinary
80%
Lawless Studio Limited*
15065269
Public relations
Ordinary
75%

The Company's indirect subsidiaries Freuds Inc, The One Nine Three Group LLC and Freuds LLC are registered in the USA. Their registered office address is 231 Pantigo Road, Suite 2, East Hampton, NY 11937. All of the other direct and indirect subsidiaries have their registered office addresses at 1 Stephen Street, London, W1T 1AL.
*These subsidiaries have taken advantage of the exemption available under Section 479A of the Companies Act 2006 and have not had their financial statements audited.


Joint venture


The following was a joint venture of the Company:


Name

Registered office

Principal activity

Holding

Proud-Robinson Limited
07418311
Management consultancy
50%

Page 33

 
FREUD 4.0 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

17.


Stocks

Group
Group
2024
2023
£
£

Work in progress
1,411,797
954,614

Goods for resale
-
24,766

1,411,797
979,380



18.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£



Trade debtors
8,743,617
7,272,477
-
-

Amounts owed by joint ventures and associated undertakings
495,126
-
-
-

Other debtors
35,884,668
25,268,780
35,316,643
401,298

Prepayments and accrued income
3,149,799
3,986,621
-
-

48,273,210
36,527,878
35,316,643
401,298



19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loans (Note 21)
1,700,000
1,700,000
-
-

Trade creditors
2,054,301
2,094,429
-
-

Amounts owed to group undertakings
-
-
35,304,215
401,298

Other taxation and social security
1,597,928
1,045,341
-
-

Other creditors
5,490,111
7,049,615
22,835
-

Accruals and deferred income
7,920,026
7,332,770
-
-

18,762,366
19,222,155
35,327,050
401,298


Bank loans comprise facilities as described in Note 20.
Company
Amounts owed to group undertakings are unsecured, interest free and are repayable on demand.

Page 34

 
FREUD 4.0 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

20.


Creditors: Amounts falling due after more than one year

Group
Group
2024
2023
£
£

Bank loans (Note 21)
1,416,667
3,116,667


Bank loans comprise a loan bearing interest at a variable rate of 2.5% over base rate, repayable in 60 monthly installments commencing 20 November 2021 secured by a composite guarantee (Note 28).


21.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2024
2023
£
£

Amounts falling due within one year

Bank loans
1,700,000
1,700,000

Amounts falling due 1-2 years

Bank loans
1,416,667
3,116,667

3,116,667
4,816,667



22.


Deferred taxation


Group



2024
2023


£

£






At beginning of year
105,771
112,222


Released to profit or loss
(15,092)
(6,451)



At end of year
90,679
105,771

Group
Group
2024
2023
£
£

Accelerated capital allowances
90,679
105,771

Page 35

 
FREUD 4.0 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
22.Deferred taxation (continued)


The net deferred tax liability expected to reverse next year is £19,519 (2023 - £15,562). This primarily relates to the reversal of existing timing differences on acquired tangible fixed assets and capital allowances through depreciation, offset by expected tax deductions when payments are made to utilise provisions.


23.


Share capital

2024
2023
£
£

Allotted, called up and fully paid


1,000 (2023 - 1,000) Ordinary shares of $0.01 each
10
10


24.


Reserves

Merger Reserve

The merger reserve is the result of adopting merger accounting following a group restructuring during the financial year ended 31 December 2023.

Profit and loss account

The profit and loss reserve contains the cumulative balance of retained profit and losses which are all distributable.


25.


Pension commitments

The Group contributes to a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £674,910 (2023 - £692,691). Contributions totalling £54,971 (2023 - £52,770) were payable to the fund at the reporting date and are included in creditors.


26.


Commitments under operating leases

At 31 December 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Not later than 1 year
1,438,617
2,393,161

Later than 1 year and not later than 5 years
7,688,227
9,062,898

9,126,844
11,456,059
Page 36

 
FREUD 4.0 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

27.Guarantee

The Company and the following subsidiaries, Freud 3.0 Limited, Freuds Group Limited, Freud Communications Limited, Freuds + Limited and Freuds Republic Limited, are parties to a composite guarantee in favour of the Group’s bank.


28.


Related party transactions

At the reporting date the Company and Group were owed £22,725,877 (2023 – £401,298) and £22,725,877 (2023 - 13,932,570) respectively by members of  Freud Investments Group Limited, a group under common control.
During the year The One Nine Three Group Limited, an indirect subsidiary, made sales totalling £35,230 (2023 - £325,548) to and purchases totalling £2,502,197 (2023 - £2,660,200) from other members  of the Group. At the reporting date The One Nine Three Group Limited owed £1,343,466 (2023 - £1,299,483) to the members of the Group.
During the year Atomized Studios Limited, an indirect subsidiary, made sales totalling £4,607,327 (2023 - £5,495,910) to and purchases totalling £291,959 (2023 - £258,996) from other members of the Group. At the reporting date Atomized Studios Limited was owed £689,385 (2023 - £346,744) by members of the Group and owed £17,374 (2023 - £Nil) to members of the Group. 
At the reporting date The One Nine Three Group LLC, an indirect subsidiary, owed £1,096,055 (2023 - £140,161) to and was owed £81,082 (2023 - £1,346,318) by members of the Group.
 
During the year Freuds Group Limited, an indirect subsidiary, made sales totalling £474,032 (2023 - £87,243) to, and purchases totalling £28,535 (2023 - £540) from members of the Freud Hospitality Group Limited, a group under common control. At the reporting date Freuds Group Limited was owed £Nil (2023 - £267,009) by members of the Freud Hospitality Group Limited.
 
During the year Freud Communications Limited, an indirect subsidiary, made sales totalling £22,954 (2023 - £21,591) to members of Freud Investments Group Limited, a group under common control. At the reporting date Freud Communications Limited was owed £Nil (2023 - £13,199,394) by members of  Freud Investments Group Limited.
 
During the year Freud Communications Limited, an indirect subsidiary, made sales totalling £158,513 (2023 - £28,465) to, and purchases totalling £26,747 (2023 - £28,317) from members of Freud Hospitality Group Limited, a group under common control. At the reporting date Freuds Communications Limited was owed £Nil (2023 - £9,048,419) by members of  Freud Hospitality Group Limited.
During the year Freud Communications Limited, an indirect subsidiary, made sales totalling £10,111 (2023 - £11,003) to, and purchases totalling £4,432,567 (2023 - £2,417,498) from Proud Robinson Limited, a joint venture. At the reporting date Freud Communications Limited owed £Nil (2023 - £Nil) to Proud Robinson Limited.
The Group has taken advantage of FRS102 s33.1A which does not require disclosure of transactions between wholly-owned members of the Group.


29.


Controlling party

M R Freud, director of the Company, is the ultimate controlling party. 

 
Page 37