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Registered number: 02478112














FREUD COMMUNICATIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

 
FREUD COMMUNICATIONS LIMITED
 
 
COMPANY INFORMATION


Directors
M R Freud 
A Brady 




Registered number
02478112



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 COMMUNICATIONS LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Directors' Responsibilities Statement
 
5
Independent Auditors' Report
 
6 - 9
Statement of Comprehensive Income
 
10
Statement of Financial Position
 
11
Statement of Changes in Equity
 
12
Notes to the Financial Statements
 
13 - 28


 
FREUD COMMUNICATIONS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

Business review
 
Despite the challenges posed by the external environment, Freud Communications (''Freuds'') has continued to perform well this year delivering robust performance, showcasing the resilience and adaptability of the business in uncertain times.

Principal risks and uncertainties
 
The Directors consider the principal risks and uncertainties facing the Company 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 Company, or the loss of status or reputation of the Company and its Directors.

Financial key performance indicators
 
The Directors regard gross profit and operating profit as the key financial performance indicators of the Company.
 
- Gross Profit has decreased from £28.76 million to £27.08 million.
- Operating profit has decreased from £6.85 million to £6.28 million.
- At the year end, the company held cash balances of £3.46 million (2023 - £6.04 million), and the company has external debt at the year-end of £Nil (2023 - £Nil).

Directors' statement of compliance with duty to promote the success of the Company
 
The Directors consider the successful running of the Company centres around their long-term strategy of maintaining a sustainable, profitable business. The Directors consider that they have acted in the way they consider, in good faith, would be most likely to promote the success of the Company 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 Company's decision-making processes. As a privately-owned Company, the directors consider that the interests of the Company and its shareholders are aligned in seeking sustainable value creation over the longer term through the Company'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 Company 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 Company.
• When taking decisions, the board considers the potential impact the decisions they take may have on the community and environment and socially.  
• The integrity of the Company 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 for the benefit of its members as a whole.
Page 1

 
FREUD COMMUNICATIONS LIMITED
 

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 COMMUNICATIONS 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.

Results and dividends

The profit for the year, after taxation, amounted to £7,900,135 (2023 - £5,989,854).

Directors

The directors who served during the year were:

M R Freud 
A Brady 

Future developments

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

Engagement with employees

Management encourage the involvement and participation of the employees in the Company and make every effort to ensure regular contact and exchange of information with staff. It is the Company'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 Company’s strategy requires strong mutually beneficial relationships with freelancers, suppliers and customers 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 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. 

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'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's auditors are aware of that information.

Events after the year end

There are no events after the reporting date which affect the Company.

Page 3

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


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

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the Company'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 Company 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 5

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

Opinion


We have audited the financial statements of Freud Communications Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the 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 Company's affairs as at 31 December 2024 and of its 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 Company 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 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 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
Page 6

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

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 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 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or
the 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 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 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 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, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Page 7

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


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; 
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; 
we identified the laws and regulations applicable to the Company through discussions with directors and other management, and from our commercial knowledge and experience of the 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, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety 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 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 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 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 Auditors' Report.


Page 8

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

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 COMMUNICATIONS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024


2024
2023
Note
£
£

  

Turnover
 4 
27,900,741
29,659,194

Cost of sales
  
(814,761)
(903,089)

Gross profit
  
27,085,980
28,756,105

Administrative expenses
  
(20,810,339)
(21,962,109)

Other operating income
 5 
-
60,000

Operating profit
 6 
6,275,641
6,853,996

Dividends from subsidiary
  
3,101,658
-

Loss on disposal of subsidiary
  
(5,229)
-

Interest receivable and similar income
 10 
249,670
326,467

Interest payable and similar expenses
 11 
(26,314)
(49,554)

Profit before tax
  
9,595,426
7,130,909

Tax on profit
 12 
(1,695,291)
(1,141,055)

Profit for the financial year
  
7,900,135
5,989,854

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 13 to 28 form part of these financial statements.

Page 10

 
FREUD COMMUNICATIONS LIMITED
REGISTERED NUMBER:02478112

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible fixed assets
 14 
3,243
6,296

Tangible fixed assets
 15 
1,864,925
2,080,996

Fixed asset investments
 16 
3
88

  
1,868,171
2,087,380

Current assets
  

Stocks
 17 
1,164,783
632,680

Debtors: amounts falling due after more than one year
 18 
3,994,971
3,919,166

Debtors: amounts falling due within one year
 18 
21,219,440
49,596,635

Bank and cash balances
  
3,461,567
6,043,982

  
29,840,761
60,192,463

Current liabilities
  

Creditors: amounts falling due within one year
 19 
(19,360,206)
(57,816,160)

Net current assets
  
 
 
10,480,555
 
 
2,376,303

Total assets less current liabilities
  
12,348,726
4,463,683

Provisions for liabilities
  

Deferred tax
 20 
(90,679)
(105,771)

Net assets
  
12,258,047
4,357,912


Capital and reserves
  

Called up share capital 
 21 
13,248
13,248

Share premium account
 22 
25,345
25,345

Profit and loss account
 22 
12,219,454
4,319,319

  
12,258,047
4,357,912


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 13 to 28 form part of these financial statements.

Page 11

 
FREUD COMMUNICATIONS LIMITED
 

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


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 January 2023
13,248
25,345
38,329,465
38,368,058



Profit for the year
-
-
5,989,854
5,989,854

Dividends: Equity capital
-
-
(40,000,000)
(40,000,000)



At 1 January 2024
13,248
25,345
4,319,319
4,357,912



Profit for the year
-
-
7,900,135
7,900,135


At 31 December 2024
13,248
25,345
12,219,454
12,258,047


The notes on pages 13 to 28 form part of these financial statements.

Page 12

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

1.


General information

Freud Communications Limited is a private company, limited by shares, incorporated in England and Wales. Its registered office and business address is 1 Stephen Street, London, W1T 1AL. 
The principal activity of the Company is the provision of public relations and other media services.

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 management to exercise judgment in applying the Company's accounting policies (see note 3).

The Company, being an intermediary undertaking within a group whose consolidated financial statements are publicly available, is exempt from the requirement to draw up a statement of cash flows in accordance with FRS102.

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).

This information is included in the consolidated financial statements of Freud 4.0 Limited as at 31 December 2024 and these financial statements may be obtained from the Company's registered office address upon request and publicly from the Registrar of Companies.

 
2.3

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

Page 13

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

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is £ Sterling.

Transactions and balances

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.

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 .

 
2.5

Revenue

Turnover comprises revenue recognised by the company 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. Fees received in advance are carried forward as deferred income.

 
2.6

Operating leases: the Company as lessee

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

 
2.7

Interest income

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

 
2.8

Finance costs

Finance costs are charged to profit or loss 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. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 14

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

2.Accounting policies (continued)

 
2.9

Pensions

Defined contribution pension plan
The Company contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the 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 Company in independently administered funds.

 
2.10

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 operates and generates income.


Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that:
 - The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
 - Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

 
2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 Amortisation is provided on the following bases:

Website development
-
straight line over 3 years

 
2.12

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.

Page 15

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

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Leasehold improvements
-
straight line over the term of the lease
Motor vehicles
-
5 years straight line
Fixtures and fittings
-
6.67% to 25% straight line
Computer equipment
-
3 years 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 the Statement of Comprehensive Income.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

Associates and joint ventures

Joint Ventures are held at cost less impairment.

 
2.15

Work in progress

Work in progress, which comprises third party costs, is valued at the lower of cost and net realisable value.

 
2.16

Debtors

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

 
2.17

Cash and cash equivalents

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

 
2.18

Creditors

Short term creditors are measured at the transaction price.

 
2.19

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 ordinary shares.


Page 16

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

2.Accounting policies (continued)

 
2.20

Dividends

Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies described above, the Directors are required to make judgements, 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 judgements:
When determining whether there are indicators of impairment of the Company's investments and tangible and intangible assets, factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.
In preparing these financial statements, the Directors have considered the following key sources of estimation uncertainty:
Tangible assets are depreciated 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 and maintenance programmes 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

An analysis of turnover by class of business is as follows:


2024
2023
£
£

United Kingdom
13,085,156
14,230,637

Rest of Europe
4,372,259
3,980,489

United States of America
7,460,417
7,038,732

Rest of the world
2,982,909
4,409,336

27,900,741
29,659,194


Page 17

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

5.


Other operating income

2024
2023
£
£

Net rents receivable
-
60,000



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
86,221
420,824

Other operating lease rentals
2,119,713
2,245,725


7.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
34,500
34,500

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 18

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

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
11,859,459
12,208,943

Social security costs
1,504,388
1,686,811

Cost of defined contribution pension schemes
418,878
421,959

13,782,725
14,317,713


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


        2024
        2023
            No.
            No.







Public relations and allied services
152
140



Administration
29
38

181
178


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
400,000
400,000

Company contributions to defined contribution pension schemes
16,000
14,667

416,000
414,667


During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £400,000 (2023 - £400,000).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £16,000 (2023 - £14,667).

Page 19

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

10.


Interest receivable

2024
2023
£
£


Interest receivable from group companies
135,099
138,333

Other interest receivable
114,571
188,134

249,670
326,467


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
-
38,604

Other interest payable
26,314
10,950

26,314
49,554


12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
1,585,540
1,247,748

Adjustments in respect of previous periods
(233)
(604,407)


Group taxation relief
125,076
504,165

Total current tax
1,710,383
1,147,506

Deferred tax


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

Tax on profit
 
1,695,291
 
1,141,055
Page 20

 
FREUD COMMUNICATIONS 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
9,595,426
7,130,909


Profit on ordinary activities multiplied by the standard (2023 - composite) rate of corporation tax in the UK of 25% (2023 - 23.50%)
2,398,857
1,675,764

Effects of:


Expenses not deductible for tax purposes
61,388
58,929

Depreciation for the year in excess of capital allowances
26,899
14,198

Non-taxable dividends from UK companies
(775,415)
-

Adjustments to tax charge in respect of prior periods
(233)
(604,407)

Short term timing difference leading to an (decrease) / increase in taxation
(1,113)
1,698

Adjustment resulting from change in tax rates
-
1,324

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

Total tax charge for the year
1,695,291
1,141,055


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Dividends

2024
2023
£
£


Dividends paid on A Ordinary shares
-
40,000,000

Page 21

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

14.


Intangible assets




Development expenditure
Computer software
Total

£
£
£



Cost


At 1 January 2024
320,885
799
321,684



At 31 December 2024

320,885
799
321,684



Amortisation


At 1 January 2024
315,055
333
315,388


Charge for the year on owned assets
2,853
200
3,053



At 31 December 2024

317,908
533
318,441



Net book value



At 31 December 2024
2,977
266
3,243



At 31 December 2023
5,830
466
6,296



Page 22

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

15.


Tangible fixed assets





Leasehold improvements
Motor vehicles
Fixtures, fittings and computer equipment
Total

£
£
£
£



Cost


At 1 January 2024
1,287,992
272,892
4,646,517
6,207,401


Additions
-
-
216,506
216,506


Disposals
-
(130,492)
(1,619)
(132,111)



At 31 December 2024

1,287,992
142,400
4,861,404
6,291,796



Depreciation


At 1 January 2024
591,747
216,362
3,318,296
4,126,405


Charge for the year on owned assets
46,987
26,264
336,617
409,868


Disposals
-
(107,873)
(1,529)
(109,402)



At 31 December 2024

638,734
134,753
3,653,384
4,426,871



Net book value



At 31 December 2024
649,258
7,647
1,208,020
1,864,925



At 31 December 2023
696,245
56,530
1,328,221
2,080,996

Page 23

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

16.


Fixed asset investments





Investments in subsidiary companies
Investment in joint ventures
Total

£
£
£



Cost


At 1 January 2024
87
1
88


Disposals
(85)
-
(85)



At 31 December 2024

2
1
3






Net book value



At 31 December 2024
2
1
3



At 31 December 2023
87
1
88


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Principal activity

Class of shares

Holding

Freuds + Limited
Public relations
Ordinary
100%
Freuds Republic Limited
Public relations
Ordinary
100%


17.


Stocks

2024
2023
£
£

Work in progress
1,164,783
632,680


Page 24

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

18.


Debtors

2024
2023
£
£

Due after more than one year

Amounts owed by group undertakings
3,994,971
3,919,166


2024
2023
£
£

Due within one year

Trade debtors
7,737,988
5,968,981

Amounts owed by group undertakings
11,062,320
18,263,004

Other debtors
426,527
23,456,963

Prepayments and accrued income
1,992,605
1,907,687

21,219,440
49,596,635



19.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
1,541,443
1,597,786

Amounts owed to group undertakings
6,294,247
44,421,798

Other taxation and social security
1,329,066
744,592

Other creditors
4,235,701
5,546,733

Accruals and deferred income
5,959,749
5,505,251

19,360,206
57,816,160



20.


Deferred taxation




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

Page 25

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

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
90,679
105,771


21.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



10,000 (2023 - 10,000) A ordinary shares of £1 each
10,000
10,000
1,200 (2023 - 1,200) B Ordinary shares of £1 each
1,200
1,200
700 (2023 - 700) C Ordinary shares of £1 each
700
700
628 (2023 - 628) D Ordinary shares of £1 each
628
628
720 (2023 - 720) E Ordinary shares of £1 each
720
720

13,248

13,248

The holders of B, C and E Ordinary shares do not have the right to receive notice of, nor attend, vote or speak at any general meeting, and are not entitled to vote on any written resolution. They do not have any entitlement to a dividend or any other distribution.



22.


Reserves

Share premium account

This reserve represents the amount above the nominal value received for issued share capital, less transaction costs.

Profit and loss account

The profit and loss reserve contains the cumulative balance of retained profit and losses since the Company started trading, all of which are distributable.


23.


Pension commitments

The Company contributes to a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £418,878 (2023 - £421,959). Contributions totalling £33,345 (2023 - £36,556) were payable to the fund at the reporting date and are included in creditors.

Page 26

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

24.


Commitments under operating leases

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

2024
2023
£
£


Not later than 1 year
1,062,863
2,149,041

Later than 1 year and not later than 5 years
6,944,278
8,524,273

Later than 5 years
-
1,520,039

8,007,141
12,193,353


25.


Guarantee

The Company, Freud 4.0 Limited (ultimate parent), Freuds Group Limited (immediate parent), Freud 3.0 Limited (intermediate parent) and the following subsidiaries, Freuds + Limited and Freuds Republic Limited, are parties to a composite guarantee in favour of the Company's bank. The potential liability at the reporting date was £3,116,667 (2023 - £4,816,666).


26.


Related party transactions

During the year the Company made sales totalling £33,310 (2023 - £9,000) to, and purchases totalling £3,899,350 (2023 - £5,602,817) from, Atomized Studios Limited, an entity that is a 75% subsidiary of the group to which the Company belongs. At the reporting date the Company owed £599,656 (2023 - £195,905) to Atomized Studios Limited.
During the year the Company made sales totalling £10,111 (2023 - £11,003) to, and purchases totalling £4,432,567 (2023 - £2,417,499) from, a joint venture, Proud Robinson Limited. At the reporting date the Company owed £663,091 (2023 - £Nil) to Proud Robinson Limited.
During the year the Company made sales totalling £225,504 (2023 - £172,523) to OneNineThree Group LLC, an entity that is a member of the group to which the Company belongs. At the reporting date the Company was owed £1,224  (2023 - £42,092) by The OneNineThree Group LLC.
During the year the Company made sales totalling £22,954 (2023 - £21,591) to members of the Freud Investments Group Limited, a group under common control. At the reporting date the Company was owed £Nil (2023 - £13,199,394) by members of the Freud Investments Group Limited.
During the year the Company made sales totalling £158,513 (2023 - £28,465) to, and purchases totalling  £26,747 (2023 - £28,317) from members of the Freud Hospitality Group Limited, a group under common control. At the reporting date the Company was owed £Nil (2023 - £9,048,419) by members of the Freud Hospitality Group Limited.
The Company forms part of a wholly-owned group and accordingly has taken advantage of the exemption allowed under section 33.1A of FRS 102 not to disclose transactions with other group companies, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.


 
Page 27

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

26.Related party transactions (continued)



27.


Controlling party

The immediate parent company is Freuds Group Limited and the ultimate parent is Freud 4.0 Limited, both registered in England and Wales. Freud 4.0 Limited is the parent company of the largest and the smallest group for which group financial statements are drawn up. Copies of the consolidated financial statements are available from the Registrar of Companies. M R Freud, a director of the company, is the ultimate controlling party.

 
Page 28