| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE PERIOD 1 JUNE 2023 TO 30 NOVEMBER 2024 |
| FOR |
| ELECTRIC GLUE LIMITED |
| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE PERIOD 1 JUNE 2023 TO 30 NOVEMBER 2024 |
| FOR |
| ELECTRIC GLUE LIMITED |
| ELECTRIC GLUE LIMITED (REGISTERED NUMBER: 08900707) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| For The Period 1 June 2023 to 30 November 2024 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 6 |
| Income Statement | 10 |
| Other Comprehensive Income | 11 |
| Balance Sheet | 12 |
| Statement of Changes in Equity | 13 |
| Cash Flow Statement | 14 |
| Notes to the Cash Flow Statement | 15 |
| Notes to the Financial Statements | 16 |
| ELECTRIC GLUE LIMITED |
| COMPANY INFORMATION |
| For The Period 1 June 2023 to 30 November 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| SENIOR STATUTORY AUDITOR: |
| AUDITORS: |
| Equinox House |
| Clifton Park |
| Shipton Road |
| York |
| YO30 5PA |
| ELECTRIC GLUE LIMITED (REGISTERED NUMBER: 08900707) |
| STRATEGIC REPORT |
| For The Period 1 June 2023 to 30 November 2024 |
| The directors present their strategic report for the period 1 June 2023 to 30 November 2024. |
| Electric Glue is an independent media agency. Our principal activities are strategy, media planning and execution for UK clients across all ATL marketing channels. |
| REVIEW OF BUSINESS |
| Electric Glue's purpose is to help clients scale their businesses by glueing the marketing funnel in a media environment of increasing complexity, through our guiding principle of 'Sacrifice'. Simply put, this means encouraging clients to do fewer, bigger, and better things which have an impact with their customers, in their sector and on their businesses. With Sir John Hegarty, creative founder of global advertising agency Bartle Bogle Hegarty as our chair, our 'why' is a strong belief that ideas can solve any problem and drive business growth. |
| Electric Glue operates predominantly in the UK media marketplace, whilst showed growth overall this was predominantly driven by investment in digital channels (for example Display grew by +15%), the marketplace was dominated by global economic and political uncertainty and considerable caution from marketers. |
| 2023/4 turned out to be an unexpectedly challenging year, due to the difficult economic environment but in particular as one of our key clients Starling Bank were forced to suspend all planned spend following a ruling by the FCA. This meant having to pull back on some of the capabilities we had strengthened the previous fiscal year, with the exception of our data and content creation capabilities, which are demonstrating positive return on investment for clients and where we see strong growth opportunities moving forward. This period however did see us secure new business wins from FMCG brand Purdy & Figg, digital entertainment business Clays and an intense pitch process for insurance brand Royal Sun Alliance, recently taken over by Canadian insurance company Intact. |
| As we celebrated our first decade in June 2024, the founders and management team looked to the future and together developed a 3 year business plan to progress growth in 3 key areas - people growth, product growth and profit growth. As part of this process, the three founders decided to step back from their operational responsibilities but remain in a committed and supportive role to the core management team (now including CSO Richard Helyar who has joined the board) whilst also exploring new partnerships and opportunities to strengthen Electric Glue's product offering. |
| Lastly but importantly, we are one of few agencies in the UK and worldwide to be certified B Corp and remain committed to the highest standard of transparency and accountability that is demanded in the B Corp accreditation process. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The Company's business does not expose it to any risks other than those associated with normal commercial trading. The list of risks is not exclusive, and it does not list the risks in any order of likelihood or materiality. |
| FINANCIAL PERFORMANCE |
| Revenue for the period ended 30 November 2024 was £28.7m (£26.5m in May 2023), generating a Gross Profit of £3.0m (£2.7m in May 2023) and a trading EBITDA (as defined in note 1 below ) of £-0.298m (£0.634m in May 2023). The year ended 31st May 2023 covers 12 months and period ended 30th November covers 18 months and they are therefore not comparable. |
| Note 1: Trading EBITDA is defined as Earnings Before Interest, Tax, Depreciation and Amortisation. This measure reflects the underlying operating profitability. |
| ELECTRIC GLUE LIMITED (REGISTERED NUMBER: 08900707) |
| STRATEGIC REPORT |
| For The Period 1 June 2023 to 30 November 2024 |
| COMPETITION |
| The media landscape is intensely competitive and, in many respects, oversaturated. Electric Glue operates as an independent business with a distinctive proposition, a unique in-sourcing model, and a proven track record built on senior, highly experienced talent. |
| These qualities allow us to clearly differentiate ourselves and thrive within the media agency market. |
| IT AND DATA SECURITY |
| The company has secure and appropriate controls in place to mitigate the risk of systems failure including backup procedures, disaster recovery plans, virus protection and network security controls. |
| RISK |
| Price risk |
| The company operated at an EBITDA to gross profit margin of -9.94% in 2024 so, the company is highly vulnerable to a reduction in client prices of this percentage. The company regularly reviews client pricing structures. |
| Cashflow and liquidity risk |
| In order to maintain liquidity and to ensure that the company has sufficient funds available for ongoing operations and to meet its obligations, the company places surplus funds in a high-interest-bearing account. |
| The company is occasionally exposed to the financial risk of changes in foreign exchange rates and interest rates. The company will use forward foreign currency contracts going forward to minimise the exposure. |
| Credit risk |
| The company's credit risk arises primarily through trade debtors. The amounts presented in the balance sheet are, if required, net of bad debt provisions. A bad debt provision is recognised by the entity when there is objective evidence that a debtor has become impaired - for example where the customer enters into bankruptcy proceedings. Where possible, to reduce risk, the company credit insures its client debt. |
| Interest rate risk. |
| The company has no exposure to any risks associated with movements in interest rates. |
| ON BEHALF OF THE BOARD: |
| ELECTRIC GLUE LIMITED (REGISTERED NUMBER: 08900707) |
| REPORT OF THE DIRECTORS |
| For The Period 1 June 2023 to 30 November 2024 |
| The directors present their report with the financial statements of the company for the period 1 June 2023 to 30 November 2024. |
| PRINCIPAL ACTIVITY |
| The principal activity of the company in the period under review was that of providing media buying strategy and implementation services to clients. |
| DIVIDENDS |
| The total distribution of dividends for the period ended 30 November 2024 will be £ |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 June 2023 to the date of this report. |
| Other changes in directors holding office are as follows: |
| POLITICAL DONATIONS AND EXPENDITURE |
| No political donations were made in the year. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| ELECTRIC GLUE LIMITED (REGISTERED NUMBER: 08900707) |
| REPORT OF THE DIRECTORS |
| For The Period 1 June 2023 to 30 November 2024 |
| AUDITORS |
| The auditors, Fortus Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| ELECTRIC GLUE LIMITED |
| Opinion |
| We have audited the financial statements of Electric Glue Limited (the 'company') for the period ended 30 November 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the company's affairs as at 30 November 2024 and of its loss for the period 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| ELECTRIC GLUE LIMITED |
| 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 Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept, 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 Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| ELECTRIC GLUE LIMITED |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, to detect material misstatements in respect of irregularities, including fraud. |
| We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis of our opinion. This includes consideration of the risk of acts by the entity that we contrary to applicable laws and regulations, including fraud. |
| In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included: |
| - Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; |
| - Reviewing minutes of meetings of those charged with governance; |
| - Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection; |
| - Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
| - Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. |
| Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with laws and regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| ELECTRIC GLUE LIMITED |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| Equinox House |
| Clifton Park |
| Shipton Road |
| York |
| YO30 5PA |
| ELECTRIC GLUE LIMITED (REGISTERED NUMBER: 08900707) |
| INCOME STATEMENT |
| For The Period 1 June 2023 to 30 November 2024 |
| Period |
| 1.6.23 |
| to | Year Ended |
| 30.11.24 | 31.5.23 |
| Notes | £ | £ |
| TURNOVER | 3 |
| Cost of sales |
| GROSS PROFIT |
| Administrative expenses |
| OPERATING (LOSS)/PROFIT | ( |
) |
| Interest receivable and similar income | 6 |
| (265,464 | ) | 649,025 |
| Interest payable and similar expenses | 7 |
| (LOSS)/PROFIT BEFORE TAXATION | 8 | ( |
) |
| Tax on (loss)/profit | 9 |
| (LOSS)/PROFIT FOR THE FINANCIAL PERIOD |
( |
) |
| ELECTRIC GLUE LIMITED (REGISTERED NUMBER: 08900707) |
| OTHER COMPREHENSIVE INCOME |
| For The Period 1 June 2023 to 30 November 2024 |
| Period |
| 1.6.23 |
| to | Year Ended |
| 30.11.24 | 31.5.23 |
| Notes | £ | £ |
| (LOSS)/PROFIT FOR THE PERIOD | ( |
) |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
( |
) |
| ELECTRIC GLUE LIMITED (REGISTERED NUMBER: 08900707) |
| BALANCE SHEET |
| 30 November 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 11 |
| Investments | 12 |
| CURRENT ASSETS |
| Debtors | 13 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 14 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| PROVISIONS FOR LIABILITIES | 15 |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 16 |
| Capital redemption reserve | 17 |
| Retained earnings | 17 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| ELECTRIC GLUE LIMITED (REGISTERED NUMBER: 08900707) |
| STATEMENT OF CHANGES IN EQUITY |
| For The Period 1 June 2023 to 30 November 2024 |
| Called up | Capital |
| share | Retained | redemption | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1 June 2022 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31 May 2023 |
| Changes in equity |
| Issue of share capital | - | - |
| Dividends | - | ( |
) | - | ( |
) |
| Total comprehensive income | - | ( |
) | ( |
) |
| Balance at 30 November 2024 |
| ELECTRIC GLUE LIMITED (REGISTERED NUMBER: 08900707) |
| CASH FLOW STATEMENT |
| For The Period 1 June 2023 to 30 November 2024 |
| Period |
| 1.6.23 |
| to | Year Ended |
| 30.11.24 | 31.5.23 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | ( |
) | ( |
) |
| Interest paid | ( |
) | ( |
) |
| Tax paid | ( |
) | ( |
) |
| Net cash from operating activities | ( |
) | ( |
) |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Purchase of fixed asset investments | (100,000 | ) | - |
| Interest received |
| Net cash from investing activities | ( |
) |
| Cash flows from financing activities |
| Loan repayments in year | ( |
) |
| Amount introduced by directors | 31,184 | 29,552 |
| Amount withdrawn by directors | (64,244 | ) | (6 | ) |
| Share issue |
| Equity dividends paid | ( |
) |
| Net cash from financing activities | ( |
) | ( |
) |
| Decrease in cash and cash equivalents | ( |
) | ( |
) |
| Cash and cash equivalents at beginning of period |
2 |
6,942,603 |
| Cash and cash equivalents at end of period |
2 |
1,454,788 |
2,834,144 |
| ELECTRIC GLUE LIMITED (REGISTERED NUMBER: 08900707) |
| NOTES TO THE CASH FLOW STATEMENT |
| For The Period 1 June 2023 to 30 November 2024 |
| 1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| Period |
| 1.6.23 |
| to | Year Ended |
| 30.11.24 | 31.5.23 |
| £ | £ |
| (Loss)/profit before taxation | ( |
) |
| Depreciation charges |
| Finance costs | 1,220 | 3,105 |
| Finance income | (41,083 | ) | (18,271 | ) |
| (298,218 | ) | 634,366 |
| Decrease/(increase) in trade and other debtors | ( |
) |
| Decrease in trade and other creditors | ( |
) | ( |
) |
| Cash generated from operations | ( |
) | ( |
) |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Period ended 30 November 2024 |
| 30.11.24 | 1.6.23 |
| £ | £ |
| Cash and cash equivalents | 1,454,788 | 2,834,144 |
| Year ended 31 May 2023 |
| 31.5.23 | 1.6.22 |
| £ | £ |
| Cash and cash equivalents | 2,834,144 | 6,942,603 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1.6.23 | Cash flow | At 30.11.24 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 2,834,144 | (1,379,356 | ) | 1,454,788 |
| 2,834,144 | ( |
) | 1,454,788 |
| Total | 2,834,144 | (1,379,356 | ) | 1,454,788 |
| ELECTRIC GLUE LIMITED (REGISTERED NUMBER: 08900707) |
| NOTES TO THE FINANCIAL STATEMENTS |
| For The Period 1 June 2023 to 30 November 2024 |
| 1. | STATUTORY INFORMATION |
| Electric Glue is a private company, limited by shares, registered in England and Wales. The company's registered number is 08900707 and the registered office address is 62 Dean Street, London W1D 4QF. |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| After reviewing the company’s forecasts and projections, the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore adopts the going concern basis in preparing its financial statements. |
| Critical accounting judgements and key sources of estimation uncertainty |
| In order to properly apply the company's accounting policies, the directors are required to make judgements and estimates in respect of carrying values of assets and liabilities which may not be apparent from other sources of information. The directors base these critical accounting judgements and estimations on previous historical experience and other factors which the directors judge to be relevant. There is nothing significant to report. |
| Turnover |
| Fee income represents revenue earned under a wide variety of contracts to provide professional services. Revenue is recognised as earned when, and to the extent that, the firm obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to clients, including expenses and disbursements but excluding value added tax. |
| Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Revenue not billed to clients is included in debtors and payments on account in excess of the relevant amount of revenue are included in creditors. |
| Fee income that is contingent on events outside the control of the firm is recognised when the contingent event occurs. |
| Tangible fixed assets |
| Improvements to property | - |
| Fixtures and fittings | - |
| Computer equipment | - |
| ELECTRIC GLUE LIMITED (REGISTERED NUMBER: 08900707) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| For The Period 1 June 2023 to 30 November 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
| Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement. |
| Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
| Taxation |
| Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Foreign currencies |
| The company's functional and presentational currency is GBP. |
| 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 the Income Statement. |
| Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Income Statement within "operating income" or "administrative expenses". |
| ELECTRIC GLUE LIMITED (REGISTERED NUMBER: 08900707) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| For The Period 1 June 2023 to 30 November 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Hire purchase and leasing commitments |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
| Debtors |
| Short term debtors are measured at transaction price, less any impairment. |
| Cash and cash equivalents |
| Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. |
| Creditors |
| Short term creditors are measured at the transaction price. |
| 3. | TURNOVER |
| The turnover and loss (2023 - profit) before taxation are attributable to the one principal activity of the company. |
| An analysis of turnover by class of business is given below: |
| Period |
| 1.6.23 |
| to | Year Ended |
| 30.11.24 | 31.5.23 |
| £ | £ |
| Turnover relates to media buying in the United Kingdom. |
| 4. | EMPLOYEES AND DIRECTORS |
| Period |
| 1.6.23 |
| to | Year Ended |
| 30.11.24 | 31.5.23 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| ELECTRIC GLUE LIMITED (REGISTERED NUMBER: 08900707) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| For The Period 1 June 2023 to 30 November 2024 |
| 4. | EMPLOYEES AND DIRECTORS - continued |
| The average number of employees during the period was as follows: |
| Period |
| 1.6.23 |
| to | Year Ended |
| 30.11.24 | 31.5.23 |
| Administration |
| 5. | DIRECTORS' EMOLUMENTS |
| Period |
| 1.6.23 |
| to | Year Ended |
| 30.11.24 | 31.5.23 |
| £ | £ |
| Directors' remuneration |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes |
| Information regarding the highest paid director is as follows: |
| Period |
| 1.6.23 |
| to | Year Ended |
| 30.11.24 | 31.5.23 |
| £ | £ |
| Emoluments etc |
| Pension contributions paid by the company in respect of the directors totalled £49,844 (2023 £24,548). |
| The amount of pension contributions paid in respect of the highest paid director was £3,119 (2023:£1,321). |
| The directors are the key management personnel. |
| 6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
| Period |
| 1.6.23 |
| to | Year Ended |
| 30.11.24 | 31.5.23 |
| £ | £ |
| Deposit account interest |
| Other interest |
| ELECTRIC GLUE LIMITED (REGISTERED NUMBER: 08900707) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| For The Period 1 June 2023 to 30 November 2024 |
| 7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| Period |
| 1.6.23 |
| to | Year Ended |
| 30.11.24 | 31.5.23 |
| £ | £ |
| Bank loan interest |
| Other interest |
| 8. | (LOSS)/PROFIT BEFORE TAXATION |
| The loss (2023 - profit) is stated after charging: |
| Period |
| 1.6.23 |
| to | Year Ended |
| 30.11.24 | 31.5.23 |
| £ | £ |
| Hire of plant and machinery |
| Other operating leases |
| Depreciation - owned assets |
| Auditors' remuneration |
| Foreign exchange differences |
| 9. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the loss for the period was as follows: |
| Period |
| 1.6.23 |
| to | Year Ended |
| 30.11.24 | 31.5.23 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Deferred tax |
| Tax on (loss)/profit |
| UK corporation tax has been charged at 25% . |
| ELECTRIC GLUE LIMITED (REGISTERED NUMBER: 08900707) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| For The Period 1 June 2023 to 30 November 2024 |
| 9. | TAXATION - continued |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| Period |
| 1.6.23 |
| to | Year Ended |
| 30.11.24 | 31.5.23 |
| £ | £ |
| (Loss)/profit before tax | ( |
) |
| (Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
| Effects of: |
| Expenses not deductible for tax purposes |
| Capital allowances in excess of depreciation | ( |
) | ( |
) |
| Utilisation of tax losses |
| Adjustment for change in tax rate | - | (34,189 | ) |
| Deferred tax | 239 | 551 |
| Total tax charge | 239 | 137,404 |
| 10. | DIVIDENDS |
| Period |
| 1.6.23 |
| to | Year Ended |
| 30.11.24 | 31.5.23 |
| £ | £ |
| Ordinary B £0.10 shares of 10p each |
| Interim |
| Ordinary C £0.10 shares of 10p each |
| Interim | 213,323 | - |
| ELECTRIC GLUE LIMITED (REGISTERED NUMBER: 08900707) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| For The Period 1 June 2023 to 30 November 2024 |
| 11. | TANGIBLE FIXED ASSETS |
| Improvements | Fixtures |
| to | and | Computer |
| property | fittings | equipment | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 June 2023 |
| Additions |
| Disposals | ( |
) | ( |
) |
| At 30 November 2024 |
| DEPRECIATION |
| At 1 June 2023 |
| Charge for period | ( |
) |
| Eliminated on disposal | ( |
) | ( |
) |
| At 30 November 2024 |
| NET BOOK VALUE |
| At 30 November 2024 |
| At 31 May 2023 |
| 12. | FIXED ASSET INVESTMENTS |
| Unlisted |
| investment |
| £ |
| COST |
| Additions |
| At 30 November 2024 |
| NET BOOK VALUE |
| At 30 November 2024 |
| 13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade debtors |
| Other debtors |
| Directors' current accounts | 52,932 | 19,872 |
| VAT |
| Prepayments and accrued income |
| ELECTRIC GLUE LIMITED (REGISTERED NUMBER: 08900707) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| For The Period 1 June 2023 to 30 November 2024 |
| 14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade creditors |
| Tax |
| Social security and other taxes |
| VAT | - | 556,684 |
| Other creditors |
| Accruals and deferred income |
| Accrued expenses |
| 15. | PROVISIONS FOR LIABILITIES |
| 2024 | 2023 |
| £ | £ |
| Deferred tax |
| Accelerated capital allowances |
| Deferred |
| tax |
| £ |
| Balance at 1 June 2023 |
| Charge to Income Statement during period |
| Balance at 30 November 2024 |
| 16. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary B £0.10 | 10p | 15,913 | 15,913 |
| 554,971 | Ordinary C £0.10 | 10p | 55,497 | 31,825 |
| 71,410 | 47,738 |
| The following shares were issued during the period for cash at par : |
| 236,721 Ordinary C £0.10 shares of 10p |
| Ordinary B and C shares have full and equal rights to participate in voting, dividends and capital distribution, whether on winding up or otherwise. The shares are not redeemable. |
| ELECTRIC GLUE LIMITED (REGISTERED NUMBER: 08900707) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| For The Period 1 June 2023 to 30 November 2024 |
| 17. | RESERVES |
| Capital |
| Retained | redemption |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 June 2023 | 921,242 |
| Deficit for the period | ( |
) | ( |
) |
| Dividends | ( |
) | ( |
) |
| At 30 November 2024 | 379,831 |
| Called-up share capital represents the nominal value of ordinary shares that have been issued. |
| Retained earnings include all current and prior period retained profits and losses. |
| The capital redemption reserve represents the nominal value of ordinary shares issued and then repurchased by the company. |
| 18. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to directors subsisted during the period ended 30 November 2024 and the year ended 31 May 2023: |
| 2024 | 2023 |
| £ | £ |
| Balance outstanding at start of period |
| Amounts advanced |
| Amounts repaid | ( |
) | ( |
) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of period |
| Balance outstanding at start of period |
| Amounts advanced |
| Amounts repaid | ( |
) | ( |
) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of period |
| Balance outstanding at start of period |
| Amounts repaid | ( |
) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of period |
| No interest was paid on these loans. |
| ELECTRIC GLUE LIMITED (REGISTERED NUMBER: 08900707) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| For The Period 1 June 2023 to 30 November 2024 |
| 19. | RELATED PARTY DISCLOSURES |
| There are no further related party transactions that require disclosure. |
| 20. | SHARE-BASED PAYMENT TRANSACTIONS |
| Options over 236,721 shares were exercised in the year. At the year end there were no outstanding options (May 2023: 236,721). |
| 21. | PENSION COMMITMENTS |
| Contributions totalling £3,038 (May 2023: £300) were payable to the pension scheme at the period end. |
| 22. | OPERATING LEASE COMMITMENTS |
| At 30 November 2024 the company had rental commitments of £26,250 (May 2023: £25,000) due within one year. |