The results for the year are shown in the annexed financial statements.
The company was incorporated in April 2017 as the vehicle for the acquisition of The Kite Factory Group Limited (formerly Mike Colling and Company Limited) and its subsidiaries, which completed on 8 July 2017. The acquisition was backed by a PE fund, Key Capital Partners, and the management team increased their
shareholdings. The transaction was mainly financed by equity investor loan notes from Key Capital Partners and management shareholders, which have distinct differences from bank debt in terms of repayment profile and roll up of some interest. The group has no external financial debt other than the debt shown is all loan notes held by the shareholders.
2024 was another good year for the group, winning 14 new accounts, we won 6 awards and were shortlisted 10 times, retained IPA CPD Platinum and increased both income and EBITDA.
We continued our investment in measurement technology to enhance our FlightDeck platform, we expanded our Ascend consultancy offering and continue to evaluate and implement smart AI solutions into our offering.
The group measures gross profit and EBITDA before non-recurring expenditure as its key performance indicators. Gross profit was £9.767m (2023: £9.224m) and EBITDA before non- recurring expenditure was £1.384m (2023: £0.647m).
The first half of 2025 has been challenging but pleasing for the group. It is broadly acknowledged there has been uncertainty in the advertising market which makes attaining and retaining business difficult. TKF, however, has had its best Q1 on record from an income perspective and has kept a strong new business pipeline.
In H1, we have onboarded nine new clients, with another nine live pitch opportunities at the time of writing. Most pleasingly, these were all clients that came to us via inbound opportunities; this is an indication that the investment we have made in our new business and marketing efforts over the last two years is bearing fruit. The outlook for the year ahead remains cautiously optimistic
In common with others in the advertising and media sector, the principal risk to the group is dynamic and changing markets. Other risks identified are: attracting and retaining key employees, competition in the industry, cost inflation and legislative changes.
The group has no significant concentration of credit risk, with our exposure spread over a number of clients, no external debt and the FX risk is low. Our greatest financial risk would be from external market conditions and changes in legislation.
Key financial performance indicators include the monitoring and management of profitability, staff costs and working capital
Financial Data | 2024 | 2023 | Measure |
Staff Numbers | 99 | 98 |
|
Current Ratio | 1:00 | 0.99 | Current assets: current liabilities |
Operating Profit Margin | (2.21%) | (6.16%) | Operating profit Gross Profit |
Staff Cost Ratio | 65.97% | 69.08% | Employment costs/ Gross Profit |
In accordance with Section 172 of the UK Companies Act 2006, the Directors of TKF, like all UK companies, are required to act in a way that promotes the success of the company while considering the interests of its stakeholders.
During the year, TKF undertook a reorganisation of its senior reporting structure to enhance the flow of information between management and employees. This restructuring has facilitated more effective communication, enabling improved feedback mechanisms between employees and shareholders. As a result, TKF has strengthened its ability to communicate key decisions across the business and assess their broader impact.
In recognition of our commitment to environmental and social responsibility, TKF was awarded a bronze certification by EcoVadis, an independent organisation that evaluates companies against key Environmental, Social, and Governance (ESG) performance indicators.
To support fair and balanced decision-making, TKF continues to maintain the appointment of a Non-Executive Chairman at Board level, ensuring independent oversight and governance.
All newly appointed Directors receive a comprehensive induction, including a detailed briefing on their statutory duties. The Board remains committed to upholding the highest standards of corporate governance, operating the business responsibly and in alignment with its core values.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2024.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The results for the year are set out on page 9.
No ordinary dividends were paid.
No preference dividends were paid.
We effectively identify, evaluate, manage and mitigate the risks we face.
The management team has identified some potential risks to the group normally associated with media agencies in fast-paced changing markets. Some, such as innovation, service levels and staffing, are specific risks that require specific, identified actions to mitigate their effects. Others, such as the impact of competition, are areas addressed through strategic planning and operational management processes. Financial risk e.g. credit risk is managed via insurance. Cash Management processes are thorough and treasury deposits make the best use of free cash.
The group are committed to putting our people first. Our Behaviours People are the heart of our business. We aim to be a responsible employer in our approach to pay and benefits. The health, safety and well-being of our employees is one of our primary considerations in the way we do business.
We conduct regular pulse surveys so our employees are able to engage with us and feedback. Our policy is to consult and discuss matters likely to affect employees interests in individual meetings, small workshops or via our regular whole company gatherings.
We develop and maintain strong client relationships. We value our suppliers and commit to all contract terms responsibly. We manage our relationships well to ensure we can deliver on our strategy.
Applications for employment by disabled persons are treated fairly by the group. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Our plans take into account the impact of the company's operations on the community and environment and our wider social responsibilities. The group approach is to consider both our ethical environmental responsibility when conducting business.
In accordance with the company's articles, a resolution proposing that Moore Kingston Smith LLP be reappointed as auditor of the group will be decided in a future board meeting.
We have audited the financial statements of WHCO3 Ltd (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 Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group Statement of Cash Flows and notes to the financial statements, including 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).
Basis for 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 and 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
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 for our opinion. 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.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Explanation as to what extent the audit was considered capable of detecting irregularities, including
fraud
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.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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 for no purpose other than to draw to the attention of the company’s members those matters we are required to include in an auditor's report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party 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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £978,166 (2023 - £968,126 loss).
WHCO3 Limited (“the company”) is a private limited company incorporated in England and Wales. The registered office is 55 New Oxford Street, London, WC1A 1BS.
The group consists of WHCO3 Limited and all of its subsidiaries as listed in Note 14.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.
The financial statements have been prepared under the historical cost convention modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The consolidated financial statements incorporate those of WHCO3 Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).
All financial statements are made up to 31 December 2024.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
The group has net liabilities of £5,359,656 at the balance sheet date and the group has net current assets of £279,413. The company has net liabilities of £781,211 and net current liabilities of £7,838,949. The group's business activities together with the factors likely to affect its future development, performance and position are set out in the strategic report on Page 1.
Forecast EBITDA, is anticipated to be better than 2024’s actual results as presented in these financial statements. Trading in H1 of 2025 has been strong to date.
The shareholders have provided written assurances that they will continue to support the group going forward for at least twelve months from the date of approval of the financial statements and have confirmed that they will not seek repayment of amounts owed to them of £9,344,984 within that period unless the group’s cash flow and operating results permit this.
The directors of the subsidiaries have provided written assurances that they will not seek repayment of amounts owed to them of £7,744,462 within that period unless the group’s cash flow and operating results permit this.
The Group has assessed the risks and the potential impact on the business as a result of general economic pressures such as increasing costs. Measures have been taken to mitigate such risks and their impact. The directors have prepared cash flow forecasts that demonstrate the Group has sufficient cash flow reserves to continue trading for 12 months from the date of signing of the accounts. As a result the directors are confident that they have the ability to respond effectively to continued uncertainty and meet its liabilities as they fall due. Accordingly, the financial statements have been drawn up on a going concern basis.
Turnover represents the value of gross billings, net of VAT, discounts and fair value to the right to consideration in exchange for the performance of its contractual obligations of work carried out in respect of services provided to customers.
Commissions are recognised as income when the related media is aired. Fees are recognised as income when they are earned in accordance with the contractual agreement with the client. Where revenue has been earned before the end of an accounting period but has not been billed, revenue is accrued into the financial statements.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the Company financial statements, investments in associates are accounted for at cost less impairment.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents tax currently payable.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
The fair value of equity-settled share based payments to employees is determined at the date of the grant and is expensed on a straight-line basis over the vesting period based on the group estimate of shares or options that will eventually vest.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Revenue from contracts is assessed on an individual basis with revenue earned being ascertained based on the stage of completion of the contract which is estimated using a combination of the milestones in the contract and the time spent to date compared to the total time expected to be required to undertake the contract. Estimates of the total time required to undertake the contracts are made on a regular basis and subject to management review. These estimates may differ from the actual results due to a variety of factors such as efficiency of working, accuracy of assessment of progress to date and client decision making.
Accruals are estimated based on historical knowledge, contractual terms and managements assessment of the timing and value of goods and services received but not yet invoiced. These estimates involve assumptions about:
The completeness of the item received prior to the reporting date
The expected cost of the item
The timing of invoicing and settlement
There is a risk the actual cost may differ from those estimated. There is also the risk trade creditors may invoice us after our year end cut-off.
Accruals are used to estimate the values of unprocessed media and non-media liabilities based on our knowledge of outstanding liabilities at the reporting date.
There is a risk actual costs may differ from those estimated, particularly when media campaigns are changed with short notice or are dependent on a third party delivering an expected level of performance. There is also the risk we may be invoiced for something we were unaware of because an order was not placed on our system at the right time.
We adjust our estimates and apply best practice, which is reviewed regularly, we have concluded this year that amounts received post year end, not accrued, were not material to the financial statements.
The company operates a media writeback policy. The policy involves an aging analysis of media accruals based on historic aging data; management may exercise judgement in specific cases if information becomes available in relation to specific balances. An adjustment to expected costs accrued in prior periods is made where items are no longer expected to be payable.
Media writebacks for the year ended 31 December 2024 were immaterial to the financial statements.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 2).
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
During the year, the Group disposed of its investment in Click Chilli Limited, a dormant subsidiary, for nil consideration. The disposal had no material impact on the Group’s financial position or performance.
Details of the company's subsidiaries at 31 December 2024 are as follows:
As permitted by section 479A of the Companies Act 2006, The Kite Factory Group Limited is exempt from the requirements of the Companies Act 2006 relating to the audit of individual accounts. In order to meet this exemption, the Company provides guarantee under section 479C of the Companies Act 2006.
Investor Loan Notes are ranked for payment as follows:
Due > 1 year
B Loan Note 10% Investor Capital £5,029,837 Premium £502,984 Interest £1,235,626
B Loan Note 10% Manager Capital £1,625,670 Interest £470,046
C Loan Note 10% Capital £ 389,080 Interest £198,391
All Investor Loan Notes are scheduled to be paid, via instalments, by 30th June 2026.
In the event of default, the Noteholder Majority (Key Capital Partners LLP) may exercise or refrain from exercising their rights under the agreement as they shall in their absolute discretion see fit and without liability to any other Noteholders.
The dilapidation provision is the estimated amount needed to spend to return the leased property to its required state once the lease has finished in February 2027. This has been calculated using an estimate per square foot from market research.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
At the year end, no amounts in relation to retirement benefit schemes were unpaid.
The options outstanding at 31 December 2024 had an exercise price of £0.01 and a remaining contractual life of 1 year.
The total intrinsic value at 31 December 2024 amounted to £nil (2023 - £nil) for the group and £0.01 (2023 - £0.01) for the company.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
As permitted by FRS 102 Section 33 "Related Party Disclosures", the financial statements do not disclose transactions with the wholly owned subsidiaries on the basis that group financial statements are prepared.
During the year, the company paid interest of £628,047 (2023: £626,761) to Key Capital Partners (Nominees) Limited, a shareholder of WHCO3 Limited, in respect of loan notes held. The loan notes bear interest at 10% per annum. In addition, four directors of the company also hold loan notes. During the year, the company paid interest of £268,789 (2023: £268,238) in aggregate to these directors in respect of their loan note holdings. No new loan notes were issued during the current or prior year.
The company also incurred monitoring fees of £65,830 (2023: £65,823) payable to Key Capital Partners (Nominees) Limited, a shareholder of the company, in connection with services provided under the terms of the shareholders’ agreement.
During the year ended 2024, the Group identified an error in the application of a journal in the financial statements for the year ended 2023. The error related to the misapplication of a balance sheet item to turnover, therefore overstating the turnover figure for 2023.
As a result, the comparative figures for the year ended 2023 have been restated to reflect the correct application of the journal item.
During the year ended 2024, the Company identified an error relating to the recognition of a redemption premium on a set of loan notes issued in 2017.
As a result, the comparative figures for the year ended 2023 have been restated to reflect the recognition of a liability and corresponding charge to retained earnings in respect of the periods prior to 1 January 2023. There is no impact on the prior period profit and loss account.