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Registered number: 12357553









NET NATIVES LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
NET NATIVES LIMITED
 
 
COMPANY INFORMATION


Director
S Evans 




Registered number
12357553



Registered office
21 Dyke Road

Brighton

East Sussex

BN1 3FE




Independent auditors
Barnes Roffe Audit Limited
Chartered Accountants & Statutory Auditors

Charles Lake House

Claire Causeway

Crossways Business Park

Dartford

Kent

DA2 6QA





 
NET NATIVES LIMITED
 

CONTENTS



Page
Strategic report
 
1
Director's report
 
2 - 3
Independent auditors' report
 
4 - 7
Statement of comprehensive income
 
8
Balance sheet
 
9
Statement of changes in equity
 
10
Notes to the financial statements
 
11 - 24


 
NET NATIVES LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
Net Natives Limited, with our unparalleled insights into audiences, provides the UK higher education sector with performance-driven advertising and marketing solutions.

Business review
 
The very challenging headwinds of a market where price is now the key purchasing criteria. In a crowded UK market, Net Natives has focussed on quality not volume / ideal customer profile.
In 2024, through efficiency management and effective pricing strategies, we halved our losses from 2023 alongside continuing to focus on US growth.

Outlook
The US Higher Education Market continues to be a growth market, buoyed by an increasingly challenging student recruitment market. The Unicursals Group’s data and technology products have proved themselves to be the right solution for this market. Built and delivered by the UK operation.

Principal risks and uncertainties
 
The directors monitor and review the key risks of the business.
Credit risk
The exposure to bad debt and credit risk is proactively managed, including the monitoring of debts on a regular basis. The directors oversee the granting of all significant credit terms. The education sector itself also mitigates risk with a minimal exposure to financial collapse. 
Pestle Factors
The global nature of our audience and our client base allows us significant protection from any further impacts. Education has proven to be resilient to the challenges of the pandemic and will continue to grow and develop.

Financial key performance indicators
 
Our key performance indicators are focused on new clients, client retention and growth, monthly recurring revenues, gross profit and retained profit. These metrics best communicate the financial performance of the company and are reviewed weekly.

Other key performance indicators
 
In addition to the above financial key performance indicators, the directors also consider client retention as a key performance indicator.


This report was approved by the board on 16 September 2025 and signed on its behalf.



S Evans
Director

Page 1

 
NET NATIVES LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The director presents his report and the financial statements for the year ended 31 December 2024.

Director's responsibilities statement

The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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;

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

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Results and dividends

The loss for the year, after taxation, amounted to £750,920 (2023 - loss £1,531,039).

Based on the performance of the company during the year, dividends totalling £Nil (2023: £Nil) were
paid to shareholders.

Director

The director who served during the year was:

S Evans 

Future developments

There are no material future developments that the readers of the financial statements should be made aware of.

Page 2

 
NET NATIVES LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:
 
so far as  is aware, there is no relevant audit information of which the company's auditors are unaware, and

 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.

Auditors

After the year end Barnes Roffe LLP resigned as auditors due to the transfer of its audit business and its successor Barnes Roffe Audit Limited was appointed by the directors under s485 Companies Act 2006. 

This report was approved by the board on 16 September 2025 and signed on its behalf.
 





S Evans
Director

Page 3

 
NET NATIVES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NET NATIVES LIMITED
 

Opinion


We have audited the financial statements of Net Natives Limited (the 'company') for the year ended 31 December 2024, which comprise the Statement of comprehensive income, the Balance sheet, 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 loss 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 director's 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 director with respect to going concern are described in the relevant sections of this report.


Page 4

 
NET NATIVES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NET NATIVES LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


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 Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Director's 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 Director's 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 director's 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 Director's responsibilities statement set out on page 2, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.


Page 5

 
NET NATIVES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NET NATIVES LIMITED (CONTINUED)


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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including
fraud and non-compliance with law and regulations, was as follows:
• The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
• We identified the laws and regulations applicable to the company through discussion with directors and other management, and from our commercial knowledge and experience of the relevant sector;
• The specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, are as follows;
 o Companies Act 2006.
 o FRS102.
 o GDPR
 o Employment legislation
 o Tax legislation 
• We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing board minutes and inspecting legal correspondence; 
• Laws and regulations were communicated within the audit team at the planning meeting, and during the audit as any further laws and regulation were identified. The audit 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 enquires of management as to where they consider there was susceptibility to fraud and 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;
• Reviewing the financial statements and testing the disclosures against supporting documentation;
• Performing analytical procedures to identify any unusual or unexpected trends or anomalies;
• Inspecting and testing journal entries to identify unusual or unexpected transactions;
• Assessing whether judgement and assumptions made in determining significant accounting estimates, including certain year end accruals and provision, were indicative of management bias; and
• Investigating the rationale behind significant transactions, or transactions that are unusual or outside the company’s usual course of business.
 
Page 6

 
NET NATIVES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NET NATIVES LIMITED (CONTINUED)


The areas that we identified as being susceptible to misstatement through fraud were:
• Management bias in the estimates and judgements made;
• Management override of controls; and 
• Posting of unusual journals or transactions.
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 a law or 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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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.


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.





Mario Cientanni (Senior statutory auditor)
for and on behalf of
Barnes Roffe Audit Limited
Chartered Accountants
Statutory Auditors
Charles Lake House
Claire Causeway
Crossways Business Park
Dartford
Kent
DA2 6QA

 
Date: 
26 September 2025
Page 7

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

2024
2023
Note
£
£

  

Turnover
 4 
9,908,134
13,690,499

Cost of sales
  
(6,549,961)
(8,405,054)

Gross profit
  
3,358,173
5,285,445

Administrative expenses
  
(4,097,520)
(5,036,535)

Exceptional administrative expenses
  
-
(1,800,000)

Operating loss
 5 
(739,347)
(1,551,090)

Tax on loss
 9 
(11,573)
20,051

Loss for the financial year
  
(750,920)
(1,531,039)

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

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

The notes on pages 11 to 24 form part of these financial statements.

Page 8

 
NET NATIVES LIMITED
REGISTERED NUMBER: 12357553

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 11 
806,518
940,937

Tangible assets
 12 
159,968
218,911

Investments
 13 
-
700

  
966,486
1,160,548

Current assets
  

Debtors: amounts falling due within one year
 14 
1,566,445
1,873,371

Cash at bank and in hand
 15 
322,067
726,522

  
1,888,512
2,599,893

Creditors: amounts falling due within one year
 16 
(4,424,292)
(3,155,423)

Net current liabilities
  
 
 
(2,535,780)
 
 
(555,530)

Total assets less current liabilities
  
(1,569,294)
605,018

Provisions for liabilities
  

Deferred tax
 17 
(33,922)
(22,349)

Other provisions
 18 
(455,833)
(1,890,798)

  
 
 
(489,755)
 
 
(1,913,147)

Net liabilities
  
(2,059,049)
(1,308,129)


Capital and reserves
  

Called up share capital 
 19 
1
1

Profit and loss account
  
(2,059,050)
(1,308,130)

  
(2,059,049)
(1,308,129)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




S Evans
Director

Date: 16 September 2025

The notes on pages 11 to 24 form part of these financial statements.

Page 9

 
NET NATIVES LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2024
1
(1,308,130)
(1,308,129)



Loss for the year
-
(750,920)
(750,920)


At 31 December 2024
1
(2,059,050)
(2,059,049)



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2023
1
222,909
222,910



Loss for the year
-
(1,531,039)
(1,531,039)


At 31 December 2023
1
(1,308,130)
(1,308,129)


The notes on pages 11 to 24 form part of these financial statements.

Page 10

 
NET NATIVES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Net Natives Limited is a private company limited by shares and incorporated in England and Wales. The address of the registered office is 21 Dyke Road, Brighton, BN1 3FE. The company provides a range of advertising and marketing services to universities, schools, local authorities and children's services in the UK. 

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 following principal accounting policies have been applied:

 
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);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of  Unicursal Group Limited as at 31 December 2024 and these financial statements may be obtained from 21 Dyke Road, Brighton, East Sussex, England, BN1 3FE..

 
2.3

Going concern

Trading and cashflow forecasts together with arrangements made demonstrate the company can continue to trade for the foreseeable future, in particular as all provisioning at the balance sheet date has covered subsequent liabilities crystalised.
The ultimate parent company will continue to support the company and ensure it is able to meet its  liabilities as they fall due for a period of not less than 12 months from the date of approval of these financial statements. The director therefore considers it appropriate to prepare the financial statements on going concern basis. 

Page 11

 
NET NATIVES 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 GBP.

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 and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 12

 
NET NATIVES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
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.

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

 
2.7

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The company operates 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 profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Page 13

 
NET NATIVES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
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 balance sheet 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 balance sheet 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.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.11

Intangible assets

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of comprehensive income over its useful economic life. 
Other 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.

 
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 14

 
NET NATIVES 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, using the following bases.


Short term leasehold property
-
13%
Straight Line
Fixtures and fittings
-
25%
Straight Line
Office equipment
-
25%
Straight Line

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

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

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

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. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.16

Creditors

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

Page 15

 
NET NATIVES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss.
 


 
2.18

Financial instruments

The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

a) Critical judgments in applying the company's accounting policies
Critical judgments have been made in reviewing the need for provisions within the financial statements. Provisions are only recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. This requires the judgment of management on a case by case basis.
b) Key accounting estimates and assumptions
Depreciation
The company has made key assumptions regarding the useful economic life to tangible fixed assets and this is further described in note 2.12 of the accounting policies.
Amortisation
The company has made key assumptions regarding the useful economic life of intangible assets and this is further described in note 2.11 of the accounting policies.
Revenue Recognition and Deferred Income
A significant portion of the company's trading activities are undertaken through long term campaigns/ projects. The company is therefore required to make estimates in accounting for revenue. These estimates are made based on the duration of the contract length and the expected revenue from the contract. Further detail is provided in note 2.5 of the accounting policies. The company is carrying deferred income in creditors due within one year at 31 December 2024 of £2,370,214 (2023: £2,307,853). 
Legal Provision
The company has made a legal provision relating to a legal claim filed in September 2023, by a previous customer. The provision at 31 December 2024 stands at £400,000 (2023: £1,800,000).

Page 16

 
NET NATIVES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

4.


Turnover

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


2024
2023
£
£

Advertising, marketing and digital services
9,908,134
13,690,499

9,908,134
13,690,499


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
9,908,134
13,688,922

Rest of Europe
-
1,577

9,908,134
13,690,499



5.


Operating loss

The operating loss is stated after charging:

2024
2023
£
£

Exchange differences
12,090
24,186

Other operating lease rentals
336,555
385,696


6.


Auditors' remuneration

2024
2023
£
£

Fees payable to the company's auditors for the audit of the company's financial statements
30,745
27,975
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 17

 
NET NATIVES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

7.


Employees

Staff costs, including director's remuneration, were as follows:


2024
2023
£
£

Wages and salaries
3,536,406
4,154,657

Social security costs
390,011
464,025

Cost of defined contribution scheme
97,455
197,273

4,023,872
4,815,955


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


        2024
        2023
            No.
            No.







Sales and admin staff
73
99


8.


Director's remuneration

2024
2023
£
£

Director's emoluments
187,500
50,000

Company contributions to defined contribution pension schemes
-
40,000

187,500
90,000


During the year retirement benefits were accruing to no directors (2023 - 1) in respect of defined contribution pension schemes.

Page 18

 
NET NATIVES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

9.


Taxation


2024
2023
£
£



Total current tax
-
-

Deferred tax


Origination and reversal of timing differences
11,573
(20,051)

Total deferred tax
11,573
(20,051)


11,573
(20,051)

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19% / 25%). The differences are explained below:

2024
2023
£
£


Loss on ordinary activities before tax
(739,347)
(1,551,090)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
(184,837)
(364,506)

Effects of:


Non-tax deductible amortisation of goodwill and impairment
33,605
51,213

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
20,231
8,376

Capital allowances for year in excess of depreciation
(6,082)
(3,787)

Deferred tax (credit)/charge
11,573
(20,051)

Tax losses (relieved)/ carried forward
137,083
308,704

Total tax charge for the year
11,573
(20,051)


Factors that may affect future tax charges

The company has losses of £2,746,250 (2023: £2,178,434) carried forward to be offset against future taxable profits. 

Page 19

 
NET NATIVES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

10.


Exceptional items

2024
2023
£
£


Legal provision
-
1,800,000

-
1,800,000

The company faced litigation from September 2023 and a legal provision was made in 2023 relating to a court case claim filed in September 2023, by a previous customer over disputed fees. The claim was vigorously disputed, but a commercial decision was made to agree to a full and final settlement of the claim with no admission of liability. This full and final settlement was agreed for a balance of £1,772,000 and the principal element was paid in December 2024.


11.


Intangible assets




Development expenditure
Goodwill
Total

£
£
£



Cost


At 1 January 2024
1,344,194
304,317
1,648,511



At 31 December 2024

1,344,194
304,317
1,648,511



Amortisation


At 1 January 2024
403,257
304,317
707,574


Charge for the year on owned assets
134,419
-
134,419



At 31 December 2024

537,676
304,317
841,993



Net book value



At 31 December 2024
806,518
-
806,518



At 31 December 2023
940,937
-
940,937



Page 20

 
NET NATIVES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

12.


Tangible fixed assets





Short-term leasehold property
Fixtures and fittings
Office equipment
Total

£
£
£
£



Cost or valuation


At 1 January 2024
470,361
189,445
448,093
1,107,899


Additions
18,211
-
788
18,999


Disposals
-
-
(18,638)
(18,638)



At 31 December 2024

488,572
189,445
430,243
1,108,260



Depreciation


At 1 January 2024
352,976
188,989
347,023
888,988


Charge for the year on owned assets
28,551
354
44,481
73,386


Disposals
-
-
(14,082)
(14,082)



At 31 December 2024

381,527
189,343
377,422
948,292



Net book value



At 31 December 2024
107,045
102
52,821
159,968



At 31 December 2023
117,385
456
101,070
218,911


13.


Fixed asset investments





Investments in subsidiary companies

£





At 1 January 2024
700


Disposals
(700)



At 31 December 2024
-




Page 21

 
NET NATIVES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

14.


Debtors

2024
2023
£
£


Trade debtors
714,007
524,017

Amounts owed by group undertakings
19,770
407,769

Other debtors
782,606
809,205

Prepayments and accrued income
50,062
132,380

1,566,445
1,873,371



15.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
322,067
726,522

Less: bank overdrafts
(49,175)
-

272,892
726,522



16.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
49,175
-

Trade creditors
342,548
466,011

Amounts owed to group undertakings
1,398,403
-

Other taxation and social security
70,491
108,440

Other creditors
10,858
21,656

Accruals and deferred income
2,552,817
2,559,316

4,424,292
3,155,423


Page 22

 
NET NATIVES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

17.


Deferred taxation




2024
2023


£

£






At beginning of year
(22,349)
(42,400)


Charged to profit or loss
(11,573)
20,051



At end of year
(33,922)
(22,349)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(33,922)
(22,349)

(33,922)
(22,349)


18.


Provisions




Dilapidation provision
Legal provision
Total

£
£
£





At 1 January 2024
90,798
1,800,000
1,890,798


Charged to profit or loss
(34,965)
-
(34,965)


Utilised in year
-
(1,400,000)
(1,400,000)



At 31 December 2024
55,833
400,000
455,833


19.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1 (2023 - 1) Ordinary A share of £1.00
1
1


Page 23

 
NET NATIVES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

20.


Pension commitments

The company operates a defined contribution 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 £97,455 (2023: £197,273). Included in other creditors due within in one year at the year end is £10,807 (2023: £19,232) payable to the fund.


21.


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
118,893
208,595

Later than 1 year and not later than 5 years
13,771
231,941

132,664
440,536


22.


Controlling party

The ultimate parent company is Unicursal Group Limited (previously known as Akero Group Limited). 

 
Page 24