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Registered number: 04479392
K2 Agency Limited
Financial Statements
For The Year Ended 30 September 2024
Halkin Lerman Davis Limited
Beaumont Chancery
44 Southampton Buildings
Holborn
London
WC2A 1AP
Contents
Page
Balance Sheet 1
Statement of Changes in Equity 2
Notes to the Financial Statements 3—7
Page 1
Balance Sheet
Registered number: 04479392
2024 2023
Notes £ £ £ £
FIXED ASSETS
Intangible Assets 4 6,960 -
Tangible Assets 5 55,497 78,689
62,457 78,689
CURRENT ASSETS
Debtors 6 145,413 149,784
Cash at bank and in hand 2,180,118 4,620,400
2,325,531 4,770,184
Creditors: Amounts Falling Due Within One Year 7 (1,602,254 ) (2,781,226 )
NET CURRENT ASSETS (LIABILITIES) 723,277 1,988,958
TOTAL ASSETS LESS CURRENT LIABILITIES 785,734 2,067,647
Creditors: Amounts Falling Due After More Than One Year 8 (5,083 ) (20,333 )
NET ASSETS 780,651 2,047,314
CAPITAL AND RESERVES
Called up share capital 10 111 111
Share premium account 810 810
Profit and Loss Account 779,730 2,046,393
SHAREHOLDERS' FUNDS 780,651 2,047,314
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The company has taken advantage of section 444(1) of the Companies Act 2006 and opted not to deliver to the registrar a copy of the company's Profit and Loss Account.
On behalf of the board
J W Jackson
Director
11/04/2025
The notes on pages 3 to 7 form part of these financial statements.
Page 1
Page 2
Statement of Changes in Equity
Share Capital Share Premium Profit and Loss Account Total
£ £ £ £
As at 1 October 2022 111 810 1,452,118 1,453,039
Profit for the year and total comprehensive income - - 1,594,275 1,594,275
Dividends paid - - (1,000,000) (1,000,000)
As at 30 September 2023 and 1 October 2023 111 810 2,046,393 2,047,314
Loss for the year and total comprehensive income - - (466,663 ) (466,663)
Dividends paid - - (800,000) (800,000)
As at 30 September 2024 111 810 779,730 780,651
Page 2
Page 3
Notes to the Financial Statements
1. General Information
K2 Agency Limited is a private company, limited by shares, incorporated in England & Wales, registered number 04479392 . The registered office is Parkside House, 41 Walsingham Rd, Enfield, EN2 6EY.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
2.2. Going Concern Disclosure
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate cash reserves and support from the shareholders to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
2.3. Turnover
Turnover is recognised at the fair value of agency commissions receivable in respect of live music performances and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discount, settlement discounts and volume rebates.
Other income comprises interest received in relation to the early or timely payment of Corporation Tax. This is recognised in accordance with Section 23 of FRS 102A, where interest income is accounted for on an accruals basis and measured at the fair value of the consideration received or receivable. Since the income received does not relate to the company's conventional trading activities as set out in the principal activities within the Directors' Report, it has been deemed appropriate to show this separately from turnover and within other income in the company's statutory profit and loss.
2.4. Intangible Fixed Assets and Amortisation - Other Intangible
Other intangible assets are represented by a website currently under development. As the asset is not yet available for use, no amortisation has been charged during the period.
2.5. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Leasehold 3 years straignt line on cost
Plant & Machinery 27.50% on cost
Motor Vehicles 25% on cost
Fixtures & Fittings 17.50% on cost
Computer Equipment 33% on cost
2.6. Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.
2.7. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
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2.8. Financial Instruments
The company only enters into financial instruments transactions that result in the recognition of basic debt financial assets and liabilities like trade and other accounts receivable and payable, cash and bank balances, bank loans and loans to or from related parties. Debt instruments due within one year are measured, initially and subsequently at the transaction price. Debt instruments due after one year are measured initially at the transaction price and subsequently at amortised cost using the effective interest method. At the end of each reporting period debt financial assets are assessed for impairment, and their carrying value reduced if necessary. Any impairment charge is recognised in the income statement.
2.9. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
2.10. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.
2.11. Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
During the year, the company paid aggregate pension contributions of £400,000 on behalf of the directors, being £200,000 for J W Jackson and S A Jackson. These contributions were paid directly to the directors’ pension providers.
These amounts are in addition to any salaries or other benefits and are disclosed in accordance with Section 7 of FRS 102A and the Companies Act 2006.
3. Average Number of Employees
The average number of employees during the year (including directors) was 12 (2023: 12)
12 12
4. Intangible Assets
Other
£
Cost
As at 1 October 2023 -
Additions 6,960
As at 30 September 2024 6,960
Net Book Value
As at 30 September 2024 6,960
As at 1 October 2023 -
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5. Tangible Assets
Land & Property
Leasehold Plant & Machinery Motor Vehicles Fixtures & Fittings
£ £ £ £
Cost
As at 1 October 2023 40,504 335,662 60,000 3,205
Additions - - - -
As at 30 September 2024 40,504 335,662 60,000 3,205
Depreciation
As at 1 October 2023 18,361 335,662 10,000 170
Provided during the period 9,073 - 15,000 561
As at 30 September 2024 27,434 335,662 25,000 731
Net Book Value
As at 30 September 2024 13,070 - 35,000 2,474
As at 1 October 2023 22,143 - 50,000 3,035
Computer Equipment Total
£ £
Cost
As at 1 October 2023 3,903 443,274
Additions 3,464 3,464
As at 30 September 2024 7,367 446,738
Depreciation
As at 1 October 2023 392 364,585
Provided during the period 2,022 26,656
As at 30 September 2024 2,414 391,241
Net Book Value
As at 30 September 2024 4,953 55,497
As at 1 October 2023 3,511 78,689
6. Debtors
2024 2023
£ £
Due within one year
Trade debtors 83,995 43,180
Prepayments and accrued income 31,657 86,023
Other debtors 17,715 17,715
VAT 12,046 2,866
145,413 149,784
Trade and other debtors that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of impairment. Those that are receivable after more than one year or that constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised cost, net of impairment.
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7. Creditors: Amounts Falling Due Within One Year
2024 2023
£ £
Trade creditors 8,358 5,298
Car Loan - Volvo more less 1 year 15,250 15,250
Corporation tax - 436,505
Other taxes and social security 18,854 21,438
Other creditors 354 106,579
Client account balances 1,503,102 2,139,804
Accruals and deferred income 25,000 32,171
Directors' loan accounts 31,336 24,181
1,602,254 2,781,226
8. Creditors: Amounts Falling Due After More Than One Year
2024 2023
£ £
Car loan - Volvo more than 1 year 5,083 20,333
9. Loans
An analysis of the maturity of loans is given below:
2024 2023
£ £
Amounts falling due within one year or on demand:
Other loans 15,250 15,250
2024 2023
£ £
Amounts falling due between one and five years:
Other loans 5,083 20,333
Other loans relate to a loan on the purchase of an electric car in February 2023.
10. Share Capital
2024 2023
Allotted, called up and fully paid £ £
5,556 Ordinary A shares of £ 0.01 each 55 55
5,556 Ordinary B shares of £ 0.01 each 56 56
111 111
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
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11. Dividends
2024 2023
£ £
On equity shares:
Final dividend paid 800,000 1,000,000
Dividend distribution to the company's shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
12. Exceptional Items
During the year, the company incurred a one-off loss of £614,170 as a result of a cyber fraud incident. This amount is included within administrative expenses in the profit and loss account. The incident was an isolated event and is not expected to recur.
13. FRC's Ethical Standard - Provision Available for Small Entities
In common with other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.
14. Transactions with directors
At the end of the year, the amount due to J W Jackson was £31,336 (2023 : £24,181). The balance due has no fixed repayment terms, is unsecured and is non-interest bearing.
15. Audit Information
The auditor's report on the accounts of K2 Agency Limited for the year ended 30 September 2024 was unqualified.
The auditor's report was signed by Lorenzo Mosca (Senior Statutory Auditor) for and on behalf of Saffery LLP , Statutory Auditor.
Saffery LLP
Chartered Accountants, Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
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