Leagas Delaney Group Limited
Annual Report and Financial Statements
For the year ended 31 December 2024
Company Registration No. 04985282 (England and Wales)
Leagas Delaney Group Limited
Company Information
Directors
B T Delaney
M Johnson
Company number
04985282
Registered office
Hend House
233 Shaftesbury Avenue
London
United Kingdom
WC2H 8EE
Auditor
Moore Kingston Smith LLP
Charlotte Building
17 Gresse Street
London
W1T 1QL
Business address
Hend House
233 Shaftesbury Avenue
London
United Kingdom
WC2H 8EE
Leagas Delaney Group Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Group statement of comprehensive income
10
Group balance sheet
11 - 12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 37
Leagas Delaney Group Limited
Strategic Report
For the year ended 31 December 2024
Page 1

The directors present the strategic report for the year ended 31 December 2024.

Principal activity

Leagas Delaney Group Limited acts as a holding company. The principle activity of the Group is the provision of adverting and digital communication services through its operations in the UK, Europe, Africa, and the USA.

Results and dividends

The Statement of Comprehensive Income is set out on page 9 and shows profit/loss for the year.

The group’s loss for the year before taxation was £1,481k (2023: loss £301k). This result is after recognising a provision of £1,655k against a doubtful debt for a loan due from a related party. Excluding this provision the group's profit for the year was £174k.

No dividends were paid during the year (2023: nil).

Leagas Delaney Group Limited
Strategic Report (Continued)
For the year ended 31 December 2024
Page 2
Business review and future developments

Our business mixes creative and strategic consultancy with technology at the heart of our production capabilities, driving both cost savings and efficiencies whilst delivering the brand and communication requirements of our clients across all media channels.

Fee income for the group was £10,973 (2023: £11,015k) consistent with the prior year, this reflects lower fee income in both Italy (due to a loss of a client) and Germany (lower fee income across clients).

The Group posted a pre-tax loss for the year of £1,481k (2023: loss £301k), a year on year decrease of £1,180k. This includes a doubtful debt provision of £1,655k for a loan due from a related party. Excluding this provision the group's profit for the year was £174k.

Key performance indicators (Without exceptional item)
Year to 31 Dec 2024
Year to 31 Dec 2023
Fee income (gross profit)
(£'000)
10,973
11,015
Profit/(Loss) before tax
(£'000)
174
(301)
Profit/(Loss) before tax margin
%
1.60
(2.70)
Key performance indicators
Year to 31 Dec 2024
Year to 31 Dec 2023
Fee income (gross profit)
(£'000)
10,973
11,015
Profit/(Loss) before tax
(£'000)
(1,481)
(301)
Profit/(Loss) before tax margin
%
(13.50)
(2.70)
In the UK, key client relationships continued to strengthen, including the successful defence of our Royal British Legion account, following a statutory pitch. We also welcomed a number of new clients to the agency including Bombardier, International Beverage, Oceania and St. Regis. And we strengthened our team with senior hires in our creative and design departments.
In Germany, we exceeded our targets for the year. This was helped by some big new business wins, like Lorenz Snacks – one of the top snack brands, where we're the lead agency for all their brands. We also won Leerdammer, the number one cheese brand, and projects for Galbani and Minus L. As a tech-driven creative agency, we became a partner of the Gen-AI start-up Flux AI this year, which gives us a real competitive advantage and attracted a lot of press attention. On the creative side, we won silver at the Best Agency Awards for the Fissler brand transformation.
The South African Group delivered strong creative and commercial progress across both Leagas Delaney South Africa and Dark Arts Studio. Our partnership with Investec continued to deepen, while new business wins included the Tiger Brands Grains portfolio, Gorilla Energy and Pharma Dynamics. Dark Arts Studio strengthened its role as a high-performance creative delivery partner for both local and international clients, and the Group maintained stability in a challenging market while continuing to invest in people and capability.
Despite the early year client loss for Italy and consequent Agency restructuring, the Agency realized one of the most awarded campaigns in the Italian market, “Senza fare 2024 was a successful year for the Italian agency, thanks to the acquisition of a number of important new clients such as luxury yacht brand Baglietto, FMCG leader Bonduelle and historical bakery brand Bauli. For the latter in particular we produced a very powerful repositioning campaign which allowed the brand to extend its offer in new market segments. The cross media campaign was one of the most recognized in the Italian media landscape during the second part of the year.
Leagas Delaney Group Limited
Strategic Report (Continued)
For the year ended 31 December 2024
Page 3
Financial risk management objectives and policies

Where possible, processes are in place to monitor and mitigate business risks, the most common one being the inherent risk associated with providing services to a range of leading advertisers whose own communication spends will be sensitive to local, regional and world economic factors.

Liquidity risk

The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short term flexibility is achieved by overdraft facilities which are renewed on an annual basis.

Interest rate risk

The Group finances its operations through a mixture of retained profits and bank borrowings. The Group's exposure to interest rate fluctuations on its borrowings is managed by the use of fixed and floating facilities.

Credit risk

The Group's principal financial assets are cash and trade debtors. The principal credit risk arises therefore from the Group's trade debtors. In order to manage credit risk the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history.

Currency risk

Approximately 84% (2023: 83%) of the Group's turnover is from overseas-based clients. Invoicing is predominately in Pounds Sterling, Euros, Swiss Francs, SA Rand and US Dollars. Where invoicing to clients is not in the invoicing Company's local currency, if required, the Company will use forward foreign exchange contracts and other derivatives/financial instruments to reduce the exposure. If the hedging activity does not mitigate the exposure sufficiently, then the results and the financial condition of the Company may be adversely impacted by foreign currency fluctuations.

On behalf of the board

M Johnson
Director
11 February 2026
Leagas Delaney Group Limited
Directors' Report
For the year ended 31 December 2024
Page 4

The directors present their annual report and financial statements for the year ended 31 December 2024.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

B T Delaney
M Johnson
Auditor

The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have prepared the group and parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and parent company, and of the profit or loss of the group for that period.

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

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

- state whether applicable U nited K ingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent company, and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Leagas Delaney Group Limited
Directors' Report (Continued)
For the year ended 31 December 2024
Page 5
On behalf of the board
M Johnson
Director
11 February 2026
Leagas Delaney Group Limited
Independent Auditor's Report
To the Members of Leagas Delaney Group Limited
Page 6
Opinion

We have audited the financial statements of Leagas Delaney Group Limited (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).

In our opinion the financial statements:

- give a true and fair view of the state of the group's and the parent 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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.

Leagas Delaney Group Limited
Independent Auditor's Report (Continued)
To the Members of Leagas Delaney Group Limited
Page 7

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

- T he information given in the strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

- the parent company financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of directors' remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Leagas Delaney Group Limited
Independent Auditor's Report (Continued)
To the Members of Leagas Delaney Group Limited
Page 8
Auditor's 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 auditor's 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.

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.

Leagas Delaney Group Limited
Independent Auditor's Report (Continued)
To the Members of Leagas Delaney Group Limited
Page 9

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 parent company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent company’s members those matters we are required to state to them in an auditor's 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Callum Gritt (Senior Statutory Auditor)
11 February 2026
for and on behalf of Moore Kingston Smith LLP
Chartered Accountants
Charlotte Building
17 Gresse Street
London
W1T 1QL
Leagas Delaney Group Limited
Group Statement of Comprehensive Income
For the year ended 31 December 2024
Page 10
2024
2023
Notes
£'000
£'000
Revenue
3
16,236
15,294
Cost of sales
(5,263)
(4,279)
Gross profit
10,973
11,015
Administrative expenses
(10,976)
(11,542)
Other operating income
180
245
Operating profit/ (loss) pre exceptional items
177
(282)
Exceptional item
4
(1,655)
-
0
Operating loss
5
(1,478)
(282)
Interest receivable and similar income
8
83
28
Interest payable and similar expenses
9
(86)
(47)
Loss before taxation
(1,481)
(301)
Tax on loss
10
241
(147)
Loss for the financial year
(1,240)
(448)
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(6)
25
Total comprehensive income for the year
(1,246)
(423)
Loss for the financial year is attributable to:
- Owners of the parent company
(1,223)
(379)
- Non-controlling interests
(17)
(69)
(1,240)
(448)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(1,247)
(359)
- Non-controlling interests
1
(64)
(1,246)
(423)
Leagas Delaney Group Limited
Group Balance Sheet
As at 31 December 2024
Page 11
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Goodwill
11
(7)
(6)
Other intangible assets
11
145
165
Total intangible assets
138
159
Tangible assets
12
169
140
307
299
Current assets
Debtors
15
2,832
4,275
Investments
16
44
-
0
Cash at bank and in hand
759
1,270
3,635
5,545
Creditors: amounts falling due within one year
17
(4,687)
(5,444)
Net current (liabilities)/assets
(1,052)
101
Total assets less current liabilities
(745)
400
Creditors: amounts falling due after more than one year
18
(8)
(8)
Provisions for liabilities
Deferred tax liability
21
(52)
-
0
(52)
-
Net (liabilities)/assets
(805)
392
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
(961)
237
Equity attributable to owners of the parent company
(960)
238
Non-controlling interests
155
154
Total equity
(805)
392
Leagas Delaney Group Limited
Group Balance Sheet (Continued)
As at 31 December 2024
Page 12

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 11 February 2026 and are signed on its behalf by:
M Johnson
Director
Company Registration No. 04985282
Leagas Delaney Group Limited
Company Balance Sheet
As at 31 December 2024
Page 13
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Investments
13
497
945
Current assets
Debtors falling due after more than one year
15
-
0
578
Debtors falling due within one year
15
59
-
0
Cash at bank and in hand
151
4
210
582
Creditors: amounts falling due within one year
17
(1,717)
(491)
Net current (liabilities)/assets
(1,507)
91
Net (liabilities)/assets
(1,010)
1,036
Capital and reserves
Called up share capital
1
1
Other reserves
447
398
Profit and loss reserves
(1,458)
637
Total equity
(1,010)
1,036

As permitted by s408 Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s loss for the year was £2,095k (2023 - £2k profit).

The financial statements were approved by the board of directors and authorised for issue on 11 February 2026 and are signed on its behalf by:
11 February 2026
M Johnson
Director
Company Registration No. 04985282
Leagas Delaney Group Limited
Group Statement of Changes in Equity
For the year ended 31 December 2024
Page 14
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£'000
£'000
£'000
£'000
£'000
Balance at 1 January 2023
1
680
681
36
717
Year ended 31 December 2023:
Loss for the year
-
(379)
(379)
(69)
(448)
Other comprehensive income:
Currency translation differences
-
25
25
-
25
Amounts attributable to non-controlling interests
-
(5)
(5)
5
-
Total comprehensive income for the year
-
(359)
(359)
(64)
(423)
Credit to equity for equity settled share-based payments
23
-
98
98
-
98
Other movements
-
(182)
(182)
182
-
Balance at 31 December 2023
1
237
238
154
392
Year ended 31 December 2024:
Loss for the year
-
(1,223)
(1,223)
(17)
(1,240)
Other comprehensive income:
Currency translation differences
-
(6)
(6)
-
(6)
Amounts attributable to non-controlling interests
-
(18)
(18)
18
-
Total comprehensive income for the year
-
(1,247)
(1,247)
1
(1,246)
Credit to equity for equity settled share-based payments
23
-
49
49
-
49
Balance at 31 December 2024
1
(961)
(960)
155
(805)
Leagas Delaney Group Limited
Company Statement of Changes in Equity
For the year ended 31 December 2024
Page 15
Share capital
Share based payment reserve
Profit and loss reserves
Total
£'000
£'000
£'000
£'000
Balance at 1 January 2023
1
301
635
937
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
2
2
Other movements
-
98
-
98
Balance at 31 December 2023
1
398
637
1,036
Year ended 31 December 2024:
Loss and total comprehensive income for the year
-
-
(2,095)
(2,095)
Other movements
-
49
-
49
Balance at 31 December 2024
1
447
(1,458)
(1,010)
Leagas Delaney Group Limited
Group Statement of Cash Flows
For the year ended 31 December 2024
Page 16
2024
2023
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Cash generated from/(absorbed by) operations
26
120
(1,295)
Interest paid
(86)
(47)
Income taxes refunded
6
58
Net cash inflow/(outflow) from operating activities
40
(1,284)
Investing activities
Purchase of tangible fixed assets
(113)
(77)
Repayment of loans
(245)
-
Interest received
-
0
28
Net cash used in investing activities
(358)
(49)
Financing activities
Increase/(decrease) in bank borrowing
-
540
Payment of finance leases obligations
(1)
(1)
Net cash (used in)/generated from financing activities
(1)
539
Net decrease in cash and cash equivalents
(319)
(794)
Cash and cash equivalents at beginning of year
924
1,694
Effect of foreign exchange rates
(2)
24
Cash and cash equivalents at end of year
603
924
Relating to:
Cash at bank and in hand
759
1,270
Bank overdrafts included in creditors payable within one year
(156)
(346)
Leagas Delaney Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 17
1
Accounting policies
Company information

Leagas Delaney Group Limited (“the company”) is a private company limited by shares, domiciled and incorporated in England and Wales. The registered office is Hend House, 233 Shaftesbury Avenue, London, WC2H 8EE.

The group consists of Leagas Delaney Group Limited and all of its subsidiaries.

1.1
Accounting convention

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 a mounts in these financial statements are rounded to the nearest £'000.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

In the parent company financial statements, t he cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. I nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated financial statements incorporate those of Leagas Delaney Group Limited and all of its subsidiaries (ie entities that the g roup 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. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the g roup.

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.

Leagas Delaney Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 18

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.3
Going concern

At the balance sheet date, the group made a loss for the year of £1,240 (2023 loss: £448k) and had net liabilities at that date of £805k (2023: net assets £392k).

At the balance sheet date, the company made a loss of £2,095k (2023 profit: £2k) and had net liabilities at that date of £1,010k (2023 net assets: £1,036k). As a non-trading Company, continued support from its trading subsidiaries is required to enable it to meet its liabilities as they fall due for that period.

The loss for the period for the group and single entity was due to the recognition of a doubtful debt provision of £1,655k against a debtor balance due from a related party.

The directors have prepared detailed group cash flow forecasts covering a period of at least 12 months from the date of approval of these financial statements. These forecasts, which incorporate historic performance data, anticipated revenue growth and cost management initiatives, indicate that the company and group will have sufficient liquidity to meet its obligations as they fall due, even after allowing for reasonably possible downside scenarios. The directors actively monitor the group and company’s financial performance and cash flows. In the event of a significant reduction in income, the directors will consider cost cutting measures in order to ensure the long term viability of the business.

The forecasts also incorporate all material known commitments and expected cash flows and the bad debt provision put through in 2024 does not impact cashflow forecasts as the group and company was not relying on this cash inflow. In addition, the group has a £900k gross and £500k net overdraft facility agreed with their bank should additional funding be required.

Consequently, the directors are confident that the group and company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements, and therefore consider it appropriate to prepare the financial statements on a going concern basis.

Leagas Delaney Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 19
1.4
Revenue recognition

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the Turnover can be reliably measured. Turnover 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 turnover is recognised:

Rendering of services

Turnover 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 the following conditions are satisfied:

- the amount of turnover 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.

"Agent" vs. "Principal" Considerations

When third party suppliers are involved in providing services to clients, the Company considers that it is acting as "Principal" if the following criteria are satisfied:

- the Company obtains control of the asset or service before transferring it to the client;

- the Company has the ability to direct the supplier(s);

- the Company incorporates or combines the work of the suppliers to deliver the promised goods or services to the client.

Pass-through costs

Pass-through costs comprise fees charged to clients that are equal in value to costs paid to external suppliers when they are engaged to perform part or all of a specific project. Pass-through costs are recognised at the date they are billed to clients and are included in revenue.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Leagas Delaney Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 20
1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
10 years from date of first use
Trademarks
20 years straight line
1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
5 years straight line
Computers
3-4 years straight line

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.

1.8
Fixed asset investments

Investments in subsidiaries are measured at cost less accumulated impairment. Unquoted investments are shown at cost less provision for impairment in value. The carrying value of investments are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

1.9
Impairment of fixed assets

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.

Leagas Delaney Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 21
1.10
Financial instruments

Financial assets and financial liabilities are recognised in the Statement of financial position when the Group becomes a party to the contractual provision of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the Group will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the Group's cash management.

Derivative financial instruments are initially recognised at fair value on the date a derivate contract is entered into and are subsequently re-measured at their fair value. The gain or loss on re-measurement to fair value is recognised immediately in profit or loss, unless they are designated as cash flow hedged. Changes in the fair value of derivatives that are designated as cash flow hedged is recognised in the other comprehensive income.

1.11
Equity instruments

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.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

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

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.

1.13
Employee benefits

Short term benefits including holiday pay, are recognised as an expense in the period in which the service is received by the Company.

1.14
Retirement benefits

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 to a separate entity. Once the contributions have been paid, the Company has no further payment obligations. The contributions are recognised as an expense in the Statement of Comprehensive Income in the year in which they become payable. Amounts not paid are shown in other creditors in the Statement of Financial Position.

1.15
Share-based payments
Leagas Delaney Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 22

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Monte Carlo model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

The expense in relation to options over the parent company’s shares granted to employees of a subsidiary is recognised by the c ompany as a capital contribution, and presented as an increase in the company’s investment in that subsidiary.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 lease d asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Leagas Delaney Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 23
2
Judgements and key sources of estimation uncertainty

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. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Estimates
Goodwill and intangible assets

The Group establishes a reliable estimate of the useful life of goodwill and intangible assets arising on business combinations. This estimate is based on a variety of factors such as the expected use of the acquired business, the expected usual life of the cash generating units to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses.

Goodwill arising on the brand of Leagas Delaney is being amortised evenly over the directors' estimate of its useful life of 20 years.

Impairment of goodwill

The Company performs an annual impairment review of goodwill. At each reporting date, the Company review the remaining useful life and carrying amounts of its goodwill to determine whether there is any indication of impairment. If such indication exists, then the new remaining useful life is estimated and carrying value adjusted accordingly.

Bad debt provisions

The trade debtors balances of £1,411k recorded in the Group's balance sheet comprise a relatively small number of large balances. A full line by line review of the trade debtors is carried out at the end of each month, supported by regular contact with each trade debtor. Where the collectability of an individual debt is in doubt, due to the financial position of the debtor, a bad debt provision will be made. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debtors that ultimately prove to be uncollectible.

Leagas Delaney Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
Page 24
Recoverability of amounts due from connected company

Trading balances due from a connected company, detailed in note 15, have been fully provided for in the year. To determine the recoverability of this balance the directors have reviewed the forecast financial performance, internal restructuring plans and future fund raising ability of the connected company all of which require a great deal of estimation.

Having considered all of these factors the directors believe that the full amount of £1,655k is not certain to be recovered and therefore a provision has been made against this balance. Changes to the assessment of recoverability could result in a material adjustment to the accounts.

Impairment of investments

The recoverable amount of investments is based on future cashflows for the individual investments. In determining whether any impairment is required, management makes a number of estimates in respect of future cashflows and future earnings growth. Following their assessment and review, the directors have determined an impairment is necessary in relation to the investment figure on the company balance sheet.

3
Turnover and other revenue
2024
2023
£'000
£'000
Turnover analysed by class of business
Fee income
10,973
11,015
Pass-through costs
5,263
4,279
16,236
15,294
2024
2023
£'000
£'000
Turnover analysed by geographical market
United Kingdom
2,688
2,529
European Union
11,933
11,528
Rest of World
1,615
1,237
16,236
15,294
2024
2023
£'000
£'000
Other revenue
Interest income
83
28
Leagas Delaney Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 25
4
Exceptional item
2024
2023
£'000
£'000
Expenditure
Provision for related party debt
1,655
-
1,655
-
5
Operating loss
2024
2023
£'000
£'000
Operating loss for the year is stated after charging:
Exchange losses
51
30
Research and development costs
13
9
Depreciation of owned tangible fixed assets
80
90
Amortisation of intangible assets
21
22
Bad Debt Provision
1,655
-
0
Operating lease charges
468
446
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the group and company
43
23
Audit of the financial statements of the company's subsidiaries
29
27
72
50
For other services
Taxation compliance services
7
6
All other non-audit services
13
13
20
19
Leagas Delaney Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 26
7
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Creative, client service and production staff
93
89
-
-
Management and administration staff
22
25
2
2
Total
115
114
2
2

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Wages and salaries
6,138
7,264
-
0
-
0
Social security costs
910
962
-
-
Pension costs
122
78
-
0
-
0
7,276
7,768
-
0
-
0
8
Interest receivable and similar income
2024
2023
£'000
£'000
Interest income
Other interest income
83
28
9
Interest payable and similar expenses
2024
2023
£'000
£'000
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
62
20
Other finance costs:
Other interest
24
27
Total finance costs
86
47
Leagas Delaney Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 27
10
Taxation
2024
2023
£'000
£'000
Current tax
UK corporation tax on profits for the current period
-
0
74
Deferred tax
Origination and reversal of timing differences
(241)
73
Total tax (credit)/charge
(241)
147

The actual (credit)/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:

2024
2023
£'000
£'000
Loss before taxation
(1,481)
(301)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
(370)
(71)
Tax effect of expenses that are not deductible in determining taxable profit
37
50
Unutilised tax losses carried forward
70
87
Amortisation on assets not qualifying for tax allowances
(27)
(20)
Under/(over) provided in prior years
-
0
19
Deferred tax adjustments in respect of prior years
-
0
(2)
Remeasurement of deferred tax for changes in tax rates
-
0
23
Movement in deferred tax not recognised
23
(212)
Fixed asset differences
26
273
Taxation (credit)/charge
(241)
147
Leagas Delaney Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 28
11
Intangible fixed assets
Group
Goodwill
Software
Trademarks
Total
£'000
£'000
£'000
£'000
Cost
At 1 January 2024
91
200
75
366
Exchange adjustments
(6)
-
0
(3)
(9)
At 31 December 2024
85
200
72
357
Amortisation and impairment
At 1 January 2024
97
40
70
207
Amortisation charged for the year
1
20
-
0
21
Exchange adjustments
(6)
-
0
(3)
(9)
At 31 December 2024
92
60
67
219
Carrying amount
At 31 December 2024
(7)
140
5
138
At 31 December 2023
(6)
160
5
159
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.

Goodwill arising on the brand of Leagas Delaney is being amortised evenly over the directors' estimate of its useful life of 20 years. Amortisation is included in administration expenses in the Statement of comprehensive income.

Leagas Delaney Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 29
12
Tangible fixed assets
Group
Leasehold improvements
Fixtures and fittings
Computers
Total
£'000
£'000
£'000
£'000
Cost
At 1 January 2024
317
431
406
1,154
Additions
25
7
81
113
Exchange adjustments
(1)
(38)
(6)
(45)
At 31 December 2024
341
400
481
1,222
Depreciation and impairment
At 1 January 2024
303
385
326
1,014
Depreciation charged in the year
12
18
50
80
Exchange adjustments
(1)
(36)
(4)
(41)
At 31 December 2024
314
367
372
1,053
Carrying amount
At 31 December 2024
27
33
109
169
At 31 December 2023
14
46
80
140
The company had no tangible fixed assets at 31 December 2024 or 31 December 2023.

The total net book value of assets held under finance leases in the year was £66k (2023: £nil).

13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£'000
£'000
£'000
£'000
Investments in subsidiaries
14
-
0
-
0
497
945
Leagas Delaney Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
13
Fixed asset investments
(Continued)
Page 30
Movements in fixed asset investments
Company
Shares in subsidiaries
£'000
Cost or valuation
At 1 January 2024
945
Additions
49
Impairment
(497)
At 31 December 2024
497
Carrying amount
At 31 December 2024
497
At 31 December 2023
945
The company had additions of £49k as a result of a capital contribution to Leagas Delaney Limited.
Leagas Delaney Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 31
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Leagas Delaney Limited
Hend House, 233 Shaftesbury Avenue, London, WC2H 8EE
Advertising communication services
Ordinary
100.00
0
Leagas Delaney Hamburg GmbH
Grosse Elbstrasse 145a, 2267, Hamburg, Germany
Advertising communication services
Ordinary
60.00
0
Leagas Delaney Italia Srl
Via Lazzaretto 14a, 20124 Milan, Italy
Advertising communication services
Ordinary
92.00
0
Paper Hat Design Works Srl
Via Lazzaretto 14a, 20124 Milan, Italy
Advertising communication services
Ordinary
0
87.00
Leagas Delaney Los Angeles LLC
11400 W. Olympic Blvd, Ste 330, Los Angeles, CA90064, USA
Advertising communication services
Ordinary
0
60.00
Leagas Delaney US Inc
11400 W. Olympic Blvd, Ste 330, Los Angeles, CA90064, USA
Holding company
Ordinary
100.00
0
Leagas Delaney Management Limited
Hend House, 233 Shaftesbury Avenue, London, WC2H 8EE
Advertising communication services
Ordinary
100.00
0
Leagas Delaney South Africa Pty Limited
Old Warehouse Building, Black River Park, 2 Fir Street Observatory, Cape Town, South Africa
Advertising communication services
Ordinary
60.00
0
Leagas Delaney Trustees Limited
Hend House, 233 Shaftesbury Avenue, London, WC2H 8EE
Dormant
Ordinary
100.00
0
Garage GmbH
Grosse Elbstrasse 145a, 2267, Hamburg, Germany
Advertising communication services
Ordinary
0
60.00
Dark Arts Studio Agency PTY Ltd
Old Warehouse Building, Black River Park, 2 Fir Street Observatory, Cape Town, South Africa
Advertising communication services
Ordinary
0
60.00
Leagas Delaney Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 32
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£'000
£'000
£'000
£'000
Trade debtors
1,387
2,319
-
0
-
0
Corporation tax recoverable
24
145
-
0
-
0
Amounts owed by group undertakings
-
-
59
-
Other debtors
260
261
-
0
-
0
Prepayments and accrued income
803
499
-
0
-
0
2,474
3,224
59
-
Amounts falling due after more than one year:
Amount owed by related parties
-
0
983
-
0
578
Deferred tax asset (note 21)
358
68
-
0
-
0
358
1,051
-
578
Total debtors
2,832
4,275
59
578

All amounts owed by Group undertakings are unsecured, interest free and repayable on demand. The remaining debtors are unsecured.

16
Current asset investments
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Unlisted investments
44
-
-
-
Leagas Delaney Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 33
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£'000
£'000
£'000
£'000
Bank loans and overdrafts
19
463
897
-
0
-
0
Obligations under finance leases
20
66
-
0
-
0
-
0
Trade creditors
1,164
1,537
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
1,661
436
Corporation tax payable
26
38
-
0
-
0
Other taxation and social security
642
294
-
-
Other creditors
585
888
56
55
Accruals and deferred income
1,741
1,790
-
0
-
0
4,687
5,444
1,717
491
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£'000
£'000
£'000
£'000
Bank loans and overdrafts
19
8
8
-
0
-
0
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Bank loans
315
559
-
0
-
0
Bank overdrafts
156
346
-
0
-
0
471
905
-
-
Payable within one year
463
897
-
0
-
0
Payable after one year
8
8
-
0
-
0

Barclays Bank plc holds both fixed and floating charges covering all the assets of the Company and Leagas Delaney Limited.

Leagas Delaney Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 34
20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Future minimum lease payments due under finance leases:
Within one year
66
-
0
-
0
-
0

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£'000
£'000
£'000
£'000
Accelerated capital allowances
52
-
-
-
Tax losses
-
-
358
68
52
-
358
68
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£'000
£'000
Asset at 1 January 2024
(68)
-
Credit to profit or loss
(238)
-
Asset at 31 December 2024
(306)
-

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
122
78
Leagas Delaney Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
22
Retirement benefit schemes
(Continued)
Page 35

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.

23
Share-based payment transactions
Group and company
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£'000
£'000
Outstanding at 1 January 2024
11,300
12,500
1.67
1.68
Granted
2,000
-
0.01
-
Forfeited
-
(1,200)
-
0.01
Outstanding at 31 December 2024
13,300
11,300
1.68
1.67
Exercisable at 31 December 2024
5,000
5,000
3.49
3.49
Group and company

The options outstanding at 31 December 2024 had an exercise price ranging from £0.01 to £3.49, and a remaining contractual life of 6.5 years.

Leagas Delaney Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 36
24
Related party transactions

Group

During the year the company paid for £nil (2023: £3k) of personal expenses on behalf of the directors. At the year end £3k (2023: £6k) was due from directors in respect of these amounts.

During the year, Leagas Delaney Limited entered into transactions with a related party by virtue of their shared directorship. In the ordinary course of business, the company made sales of £268k (2023: £284k) and payments of £132k (2023: £78k) leaving a balance due of £541k which was transferred to Leagas Delaney Group Limited during the year, therefore the amount due to Leagas Delaney Limited from the company at the balance sheet date is £nil (2023: £405k).

Company

The company has taken advantage of the exemption conferred by Financial Reporting Standard 102 Section 33 'Related Party Disclosures' paragraph 33.1A not to disclose transactions with certain group companies on the ground that the entities party to the transactions are wholly owned members within the same group.

During the year, Leagas Delaney Group Limited entered into transactions with a related party by virtue of their shared directorship. Leagas Delaney Group Limited loaned a further £535k (2023: £578k) to the company, and a loan balance of £541k (2023: £nil) was transferred to Leagas Delaney Group Limited from Leagas Delaney Limited. After these movements the balance due to the company was £1,655k (2023: £578k). During the year a provision was made against this balance, therefore at the balance sheet date an amount of £nil (2023: £578k) is due from the company.

25
Controlling party

The directors consider the controlling party of the Company to be BT Delaney, who owns a majority of the issued share capital of the Company.

Leagas Delaney Group Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 37
26
Cash generated from/(absorbed by) group operations
2024
2023
£'000
£'000
Loss for the year after tax
(1,240)
(448)
Adjustments for:
Taxation (credited)/charged
(241)
147
Finance costs
86
47
Investment income
-
(28)
Amortisation and impairment of intangible assets
21
22
Depreciation and impairment of tangible fixed assets
80
90
Equity settled share based payment expense
49
98
Movements in working capital:
Decrease in debtors
1,572
165
Decrease in creditors
(207)
(1,388)
Cash generated from/(absorbed by) operations
120
(1,295)
27
Analysis of changes in net funds - group
1 January 2024
Cash flows
31 December 2024
£'000
£'000
£'000
Cash at bank and in hand
1,270
(511)
759
Bank overdrafts
(346)
190
(156)
924
(321)
603
Borrowings excluding overdrafts
(559)
244
(315)
Obligations under finance leases
-
(66)
(66)
365
(143)
222
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