|
Channel 3 Consulting Ltd
Registered number: 06824790
Annual Report
For the year ended 31 March 2026
|
|
CHANNEL 3 CONSULTING LTD
COMPANY INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chartered Accountants & Statutory Auditor
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHANNEL 3 CONSULTING LTD
CONTENTS
|
|
|
|
|
|
|
|
|
Independent Auditor's Report
|
|
Statement of Comprehensive Income
|
|
Statement of Financial Position
|
|
Statement of Changes in Equity
|
|
Notes to the Financial Statements
|
|
|
|
CHANNEL 3 CONSULTING LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2026
The directors present their Strategic Report for Channel 3 Consulting Ltd (the “Company”) for the year ended 31 March 2026.
The principal activity of the Company is the provision of management consultancy services to support digitally-enabled transformation in the health and social care markets and adjacent sectors, in the UK and internationally. The Company is shaped by clinicians, social care practitioners, and digital specialists who believe transformation should always start with people.
|
|
The business serves a range of clients across the health and social care market in addition to other sectors, and the Company is looking to grow and diversify the range of clients the business supports. Significant clients continues to be the UK’s National Health Service (“NHS”), Local Government and a range of other national and local organisations.
During the year, the directors continued to support ongoing investment in the business including insight and MI capability, thought leadership events, enhanced sales talent, updated branding and clearer market propositions. These investments have enabled Channel 3 to continue to improve its offer to clients and as a result the business achieved growth in turnover in the year to £14.9m (2025: £14.6m) and growth in trading EBITDA to £2.1m (2025: £2.0m).
The table below shows the turnover, gross margin and Trading EBITDA* for the year ended 31 March:
|
|
|
|
|
|
|
|
|
|
|
|
|
*Trading EBITDA is measured as earnings from continuing operations before costs relating to external investor costs, transaction fees, one-off, non-recurring and exceptional costs, interest, taxation, depreciation and amortisation of intangible assets.
Notable project highlights for the year included:
∙Supporting South Yorkshire Integrated Care Board and its 17 partner organisations to deliver their Shared Care Record programme, strengthening programme governance, accelerating adoption and enabling greater information sharing across the system. The programme contributed to an estimated 463,481 hours saved for frontline professionals and projected benefits of £23 million over five years, with delivery extending into FY26.
∙Partnering with Rochdale Borough Council to deliver the EPiC Lives adult social care transformation programme, redesigning services around prevention, independence and strengths-based practice. The programme has supported a 15% reduction in discharges into residential or nursing care following hospital admission, a 27% increase in monthly reablement starts, and sustained reductions in long-term placements beyond forecast, while contributing towards projected annualised savings of £6–8 million. Delivery continues into FY26.
- 1 -
|
|
CHANNEL 3 CONSULTING LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
Business review (continued)
∙Supporting Torbay and South Devon Integrated Care Organisation to deliver adult social care transformation, building on previous improvements to services and developing a new operating model centred on prevention, independence and technology-enabled care. The programme identified opportunities to improve outcomes for residents while contributing towards an estimated £10 million in savings, with delivery extending into FY26.
∙Continuing delivery of the Electronic Patient Record (EPR) programme at Nottingham University Hospitals NHS Trust, following a successful readiness assessment and mobilisation phase. The work has supported the Trust in preparing for one of the largest digital transformation programmes in the NHS, with delivery continuing into FY26.
∙Continuing our partnership with Sherwood Forest Hospitals NHS Foundation Trust to support EPR readiness through a comprehensive review of current clinical and operational workflows across more than 18 departments. The programme has focused on identifying opportunities to improve productivity, optimise pathways and strengthen the foundations for successful digital transformation, with work continuing into FY26
Overall, the Board is highly supportive of the progress made in the year and is confident in the Company’s future outlook.
The strategy of the Company is to grow by:
∙deepening its relationships in key accounts and growing multi-year, multi-project revenues through those relationships;
∙delivering excellent value for money for our clients and tangible improvements in patient outcomes;
∙winning more clients in its existing core areas of the health and care sectors;
∙developing new service propositions to sell to existing and new clients; and
∙expanding its offering into complementary sectors to diversify the income streams of the Company.
Corporate Social Responsibility Statement in compliance with Section 172 (1) of the Companies Act 2006
The directors believe businesses have a fundamental responsibility to contribute to resolving pressing social and environmental challenges where possible.
The Company has engaged a third party sustainability advisor to provide expert support on assessing our current performance and has built a comprehensive and actionable improvement plan.
As part of the Company's ongoing plans its business will always consider the impact of our decisions on people, customers, suppliers, community, and the environment.
- 2 -
|
|
CHANNEL 3 CONSULTING LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
Employees
The Company continues to invest in its people and continues to hold “Great Place to Work” certification. The company offers employees a significant range of other benefits we offer including a health cash plan, holiday purchase and sale scheme, an EV car scheme, cycle to work scheme as well as bonus schemes that are open to all employees. Through the Company's Perkbox platform it gives employees the opportunity to recognise each other for their contributions and successes. The directors communicate regularly across the business through company meetings, which rotate through full company meetings, smaller regional get togethers and virtual meetings.
Customers
During the year, the Company continued to invest in its systems and processes and holds accreditation for ISO 9001 (Quality Management), ISO 14001 (Environmental Management) and ISO 27001 (Information Security Management). It also achieved ISO 20000 (IT Service Management) during the year.
Environment
Through work with the Company's sustainability advisor we published an updated net zero report, including its targets towards net zero by 2040. For the third year running the Company was carbon neutral, having offset the carbon emission impacts of our business today which includes Scope 3 areas where the Company has direct control.
As above, the Company has now achieved ISO 14001 certification, demonstrating the Company’s commitment to sustainability and the environment.
Suppliers
The Company has established a sustainable supply chain by working closely with suppliers, vendors, subcontractors, and customers to implement socially responsible procurement processes which ensure responsible practices are followed which respect environmental preservation and human rights.
Community
In the community, Channel 3 is a partner of The Drive Forward Foundation. The Drive Forward programme offers individuals multiple channels of support including learning and development of new skills and behaviours through training, access to paid and unpaid employment opportunities with Drive Forward’s partners, and building of life skills which enables independent living, including coaching and mentoring and much more.
The Company is committed to being an inclusive employer and recognises the value of having a diverse workforce. The Company continues to operate a Diversity, Equality and Inclusion committee to identify opportunities to improve our approach to diversity.
- 3 -
|
|
CHANNEL 3 CONSULTING LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
Principal risks and uncertainties
|
Economic Risk
The NHS and other health and care organisations continued to be under significant financial and operational pressure and as a result budgets are managed very carefully. The Company has significant experience of navigating these pressures to help NHS achieve its objective of digital transformation which will ultimately help its financial position.
Interest Rate Risk
The Company has protection from this risk with external debt carrying fixed interest rates.
Operational Risk
As a management consultancy, the Company is exposed to an imbalance between supply for its services and internal capacity to deliver. The Company closely monitors demand for ongoing and potential future projects against its internal capacity, which in turn its uses to inform recruitment decisions. The Company also uses third-party consultancy suppliers where needed to manage fluctuations in delivery demand.
Supplier Risk
The Company’s main suppliers are recruitment agencies for the introduction of permanent staff and supply of third-party consultancy suppliers, where needed. The Company has continued its strategy of increasing the number and proportion of permanent consultants (rather than using external associates) to help further develop the expert insight and knowledge of employed staff.
Key performance indicators ("KPIs")
|
•Turnover;
• Gross margin;
• Trading EBITDA;
• Cash conversion;
• Forward looking sales measures including backlog and pipeline.
Future developments
The directors do not anticipate any significant developments for the Company during the coming year.
This report was approved by the board and signed on its behalf by:
- 4 -
|
|
CHANNEL 3 CONSULTING LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2026
The directors present their annual report and the audited financial statements for Channel 3 Consulting Ltd (the “Company”) for the year ended 31 March 2026.
The profit for the year, after taxation, amounted to £986,345 (2025: profit of £759,474).
During the year dividends of £1,800,000 were paid (2025: £2,210,000).
The directors who served during the year and to the date of this report were:
|
|
|
|
E Rollason (resigned 7 April 2025)
|
S J Phillips (appointed 9 July 2025)
|
Directors' responsibilities statement
|
The directors are responsible for preparing the Strategic Report, the Directors' 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 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK 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 Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Qualifying third party indemnity provisions
|
The Company has made qualifying third party indemnity provisions for the benefit of its directors which were made during the year and remain in force at the date of this report. No claim or notice of claim in respect of these indemnities has been received in the year.
- 5 -
|
|
CHANNEL 3 CONSULTING LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
The financial statements have been prepared on a going concern basis as the directors have reviewed the Company’s forecast cash flows and consider that the Company has adequate resources to continue in operational existence for at least the next twelve months from the signing of these financial statements.
The directors have considered the repayment date of loans falling due after more than one year within their going concern assessment and forecast. The directors plan to refinance the loans, in respect of which Channel 3 Consulting Limited is a guarantor, in the near future, in respect of which there have already been open discussions with no issues expected.
Matters covered in the Strategic Report
|
The Company has chosen in accordance with Companies Act 2006, s414C(11) to set out in the Strategic Report information required by Schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and reports) Regulations 2008. Certain matters which are required to be disclosed in the Directors’ Report have been omitted as they are included in the Strategic Report on pages 1 to 4. These matters relate to future developments.
Provision of information to the auditor
|
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware; and
∙the director 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 auditor is aware of that information.
Post balance sheet events
|
There have been no significant events affecting the Company since the year end.
The auditor, Forvis Mazars LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf by:
- 6 -
|
|
CHANNEL 3 CONSULTING LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHANNEL 3 CONSULTING LTD
Opinion
We have audited the financial statements of Channel 3 Consulting Ltd (the ‘Company’) for the year ended 31 March 2026 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 March 2026 and of its profit 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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The 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.
- 7 -
|
|
CHANNEL 3 CONSULTING LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHANNEL 3 CONSULTING LTD
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In 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 Directors' 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 directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
- 8 -
|
|
CHANNEL 3 CONSULTING LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHANNEL 3 CONSULTING LTD
Responsibilities of Directors
As explained more fully in the Directors' responsibilities statement set out on page 5, 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 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 intend either to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
Based on our understanding of the Company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation and anti-money laundering regulation.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
∙Inquiring of management and, where appropriate, those charged with governance, as to whether the Company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
∙Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
∙Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
∙Considering the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.
- 9 -
|
|
CHANNEL 3 CONSULTING LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHANNEL 3 CONSULTING LTD
In addition, we evaluated the directors' and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls, and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, revenue recognition (which we pinpointed to the occurrence and cut-off assertions) and significant one-off or unusual transactions.
Our audit procedures in relation to fraud included but were not limited to:
∙Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
∙Gaining an understanding of the internal controls established to mitigate risks related to fraud;
∙Discussing amongst the engagement team the risks of fraud; and
∙Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
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 auditor’s report.
Use of the audit report
This report is made solely to the Company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in 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 Company and the Company's members as a body for our audit work, for this report, or for the opinions we have formed.
Lucy Hutchinson (Senior statutory auditor)
For and on behalf of Forvis Mazars LLP
Chartered Accountants and Statutory Auditor
30 Old Bailey
London
EC4M 7AU
14 August 2026
- 10 -
|
|
CHANNEL 3 CONSULTING LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other administrative expenses
|
|
|
|
|
|
|
|
|
Depreciation and amortisation expense
|
|
|
|
Non-recurring administrative expenses
|
|
|
|
|
|
|
|
|
Interest receivable and similar income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the financial year
|
|
|
|
Other comprehensive income
|
|
|
|
Total comprehensive income for the year
|
|
|
|
The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.
|
The notes on pages 14 to 30 form part of these financial statements.
|
- 11 -
|
|
CHANNEL 3 CONSULTING LTD
REGISTERED NUMBER: 06824790
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debtors: amounts falling due within one year
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets less current liabilities
|
|
|
|
|
|
Provisions for liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 30 form part of these financial statements.
- 12 -
|
|
CHANNEL 3 CONSULTING LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the year
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
|
|
|
|
|
|
|
|
|
|
Total transactions with owners
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the year
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
|
|
|
|
|
|
|
|
|
|
Total transactions with owners
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The notes on pages 14 to 30 form part of these financial statements.
|
- 13 -
|
|
CHANNEL 3 CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Channel 3 Consulting Ltd is a private company limited by shares, incorporated and registered in England and Wales. The Company's registered number is 06824790. The address of the registered office of the Company is Capital Building, Tyndall Street, Cardiff, United Kingdom, CF10 4AZ.
2.Accounting policies
|
|
|
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 principal activity of the Company is the provision of management consultancy services to support digitally-enabled transformation in the health and social care markets and adjacent sectors, in the UK and internationally. The Company is shaped by clinicians, social care practitioners, and digital specialists who believe transformation should always start with people.
The following principal accounting policies have been applied:
|
|
|
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 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of C3 123 Limited as at 31 March 2026 and these financial statements may be obtained from Companies House.
The financial statements have been prepared on a going concern basis as the directors have reviewed the Company’s forecast cash flows and consider that the Company has adequate resources to continue in operational existence for at least the next twelve months from the signing of these financial statements.
The directors have considered the repayment date of loans falling due after more than one year within their going concern assessment and forecast. The directors plan to refinance the loans, in respect of which Channel 3 Consulting Limited is a guarantor, in the near future, in respect of which there have already been open discussions with no issues expected.
- 14 -
|
|
CHANNEL 3 CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts and settlement discounts.
Turnover from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total. Where the outcome cannot be estimated reliably, turnover is recognised only to the extent of the expenses recognised where it is probable they will be recovered.
|
|
|
Operating leases: the Company as lessee
|
Rentals paid under operating leases, including any lease incentives received, are charged to profit or loss on a straight-line basis over the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
|
|
|
Interest receivable and similar income
|
Interest receivable and similar income is recognised in profit or loss using the effective interest method.
|
|
|
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 reporting 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 reporting 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 reporting date.
- 15 -
|
|
CHANNEL 3 CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
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.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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.
Amortisation is provided on the following bases:
Intangible assets amortisation is recorded in 'administrative expenses' in profit or loss.
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.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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 the Statement of Comprehensive Income.
Tangible assets depreciation is recorded in 'administrative expenses' in profit or loss.
- 16 -
|
|
CHANNEL 3 CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
|
|
|
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 other creditors as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
|
|
|
Debtors: amounts falling due within one year
|
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.
|
|
|
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.
|
|
|
Creditors: amounts falling due within one year
|
Short-term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
- 17 -
|
|
CHANNEL 3 CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those held at fair value through the Statement of Comprehensive Income, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
- 18 -
|
|
CHANNEL 3 CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
|
|
|
Financial instruments (continued)
|
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
- 19 -
|
|
CHANNEL 3 CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
|
|
Judgements in applying accounting policies and key sources of estimation uncertainty
|
The directors do not believe that any critical judgements have been made in the process of applying the Company's accounting policies that would have a significant effect on the amounts recognised in the financial statements.
Key sources of estimations
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Assessing indicators of impairment of investment in subsidiary companies
In assessing whether there have been any indicators of non financial assets impairment, the directors have considered if the events or circumstances have changed which indicate that the carrying amounts of the non financial assets may not be recoverable. The directors have assessed whether the carrying value of the non financial assets can be supported by its net realisable value. The directors have concluded that there is no impairment of non financial assets identified during the current financial year.
Accrued and deferred income
The Company exercises judgement in determining the amount of revenue, deferred income and accrued income recognised on contracts that are not complete at the reporting date.
Management assesses the stage of completion of each contract using information available at the reporting date, including project milestones achieved, costs incurred, time spent and other relevant measures of progress. These assessments require judgement and may affect the timing and amount of revenue, deferred income and accrued income recognised.
Accrued income is recognised only where management considers it probable that the economic benefits associated with the work performed will flow to the Company and the amount can be measured reliably.
|
|
|
|
|
An analysis of turnover by class of business is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All turnover arose within the United Kingdom.
|
- 20 -
|
|
CHANNEL 3 CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
|
|
|
|
|
The operating profit is stated after charging:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of tangible assets (note 13)
|
|
|
|
|
Amortisation of intangible assets (note 12)
|
|
|
|
|
Cost of defined pension scheme (note 7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees payable to the Company's auditor for the audit of the Company's financial statements
|
|
|
|
|
Fees payable to the Company's auditor in respect of:
|
|
|
|
|
|
|
|
|
|
|
|
|
Staff costs, including the directors' remuneration, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of defined contribution scheme
|
|
|
|
|
|
|
|
|
|
Refer to note 20 for details of the prior year adjustment.
The average monthly number of employees, including the directors, during the year was as follows:
|
- 21 -
|
|
CHANNEL 3 CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
|
|
|
|
|
|
|
|
|
|
|
|
Company contributions to defined contribution pension schemes
|
|
|
|
|
|
|
|
|
|
During the year retirement benefits were accruing to 3 directors (2025: 5) in respect of defined contribution pension schemes.
The highest paid director received remuneration of £211,729 (2025: £304,750).
The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £8,568 (2025: £101,822).
Management considers the directors to be the key management personnel of the Company.
|
|
|
Interest receivable and similar income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other interest receivable
|
|
|
- 22 -
|
|
CHANNEL 3 CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
|
|
|
|
|
|
|
Current tax on profits for the year
|
|
|
|
|
Adjustments in respect of previous periods
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination and reversal of timing differences
|
|
|
|
|
Adjustments in respect of prior periods
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for the year
|
|
|
The tax assessed for the year is lower than (2025: lower than) the standard rate of corporation tax in the UK of25% (2025:25%). The differences are explained below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on ordinary activities before tax
|
|
|
|
|
Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2025: 25%)
|
|
|
|
|
|
|
|
|
|
Expenses not deductible for tax purposes
|
|
|
|
|
|
|
|
|
|
Adjustments to tax charge in respect of previous periods - deferred tax
|
|
|
|
|
Adjustments to tax charge in respect of previous periods
|
|
|
|
|
Total tax charge/(credit) for the year
|
|
|
|
|
Factors that may affect future tax charges
|
There are no current or future tax changes to note. Current and deferred tax in the current and prior year was calculated at 25%.
- 23 -
|
|
CHANNEL 3 CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
|
|
Dividends paid at £90.00 (2025: £110.50) per share
|
|
|
- 24 -
|
|
CHANNEL 3 CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
- 25 -
|
|
CHANNEL 3 CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
|
|
Debtors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed by group undertakings
|
|
|
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
Deferred taxation (note 17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed by group undertakings are unsecured, interest free and payable on demand.
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings
|
|
|
|
|
Other taxation and social security
|
|
|
|
|
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
|
- 26 -
|
|
CHANNEL 3 CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credited to profit or loss
|
|
|
|
|
|
|
|
|
The deferred taxation asset is made up as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accelerated capital allowances
|
|
|
|
|
Short term timing differences
|
|
|
|
|
|
|
|
- 27 -
|
|
CHANNEL 3 CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
|
|
|
Allotted, called up and fully paid
|
|
|
|
|
|
|
|
|
|
|
|
12,500 (2025: 12,500) Ordinary shares of £0.01 each
|
|
|
|
|
|
2,500 (2025: 2,500) A Ordinary shares of £0.01 each
|
|
|
|
|
|
5,000 (2025: 5,000) B Ordinary shares of £0.01 each
|
|
|
|
|
|
2,500 (2025: 2,500) D Ordinary shares of £0.01 each
|
|
|
|
|
|
1,250 (2025: 1,250) E Ordinary shares of £0.01 each
|
|
|
|
|
|
2,396 (2025: 2,396) C Ordinary shares of £0.01 each
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Ordinary shares voting rights are pro rata according to the number of shares held, subject to the holders of E Ordinary shares as a separate class having 5% of the total voting rights. Dividend rights are pro rata according to the number Ordinary, A and B Ordinary shares in issue. Capital distribution rights are subject to holders of D Ordinary shares having a fixed right to 10% and holders of E Ordinary shares having a fixed right to 5% of the proceeds of sale, then capital distributions are pro rata to the number of ordinary shares held.
The A Ordinary shares voting rights are pro rata according to the number of shares held, subject to the holders of E Ordinary shares as a separate class having 5% of the total voting rights. Dividend rights are pro rata according to the number Ordinary, A and B Ordinary shares in issue. Capital distribution rights are pro rata according to the number of Ordinary, A and B Ordinary shares held, except no capital distribution on an exit event if there are D Ordinary shares in issue.
The B Ordinary shares voting rights are pro rata according to the number of shares held, subject to the holders of E Ordinary shares as a separate class having 5% of the total voting rights. Dividend rights are pro rata according to the number Ordinary, A and B Ordinary shares in issue. Capital distribution rights are subject to holders of D Ordinary shares having a fixed right to 10% and holders of E Ordinary shares having a fixed right to 5% of the proceeds of sale, then capital distributions are pro rata to the number of B Ordinary shares held.
The C Ordinary shares do not have any voting or dividend rights, nor do they have any capital distribution rights other than on an exit event whereby a specified proportion of the proceeds or sale will be distributed to the holders.
The D Ordinary shares do not have any voting or dividend rights, nor do they have any capital distribution rights other than on an exit event whereby 10% of the proceeds of sale will be distributed to the holders.
The E Ordinary shares are entitled to a fixed 5% of the voting rights, pro rata to the number of shares held. But do not have any dividend rights. The shares do not have capital distribution rights other than on an exit event whereby 5% of the proceeds of sale will be distributed to the holders.
|
- 28 -
|
|
CHANNEL 3 CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Share premium account
This reserve represents the amount above the nominal value received for issued share capital, less transaction costs.
Profit and loss account
This reserve represents the cumulative profits and losses of the Company, net of dividends paid.
In the prior year, some balances were not included in the wages and salaries note. These have now been included within the restated disclosure note. This has had no impact on the profit or loss or net reserve position of the Company.
|
|
Charges on group liabilities
|
The Company, along with other group companies, entered into a debenture on 28 January 2021 containing fixed and floating charges over all of the assets of each group company in favour of Westbridge II LP. The charge contains a negative pledge.
The Company, along with other group companies, entered into a debenture on 27 July 2022 containing fixed and floating charges over all of the assets of each group company in favour of Triple Point Advancr Leasing Plc. The charge contains a negative pledge.
The Company, along with other group companies, entered into a debenture on 27 July 2022 containing fixed and floating charges over all of the assets of each group company in favour of Westbridge II LP. The charge contains a negative pledge.
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 £277,050 (2025: £345,206). Contributions totalling £nil (2025: £nil) were payable to the fund at the reporting date and are included in creditors.
|
|
Commitments under operating leases
|
|
|
At 31 March 2026 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 29 -
|
|
CHANNEL 3 CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
|
|
Related party transactions
|
|
|
The Company is a wholly owned subsidiary of C3 123 Limited and as such has taken advantage of the exemption permitted by Section 33 ‘Related party disclosures’ not to provide disclosures of transactions entered into with other wholly owned members of the group. The Company is included within the consolidated financial statements of C3 123 Limited.
|
|
|
Post balance sheet events
|
There have been no significant events affecting the Company since the year end.
The immediate parent undertaking is C3 789 Limited, a company incorporated and registered in England and Wales. The address of its registered office is Capital Building, Tyndall Street, Cardiff, United Kingdom, CF10 4AZ. C3 789 Limited is a wholly-owned subsidiary of C3 456 Limited, a wholly-owned subsidiary of C3 123 Limited.
C3 123 Limited is the smallest and largest group into which the Company's financial statements are consolidated. Copies of the group’s financial statements may be obtained from Companies House.
The Company is ultimately controlled by Westbridge II GP LLP by virtue of the majority shareholding.
- 30 -
|