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THREAD INNOVATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The Company is dormant.
2.Accounting policies
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Basis of preparation of financial statements
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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 101 'Reduced Disclosure Framework' and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
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FRS 101 - reduced disclosure exemptions
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As permitted by FRS 101, the Company has taken advantage of the disclosure exemptions available
under that standard in relation to financial instruments, key management personnel remuneration, and presentation of a cash-flow statement. Where relevant, equivalent disclosures have been given in the Group accounts of M&C Saatchi plc. These group accounts are available to the public and can be obtained as set out in note 5.
The financial statements have been prepared on a going concern basis, notwithstanding net current
liabilities of £1,120,000 (2024 - £1,120,000) which the directors believe to be appropriate for the following reason: the Company is dependent for its working capital on funds provided to it by M&C Saatchi plc, the Company’s ultimate parent undertaking.
The Company has ceased trading and the directors intend to wind up the Company within the foreseeable future. The going concern basis of accounting remains appropriate on the basis that M&C Saatchi plc has provided the Company with an undertaking that for at least 12 months from the
date of approval of these financial statements it will continue to make available such funds as are
needed by the Company and, in particular, will not seek repayment of the amounts currently made
available. This should enable the Company to continue in operational existence for the foreseeable
future by meeting its liabilities as they fall due for payment. As with any company placing reliance on
other group entities for financial support, the directors acknowledge that there can be no certainty
that this support will continue, although at the date of approval of these financial statements they
have no reason to believe that it will not do so. M&C Saatchi plc has provided a detailed going
concern review of the Group, within its consolidated financial statements and in which the Plc Board
believe it appropriate to prepare their financial statements on a going concern basis.
On this basis, and on their assessment of the Company’s financial position, the Company’s directors
have a reasonable expectation that the Company will be able to continue in existence for the
foreseeable future. The Company’s directors, therefore, continue to adopt the going concern basis of accounting in preparing the annual financial statements.
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