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Registered number: 02646756
KADENCE INTERNATIONAL LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
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KADENCE INTERNATIONAL LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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The Royal Bank of Scotland Plc
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KADENCE INTERNATIONAL LIMITED
CONTENTS
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Independent auditor's report
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Statement of Profit or Loss and Other Comprehensive Income
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Statement of financial position
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Statement of changes in equity
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Notes to the financial statements
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Detailed profit and loss account and summaries
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KADENCE INTERNATIONAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2025
The directors present their report and the financial statements for the year ended 30 June 2025. The directors extended the prior accounting period to 30th June 2024 to align with the group so the comparative figures cover an 18-month period.
Directors' responsibilities statement
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The directors are responsible for preparing the Directors' Report and the financial statements, in accordance with applicable law.
Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the UK.
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 the financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and estimates that are reasonable and prudent;
∙state whether they have been prepared in accordance with IFRS as adopted by the UK, 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.
The profit for the year, after taxation, amounted to £337,001 (2024 - loss £465,430).
The directors have not recommended a dividend in the current or previous period.
The directors who served during the year were:
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KADENCE INTERNATIONAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
The company made a profit after tax of £337,001 (loss before tax 2024: £465,40) during the period ended 30 June 2025 and at that date had net liabilities of £247,495 (net liabilities 2024: £584,496).
The Directors have reviewed the Management Accounts to date as well as preparing financial forecasts to 30 November 2026 based on various trading and working capital assumptions. The ultimate parent company, Cross Marketing Group Inc have confirmed that they will provide financial resources as may be required for the company to meet its financial commitments as they fall due for at least twelve months from the date of approval of these financial statements. The parent company have confirmed that they forecast sufficient cash reserves for the foreseeable future period to provide this support. The parent company have also confirmed that amounts due to them will not be recalled until a time when sufficient funds are available. The directors have satisfied themselves that the parent company is able to provide the financial support needed for at least 12 months from approving these financial statements for issue to enable it to continue to trade.
Taking these factors into account it is the Directors' opinion that the company’s financial statements should be prepared on the going concern basis on the grounds that the current liquid working capital and future sources of funding will be more than adequate for the company’s needs. In making these considerations, the directors have considered a future period of at least 12 months from the date in which the financial statements are approved.
Based on the performance of the company and the group subsequent to the year-end, the directors do not consider there to be any material uncertainty relating to the company's ability to continue as a going concern and have prepared the financial statements on a going concern basis.
Disclosure of information to auditor
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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
∙they have 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.
Small companies' exemption note
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In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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K Shimomura
Director
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KADENCE INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KADENCE INTERNATIONAL LIMITED
We have audited the financial statements of Kadence International Limited for the year ended 30 June 2025 which comprise the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.
In our opinion the financial statements:
∙give a true and fair view of the state of the Company's affairs as at 30 June 2025 and of its profit for the year then ended;
∙have been properly prepared in accordance with IFRSs as adopted by the United Kingdom; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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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.
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.
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KADENCE INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KADENCE INTERNATIONAL LIMITED (CONTINUED)
Opinion on other matters prescribed by the Companies Act 2006
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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 the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the 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.
Responsibilities of directors
As explained more fully in the Directors' responsibilities statement on page 1, 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 either intend 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.
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 Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including UK Companies Act, employment law and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
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KADENCE INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KADENCE INTERNATIONAL LIMITED (CONTINUED)
∙We understood how the Company is complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures.
∙The engagement lead assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
∙We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
°Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
°Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; and
°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
°Posting of unusual journals and complex transactions; and
°Risk of incorrect recognition of revenue.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 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.
Hezelina Hashim (FCCA) (Senior statutory auditor)
for and on behalf of
Menzies LLP
Chartered Accountants
Statutory Auditor
Magna House
18-32 London Road
Staines-Upon-Thames
TW18 4BP
28 November 2025
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KADENCE INTERNATIONAL LIMITED
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2025
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Profit/(loss) from operations
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Profit/(loss) for the year
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Total comprehensive income
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The notes on pages 11 to 27 form part of these financial statements.
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KADENCE INTERNATIONAL LIMITED
REGISTERED NUMBER: 02646756
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2025
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Property, plant and equipment
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Trade and other receivables
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Cash and cash equivalents
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Trade and other liabilities
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Issued capital and reserves
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The financial statements on pages 6 to 27 were approved and authorised for issue by the board of directors and were signed on its behalf by:
The notes on pages 11 to 27 form part of these financial statements.
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KADENCE INTERNATIONAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2025
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Comprehensive income for the year
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Total comprehensive income for the year
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Comprehensive income for the year
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Total comprehensive income for the year
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The notes on pages 11 to 27 form part of these financial statements.
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KADENCE INTERNATIONAL LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2025
Cash flows from operating activities
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Profit/(loss) for the year
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Depreciation of property, plant and equipment
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Depreciation of right of use assets
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Interest payable on leases
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Gain on sale of property, plant and equipment
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Movements in working capital:
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Decrease/(increase) in trade and other receivables
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(Decrease)/increase in trade and other payables
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Cash generated from operations
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Net cash from/(used in) operating activities
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Cash flows from investing activities
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Purchases of property, plant and equipment
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Net cash used in investing activities
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Cash flows from financing activities
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(Repayment of)/Proceeds from group borrowings
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Payment of lease liabilities
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Net cash (used in)/from financing activities
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Net increase in cash and cash equivalents
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Cash and cash equivalents at the beginning of year
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Cash and cash equivalents at the end of the year
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The notes on pages 11 to 27 form part of these financial statements.
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KADENCE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
Kadence International Limited (02646756) is a private company limited by shares, incorporated and domiciled within England and Wales. Details of its registered office, which is also its principal place of business, can be found on company information page of the financial statements. The principal activity of the Company during the period was that of providing market research services.
These financial statements are presented in Great British Pounds because that is the currency of the primary economic environment in which the Company operates. Foreign operations are included in accordance with the policies set out in note 3.
The financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations as adopted by the UK (collectively IFRSs).
The prior reporting period represents a longer 18 month period as the year end was changed to align with the parent company. Therefore the prior year figures are not entirely comparable to the current year.
Details of the Company's accounting policies, including changes during the year, are included in note 3.
In preparing these financial statements, management has made judgments, estimates and assumptions that affect the application of the Company accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
The areas where judgments and estimates have been made in preparing the financial statements and their effects are disclosed in note 4.
The financial statements have been prepared on the historical cost basis except for the Right of Use Asset, which has been measured on an alternative basis on each reporting date.
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2.2 Changes in accounting policies
i) New standards, interpretations and amendments effective from 1 July 2024
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The company has adopted all of the new or amended Accounting Standards and Interpretations issued by the
International Accounting Standards Board ('IASB') that are mandatory for the current reporting period.
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New standards, interpretations and amendments not yet effective
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The following new standards, interpretations and amendments, which are not yet effective and have not been adopted early in these financial statements, are not anticipated to have a material impact on the Company financial statements in the period of initial application:
Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 - Financial Instruments) - 1 January 2026
Amendments to IFRS 1 - First-time Adoption of International Financial Reporting Standards; IFRS 7 - Financial Instruments; Disclosures and its accompanying Guidance on implementing IFRS 7; IFRS 9 - Financial Statements; IAS 7 - Statement of Cash flows - 1 January 2026
IFRS 18 - Presentation and Disclosures in Financial Statements - 1 January 2027
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KADENCE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
2.Basis of preparation (continued)
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ii) New standards, interpretations and amendments not yet effective (continued)
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The directors anticipate that the adoption of these Standards in future periods may have an impact on the results and net assets of the Company, however it is too early to quantify this.
The directors do not expect that the adoption of other Standards and interpretations that are not yet effective in future periods will only have an impact on the presentation in the financial statements of the Company.
3.Significant accounting policies
The company made a profit after tax of £337,001 (loss after tax 2024: £465,430) during the period ended 30 June 2025 and at that date had net liabilities of £247,495 (2024: £584,496).
The Directors have reviewed the Management Accounts to date as well as preparing financial forecasts to 30 November 2026 based on various trading and working capital assumptions. The ultimate parent company, Cross Marketing Group Inc have confirmed that they will provide financial resources as may be required for the company to meet its financial commitments as they fall due for at least twelve months from the date of approval of these financial statements. The parent company have confirmed that they forecast sufficient cash reserves for the foreseeable future period to provide this support. The parent company have also confirmed that amounts due to them will not be recalled until a time when sufficient funds are available. The directors have satisfied themselves that the parent company is able to provide the financial support needed for at least 12 months from approving these financial statements for issue to enable it to continue to trade.
Taking these factors into account it is the Directors' opinion that the company’s financial statements should be prepared on the going concern basis on the grounds that the current liquid working capital and future sources of funding will be more than adequate for the company’s needs. In making these considerations, the directors have considered a future period of at least 12 months from the date in which the financial statements are approved.
Based on the performance of the company and the group subsequent to the year-end, the directors do not consider there to be any material uncertainty relating to the company's ability to continue as a going concern and have prepared the financial statements on a going concern basis.
Revenue is measured at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales-related taxes.
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KADENCE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
3.Significant accounting policies (continued)
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Revenue recognition (continued)
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The company enters into contracts to provide market research services. Revenue from market research services is recognised on a percentage of completion method in relation to each project. Under the percentage of completion method, revenue is recognised on a percentage of costs incurred against total costs expected. The percentage of completion method provides the most faithful depiction of the transfer of goods and services to each customer due to the company’s ability to make reliable estimates based on the costs incurred. The company’s performance obligations are satisfied upon completion of the market research services. The total transaction price of each project is determined on the contract value agreed with the customer.
Contract liabilities are recognised for consideration received in respect of unsatisfied performance obligations and the company reports these amounts as other liabilities in the statement of Financial Position. Similarly, if the company satisfies a performance obligation before it receives the consideration, a contract asset is recognised within the statement of financial position. Invoices for these services transferred are due 60 days upon receipt by the customer.
Services to the group
The company entered into a contract with Cross Marketing Group Inc. to provide the service of a member of staff to fulfil the role of Global Head of Data Management. Revenue is recognised on a monthly basis and invoiced quarterly for an amount agreed at the budget stage, namely salary costs plus an approved overseas travel cost.
Transactions in currencies other than the entity's functional currency are recognised at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing at that date.
Exchange differences are recognised in profit or loss in the period in which they arise.
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the Statement of Profit or Loss and Other Comprehensive Income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
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KADENCE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
3.Significant accounting policies (continued)
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
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Property, plant and equipment
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Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.
Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rate:
The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
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Impairment of tangible assets
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At the end of each reporting period, the Company reviews the carrying amounts of its tangible 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). When 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. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future
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KADENCE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
3.Significant accounting policies (continued)
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Impairment of tangible assets (continued)
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cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease (see note 3.5).
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase (see note 3.5).
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the company expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The company has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred.
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.
The company operates a defined contribution pension scheme. Contributions payable for the year are charged in the statement of comprehensive income.
Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instruments.
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KADENCE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
3.Significant accounting policies (continued)
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Financial instruments (continued)
|
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method. A provision for impairment is made where there is objective evidence of impairment (including customers in financial difficulty or seriously in default against agreed payment terms). There is no material variance between carrying and fair values.
Significant financial difficulties of the customer, probability that the customer will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 60 days overdue) are considered indicators that the trade receivable is impaired. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the statements of comprehensive income within administrative expenses. When a trade receivable is uncollectible, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited against the administrative expenses in the profit and loss.
The Company applies IFRS 9 simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance for all trade receivables and contract assets. The expected loss rates are based on the payment profiles of sales over prior periods and the corresponding historical credit losses experienced during the period.
Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the Statement of Financial Position.
Trade payables
Trade payables are initially recognised at cost and subsequently measured at amortised cost using the effective interest method. There is no material variance between book and fair values.
Equity instruments
Equity instruments are recorded at the proceeds received, net of direct issue costs.
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Critical accounting judgements and key sources of estimation uncertainty
|
In the application of the Company's accounting policies, which are described in note 3, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Long term contracts
The matching of revenue and costs on the long term projects is based on the total costs to complete estimated at the tender stage. Where additional costs are incurred due to customer variations on contracts, additional revenue is either agreed or any changes to the expected margin is recognised at the earliest stage. The estimate of overall costs to complete is one of the largest estimates affecting the amount of revenue recognised.
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KADENCE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
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The following is an analysis of the Company's revenue for the year from continuing operations:
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Analysis of revenue by country of destination:
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18 months to
30 June
2024
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Fees payable for audit services
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Fees payable for taxation compliance services
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Fees payable for other assurance services
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|
KADENCE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
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18 months to
30 June
2024
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Fees payable to auditors (note 6)
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Net loss/(gain) on foreign currency translation
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Defined contribution pension cost
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18 months to
30 June
2024
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Finance lease charges payable
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Bank overdraft interest payable
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Group loan interest payable
|
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|
KADENCE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
|
|
Employee benefit expenses comprise:
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Defined contribution pension cost
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Key management personnel compensation
The key management personnel of the Company, as specified in IAS 24 Related Party Disclosures received aggregate remuneration of £123,100 (2024: £251,329).
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The monthly average number of persons, employed by the Company during the year was as follows:
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The directors are remunerated through the parent company, as part of the Cross Marketing Group.
|
|
|
KADENCE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
|
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|
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11.1 Income tax recognised in profit or loss
|
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|
The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to losses for the year are as follows:
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Profit/(loss) for the year
|
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Profit/(loss) before income taxes
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Tax using the Company's domestic tax rate of 25% (2024:24.01%)
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Expenses not deductible for tax purposes
|
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Other permanent differences
|
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Remeasurement of deferred tax for changes in tax rates
|
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|
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Movement in deferred tax not recognised
|
|
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The Company has unused tax losses of £1,321,486 for which a deferred tax asset of £330,372 has not been recognised due to uncertainty of future profitability. These losses will be available to utilise against future profits should they arise.
|
|
KADENCE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
|
|
Property, plant and equipment
|
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|
|
Accumulated depreciation and impairment
|
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|
|
KADENCE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
|
|
(i) Right-of-use assets as a lessee
|
|
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|
|
The following amounts in respect of leases have been recognised in profit or loss:
|
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Interest expense on lease liabilities
|
|
|
|
|
|
|
|
|
|
Total cash outflow for leases for the period ending 30 June 2025 were nil (2024 - £60,613).
|
|
|
Trade and other receivables
|
|
|
|
|
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|
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Receivables from related parties
|
|
|
|
|
Total financial assets other than cash and cash equivalents classified as loans and receivables
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
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|
|
|
|
Total trade and other receivables
|
|
|
|
|
Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.
Allowances against doubtful debts are recognised against trade receivables based on estimated irrecoverable amounts determined by reference to past default experience of the counterparty and an analysis of the counterparty’s current financial position. The company has not provided against amounts which are past due at the reporting date (2024 – nil provision).
The directors have considered the expected credit loss allowance and forward looking factors which would affect this, they deem any potential expected credit loss allowance to be immaterial.
Trade receivables disclosed above include amounts which are past due at the reporting date of £83,844 (2024: £35,642) but against which the Company has not recognised an allowance for doubtful receivables because there has not been a significant change in credit quality and the amounts are still considered recoverable.
The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.
|
|
|
KADENCE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
|
|
|
|
|
|
|
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|
|
Accrued income released during the year
|
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|
Revenue accrued during the year
|
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|
|
Contract assets at the year ended 30 June 2024 are expected to be received within 1 year from the balance sheet date.
The accrued income amount of £32,297 (2024: £141,993) is included within the prepayments and accrued income balance of £68,155 (2024: £188,480).
The comparative has been restated to disclose the correct accrued income movements. The restatement has no impact on profit, net assets or cash flows for the prior year.
|
|
|
|
|
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|
|
Payables to related parties
|
|
|
|
|
|
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|
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|
|
|
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|
|
Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost
|
|
|
|
|
Other payables - tax and social security payments
|
|
|
|
|
|
|
|
|
|
Total current trade and other payables
|
|
|
|
|
Trade creditors and accruals principally comprise amounts outstanding for trade purchases and on-going costs. The average credit period taken for trade purchases is 9 days (2024: 30 days). For most suppliers no interest is charged on trade payables. The Company has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.
The directors consider that the carrying amount of trade payables approximates to their fair value.
Included within payables to related parties are loans with a total outstanding balance of £709,552 (2024: £843,268). See note 20.2 for details of the loans.
|
|
|
KADENCE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
|
|
|
|
|
|
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|
|
|
Deferred income released during the year
|
|
|
|
|
Revenue deferred during the year
|
|
|
|
|
|
|
|
|
|
Contract liabilities at the year ended 30 June 2025 are expected to be received within 1 year from the balance sheet date.
|
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. The total charge in the current period was £91,465 (2024: £160,028).
|
|
20.1 Financial risk management objectives
|
The management monitors and manages the financial risks relating to the operations of the Company on a periodic basis and analyses exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, price risk and interest rate risk), credit risk and liquidity risk.
|
|
20.2 Foreign currency risk management
|
|
|
The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts.
The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows:
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|
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|
|
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|
|
|
|
KADENCE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
20.Financial instruments (continued)
|
|
20.2 Foreign currency risk management (continued)
|
|
|
Foreign currency sensitivity analysis
|
|
|
The Company is mainly exposed to the United States Dollars and the Euros.
The following table details the Company's sensitivity to a 5% increase and decrease in the pound sterling against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rates. A positive number below indicates an increase in profit or equity where the pound sterling strengthens 5% against the relevant currency. For a 5% weakening of the pound sterling against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.
|
|
|
|
United States Dollars impact
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
20.3 Interest rate risk management
|
The Company is exposed to interest rate risk because the Company borrows funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.
|
|
20.4 Capital risk management
|
The Company manages its capital to ensure that it will be able to continue as a going concern.
The capital structure of the Company consists of debt, which includes cash and cash equivalents and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings.
The Company is not subject to any externally imposed capital requirements.
|
|
20.5 Credit risk management
|
Credit risk predominantly arises from trade receivables, cash and cash equivalents and deposits with banks. The likely credit quality of each customer is assessed internally before accepting any terms of trade. Internal procedures take into account the customer’s financial position, their reputation in the industry and past trading experience. As a result the Company’s exposure to bad debts is not significant. Cash and cash equivalents are held with banks with a minimum rating of ‘A’.
|
|
|
20.6 Liquidity risk management
|
|
|
|
Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company’s short, medium and long term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves and banking facilities, by continuously monitoring forecast and actual cash flows, and by matching maturity profiles of financial assets and liabilities.
|
|
|
KADENCE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
|
|
|
|
Related party transactions
|
Details of transactions between the Company and its related parties are disclosed below.
|
|
21.1 Trading transactions
|
|
|
During the year, the Company entered into the following trading transactions with related parties:
|
|
|
|
|
|
|
|
|
|
18 months to
30 June
2024
|
|
18 months to
30 June
2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kadence International Inc
|
|
|
|
|
|
|
Kadence International Pte Ltd (Singapore)
|
|
|
|
|
|
|
Kadence International PVT (India)
|
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|
|
|
|
|
Cross Marketing Inc. (China)
|
|
|
|
|
|
|
Kadence International Philippines
|
|
|
|
|
|
|
Kadence International (Thailand) Co., Ltd.
|
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|
|
|
|
|
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|
|
|
The following balances were outstanding at the end of the reporting period:
|
|
|
|
Amounts owed by related parties
|
Amounts owed to related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
Cross Marketing Group Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kadence International Pvt. Ltd
|
|
|
|
|
|
|
Kadence International Philippines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21.2 Loans from related parties
|
|
|
|
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|
|
|
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|
Kadence International Business Research PTE Ltd
|
|
|
|
|
Cross Marketing Group Inc.
|
|
|
|
|
|
|
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|
|
This loan from Kadence International Business Research PTE Ltd is repayable in full on demand and has a fixed interest rate of 0.84636%.
The loan from Cross Marketing Group is repayable on 30 June 2030 and has a fixed interest rate of 0.93545%.
|
|
|
KADENCE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
21.Related party transactions (continued)
|
|
21.3 Other related party transactions
|
|
|
|
|
|
Other related party transactions are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
18 months to
30 June
2024
|
|
18 months to
30 June
2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
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|
|
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|
|
Kadence International Inc.
|
|
|
|
|
|
|
|
Kadence International PTE Ltd (Singapore)
|
|
|
|
|
|
|
|
Cross Marketing Group Inc.
|
|
|
|
|
|
|
|
Kadence International Philippines
|
|
|
|
|
|
|
|
Kadence International PVT Ltd (India)
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
Ordinary shares of £0.01 each
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares of £0.01 each
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KADENCE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
Share Premium
This reserve records the amount above the nominal value received for shares sold, less transaction costs.
Retained earnings
This reserve records retained earnings and accumulated losses.
|
|
Notes supporting statement of cash flows
|
|
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|
|
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|
|
|
|
|
|
|
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|
|
Cash and cash equivalents
|
|
|
|
|
Cash at bank available on demand
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents in the statement of financial position
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents in the statement of cash flows
|
|
|
The immediate parent of the company is Kadence International Business Research Pte Ltd. The ultimate parent company is Cross Marketing Group Inc., a company incorporated in Japan. It is listed on the Tokyo Stock Exchange and consolidated accounts are publicly available. The ultimate holding company, Cross Marketing Group Inc. is both the smallest and largest group that prepares consolidated financial statements. In the opinion of the directors there is no one overall controlling party.
On 26 March 2010, the Company entered into a debenture agreement with Royal Bank of Scotland plc, providing security for future borrowings. The debenture includes fixed and floating charges over the Company’s assets. As at the reporting date, there were no borrowings secured under this arrangement. The debenture remains in place and may be used to secure future financing. The assets subject to charge are disclosed in accordance with IFRS 7 and IAS 1.
|
|
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