2 Heads Global Holdings Limited - Limited company accounts 18.2
2 Heads Global Holdings Limited - Limited company accounts 18.2
| REGISTERED NUMBER: 07097156 (England and Wales) |
| GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 JULY 2018 |
| FOR |
| 2 HEADS GLOBAL HOLDINGS LIMITED |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 JULY 2018 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Director | 4 |
| Report of the Independent Auditors | 6 |
| Consolidated Income Statement | 9 |
| Consolidated Other Comprehensive Income | 10 |
| Consolidated Balance Sheet | 11 |
| Company Balance Sheet | 13 |
| Consolidated Statement of Changes in Equity | 15 |
| Company Statement of Changes in Equity | 16 |
| Consolidated Cash Flow Statement | 17 |
| Notes to the Consolidated Cash Flow Statement | 18 |
| Notes to the Consolidated Financial Statements | 19 |
| 2 HEADS GLOBAL HOLDINGS LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 JULY 2018 |
| DIRECTOR: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants and Statutory Auditors |
| Advantage |
| 87 Castle Street |
| Reading |
| Berkshire |
| RG1 7SN |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 JULY 2018 |
| The director presents his Strategic Report of the company and the group for the year ended 31 July 2018. |
| REVIEW OF BUSINESS |
| The group's principal activity is the creation of meaningful brand experiences for its clients across the globe. |
| The group's work spans strategy and branding, content and video, branded environments, exhibitions and |
| tradeshows, live events and event technology. The group created and delivered over 180 brand experiences |
| on behalf of clients in the year ended 31st July 2018, working across every continent worldwide. |
| For the eighth successive year, the group continued to grow its gross profit, being up 43.3% (2017: 2.8%) |
| whilst increasing turnover by 34.4% (2017: 2.8%) to £22,786,936. Continued tight control of the group's |
| supply chain helped drive the gross profit result for the year. |
| The combined turnover by event location which shows a well diversified client base, for the group was: |
| 2018 | 2017 |
| £ | £ |
| United Kingdom | 6,374,033 | 2,062,574 |
| Europe | 9,450,289 | 9,291,572 |
| USA and South America | 5,800,310 | 4,627,550 |
| Asia and ROW | 1,875,024 | 641,039 |
| Middle East | 857,050 | 328,941 |
| Total | 24,356,706 | 16,951,677 |
| £1,569,770 (2017 - £1,691,736) of income is in relation to 2heads Design Inc, an associate. |
| Alongside our strong growth, last year also saw 2Heads continue to reinforce our position as the experiential |
| agency of choice for leading global brands. Outstanding work for clients including Disney, Airbus and |
| Playtech continues to help ambitious businesses establish and shore up competitive advantage in difficult |
| markets. |
| As an agency, our offer continues to be powered by our core promise of 'meaningful experiences'. In reality, |
| activating this promise means consistent focus on three strategic pillars. The first is developing content and |
| digital innovation that helps brands build credible, relevant and distinct associations with their audiences. |
| This is enhanced by our second strategic pillar - namely ongoing investment into technology-powered |
| innovation that enhances the brand experience at every turn. Finally, as even the best strategy is only as |
| good as our ability to execute, the third pillar involves continuing to build the reputation for outstanding |
| security, delivery and trust that we have cultivated over 30 years. |
| This continued focus on earnings before interest, tax, depreciation and amortisation amounted to |
| £1,938,908 (2017 - £1,468,548). |
| The group measures both financial and non-financial key performance indicators ("KPIs") to monitor its |
| performance. The financial KPIs include: |
| 2018 | 2017 |
| £ | £ |
| Gross profit | 7,193,096 | 5,019,149 |
| Gross margin | 31.6% | 29.6% |
| Operating profit | 1,410,119 | 940,695 |
| Operating margin | 6.2% | 5.5% |
| Net current assets | 4,127,266 | 3,359,397 |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 JULY 2018 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The principal risks facing the group include the uncertain global economic climate which can potentially |
| affect customers. The director and senior management monitor and review the performance of the group |
| using, amongst other metrics, the financial KPIs outlined in the previous section of this report. |
| The group's activities expose it to several financial risks that are inherent within its global market place such |
| as cashflow risk and credit risk. |
| The group's activities make it susceptible to the financial risk of changes in foreign currency exchange rates |
| which in turn is a risk to cashflow. The group manages this risk by currency hedging and continues to |
| monitor potential exposure in this area. |
| The group's main financial assets are cash, trade receivables and amounts owed by related undertakings. |
| Therefore the group's main credit risk is attributable to its trade receivables and amounts owed by related |
| undertakings. These amounts are stated in the Balance Sheet at their net realisable value and no provisions |
| or impairment were required in this or the previous financial year. An impairment would be made where |
| there is an identified loss event which had an effect on the recoverability of the asset. |
| The group has no significant credit risk exposure as a result of rigorous credit control policies and because |
| the receivables balance is spread over a variety of clients. |
| FINANCIAL INSTRUMENTS |
| The group operates on a day to day basis with working capital facilities including cash and hire purchase |
| facilities. The group does not utilise any long or short term debt instruments. The group and company do not |
| use financial instruments in their day to day operations or financing. |
| ON BEHALF OF THE BOARD: |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| REPORT OF THE DIRECTOR |
| FOR THE YEAR ENDED 31 JULY 2018 |
| The director presents his report with the financial statements of the company and the group for the year |
| ended 31 July 2018. |
| DIVIDENDS |
| No interim dividends were paid during the year ended 31 July 2018. |
| The director recommends final dividends per share as follows: |
| Ordinary A £1 shares | 3.35 |
| Ordinary B £1 shares | 3.35 |
| The total distribution of dividends for the year ended 31 July 2018 will be £ 392,437 . |
| FUTURE DEVELOPMENTS |
| The director expects the group to continue its annual growth trend as a result of net new client wins, |
| retention and growth of existing clients, rigorous supply chain control and further investment in the senior |
| management team with strategic hires. The group continues to develop its in-house technology solutions for |
| clients which provide invaluable key analytics to aid clients in their business development and brand |
| experience strategies. |
| DIRECTOR |
| DISABLED EMPLOYEES |
| The group is committed to employment practices based on equal opportunities for all employees |
| irrespective of sex, race, colour, disability or marital status. The group gives full and fair consideration to |
| applications for employment for disabled persons, having regard to their particular aptitudes and abilities. |
| EMPLOYEE INVOLVEMENT |
| Amongst other initiatives, the Group periodically holds company-wide meetings to update employees on |
| corporate developments. Employee involvement is encouraged as maintaining employee awareness of |
| factors affecting the Group continues to help drive the future success of the business. |
| STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
| The director is responsible for preparing the Group Strategic Report, the Report of the Director and the |
| financial statements in accordance with applicable law and regulations. |
| Company law requires the director to prepare financial statements for each financial year. Under that law |
| the director has elected to prepare the financial statements in accordance with United Kingdom Generally |
| Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company |
| law the director must not approve the financial statements unless he is satisfied that they give a true and fair |
| view of the state of affairs of the company and the group and of the profit or loss of the group for that |
| period. In preparing these financial statements, the director is required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The director is responsible for keeping adequate accounting records that are sufficient to show and explain |
| the company's and the group's transactions and disclose with reasonable accuracy at any time the financial |
| position of the company and the group and enable him to ensure that the financial statements comply with |
| the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group |
| and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| REPORT OF THE DIRECTOR |
| FOR THE YEAR ENDED 31 JULY 2018 |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the |
| Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he |
| ought to have taken as a director in order to make himself aware of any relevant audit information and to |
| establish that the group's auditors are aware of that information. |
| AUDITORS |
| The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General |
| Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| 2 HEADS GLOBAL HOLDINGS LIMITED |
| Opinion |
| We have audited the financial statements of 2 Heads Global Holdings Limited (the 'parent company') and its |
| subsidiaries (the 'group') for the year ended 31 July 2018 which comprise the Consolidated Income |
| Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance |
| Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, |
| Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the |
| UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the group's and of the parent company affairs as at 31 July 2018 and of the group's 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 Auditors' |
| responsibilities for the audit of the financial statements section of our report. We are independent of the |
| group 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 |
| We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to |
| report to you where: |
| - | the director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
| - | the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
| Other information |
| The director is responsible for the other information. The other information comprises the information in the |
| Group Strategic Report and the Report of the Director, but does not include the financial statements and our |
| Report of the Auditors thereon. |
| 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. |
| In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we |
| identify such material inconsistencies or apparent material misstatements, we are required to determine |
| whether there is a material misstatement in the financial statements or a material misstatement of the other |
| information. 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| 2 HEADS GLOBAL HOLDINGS LIMITED |
| Opinion 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the group and the parent company and its environment |
| obtained in the course of the audit, we have not identified material misstatements in the Group Strategic |
| Report or the Report of the Director. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to |
| report to you if, in our opinion: |
| - | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of director's remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of director |
| As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is |
| 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 director determines 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 director is responsible for assessing the group's and the parent |
| company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern |
| and using the going concern basis of accounting unless the director either intends to liquidate the group or |
| the parent company or to cease operations, or has no realistic alternative but to do so. |
| Auditors' 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 a Report of the Auditors 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. |
| 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 Report of the Auditors. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| 2 HEADS GLOBAL HOLDINGS LIMITED |
| Use of our 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 a Report of the Auditors 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. |
| for and on behalf of |
| Chartered Accountants and Statutory Auditors |
| Advantage |
| 87 Castle Street |
| Reading |
| Berkshire |
| RG1 7SN |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| CONSOLIDATED INCOME STATEMENT |
| FOR THE YEAR ENDED 31 JULY 2018 |
| 2018 | 2017 |
| Notes | £ | £ | £ | £ |
| TURNOVER | 4 | 22,786,936 | 16,951,677 |
| Cost of sales | 15,593,840 | 11,932,528 |
| GROSS PROFIT | 7,193,096 | 5,019,149 |
| Administrative expenses | 5,871,215 | 4,192,289 |
| 1,321,881 | 826,860 |
| Other operating income | 88,238 | 113,835 |
| OPERATING PROFIT | 6 | 1,410,119 | 940,695 |
| Income from interest in associated undertakings |
27,119 |
- |
| Interest receivable and similar income | 7 | 16,597 | 37,173 |
| 43,716 | 37,173 |
| 1,453,835 | 977,868 |
| Interest payable and similar expenses | 8 | 2,553 | 13,219 |
| PROFIT BEFORE TAXATION | 1,451,282 | 964,649 |
| Tax on profit | 9 | 373,785 | 311,251 |
| PROFIT FOR THE FINANCIAL YEAR |
| Profit attributable to: |
| Owners of the parent | 1,077,497 | 634,456 |
| Non-controlling interests | - | 18,942 |
| 1,077,497 | 653,398 |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| CONSOLIDATED OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31 JULY 2018 |
| 2018 | 2017 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR | 1,077,497 | 653,398 |
| OTHER COMPREHENSIVE INCOME |
| Purchase of own shares |
| Foreign exchange on consolidation | 12,703 | (347 | ) |
| Transfer between reserves | - | 128,025 |
| Income tax relating to components of other comprehensive income |
- |
- |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
12,703 |
127,678 |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,090,200 |
781,076 |
| Total comprehensive income attributable to: |
| Owners of the parent | 1,255,667 | 762,658 |
| Non-controlling interests | (165,467 | ) | 18,418 |
| 1,090,200 | 781,076 |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| CONSOLIDATED BALANCE SHEET |
| 31 JULY 2018 |
| 2018 | 2017 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 12 | 751,839 | 1,178,472 |
| Tangible assets | 13 | 277,835 | 182,423 |
| Investments | 14 |
| Interest in associate | 94,970 | - |
| 1,124,644 | 1,360,895 |
| CURRENT ASSETS |
| Stocks | 15 | 866,755 | 319,850 |
| Debtors | 16 | 7,653,589 | 4,922,040 |
| Cash at bank and in hand | 17 | 2,735,200 | 3,002,443 |
| 11,255,544 | 8,244,333 |
| CREDITORS |
| Amounts falling due within one year | 18 | 7,128,278 | 4,884,936 |
| NET CURRENT ASSETS | 4,127,266 | 3,359,397 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
5,251,910 |
4,720,292 |
| CREDITORS |
| Amounts falling due after more than one year |
19 |
(28,776 |
) |
(35,534 |
) |
| PROVISIONS FOR LIABILITIES | 22 | (27,218 | ) | (21,138 | ) |
| NET ASSETS | 5,195,916 | 4,663,620 |
| CAPITAL AND RESERVES |
| Called up share capital | 23 | 117,145 | 117,145 |
| Share premium | 24 | 2,895,353 | 2,895,353 |
| Capital redemption reserve | 24 | 7,501 | 7,501 |
| Foreign exchange reserve | 24 | - | (12,703 | ) |
| Retained earnings | 24 | 2,175,917 | 1,490,857 |
| SHAREHOLDERS' FUNDS | 5,195,916 | 4,498,153 |
| NON-CONTROLLING INTERESTS | - | 165,467 |
| TOTAL EQUITY | 5,195,916 | 4,663,620 |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| CONSOLIDATED BALANCE SHEET - continued |
| 31 JULY 2018 |
| The financial statements were approved and authorised for issue by the director on 12 April 2019 and were |
| signed by: |
| P Parra - Director |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| COMPANY BALANCE SHEET |
| 31 JULY 2018 |
| 2018 | 2017 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 12 |
| Tangible assets | 13 |
| Investments | 14 |
| CURRENT ASSETS |
| Debtors | 16 |
| Cash at bank | 17 |
| CREDITORS |
| Amounts falling due within one year | 18 |
| NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CAPITAL AND RESERVES |
| Called up share capital | 23 |
| Share premium | 24 |
| Capital redemption reserve | 24 |
| Retained earnings | 24 |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 118,132 | 134,520 |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| COMPANY BALANCE SHEET - continued |
| 31 JULY 2018 |
| The financial statements were approved and authorised for issue by the director on signed by: |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 JULY 2018 |
| Called up | Capital |
| share | Retained | Share | redemption |
| capital | earnings | premium | reserve |
| £ | £ | £ | £ |
| Balance at 1 August 2016 | 42,528 | 878,376 | 2,969,970 | 7,501 |
| Changes in equity |
| Issue of share capital | 74,617 | - | (74,617 | ) | - |
| Dividends | - | (150,000 | ) | - | - |
| Total comprehensive income | - | 762,481 | - | - |
| Balance at 31 July 2017 | 117,145 | 1,490,857 | 2,895,353 | 7,501 |
| Changes in equity |
| Dividends | - | (392,437 | ) | - | - |
| Total comprehensive income | - | 1,077,497 | - | - |
| Balance at 31 July 2018 | 117,145 | 2,175,917 | 2,895,353 | 7,501 |
| Foreign |
| exchange | Treasury | Non-controlling | Total |
| reserve | reserve | Total | interests | equity |
| £ | £ | £ | £ | £ |
| Balance at 1 August 2016 | (12,356 | ) | - | 3,886,019 | 147,049 | 4,033,068 |
| Changes in equity |
| Dividends | - | - | (150,000 | ) | - | (150,000 | ) |
| Total comprehensive income | (347 | ) | - | 762,134 | 18,418 | 780,552 |
| Balance at 31 July 2017 | (12,703 | ) | - | 4,498,153 | 165,467 | 4,663,620 |
| Changes in equity |
| Dividends | - | - | (392,437 | ) | - | (392,437 | ) |
| Total comprehensive income | 12,703 | - | 1,090,200 | (165,467 | ) | 924,733 |
| Balance at 31 July 2018 | - | - | 5,195,916 | - | 5,195,916 |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| COMPANY STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 JULY 2018 |
| Called up |
| share | Retained | Share |
| capital | earnings | premium |
| £ | £ | £ |
| Balance at 1 August 2016 |
| Changes in equity |
| Issue of share capital | - | ( |
) |
| Dividends | - | ( |
) | - |
| Total comprehensive income | - | - |
| Balance at 31 July 2017 |
| Changes in equity |
| Dividends | - | ( |
) | - |
| Total comprehensive income | - | - |
| Balance at 31 July 2018 |
| Capital |
| redemption | Treasury | Total |
| reserve | reserve | equity |
| £ | £ | £ |
| Balance at 1 August 2016 |
| Changes in equity |
| Dividends | - | - | ( |
) |
| Total comprehensive income |
| Balance at 31 July 2017 |
| Changes in equity |
| Dividends | - | - | ( |
) |
| Total comprehensive income |
| Balance at 31 July 2018 |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 JULY 2018 |
| 2018 | 2017 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 957,867 | 504,931 |
| Interest paid | - | (9,315 | ) |
| Interest element of hire purchase payments paid |
(2,553 |
) |
(3,904 |
) |
| Tax paid | (321,473 | ) | (517,951 | ) |
| Net cash from operating activities | 633,841 | (26,239 | ) |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (224,235 | ) | (46,359 | ) |
| Purchase of fixed asset investments | (67,851 | ) | - |
| Sale of tangible fixed assets | 24,732 | 12,132 |
| Sale of fixed asset investments | (294,501 | ) | - |
| Interest received | 16,597 | 37,173 |
| Income from interest in associate | 27,119 | - |
| Net cash from investing activities | (518,139 | ) | 2,946 |
| Cash flows from financing activities |
| Capital repayments in year | (6,758 | ) | (19,301 | ) |
| Amount introduced by directors | - | 9,076 |
| Share issue | 16,250 | - |
| Employee Benefit Trust | - | 128,025 |
| Equity dividends paid | (392,437 | ) | (150,000 | ) |
| Net cash from financing activities | (382,945 | ) | (32,200 | ) |
| Decrease in cash and cash equivalents | (267,243 | ) | (55,493 | ) |
| Cash and cash equivalents at beginning of year |
2 |
3,002,443 |
3,057,936 |
| Cash and cash equivalents at end of year |
2 |
2,735,200 |
3,002,443 |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 JULY 2018 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2018 | 2017 |
| £ | £ |
| Profit before taxation | 1,451,282 | 964,649 |
| Depreciation charges | 485,257 | 491,511 |
| Loss/(profit) on disposal of fixed assets | 160,085 | (12,132 | ) |
| Foreign exchange on consolidation | - | (877 | ) |
| Finance costs | 2,553 | 13,219 |
| Finance income | (43,716 | ) | (37,173 | ) |
| 2,055,461 | 1,419,197 |
| Increase in stocks | (546,905 | ) | (65,231 | ) |
| Increase in trade and other debtors | (2,764,049 | ) | (1,657,836 | ) |
| Increase in trade and other creditors | 2,213,360 | 808,801 |
| Cash generated from operations | 957,867 | 504,931 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in |
| respect of these Balance Sheet amounts: |
| Year ended 31 July 2018 |
| 31.7.18 | 1.8.17 |
| £ | £ |
| Cash and cash equivalents | 2,735,200 | 3,002,443 |
| Year ended 31 July 2017 |
| 31.7.17 | 1.8.16 |
| £ | £ |
| Cash and cash equivalents | 3,002,443 | 3,057,936 |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 JULY 2018 |
| 1. | GENERAL INFORMATION |
| 2 Heads Global Holdings Limited ("the company") and its subsidiaries (together "the group") creates |
| and delivers meaningful client experiences and related products. The group operates primarily in the |
| UK, Europe and USA. |
| 2. | STATUTORY INFORMATION |
| 2 Heads Global Holdings Limited is a |
| Wales. The company's registered number and registered office address can be found on the General |
| Information page. |
| 3. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Basis of consolidation |
| The group consolidated financial statements include the financial statements of the company and all |
| of its subsidiary undertakings. |
| A subsidiary is an entity controlled by the group. Control is the power to govern the financial and |
| operating policies of an entity so as to obtain benefits from its activities. |
| Where a subsidiary has different accounting policies to the group, adjustments are made to those |
| subsidiary financial statements to apply the group's accounting policies when preparing the |
| consolidated financial statements. |
| Any subsidiary undertakings sold or acquired during the year are included up to, or from, the dates of |
| change of control or change of significant influence respectively. |
| Where control of a subsidiary is lost, the gain or loss is recognised in the consolidated income |
| statement. The cumulative amounts of any exchange differences on translation, recognised in equity, |
| are not included in the gain or loss on disposal and are transferred to retained earnings. The gain or |
| loss also includes amounts included in other comprehensive income that are required to be |
| reclassified to profit or loss but excludes those amounts that are not required to be reclassified. |
| Where the control of a subsidiary is achieved in stages, the initial acquisition that gave the group |
| control is accounted for as a business combination. Thereafter where the group increases its |
| controlling interest in the subsidiary the transaction is treated as a transaction between equity holders. |
| Any difference between the fair value of the consideration paid and the carrying amount of the |
| non-controlling interest acquired is recognised directly in equity. No changes are made to the carrying |
| value of assets, liabilities or provisions for contingent liabilities. |
| All intra-group transactions, balances, income and expenses are eliminated on consolidation. |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2018 |
| 3. | ACCOUNTING POLICIES - continued |
| Revenue recognition |
| Revenue is measured at the fair value of the consideration received or receivable and represents the |
| amount receivable for services rendered, excluding Value Added Tax (VAT). |
| The group recognises revenue by reference to the stage of completion and as detailed below: |
| i. Sale of services |
| The group creates and delivers meaningful client experiences and related products. Revenue is |
| recognised once the service has been delivered. |
| ii. Rental income |
| The group earns rental income from the subletting of its leased property. Rental income is recognised |
| in the period to which it relates. |
| iii. Interest income |
| Interest income is recognised when the right to receive payment is established. |
| iv. Dividend income |
| Dividend income is recognised when the right to receive payment is established. |
| Business combinations and goodwill |
| Business combinations are accounted for by applying the purchase method. |
| The cost of a business combination is the fair value of the consideration given, liabilities incurred or |
| assumed and of equity instruments issued plus the costs directly attributable to the business |
| combination. Where control is achieved in stages the cost is the consideration at the date of each |
| transaction. |
| Contingent consideration is initially recognised at estimated amount where the consideration is |
| probable and can be reliably measured. Where (i) the contingent consideration is not considered |
| probable and measurable or (ii) contingent consideration previously measured is adjusted, the |
| amounts are recognised as an adjustment to the cost of the business combination. |
| On acquisition of a business, fair values are attributed to identifiable assets, liabilities and contingent |
| liabilities unless the fair value cannot be measured reliably, in which case the value is incorporated in |
| goodwill. Where the fair value of contingent liabilities cannot be reliably measured they are disclosed |
| on the same basis as other contingent liabilities. |
| Goodwill recognised represents the excess of the fair value and directly attributable costs of the |
| purchase consideration over the fair values to the group's interest in the identifiable net assets, |
| liabilities and contingent liabilities. |
| On acquisition, goodwill is allocated to cash-generating units that are expected to benefit from the |
| combination. |
| Goodwill is amortised over its expected useful life. Where the group is unable to make a reliable |
| estimate of useful life, goodwill is amortised over a period not exceeding 10 years. Goodwill is |
| assessed for impairment when there are indicators of impairment and any impairment is charged to |
| the income statement. Reversals of impairment are recognised when the reasons for the impairment |
| no longer apply. |
| Intangible assets |
| Intangible assets are initially measured at cost. After initial recognition, intangible assets are |
| measured at cost less any accumulated amortisation and any accumulated impairment losses. |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2018 |
| 3. | ACCOUNTING POLICIES - continued |
| Tangible fixed assets |
| Tangible fixed assets are recorded at historical cost less accumulated depreciation. Cost comprises |
| the purchase price and any costs directly attributable to bringing the asset to its working condition and |
| location for its intended use. Depreciation is provided at the following annual rates in order to write |
| down the cost of each asset to its estimated residual value over its estimated useful life. |
| Land and buildings | - straight line over the life of the lease |
| Plant and machinery | - 33% straight line |
| Fixtures and fittings | - 20% straight line |
| Motor vehicles | - 20% straight line |
| Computer equipment | - 20% straight line |
| Investments in associates |
| Investments in associate undertakings are recognised at cost. |
| Work in progress |
| Work in progress is valued on the basis of direct costs plus attributable overheads based on normal |
| level of activity. Provision is made for any foreseeable losses where appropriate. No element of |
| profit is included in the valuation of work in progress. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated |
| Income Statement, except to the extent that it relates to items recognised in other comprehensive |
| income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been |
| enacted or substantively enacted by the balance sheet date. |
| Deferred taxation |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at |
| the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods |
| different from those in which they are recognised in financial statements. Deferred tax is measured |
| using tax rates and laws that have been enacted or substantively enacted by the year end and that |
| are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is |
| probable that they will be recovered against the reversal of deferred tax liabilities or other future |
| taxable profits. |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2018 |
| 3. | ACCOUNTING POLICIES - continued |
| Foreign currencies |
| The group financial statements are presented in pounds sterling and rounded to the nearest pound. |
| i. Functional and presentational currency |
| In the group's financial statements, all assets, liabilities and transactions of the group's entities are |
| translated into sterling (the functional currency of the parent company). Average exchange rates are |
| used to translate the income and expenses of all subsidiaries that have a functional currency other |
| than sterling where there has been no significant fluctuation in the rate. The Balance Sheets of such |
| entities are translated at period end exchange rates. All resulting exchange differences are |
| recognised as a separate component of equity. Goodwill and fair value adjustments arising on the |
| acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at |
| the closing rate. On consolidation, exchange differences arising from the translation of the net |
| investment in foreign operations are recognised in equity. |
| ii. Transactions and balances |
| Foreign currency transactions are translated into the functional currency using the exchange rates |
| prevailing at the dates of the transactions or valuation where items are re-measured. Foreign |
| exchange gains and losses resulting from the settlement of such transactions and from the translation |
| at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are |
| recognised in the Income Statement. All other foreign exchange gains and losses are presented in |
| the Income Statement within 'administrative expenses'. |
| Fixed assets are measured at historical cost and translated using the exchange rates at the date of |
| transaction (not retranslated). |
| Hire purchase and leasing commitments |
| At inception the group assesses agreements that transfer the right to use assets. The assessment |
| considers whether the arrangement is, or contains, a lease based on the substance of the agreement. |
| i. Finance leased assets |
| Leases of assets that transfer substantially all the risks and rewards incidental to ownership are |
| classified as finance leases. |
| Finance leases are capitalised at commencement of the lease as assets at the fair value of the |
| leased asset or, if lower, the present value of the minimum lease payments calculated using the |
| interest rate implicit in the lease. Where the implicit rate cannot be determined the company's |
| incremental borrowing rate is used. |
| The capital element of lease obligations is recorded as a liability on inception of the agreement. |
| Lease payments are apportioned between capital repayment and finance charge, using the effective |
| interest rate method, to produce a constant rate of charge on the balance of the capital repayments |
| outstanding. |
| ii. Operating leased assets |
| Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. |
| Payments under operating leases are charged to the Income Statement on a straight line basis over |
| the period of the lease. |
| iii. Lease incentives |
| Incentives received to enter into an operating lease are credited to the Income Statement, to reduce |
| the lease expense, on a straight line basis over the period of the lease. |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2018 |
| 3. | ACCOUNTING POLICIES - continued |
| Employee benefits |
| The group provides a range of benefits to employees, including annual bonus arrangements and |
| defined contribution pension plans. |
| i. Short term benefits |
| Short term benefits, including holiday pay, are recognised as an expense in the period in which the |
| service is received. |
| ii. Defined contribution pension plans |
| The group operates a defined contribution plan for its employees. A defined contribution plan is a |
| pension plan under which the group pays fixed contributions into a separate entity. Once the |
| contributions have been paid the group has no further payment obligations. The contributions are |
| recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance |
| sheet. The assets of the plan are held separately from the company in independently administered |
| funds. |
| iii. Annual bonus plan |
| The group operates an annual bonus plan for employees. An expense is recognised in the profit and |
| loss accounts when the group has a legal or constructive obligation to make payments under the plan |
| as a result of past events and a reliable estimate of the obligation can be made. |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2018 |
| 3. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| The group has chosen to adopt sections 11 and 12 of FRS 102 in respect of financial instruments. |
| i. Financial assets |
| Basic financial assets, including trade and other receivables, cash and bank balances are initially |
| recognised at transaction price. |
| At the end of the reporting period financial assets measured at amortised cost are assessed for |
| objective evidence of impairment. 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 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. |
| Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset |
| expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are |
| transferred to another party or (c) control of the asset has been transferred to another party who has |
| the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional |
| restrictions. |
| ii. Financial liabilities |
| Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group |
| companies are initially recognised at transaction price. |
| Trade payables are obligations to pay for goods or services that have been acquired in the ordinary |
| course of business from suppliers. Accounts 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. |
| Financial liabilities are derecognised when the liability is extinguished, that is when the contractual |
| obligation is discharged, cancelled or expires. |
| 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. |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2018 |
| 4. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the group. |
| An analysis of turnover by geographical market is given below: |
| 2018 | 2017 |
| £ | £ |
| United Kingdom |
| Europe |
| USA and South America | 9,649,712 | 9,335,870 |
| Asia and ROW | 176,829 | 188,042 |
| Middle East | - | 124,708 |
| 5. | EMPLOYEES AND DIRECTORS |
| 2018 | 2017 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 2018 | 2017 |
| Sales | 2 | 3 |
| Design & project management | 40 | 33 |
| Warehouse | 2 | 2 |
| Administrative | 9 | 9 |
| The average number of employees by undertakings that were proportionately consolidated during the |
| year was 53 (2017 - 47 ) . |
| 2018 | 2017 |
| £ | £ |
| Director's remuneration |
| Director's pension contributions to money purchase schemes |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2018 |
| 6. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2018 | 2017 |
| £ | £ |
| Hire of plant and machinery |
| Other operating leases |
| Operating lease income | ( |
) | ( |
) |
| Depreciation - owned assets |
| Depreciation - assets on hire purchase contracts |
| Loss/(profit) on disposal of fixed assets | ( |
) |
| Goodwill amortisation |
| Auditor's remuneration |
| Foreign exchange differences | ( |
) |
| 7. | INTEREST RECEIVABLE AND SIMILAR INCOME |
| 2018 | 2017 |
| £ | £ |
| Deposit account interest |
| 8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2018 | 2017 |
| £ | £ |
| Bank interest |
| Other interest payable |
| Hire purchase |
| 9. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2018 | 2017 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Deferred tax | ( |
) |
| Tax on profit |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2018 |
| 9. | TAXATION - continued |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The |
| difference is explained below: |
| 2018 | 2017 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of |
| Effects of: |
| Expenses not deductible for tax purposes |
| Capital allowances in excess of depreciation | ( |
) | - |
| Depreciation in excess of capital allowances | - |
| Amortisation charge on consolidation | 71,425 | 76,437 |
| Difference in US tax rates | - | 44,520 |
| Deferred tax movement | 6,079 | (7,093 | ) |
| Income from associated undertakings | (5,153 | ) | - |
| Loss on disposal of fixed asset investment | 31,869 | - |
| Total tax charge | 373,785 | 311,251 |
| Tax effects relating to effects of other comprehensive income |
| 2018 |
| Gross | Tax | Net |
| £ | £ | £ |
| Purchase of own shares |
| Foreign exchange on consolidation | - | 12,703 |
| Transfer between reserves |
| 12,703 | - | 12,703 |
| 2017 |
| Gross | Tax | Net |
| £ | £ | £ |
| Purchase of own shares |
| Foreign exchange on consolidation | ( |
) | - | (347 | ) |
| Transfer between reserves | - | 128,025 |
| 127,678 | - | 127,678 |
| 10. | INDIVIDUAL INCOME STATEMENT |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent |
| company is not presented as part of these financial statements. |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2018 |
| 11. | DIVIDENDS |
| 2018 | 2017 |
| £ | £ |
| Ordinary A shares of £1 each |
| Final |
| Ordinary B shares of £1 each |
| Final |
| 12. | INTANGIBLE FIXED ASSETS |
| Group |
| Goodwill |
| £ |
| COST |
| At 1 August 2017 |
| Disposals | ( |
) |
| At 31 July 2018 |
| AMORTISATION |
| At 1 August 2017 |
| Amortisation for year |
| Eliminated on disposal | ( |
) |
| At 31 July 2018 |
| NET BOOK VALUE |
| At 31 July 2018 |
| At 31 July 2017 |
| Company |
| Company balances are nil |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2018 |
| 13. | TANGIBLE FIXED ASSETS |
| Group |
| Fixtures |
| Short | Plant and | and |
| leasehold | machinery | fittings |
| £ | £ | £ |
| COST |
| At 1 August 2017 | - | 203,501 | 156,888 |
| Additions | 17,930 | 35,623 | 65,682 |
| Disposals | - | (33,684 | ) | (56,072 | ) |
| At 31 July 2018 | 17,930 | 205,440 | 166,498 |
| DEPRECIATION |
| At 1 August 2017 | - | 138,255 | 90,331 |
| Charge for year | 724 | 38,758 | 34,067 |
| Eliminated on disposal | - | (31,283 | ) | (47,905 | ) |
| At 31 July 2018 | 724 | 145,730 | 76,493 |
| NET BOOK VALUE |
| At 31 July 2018 | 17,206 | 59,710 | 90,005 |
| At 31 July 2017 | - | 65,246 | 66,557 |
| Motor | Computer |
| vehicles | equipment | Totals |
| £ | £ | £ |
| COST |
| At 1 August 2017 | 184,890 | 9,483 | 554,762 |
| Additions | 105,000 | - | 224,235 |
| Disposals | (48,645 | ) | (9,483 | ) | (147,884 | ) |
| At 31 July 2018 | 241,245 | - | 631,113 |
| DEPRECIATION |
| At 1 August 2017 | 134,270 | 9,483 | 372,339 |
| Charge for year | 35,788 | - | 109,337 |
| Eliminated on disposal | (39,727 | ) | (9,483 | ) | (128,398 | ) |
| At 31 July 2018 | 130,331 | - | 353,278 |
| NET BOOK VALUE |
| At 31 July 2018 | 110,914 | - | 277,835 |
| At 31 July 2017 | 50,620 | - | 182,423 |
| Company |
| Company balances are nil |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2018 |
| 13. | TANGIBLE FIXED ASSETS - continued |
| Group |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Motor |
| vehicles |
| £ |
| COST |
| At 1 August 2017 |
| and 31 July 2018 | 35,399 |
| DEPRECIATION |
| At 1 August 2017 | 10,030 |
| Charge for year | 7,080 |
| At 31 July 2018 | 17,110 |
| NET BOOK VALUE |
| At 31 July 2018 | 18,289 |
| At 31 July 2017 | 25,369 |
| 14. | FIXED ASSET INVESTMENTS |
| Group |
| Interest |
| in |
| associate |
| £ |
| COST |
| Additions | 67,851 |
| Share of profit/(loss) | 27,119 |
| At 31 July 2018 | 94,970 |
| NET BOOK VALUE |
| At 31 July 2018 | 94,970 |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 August 2017 |
| and 31 July 2018 |
| NET BOOK VALUE |
| At 31 July 2018 |
| At 31 July 2017 |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2018 |
| 14. | FIXED ASSET INVESTMENTS - continued |
| The group or the company's investments at the Balance Sheet date in the share capital of companies |
| include the following: |
| Subsidiary |
| Registered office: Crosby House, Meadowbank, Furlong Road, Bourne End, SL8 5AJ |
| Nature of business: |
| % |
| Class of shares: | holding |
| The above subsidiary is included in the consolidation. The company's investment in 2 Heads Global |
| Design Limited is direct ownership, all other investments are indirect ownership. The group's 51% |
| ownership of of 2Heads Design Inc was reduced to 20% on 1 August 2017. |
| 15. | STOCKS |
| Group |
| 2018 | 2017 |
| £ | £ |
| Work-in-progress | 866,755 | 319,850 |
| 16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2018 | 2017 | 2018 | 2017 |
| £ | £ | £ | £ |
| Trade debtors | 6,090,338 | 4,035,352 |
| Amounts owed by group undertakings | - | - |
| Other debtors | 578,772 | 559,008 |
| VAT | 84,412 | - |
| Called up share capital not paid | 3,750 | 20,000 |
| Prepayments and accrued income | 896,317 | 307,680 |
| 7,653,589 | 4,922,040 |
| 17. | CASH AT BANK AND IN HAND |
| 2018 | 2017 |
| £ | £ |
| Bank balances | 2,730,953 | 2,999,610 |
| Cash in hand | 4,247 | 2,833 |
| 2,735,200 | 3,002,443 |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2018 |
| 18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2018 | 2017 | 2018 | 2017 |
| £ | £ | £ | £ |
| Hire purchase contracts (see note 20) | 6,722 | 6,722 |
| Trade creditors | 2,417,665 | 969,373 |
| Amounts owed to group undertakings | 13,672 | - |
| Tax | 167,798 | 121,565 |
| Social security and other taxes | 94,159 | 61,962 |
| VAT | - | 80,829 | - | - |
| Other creditors | 268,557 | 115,918 |
| Accruals and deferred income | 3,061,032 | 3,253,477 |
| Accrued expenses | 1,098,673 | 275,090 |
| 7,128,278 | 4,884,936 |
| 19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group |
| 2018 | 2017 |
| £ | £ |
| Hire purchase contracts (see note 20) | 10,643 | 17,401 |
| Other creditors | 18,133 | 18,133 |
| 28,776 | 35,534 |
| 20. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase |
| contracts |
| 2018 | 2017 |
| £ | £ |
| Net obligations repayable: |
| Within one year | 6,722 | 6,722 |
| Between one and five years | 10,643 | 17,401 |
| 17,365 | 24,123 |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2018 |
| 20. | LEASING AGREEMENTS - continued |
| Group |
| Non-cancellable |
| operating leases |
| 2018 | 2017 |
| £ | £ |
| Within one year | 354,327 | 311,966 |
| Between one and five years | 1,252,796 | 1,083,474 |
| In more than five years | 590,960 | 853,609 |
| 2,198,083 | 2,249,049 |
| The future minimum lease receipts under non-cancellable operating leases are as follows: |
| 2018 | 2017 |
| £ | £ |
| Within one year | 60,447 | 60.447 |
| Between one and five years | 80,596 | 141,043 |
| 141,043 | 201,490 |
| 21. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group |
| 2018 | 2017 |
| £ | £ |
| Hire purchase contracts | 17,365 | 24,123 |
| Obligations under hire purchase leases are secured on the assets to which they relate. |
| 22. | PROVISIONS FOR LIABILITIES |
| Group |
| 2018 | 2017 |
| £ | £ |
| Deferred tax | 27,218 | 21,138 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 August 2017 | 21,138 |
| Provided during year | 6,080 |
| Balance at 31 July 2018 | 27,218 |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2018 |
| 23. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2018 | 2017 |
| value: | £ | £ |
| Ordinary A | £1 | 42,500 | 42,500 |
| Ordinary B | £1 | 74,645 | 74,645 |
| 117,145 | 117,145 |
| 24. | RESERVES |
| Group |
| Capital | Foreign |
| Retained | Share | redemption | exchange |
| earnings | premium | reserve | reserve | Totals |
| £ | £ | £ | £ | £ |
| At 1 August 2017 | 1,490,857 | 2,895,353 | 7,501 | (12,703 | ) | 4,381,008 |
| Profit for the year | 1,077,497 | 1,077,497 |
| Dividends | (392,437 | ) | (392,437 | ) |
| Movement during the year | - | - | - | 12,703 | 12,703 |
| At 31 July 2018 | 2,175,917 | 2,895,353 | 7,501 | - | 5,078,771 |
| Company |
| Capital |
| Retained | Share | redemption |
| earnings | premium | reserve | Totals |
| £ | £ | £ | £ |
| At 1 August 2017 | 5,457,963 |
| Profit for the year |
| Dividends | ( |
) | ( |
) |
| At 31 July 2018 | 5,183,658 |
| 25. | RELATED PARTY DISCLOSURES |
| Other related parties |
| 2018 | 2017 |
| £ | £ |
| Purchases | 504,073 | 391,102 |
| Transfers | 15,000 | 179,798 |
| Amount due from related party | 544,798 | 529,798 |
| 2 HEADS GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 07097156) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 JULY 2018 |
| 25. | RELATED PARTY DISCLOSURES - continued |
| No compensation was paid to key management personnel during the year. However during the year |
| ended 31 July 2017 a total of key management personnel compensation of £ 14,225 was paid. |