FST_MARKETING_COMMUNICATI - Accounts

The directors present their annual report and financial statements for the year ended 31 March 2020.

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

The beginning of this year saw the signing of the Legacy Deal and FST embark on a new era, encapsulated in a ten year plan. The running of the business had been passing over to the 3 new Directors over time, the commencement of the Legacy Deal passes over legal ownership.

The previous Directors are still involved in the business at a Board level, providing invaluable experience, continuity and guidance.

The new ownership has set about building on the existing healthy foundations, continuing the transition to more strategically-focused work. To support this, appraising and improving internal systems was a priority, to ensure we continue to have a future-proof and robust process infrastructure.

Commercially speaking, the business built on the previous year’s success, posting an operating profit of £224,495, giving an uplift of 311%. FST Marketing Communications PTE Ltd continues to go from strength to strength in contributing to that, achieving an operating profit of $123,844, it’s fifth profitable year in a row. The balance sheet has strengthened showing reserves of £390,817, a 91% increase from the prior year.

To support the success of the operation in Singapore and to build on our global platform, we are looking to grow both in Singapore and in Miami. These markets remain relatively untapped and help us to mitigate risk by spreading our portfolio of clients.

This year has seen us pick up a major new client in the US in Ciena, which will help to sustain further growth in the region.

The client portfolio remains strong and diverse, with a mix of large global brands and innovative start ups. We continue to work with Visa in all regions of the world, as well as Canon, Avis, RBC, ECB and ICC, that has now been complemented by the addition of Ciena. The portfolio represents good opportunity for growth within existing clients, in addition to our business development efforts.

The 3 new owners and Board Directors continue to assume responsibility for the 3 key pillars of the business, Cultural Growth, Brand Reach and Client Relationships. This ensures we continue to make decisions in-line with our purpose-led approach, and that we retain a healthy balance across the business. We are more determined than ever to maintain our culture and build our brand, we have began working with an external PR agency to serve this purpose. It is vital that business development is matched by our commitment to brand and culture.

As this financial year came to a close, the threat of a global pandemic became a reality, culminating in the closure of the office in March, as we made the mandatory transition to working from home. It remains to be seen how long we will be affected by the pandemic and how the business will fare, but we are confident that the team and our robust processes will see us through the potentially turbulent times ahead.

In accordance with the company's articles, a resolution proposing that The HHC Partnership Ltd be reappointed as auditor of the company will be put at a General Meeting.

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

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

FST Marketing Communications Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Regatta House, 67-71 High Street, Marlow, Bucks, SL7 1AB.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

The company meets its day-to-day working capital requirements throughtrue consistent revenue generation and its bank facilities. The company’s forecasts and projections, show that the company should be able to operate within the level of its current facilities. The directors are confident that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from contracts for the provision of professional services is recognised in the accounting period in which the services are rendered when the outcome of contract can be estimated reliably. The company uses the percentage of completion method based on the actual service performed as a percentage of the total services to be provided.

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

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

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

At each reporting period end date, 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell 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 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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or 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.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The 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 net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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

The above loan is due from FST Marketing Communications PTE. Ltd. a company under the full control of the FST Group Limited, The loan is unsecured and no interest is charged on the amount due.

The National Westminster Bank Plc holds a mortgage debenture dated 19th May 1999 over the assets of the company including its property and book debts.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

As at the balance sheet date, a balance of £130,037 (2019: £245,339) was owed to the company by FST Marketing Communications Pte. Ltd, a company incorporated in Singapore and under the common control of the ultimate parent company The FST Group Limited.

As at the balance sheet date, a balance of £450,000 (2019: £245,339) was owed to the company by it's parent company The FST Group Ltd.

The parent company is The FST Group Limited, a company registered in England and Wales. The directors of the reporting entity are also the directors and shareholders within the parent company.

The ultimate controlling company is Biro ITN Limited, a company registered in England and Wales. The directors of the reporting entity are also the directors and shareholders within the ultimate controlling company.