Northstar Research Partners (UK) Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 04131126 (England and Wales)

Financial Statements for the Year Ended 31 December 2020

for

Northstar Research Partners (UK) Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mr J Histed

Mr D C Ross

Mr F P Lanuto

SECRETARY:

Mr G W Gibson

REGISTERED OFFICE:

Unit B3

City Cloisters

196 Old Street

London

EC1V 9FR

REGISTERED NUMBER:

04131126 (England and Wales)

AUDITOR:

Paul Hartley FCA

Statutory Auditor

Owner

PO Box 27075

London

N2 0FZ

FIXED ASSETS

Tangible assets

4

22,020

61,404

CURRENT ASSETS

Stocks

5

973

33,429

Debtors

6

921,211

1,893,979

Cash at bank

272,132

873,467

1,194,316

2,800,875

CREDITORS

Amounts falling due within one year

7

817,610

2,248,329

NET CURRENT ASSETS

376,706

552,546

TOTAL ASSETS LESS CURRENT LIABILITIES

398,726

613,950

CAPITAL AND RESERVES

Called up share capital

8

215,200

215,200

Retained earnings

183,526

398,750

SHAREHOLDERS' FUNDS

398,726

613,950

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 24 February 2021 and were signed on its behalf by:

Mr J Histed - Director

1.	STATUTORY INFORMATION

Northstar Research Partners (UK) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements

The subsidiary company established in Indonesia ceased operating in November 2017. The value of the investment and debts due from the subsidiary have been written off in the previous accounting periods. The subsidiary is in the process of being dissolved under the Indonesian regulatory process. Consequently, these financial statements deal with the results of the company as a single entity.

Turnover

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Leasehold improvements

-

20% on cost

Office equipment

-

33% on cost

Fixtures and fittings

-

15% on cost

Computer equipment

-

33% on cost

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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

Current tax is recognised at the amount of tax payable using the tax rates and laws that that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

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.

Foreign currencies

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the profit and loss account within 'finance (expense)/income'. All other foreign exchange gains and losses are presented in the profit and loss account within 'Other operating (losses)/gains'.

Pension costs and other post-retirement benefits

The Company operates a defined contribution plan. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate fund. Under defined contribution plans, the company has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

For defined contribution plans, the company pays contributions to privately administered pension plans on a contractual or voluntary basis. The company has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

Work in progress

Long-term contracts are assessed on a contract by contract basis and are reflected in the income statement by recording turnover on the basis of project completed and related costs as contract activity progresses. Where the outcome of each long-term contract can be assessed with reasonable certainty before its conclusion the attributable profit is recognised in the income statement as the difference between the reported turnover and related costs for that contract.

The amounts earned that exceed amounts invoiced are included in amounts recoverable on contracts within debtors, amounts invoiced on contracts that exceed amounts earned are shown as payments on account within creditors where the outcome of the contract cannot be assessed with reasonable certainty, work done to date is included in work in progress at the lower of cost and net realisable value unless the costs are recoverable, in which case they are included in revenue to the extent that they are recoverable.

Government grants

The grant in respect of furloughed employees is shown as income within the profit or loss.`

Operating lease

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease.

Incentives received to enter into an operating lease are credited to the profit and loss account, to reduce the lease expense, on a straight-line basis over the period of the lease.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 20 (2019 - 25 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Leasehold

Office

and

Computer

improvements

equipment

fittings

equipment

Totals

£

£

£

£

£

COST

At 1 January 2020

181,892

26,395

21,836

178,284

408,407

Additions

-

-

-

5,508

5,508

At 31 December 2020

181,892

26,395

21,836

183,792

413,915

DEPRECIATION

At 1 January 2020

161,399

24,144

16,639

144,821

347,003

Charge for year

20,493

1,978

3,370

19,051

44,892

At 31 December 2020

181,892

26,122

20,009

163,872

391,895

NET BOOK VALUE

At 31 December 2020

-

273

1,827

19,920

22,020

At 31 December 2019

20,493

2,251

5,197

33,463

61,404

5.

STOCKS

2020

2019

£

£

Work-in-progress long term

contract balances

973

33,429

6.

DEBTORS

2020

2019

£

£

Amounts falling due within one year:

Trade debtors

584,589

1,679,230

Amounts recoverable on long

term contracts

156,986

69,784

Amounts owed by group undertakings

57,135

10,525

Other debtors

14,037

18,650

Tax

37,967

-

Prepayments

32,771

78,064

883,485

1,856,253

Amounts falling due after more than one year:

Other debtors

37,726

37,726

Aggregate amounts

921,211

1,893,979

Debtors over more than one year relates to the rent deposit.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade creditors

426,240

780,893

Payments received on account

of long term contracts

91,167

853,867

Amounts owed to group undertakings

13,239

13,239

Tax

-

65,257

Social security and other taxes

44,486

44,323

VAT

122,001

186,510

Other creditors

8,427

8,413

Accrued expenses

112,050

295,827

817,610

2,248,329

The company entered into a lease on 26 June 2020 for a period of 3 years at an annual rental of £125,752. The total commitment at 31 December 2020 is £314,380.

Amounts owed to group undertakings include £13,239 owed re share compensation (2019 £13,239).

8.	CALLED UP SHARE CAPITAL

Allotted called up and fully paid

Equity Interests:

1,770 Ordinary shares class A of 10p each

177

177

1,000 Ordinary shares class B of 10p each

100

100

1,723 Deferred shares of £1

1,723

1,723

-------

-------

2,000

2,000

Allotted called up and partly paid

Non-equity interests

311,600 Preference shares class A of £1

202,540

202,540

16,400 Preference shares class B of £1 each

10,660

10,660

-----------

-----------

215,200

215,200

=======

=======

The A and B Preference Shares shall be separate classes of shares and shall not receive a dividend unless the Board recommends a payment of a dividend. They can be redeemed at any time at the Company's discretion as outlined in the Memorandum and Articles and Association.

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditor was unqualified.

Paul Hartley FCA

Statutory Auditor

10.	RELATED PARTY DISCLOSURES

Northstar Research Partners Inc.

Parent company

£137,207 £ (2019 - £168,912) Net salaries recharged to UK subsidiary.

Net salaries recharged to UK included in purchases Nil (2019-£139,469.00l)

Revenue received was £8726 (2019 - Nil)

2020

2019

£

£

Amount due from related party at the balance sheet date

-

391

MDC Partners Inc

Ultimate parent company

During the year the Company borrowed £1,097,211 (£2,480,199 - 2019) for working capital from MDC and repaid all of the loan. Intercompany loan interest paid to MDC Partners Inc £5,987 (13,920 - 2019)

Northstar Research Partners(USA) LLC

Subsidiary of parent

Northstar Research Partners (USA) LLC controls some of the Northstar UK projects and acts as a point of convenience in respect of these and other jobs in North America. They contract for and pay 3rd party liabilities regarding these jobs if it is convenient to do so in the USA. On occasions they collect monies on behalf of Northstar UK.

Net revenue received £87,326 (£10,353 - 2019l)

2020

2019

£

£

Amount due from related party at the balance sheet date

57,135

10,134

11.	ULTIMATE CONTROLLING PARTY

The controlling party is MDC Partners Inc.

MDC Partners Inc - One World Trade Center, Floor 65 New York NY10007

a company incorporated in Canada.

The parent company consolidates this subsidiary in its accounts.

12.	BANK CHARGE ON ALL THE ASSETS OF THE COMPANY

There is a fixed and floating charge on all assets of the Company in respect of borrowings from Wells Fargo Capital Finance LLC by its Ultimate Parent Company MDC Partners Inc.