Principles Communications Limited - Period Ending 2022-03-31

Principles Communications Limited

Contents

Balance Sheet	1
Notes to the Financial Statements	2 to 8

Principles Communications Limited

(Registration number: 01983541)
Balance Sheet as at 31 March 2022

	Note	2022		2021
		£	£	£	£
Fixed assets
Tangible assets	6		-		34,475
Current assets
Stocks	7	-		1,500
Debtors	8	189,395		4,954,938
Cash at bank and in hand		-		91,772
		189,395		5,048,210
Creditors: Amounts falling due within one year	9	(45,455)		(4,704,011)
Net current assets			143,940		344,199
Total assets less current liabilities			143,940		378,674
Creditors: Amounts falling due after more than one year	9		(143,939)		(189,393)
Net assets			1		189,281
Capital and reserves
Called up share capital	11	1		100,000
Share premium reserve		-		12,137
Capital redemption reserve		-		20,000
Profit and loss account		-		57,144
Total equity			1		189,281

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 17 August 2022 and signed on its behalf by:
 

......................................... B May Director

Principles Communications Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

1	General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
White Rose House
Otley Road
Headingley
Leeds
LS6 2AD

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

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 disclosure and presentation requirements of Section 1A and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The company's functional and presentation currency is pound sterling.

Summary of disclosure exemptions

The company has taken advantage of the exemption under Financial Reporting Standard 102 Section 1AC.35 from disclosing transactions and balances with fellow group undertakings that are wholly owned.

Name of parent of group

These financial statements are consolidated in the financial statements of Advertising Principles Holdings Limited.

The financial statements of Advertising Principles Holdings Limited may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

Going concern

The financial statements have been prepared on a going concern basis. The company has ceased to trade during the year but has the support of its parent company to continue to meet its debts as they fall due.

Audit report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 17 August 2022 was Andrew Padgett FCCA, who signed for and on behalf of Watson Buckle Limited.

Revenue recognition

Turnover is measured at fair value of the consideration received or receivable, net of discounts and value added taxes. All turnover is generated from the rendering of services.

Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognisable are recoverable.

Principles Communications Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

Government grants

Grants are recognised when there is reasonable assurance that the entity will comply with the conditions attaching to them and the grants will be received.

Grants are measured at the fair value of the asset received or receivable.

Grants relating to revenue shall be recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.

Tax

The tax expense for the period comprises tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Leasehold improvements	20% straight line basis
Fixture and fittings	20% straight line basis
Equipment	33% straight line basis
Motor vehicles	18% straight line basis

Intangible assets

Separately acquired trademarks and licences are shown at historical cost.

Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Other intangible assets	20% straight line basis

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

The cost of work in progress comprises labour costs and those overheads that have been incurred in bringing the jobs to their present location and condition.

Principles Communications Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

Leases

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 are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Financial assets

Basic financial assets, including trade and other receivables, are initially recognised at transaction price, 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 for a similar asset. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each 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 and any subsequent 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.

Financial liabilities

Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Principles Communications Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

3	Staff numbers

The average number of persons employed by the company (including directors) during the year was 25 (2021 - 28).

4	Government grants

During the year the company has received grant income of £67,244 (2021 - £181,794) in respect of the Coronavirus Job Retention Scheme.

5	Intangible assets

	Other intangible assets  £	Total £
Cost or valuation
At 1 April 2021	4,804	4,804
Hive up transfers	(4,804)	(4,804)
At 31 March 2022	-	-
Amortisation
At 1 April 2021	4,804	4,804
Hive up transfers	(4,804)	(4,804)
At 31 March 2022	-	-
Carrying amount
At 31 March 2022	-	-
At 31 March 2021	-	-

Principles Communications Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

6	Tangible assets

	Leasehold improvements £	Fixtures and fittings  £	Equipment  £	Motor vehicles  £	Total £
Cost or valuation
At 1 April 2021	173,904	3,750	329,435	24,045	531,134
Hive up transfers	(173,904)	(3,750)	(329,435)	(24,045)	(531,134)
At 31 March 2022	-	-	-	-	-
Depreciation
At 1 April 2021	173,904	3,750	318,705	300	496,659
Charge for the year	-	-	3,238	2,708	5,946
Hive up transfers	(173,904)	(3,750)	(321,943)	(3,008)	(502,605)
At 31 March 2022	-	-	-	-	-
Carrying amount
At 31 March 2022	-	-	-	-	-
At 31 March 2021	-	-	10,730	23,745	34,475

7

Stocks

	2022 £	2021 £
Work in progress	-	1,500

8

Debtors

	2022 £	2021 £
Trade debtors	-	2,711,327
Amounts owed by group undertakings	189,395	1,683,205
Other debtors	-	513,084
Prepayments	-	47,322
	189,395	4,954,938

Principles Communications Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

9

Creditors

	Note	2022 £	2021 £
Due within one year
Loans and borrowings	10	45,455	100,128
Trade creditors		-	2,388,471
Taxation and social security		-	1,235,832
Accruals and deferred income		-	335,410
Other creditors		-	644,170
		45,455	4,704,011

	Note	2022 £	2021 £
Due after one year
Loans and borrowings	10	143,939	189,393

10	Loans and borrowings

	2022 £	2021 £
Current loans and borrowings
Bank borrowings	45,455	45,455
Invoice discounting	-	54,673
	45,455	100,128

	2022 £	2021 £
Non-current loans and borrowings
Bank borrowings	143,939	189,393

Bank loans and invoice discounting of £Nil (2021 - £54,673) are secured by way of a fixed and floating charge over the assets of the company.

11	Share capital

Allotted, called up and fully paid shares

	2022		2021
	No.	£	No.	£
Ordinary shares of £1 each	1	1	100,000	100,000

Principles Communications Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

12	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £Nil (2021 - £87,917).

13	Parent and ultimate parent undertaking

The company's immediate parent is Advertising Principles Holdings Limited, incorporated in England and Wales. The registered address of Advertising Principles Holdings Limited is White Rose House, Otley Road, Headingley, Leeds, LS6 2AD.