Newsteam Group Ltd - Accounts

Registered number

09340207

Newsteam Group Ltd

Report and Financial Statements

1 January 2022

Newsteam Group Ltd
Report and accounts
Contents
Page
Company information	1
Directors' report	2
Strategic report	4
Independent auditor's report	7
Income statement	9
Statement of comprehensive income	10
Statement of financial position	11
Statement of changes in equity	12
Statement of cash flows	13
Notes to the financial statements	14

Newsteam Group Ltd

Company Information

Directors

Mr M J Kinton

Mr J R Kennett

Miss J A Collier

Mr J H Fulton (resigned 31 March 2021)

Mr S R Wakeham

Mr P C Goddard (appointed 1 April 2021)

Auditors

Price Bailey LLP

Chartered Accountants & Statutory Auditors

Tennyson House

Cambridge Business Park

Cambridge

CB4 0WZ

Registered office

Cauldron Locks

Shelton New Road

Stoke on Trent

Stafforshire

ST4 7AA

Registered number

09340207

Newsteam Group Ltd
Registered number:				09340207
Directors' Report
The directors present their report and financial statements for the period ended 1 January 2022.
Principal activities
The company's principal activity during the year continued to be that of the distribution and delivery of newspapers and magazines.
Dividends
No dividends were declared or paid during the year.
Future developments
These have been disclosed in the Strategic Report.
Directors
The following persons served as directors during the period:
	Mr M J Kinton
	Mr J R Kennett
	Miss J A Collier
	Mr J H Fulton (resigned 31 March 2021)
	Mr S R Wakeham
	Mr P C Goddard (appointed 1 April 2021)
Directors' responsibilities

The directors are responsible for preparing the report and financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (Financial Reporting Standard 102 and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
●	select suitable accounting policies and then apply them consistently;
●	make judgements and 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each person who was a director at the time this report was approved confirms that:
●	so far as he is aware, there is no relevant audit information of which the company's auditor is 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 company's auditor is aware of that information.

Auditors

Under section 487(2) of the Companies Act 2006, Price Bailey LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 21 December 2022 and signed on its behalf.

Mr J R Kennett

Director

Newsteam Group Ltd

Strategic Report

Introduction The Directors present their strategic report for the period ending 1 January 2022. The company prepares its accounts on a 52 week basis. Any references to quarters and years in the strategic report refer to the calendar year. Business review NewsTeam Group Ltd (NTG) is a company that specialises in the distribution of print media to both the residential and commercial markets. The company's strategic goal in the period was to continue to invest in building a national distribution network for print media. During the year, the company acquired rounds to extend its coverage across the UK. While this strategy resulted in a loss in the period, the company is now in a stronger position to service more national contracts to improve its profitability. The company’s biggest short-term challenges are inflationary pressures due to tightening of the labour market for delivery contractors and fuel price rises. To address this, the company undertook pricing actions in Q3 2021 and shortly after the year-end in Q2 2022. We believe the company now has one of the largest news media distribution networks in the country. This represents our key USP as publishers employ us to directly distribute their titles to end users.

In terms of the market structure for print media there are a number of significant trends: - The market has been in decline for some time and we believe this trend will continue. The customer base is increasingly mature. The digital channel is distributing an increased proportion of news media. Publishers have protected their profitability by pricing actions well above inflation. - In recent years there has been a very significant reduction in the number of newsagents as volumes have declined and margins have been squeezed. This represents an opportunity for NTG to acquire their home delivery rounds.

Throughout the period, NTG continued to pursue five strategic priorities: 1. Grow our distribution network into new areas so we can provide a national network to deliver news media on a daily basis. 2. Grow our home delivery business through the acquisition of domestic newspaper rounds from newsagents who wish to exit the business. Our focus is on acquiring rounds in or near existing rounds so we can improve our labour efficiency. 3. Grow our corporate customer base. 4. Increase our market share of the magazine distribution business. 5. Continue to invest in the quality of our management. Future developments Since the period end we have continued to proactively invest in our infrastructure by upgrading the quality of our management and we have invested in business development to increase the acquisition of good quality home delivery rounds in areas where we can achieve synergies with our existing network. In Q3 2022 we also started to diversify our home delivery options to include other products. Overall, our assessment is that sales growth in both our home delivery and commercial sectors and increased round density will drive increased profitability in the 2023 calendar year.

Principal risks and uncertainties Further mutations of Covid 19 New mutations of Covid 19 will remain a risk to the economy through further lockdowns. Although a diminishing risk, we believe any further lockdowns could result in a decline in national contracts which would be offset by increased demand for home delivery. The impact of Brexit on the supply and cost of contractor labour All our delivery work is done by contractors. Continued tightening of that labour market could result in above inflation cost increases which will be a significant impact on gross margin. We would recover any impact through pricing action which could increase customer attrition.

Information technology Given our potential for sales growth and our very high dependency on information technology we need to ensure the scalability and reliability of our systems. Competition Our main risk is the entrance of a new company who wants to own a direct to customer daily delivery service, however this is unlikely considering the specific operational challenges for a new entrant to the market to provide the service required. Regulatory Any regulatory changes that affected the supply or cost of contractor labour would require us to re-engineer our business model. Financial risk management objectives and policies Inflation The most significant financial risk in 2022 and 2023 is inflationary increases to costs. We will mitigate this by pricing actions. Credit risk The company’s credit risk arises primarily through trade debtors. The amounts presented in the balance sheet are net of bad debt provisions. A bad debt provision is recognised by the entity when there is objective evidence that a debtor has become impaired – for example where the customer enters into bankruptcy proceedings.

Financial Key Performance Indicators The directors regularly review the key financial indicators.These include: • weekly profitability and cashflow reporting • monthly management accounts The key financial indicators are: KPI 2021 2020 Sales (growth) £41,785,881 £29,470,389 Gross profit margin 9.19% 13.57% In addition to the key financial indicators, we monitor on a daily basis key customer service and operating performance indicators. These indicators measure our re-delivery rates and conduct a root cause analysis of all communications with our telephone call centre. Financial instruments The company does not have excessive exposure to risks in respect of price, credit, liquidity and cash flow risk. The company’s financial instruments are largely traded in the functional currency, being sterling and the company does not use hedge accounting in respect of its financial instruments.

Events after the reporting date There are no significant events after the reporting date.

This report was approved by the board on 21 December 2022 and signed on its behalf.

Mr J R Kennett

Director

Newsteam Group Ltd

Independent auditor's report

to the members of Newsteam Group Ltd

Opinion

We have audited the financial statements of Newsteam Group Ltd (the 'company') for the period ended 1 January 2022 which comprise the Income Statement, the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 'The Financial Reporting Standard applicable in the UK and the 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 company's affairs as at 1 January 2022 and of its loss for the period then ended;
●	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
●	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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.
Material uncertainty related to going concern
We draw attention to Note 1 in the financial statements, which indicates that, based on the reported financial position and expected plans and forecasts for the next 12 months, the Company will require the continued support of its majority shareholder to meet its liabilities as they fall due and has received assurances that the repayment of the loan of £2,492,500 will not be requested for a period of at least twelve months from approval of these financial statements. As stated in Note 1, these events or conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions 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 strategic report and the directors’ report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
●	the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
●	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
●	the financial statements are not in agreement with the accounting records and returns; or
●	certain disclosures of directors’ remuneration specified by law are not made; or
●	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations. This included those regulations directly related to the financial statements, including financial reporting, tax legislation and distributable profits and industry regulations including GDPR, employment law and health and safety. We communicated the identified laws and regulations with the audit tea, and remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following: - agreeing the financial statement disclosures to underlying supporting documentation to assesss compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; - enquiries of management including those responsible for key regulations; - performing analytical procedures to identify unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. In addressing the risk of management override of controls, we carried out testing of journal entries and other adjustments for appropriateness, assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of significant transactions outside the normal course of business. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the finaniclal statements or non-compliance with regulations. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occuring due to fraud rather than error, as fraud involves intential concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Vass BA FCA

(Senior Statutory Auditor)

for and on behalf of

Price Bailey LLP

Chartered Accountants and Statutory Auditors

Tennyson House

Cambridge Business Park

Cambridge

CB4 0WZ

21/12/2022

Newsteam Group Ltd
Income Statement
for the period from 3 January 2021 to 1 January 2022
Notes						2022		2021
£							£
Turnover				3		41,785,881		29,470,389
Cost of sales						(37,947,272)		(25,472,685)
Gross profit						3,838,609		3,997,704
Administrative expenses						(4,544,478)		(3,673,250)
Other operating income						-		20,000
Operating (loss)/profit				4		(705,869)		344,454
Profit on sale of fixed assets						2,208		-
Interest receivable						36		-
Interest payable				7		(690)		-
(Loss)/profit on ordinary activities before taxation						(704,315)		344,454
Tax on (loss)/profit on ordinary activities				8		-		-
(Loss)/profit for the period						(704,315)		344,454
The notes on pages 14 to 20 form part of these financial statements.

Newsteam Group Ltd
Statement of Comprehensive Income
for the period from 3 January 2021 to 1 January 2022
Notes					2022		2021
£						£
(Loss)/profit for the period					(704,315)		344,454
Total comprehensive income for the period					(704,315)		344,454
The notes on pages 14 to 20 form part of these financial statements.

Newsteam Group Ltd
Statement of Financial Position
as at 1 January 2022
Notes				2022			2021
£					£
Fixed assets
Intangible assets	9			337,939			231,402
Tangible assets	10			30,725			10,128
				368,664			241,530
Current assets
Stocks	11		19,562			9,594
Debtors	12		6,201,265			3,626,484
Cash at bank and in hand			551,877			1,251,522
			6,772,704			4,887,600
Creditors: amounts falling due within one year	13		(7,405,354)			(4,672,968)
Net current (liabilities)/assets				(632,650)			214,632
Total assets less current liabilities				(263,986)			456,162
Creditors: amounts falling due after more than one year	14			(2,876,667)			(2,892,500)
Net liabilities				(3,140,653)			(2,436,338)
Capital and reserves
Called up share capital	16			10,100			10,100
Share premium	17			490,000			490,000
Profit and loss account	18			(3,640,753)			(2,936,438)
Total equity				(3,140,653)			(2,436,338)
Mr J R Kennett
Director
Approved by the board on 21 December 2022
The notes on pages 14 to 20 form part of these financial statements.

Newsteam Group Ltd
Statement of Changes in Equity
for the period from 3 January 2021 to 1 January 2022
Share			Share		Profit		Total
capital			premium		and loss
account
£			£		£		£
At 30 December 2019		10,100		490,000		(3,280,892)		(2,780,792)
Profit for the period						344,454		344,454
Total comprehensive income for the financial period		-		-		344,454		344,454
At 2 January 2021		10,100		490,000		(2,936,438)		(2,436,338)
At 3 January 2021		10,100		490,000		(2,936,438)		(2,436,338)
Loss for the period						(704,315)		(704,315)
Total comprehensive income for the financial period		-		-		(704,315)		(704,315)
At 1 January 2022		10,100		490,000		(3,640,753)		(3,140,653)
The notes on pages 14 to 20 form part of these financial statements.

Newsteam Group Ltd
Statement of Cash Flows
for the period from 3 January 2021 to 1 January 2022
Notes			2022		2021
£				£
Operating activities
(Loss)/profit for the period			(704,315)		344,454
Adjustments for:
Profit on sale of fixed assets			(2,208)		-
Interest receivable			(36)		-
Interest payable			690		-
Depreciation			6,623		904
Amortisation of goodwill			81,342		68,917
(Increase)/decrease in stocks			(9,968)		2,616
Increase in debtors			(2,574,781)		(1,575,150)
Increase in creditors			2,722,386		2,359,611
			(480,267)		1,201,352
Interest received			36		-
Interest paid			(690)		-
Cash (used in)/generated by operating activities			(480,921)		1,201,352
Investing activities
Payments to acquire intangible fixed assets			(187,879)		(134,720)
Payments to acquire tangible fixed assets			(28,782)		(6,926)
Proceeds from sale of tangible fixed assets			3,770		-
Cash used in investing activities			(212,891)		(141,646)
Financing activities
Proceeds from new loans			-		50,000
Repayment of loans			(5,833)		-
Cash (used in)/generated by financing activities			(5,833)		50,000
Net cash (used)/generated
Cash (used in)/generated by operating activities			(480,921)		1,201,352
Cash used in investing activities			(212,891)		(141,646)
Cash (used in)/generated by financing activities			(5,833)		50,000
Net cash (used)/generated			(699,645)		1,109,706
Cash and cash equivalents at 3 January			1,251,522		141,816
Cash and cash equivalents at 1 January			551,877		1,251,522
Cash and cash equivalents comprise:
Cash at bank			551,877		1,251,522
			551,877		1,251,522
The notes on pages 14 to 20 form part of these financial statements.

Newsteam Group Ltd
Notes to the Accounts
for the period from 3 January 2021 to 1 January 2022
1	Summary of significant accounting policies
	Basis of preparation
	The financial statements have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The level of rounding is to the nearest £.
	Going concern
	The company has incurred losses during the year and has net current liabilities as at 1 January 2022. As explained in the strategic report, the company continued to invest in its infrastructure in the 2022 calendar year and this investment is forecasted to drive significant profitability in 2023. The majority shareholder, Michael Kinton, has confirmed that he is willing to continue to provide ongoing financial support. He has also confirmed that the loan of £2,492,500 due to a company of which he is the ultimate shareholder will not be requested for a period of twelve months from the date of approval of the financial statements. Due to the extent of this reliance on the majority shareholder's company, the directors have concluded that there is a material uncertainty which may cast significant doubt on the Company's ability to continue as a going concern. Nevertheless, the directors are confident that the shareholder has the intention and ability to provide the support needed and have a reasonable expectation that the Company has adequate resources and forecasted profits to continue in operational existence for the foreseeable future. For these reasons, the directors consider it appropriate to continue to prepare the financial statements on a going concern basis.
	Turnover
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the retail sale and delivery of newspapers and magazines. Turnover is recognised when the newspapers are delivered.
	Intangible fixed assets
	Goodwill Goodwill represents the amount paid to purchase customer rounds. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Comprehensive Income over its useful economic life which is five years. The goodwill arising on the purchase of customers is subject to an annual impairment review which compares the carrying amount with the recoverable amount which is the higher of the fair value less costs to sell and the value in use. Where the recoverable amount is lower than the carrying value, an impairment loss will be recognised.
	Tangible fixed assets

	Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
	Plant and machinery			over 5 years on a straight-line basis
	Fixtures, fittings, tools and equipment			15% or 25% on a reducing balance basis

	Computer equipment			3 years on a straight line basis
	Motor Vehicles			over 2 years on a reducing balance basis
	Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income. At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
	Stocks
	Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income.
	Debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts.
	Creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
	Taxation
	A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
	Provisions
	Provisions (i.e. liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
	Leased assets
	A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The company does not have any finance leases and operating lease payments are recognised as an expense on a straight line basis over the lease term.
	Pensions
	The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid, the Company has no further payment obligations. Contributions to defined contribution plans are expensed in the period to which they relate. Amounts not paid are shown in accruals as a liability in the balance sheet.
	Financial instruments
	The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares. Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan. Investments in non-derivative instruments that are equity to the issuer are measured: - at fair value with changes recognised in the Statement of Comprehensive Income if the shares are publicly traded or their fair value can otherwise be measured reliably; - at cost less impairment for all other investments. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
2	Critical accounting estimates and judgements
	In order to properly apply the company’s accounting policies, as described in note 1 above, the directors are required to make judgements and estimates in respect of carrying values of assets and liabilities which may not be apparent from other sources of information. The directors base these critical accounting judgements and estimations on previous historical experience and other factors which the directors judge to be relevant. Judgements and estimates will invariably differ from actual results and hence such judgements and estimates are reviewed by the directors on an ongoing basis. Critical accounting judgements The directors do not consider that there are any critical accounting judgements in these accounts. Key sources of estimation uncertainty Goodwill amortisation Goodwill on customer round acquisitions is being amortised over a five year period. The directors review this annually and still consider that it is reasonable. Doubtful debt provision The Company makes allowance for doubtful debts based on an assessment of the recoverability of receivables. Allowances are applied to receivables where events or changes in circumstances indicate that the carrying amounts may not be recoverable. Management specifically analysed historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when making a judgement to evaluate the adequacy of the allowance of doubtful debts of receivables. Where the expectation is different from the original estimate, such difference will impact the carrying value of receivables.
3	Analysis of turnover					2022		2021
£							£
	Sale of goods					41,785,881		29,470,389
						41,785,881		29,470,389
	All turnover arose within the UK.
4	Operating profit					2022		2021
£							£
	This is stated after charging:
	Depreciation of owned fixed assets					6,623		904
	Amortisation of goodwill					81,342		68,917
	Operating lease rentals - land and buildings					8,280		25,878
	Auditors' remuneration for audit services					18,000		16,450
	Auditors' remuneration for other services					-		4,900
	Key management personnel compensation (including directors' emoluments)					423,991		297,377
5	Directors' emoluments					2022		2021
£							£
	Emoluments					320,209		227,732
	Company contributions to defined contribution pension plans					3,514		3,941
	Termination payment					-		50,400
						323,723		282,073
	Highest paid director:
	Emoluments					125,000		88,928
	Company contributions to defined contribution pension plans					1,318		1,314
						126,318		90,242
	Number of directors to whom retirement benefits accrued:					2022		2021
Number							Number
	Defined contribution plans					4		3
6	Staff costs					2022		2021
£							£
	Wages and salaries					2,661,195		2,067,529
	Social security costs					226,016		168,893
	Other pension costs					48,414		34,628
						2,935,625		2,271,050
	Average number of employees during the year					Number	Number
	Total					189		91
7	Interest payable					2022		2021
£							£
	Bank loans and overdrafts					690		-
						690		-
8	Taxation					2022		2021
£							£
	Analysis of charge in period
	Current tax:
	UK corporation tax on profits of the period					-		-
	Adjustments in respect of previous periods					-		-
						-		-
	Deferred tax:
	Origination and reversal of timing differences					-		-
	Effect of increased tax rate on opening liability					-		-
						-		-
	Tax on profit on ordinary activities					-		-
	Factors affecting tax charge for period
	The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows:
						2022		2021
£							£
	(Loss)/profit on ordinary activities before tax					(704,315)		344,454
	Standard rate of corporation tax in the UK					19%		19%
£							£
	Profit on ordinary activities multiplied by the standard rate of corporation tax					(133,820)		65,446
	Effects of:
	Expenses not deductible for tax purposes other than goodwill amortisation					612		340
	Capital allowances for period in excess of depreciation					11,320		11,712
	Utilisation of tax losses					-		(76,137)
	Other timing differences leading to an increase (decrease) in taxation					790		(1,361)
	Unrelieved tax losses carried forward					121,098		-
	Current tax charge for period					-		-
	Factors that may affect future tax charges
	The Company has tax losses of £3,398,944 (2021 £2,761,589) available to carry forward against future trading profits.
9	Intangible fixed assets							£
	Goodwill:
	Cost
	At 3 January 2021							440,343
	Additions							187,879
	Disposals							-
	At 1 January 2022							628,222
	Amortisation
	At 3 January 2021							208,941
	Provided during the period							81,342
	On disposals							-
	At 1 January 2022							290,283
	Carrying amount
	At 1 January 2022							337,939
	At 2 January 2021							231,402
	Goodwill is being written off in equal annual instalments over its estimated economic life of 5 years.
10	Tangible fixed assets
		Motor Vehicles		Plant and machinery		Fixtures, fittings, tools and equipment		Total
		At cost		At cost		At cost
£			£		£		£
	Cost
	At 3 January 2021	-		6,926		15,473		22,399
	Additions	2,500		22,700		3,582		28,782
	Disposals	(2,500)		-		-		(2,500)
	At 1 January 2022	-		29,626		19,055		48,681
	Depreciation
	At 3 January 2021	-		328		11,943		12,271
	Charge for the period	938		4,847		838		6,623
	On disposals	(938)		-		-		(938)
	At 1 January 2022	-		5,175		12,781		17,956
	Carrying amount
	At 1 January 2022	-		24,451		6,274		30,725
	At 2 January 2021	-		6,598		3,530		10,128
						2022		2021
£							£
	Carrying value of plant and machinery included above held under finance leases and hire purchase contracts					-		-
11	Stocks					2022		2021
£							£
	Finished goods and goods for resale					19,562		9,594
						19,562		9,594
12	Debtors					2022		2021
£							£
	Trade debtors					5,712,743		3,546,370
	Other debtors					365,106		32,605
	Called up share capital not paid					99		99
	Prepayments and accrued income					123,317		47,410
						6,201,265		3,626,484
13	Creditors: amounts falling due within one year					2022		2021
£							£
	Bank loans					10,000		-
	Trade creditors					5,644,143		3,698,826
	Other taxes and social security costs					72,096		303,574
	Other creditors					282,064		267,394
	Accruals and deferred income					1,397,051		403,174
						7,405,354		4,672,968
14	Creditors: amounts falling due after one year					2022		2021
£							£
	Bank loans					34,167		50,000
	Other loans					2,842,500		2,842,500
						2,876,667		2,892,500
15	Loans					2022		2021
£							£
	Analysis of maturity of debt:
	Within one year or on demand					10,000		-
	Between one and two years					2,852,500		2,892,500
	Between two and five years					14,167		-
						2,876,667		2,892,500
	The bank loan is an unsecured bounceback loan.
16	Share capital	Nominal		2022		2022		2021
value			Number		£		£
	Allotted, called up and fully paid:
	Ordinary shares	£0.01 each		1,010,000		10,100		10,100
	The holders of the ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All ordinary shares rank equally with regards to the Company's residual assets.
17	Share premium					2022		2021
£							£
	At 3 January					490,000		490,000
	Shares issued					-		-
	At 1 January					490,000		490,000
18	Profit and loss account					2022		2021
£							£
	At 3 January					(2,936,438)		(3,280,892)
	(Loss)/profit for the period					(704,315)		344,454
	At 1 January					(3,640,753)		(2,936,438)
19	Events after the reporting date
	There were no events after the reporting date that require disclosure in these accounts.
20	Other financial commitments
	Total future minimum lease payments under non-cancellable operating leases:
		Land and buildings		Land and buildings	Other		Other
		2022		2021		2022		2021
£			£		£		£
	Falling due:
	within one year	8,280		9,123		-		-
	within two to five years	4,830		-		-		-
	in over five years	-		-		-		-
		13,110		9,123		-		-
21	Related party transactions
	During the year the Company traded with Paperround HND Service Limited, a company in which director M Kinton is also a director. Purchases from Paperround HND Service Limited totalled £370,207 (2021 £244,356). At the balance sheet date the balance outstanding from the Company was £27,031 (2021 £18,110). During the year the Company traded with HSE Advisor Limited, a company in which the director S Wakeham is also a director. Purchases from HSE Advisors Limited totalled £111,957 (2021 £109,331). At the balance sheet date, the balance outstanding from the Company was £15,398 (2021 £16,290). During the year the Company traded with AKG Media Services Ltd, a company in which the director P Goddard is also a director with his spouse. Purchases from AKG Media Services Ltd totalled £156,678 during the year (2021 £18,015). At the balance sheet date, the balance outstanding was £16,020. During the year the Company operated a loan account with Kinton Technology Ltd, a company controlled by M Kinton, a director of the Company. The loan is interest free. At the balance sheet date the balance outstanding from the Company was £2,492,500 (2021 £2,492,500).
22	Controlling party
	The ultimate controlling party is considered to be Michael Kinton by virtue of his majority shareholding.
23	Presentation currency
	The financial statements are presented in Sterling.
24	Legal form of entity and country of incorporation
	Newsteam Group Ltd is a private company limited by shares and incorporated in England.
25	Principal place of business
	The address of the company's principal place of business and registered office is:
	Cauldron Locks
	Shelton New Road
	Stoke on Trent
	Staffordshire
	ST4 7AA
26	Financial instruments
						2022		2021
£							£
	Financial assets
	Financial assets measured at amortised cost					6,629,726		4,830,497
	Financial liabilities
	Financial liabilities measured at amortised cost					10,209,925		7,261,894
	Financial assets measured at amortised cost comprise of cash at bank and in hand, trade debtors and other debtors. Financial liabilities measured at amortised cost comprise of trade creditors, other creditors, payments on account, accruals and deferred income and other loans.
27	Pension commitments
	The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £48,414 (2021 £34,628). Contributions totalling £24,597 (2021 £18,232) were payable to the fund at the balance sheet date and are included in other creditors.