Europa Communications - Accounts to registrar (filleted) - small 18.1

REGISTERED NUMBER: 02961237 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD

1ST SEPTEMBER 2016 TO 31ST DECEMBER 2017

FOR

EUROPA MARKETING SERVICES LIMITED

TRADING AS

EUROPA COMMUNICATIONS

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

D Crossman

J A Haley

SECRETARY:

E Mcardle

REGISTERED OFFICE:

Beech House

27 Little Marlow Road

Marlow

Buckinghamshire

SL7 1HA

REGISTERED NUMBER:

02961237 (England and Wales)

ACCOUNTANTS:

Richardson Jones

Chartered Accountants

Mercury House

19-21 Chapel Street

Marlow

Buckinghamshire

SL7 3HN

FIXED ASSETS

Tangible assets

4

6,968

12,824

CURRENT ASSETS

Debtors

5

243,882

390,619

Cash at bank and in hand

206,626

441,356

450,508

831,975

CREDITORS

Amounts falling due within one year

6

319,034

453,758

NET CURRENT ASSETS

131,474

378,217

TOTAL ASSETS LESS CURRENT LIABILITIES

138,442

391,041

PROVISIONS FOR LIABILITIES

7

1,082

-

NET ASSETS

137,360

391,041

CAPITAL AND RESERVES

Called up share capital

8

100

100

Retained earnings

9

137,260

390,941

SHAREHOLDERS' FUNDS

137,360

391,041

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 31st December 2017.

The members have not required the company to obtain an audit of its financial statements for the period ended 31st December 2017 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

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 on 17th April 2018 and were signed on its behalf by:

J A Haley - Director

1.	STATUTORY INFORMATION

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

Turnover

Turnover represents net invoiced sales of marketing services, excluding value added tax.

Tangible fixed assets

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

Fixtures and fittings

-

20% on cost

Computer equipment

-

33% on cost

Taxation

Taxation for the period 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 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 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 period 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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Contributions to employee ownership trust

On 18 September 2017, the shares held by the previous shareholders were sold to the newly formed Europa

Communications Employee Ownership Trust (The EOT). Contributions to the EOT are recognised as a movement

on Reserves/Shareholders' Funds and not as an expense within the Income Statement/Profit and Loss Account.

Costs incurred as a result of the changes in legal structure and ownership are reported as exceptional costs in the

Income Statement for the current year.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 11 .

4.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1st September 2016

59,388

111,159

170,547

Additions

-

2,770

2,770

At 31st December 2017

59,388

113,929

173,317

DEPRECIATION

At 1st September 2016

53,433

104,290

157,723

Charge for period

2,090

6,536

8,626

At 31st December 2017

55,523

110,826

166,349

NET BOOK VALUE

At 31st December 2017

3,865

3,103

6,968

At 31st August 2016

5,955

6,869

12,824

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.17

31.8.16

£

£

Trade debtors

197,648

364,663

Other debtors

7,600

11,200

Directors' current accounts

9,098

3,903

Prepayments and accrued income

29,536

10,853

243,882

390,619

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.17

31.8.16

£

£

Trade creditors

68,765

81,914

Tax

44,309

35,797

Social security and other taxes

11,579

11,439

VAT

47,830

41,107

Other creditors

399

-

Directors' current accounts

1,125

-

Accruals and deferred income

145,027

283,501

319,034

453,758

7.	PROVISIONS FOR LIABILITIES

31.12.17

31.8.16

£

£

Deferred tax

1,082

-

Deferred

tax

£

Provided during period

1,082

Balance at 31st December 2017

1,082

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.17

31.8.16

value:

£

£

1,500

A Ordinary Shares

0.01

15

90

500

B Ordinary Shares

0.01

5

10

8,000

C Ordinary Shares

0.01

80

-

100

100

On 18 September 2017, 7,500 A ordinary shares and 500 B ordinary shares were re-designated as 8,000 C

ordinary shares.

9.

RESERVES

Retained

earnings

£

At 1st September 2016

390,941

Profit for the period

165,809

Dividends

(91,365

)

Contribution to Europa Communications Employee Ownership Trust

(328,125

)

At 31st December 2017

137,260

10.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the period ended 31st December 2017 and the

year ended 31st August 2016:

31.12.17

31.8.16

£

£

J A Haley

Balance outstanding at start of period

3,903

4,062

Amounts advanced

9,098

6,841

Amounts repaid

(3,903

)

(7,000

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of period

9,098

3,903

The above loan is due to be repaid within 9 months of the balance sheet date.

On 18 September 2017, the directors, being the shareholders at the time, sold 80% of their shares to the newly

formed Europa Communications Employee Ownership Trust (The EOT). The total consideration payable for the

shares is £737,503.

11.	RELATED PARTY DISCLOSURES

Director and shareholder, Mr J A Haley, holds a fixed and floating charge over the all assets of the company as

trustee for the previous shareholders following the transaction detailed in note 15.

This charge runs concurrently with a guarantee given by the company over the consideration payable to the

previous shareholders by the Employee Ownership Trust. At the balance sheet date the consideration owing to

the previous shareholders amounted to £409,378 and is due to be fully paid by instalments before 31 August

2027.

12.	ULTIMATE CONTROLLING PARTY

On 18 September 2017 80% of the shares held by the previous shareholders were sold to the newly formed

Europa Communications Employee Ownership Trust (The EOT). The EOT is controlled through Europa

Communications Trustees Limited (a company incorporated in England), the directors of which are the Trustees of

the EOT.

13.	CHANGE OF OWNERSHIP

On 18 September 2017 the shares held by the previous shareholders were sold to the newly formed Europa

Communications Employee Ownership Trust (The EOT). The number of shares sold represented 80% of the

ordinary share capital of the company. The EOT holds the shares on behalf of all the employees of the company,

no individual employee is allotted shares. The interests of the EOT are managed by Europa Communications

Trustees Limited as its trustee. The EOT is therefore the majority shareholder in the company. The total

consideration payable by the EOT for the shares is £737,503, of which £328,125 had been paid by 31 December

2017. Subject to it being capable of doing so, the company provides funding to the EOT to enable it to make

payments for the consideration, which is payable by instalments, provided that the deferred consideration has

been fully paid by 31 August 2027.

Costs incurred as a result of the changes in legal structure and ownership amounted to £26,891. These are

reported as exceptional costs in the Income Statement for the current year. No such further costs are anticipated

in subsequent periods.