Northstar Research Partners (UK) Limited - Accounts to registrar (filleted) - small 18.1

REGISTERED NUMBER: 04131126 (England and Wales)

Financial Statements for the Year Ended 31 December 2017

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 B Doft

Mr D C Ross

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

130,878

155,755

Investments

5

-

124,809

130,878

280,564

CURRENT ASSETS

Stocks

6

12,014

64,978

Debtors

7

1,073,317

1,814,131

Cash at bank

262,300

712,436

1,347,631

2,591,545

CREDITORS

Amounts falling due within one year

8

1,248,289

2,559,999

NET CURRENT ASSETS

99,342

31,546

TOTAL ASSETS LESS CURRENT LIABILITIES

230,220

312,110

CAPITAL AND RESERVES

Called up share capital

10

215,200

215,200

Retained earnings

15,020

96,910

SHAREHOLDERS' FUNDS

230,220

312,110

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 12 May 2018 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 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.

Preparation of consolidated financial statements

The company and its subsidiary combined meet the size exemption criteria for a group and the

company is therefore exempt from the requirement to prepare consolidated financial statements by

virtue of meeting the requirements in Section 293(1A) of the Companies Act 2014 and Companies

(Accounting) Bill 2016. Consequently, these financial statements deal with the results of the company

as a single entity.

Turnover

Turnover represents the completed percentage of the total contracted value on each project, excluding

any VAT. Percentage completion of a contract is determined on a time spent basis and an accrual

made for any costs not yet included.

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

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less impairment.

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 percentage 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.

Share based payments

Shares in the company are transferred to certain employees by the parent company at fair value. The

fair value of these shares is accounted for as part of the wages cost for the year. An equivalent amount

is shown as an amount due to the parent company.

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 26 (2016 - 22 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Leasehold

Office

and

Computer

improvements

equipment

fittings

equipment

Totals

£

£

£

£

£

COST

At 1 January 2017

172,246

17,958

18,383

120,287

328,874

Additions

9,646

5,848

1,705

12,762

29,961

At 31 December 2017

181,892

23,806

20,088

133,049

358,835

DEPRECIATION

At 1 January 2017

50,943

14,203

4,548

103,425

173,119

Charge for year

35,339

3,348

3,825

12,326

54,838

At 31 December 2017

86,282

17,551

8,373

115,751

227,957

NET BOOK VALUE

At 31 December 2017

95,610

6,255

11,715

17,298

130,878

At 31 December 2016

121,303

3,755

13,835

16,862

155,755

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2017

124,809

Disposals

(124,809

)

At 31 December 2017

-

NET BOOK VALUE

At 31 December 2017

-

At 31 December 2016

124,809

The company's investments at the Balance Sheet date in the share capital of companies include the

following:

PT Northstar Business Consultancy Partners

Registered office: Indonesia

Nature of business: Business Consultancy in the Far East

%

Class of shares:

holding

Ordinary

98.00

2017

31.12.16

£

£

Aggregate capital and reserves

-

(57,636

)

Loss for the year

-

(115,778

)

The investment in PT Northstar Business Consultancy Partners in the sum of £124,809 and

intercompany debt due from the subsidiary amounted to £184,552. The Directors consider that these

amounts are no longer recoverable or of any value and has written off the full amount of £311,361 .

6.

STOCKS

2017

2016

£

£

Work-in-progress long term

contract balances

12,014

64,978

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

714,439

1,367,334

Amounts recoverable on long

term contracts

206,558

175,288

Amounts owed by group undertakings

46,247

170,612

Other debtors

84,871

70,354

VAT

694

11,368

Prepayments

20,508

19,175

1,073,317

1,814,131

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade creditors

544,295

761,083

Payments received on account

of long term contracts

50,065

234,464

Short term debt

Loan from parent

-

790,852

Amounts owed to group undertakings

473,128

660,023

Tax

69,612

3,913

Social security and other taxes

43,290

34,514

Other creditors

6,393

10,092

Accrued expenses

61,506

65,058

1,248,289

2,559,999

Amounts owed to group undertakings include £13,239 owed re share compensation (2016 £13,239).

9.	LEASING AGREEMENTS

The company has a lease entered into a lease on 26 June 2015 for a period of 5 years at an annual

rental of £119,464.

The total commitment is £418,126.

10.	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.

On 7 November 2007, 1,723 of the existing A ordinary shares were reclassified as deferred shares.

The remaining £177 A ordinary shares of £1 were subdivided into 1,770 A ordinary shares of 10p.

The 100 B ordinary shares of £1 were subdivided into 1,000 B ordinary shares of 10p.

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

The Report of the Auditor was unqualified.

Paul Hartley FCA

12.	RELATED PARTY DISCLOSURES

Northstar Research Partners Inc.

Parent company

£90,371 (2016 - £112,958) salaries recharged to UK subsidiary.

Revenue received was £12,692 (2016 - Nil)

2017

2016

£

£

Amount due to related party at the balance sheet date

242,860

242,363

PT Northstar Business Consulting Partners

Subsidiary company

The balance from 2016 was written off in the year.

2017

2016

£

£

Amount due from related party at the balance sheet date

-

134,706

MDC Partners Inc

Ultimate parent company

The loan of £790,852 for 2016 was repaid in the current year.

2017

2016

£

£

Amount due from/(to) related party at the balance sheet date

46,247

(790,852

)

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.

2017

2016

£

£

Amount due to related party at the balance sheet date

217,029

404,421

Crispin Porter & Bogusky

Subsidiary of ultimate parent company

Revenue received £50,049 (2016 - £64,916)

2017

2016

£

£

Amount due from related party at the balance sheet date

-

35,906

13.	ULTIMATE CONTROLLING PARTY

The controlling party is MDC Partners Inc - a company incorporated in Canada.