Company registration number 01688725 (England and Wales)
THE PULSE GROUP LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
PAGES FOR FILING WITH REGISTRAR
THE PULSE GROUP LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
THE PULSE GROUP LIMITED
BALANCE SHEET
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,577
1,344
Investments
5
7,426
7,426
9,003
8,770
Current assets
Debtors
7
1,893,290
2,246,766
Cash at bank and in hand
377,415
157,951
2,270,705
2,404,717
Creditors: amounts falling due within one year
8
(1,890,653)
(2,001,796)
Net current assets
380,052
402,921
Net assets
389,055
411,691
Capital and reserves
Called up share capital
9
110,000
110,000
Profit and loss reserves
279,055
301,691
Total equity
389,055
411,691
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 30 June 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges her responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 27 June 2023 and are signed on its behalf by:
G Ellender
Director
Company Registration No. 01688725
THE PULSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
- 2 -
1
Accounting policies
Company information
The Pulse Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, International House, 1 St Katharine's Way, London, England, E1W 1UN.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The director confirm he is satisfied that the company has adequate resources to continue in business for the foreseeable future. He has taken into account the company's trading performance, available facilities and has reviewed the forecast cash flows for at least twelve months from the signing of these financial statements. As a result, the director continue to adopt the going concern basis in preparing the financial statements.
1.3
Turnover
Turnover represents the amounts derived from the provision of services, which fall within the company’s ordinary activities, stated net of value added tax.
The company provides client services in relation to events and exhibitions, sport sponsorship activation and the integration of digital, social and interactive media at events. Revenue is recognised based upon the costs incurred plus margins in relation to the events and recognised on the handover date; i.e. the first day of the event.
Where there are longer contracts and provision of the services is split into stages, income is recognised on the completion of each stage as defined by the contract. Any retentions withheld on such contracts are not recognised until it is virtually certain that such retentions will be received.
The company serves a multinational client base and operates from the United Kingdom.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
Over 4-5 years
Computers
Over 3 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
THE PULSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 3 -
1.5
Fixed asset investments
Interests in subsidiaries and associates are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
1.7
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
THE PULSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank overdrafts and loans from fellow group companies, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
THE PULSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 5 -
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.16
Amounts recoverable on long term contracts, which are included in debtors, are stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account.
THE PULSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 6 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The judgement on the recoverability of retentions has a significant effect on amounts recognised in the financial statements.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Contract balances
Contract balances, split between amounts recoverable on contracts and deferred income, is calculated based on judgements made by the directors, over the stage of completion of a project.
Debtor recoverability
The Directors' make an estimate of the recoverable value of trade and other debtors. When assessing the provision against trade and other debtors, management considers factors including the ageing profile of debtors and management's historical experience.
Tangible fixed assets
Tangible fixed assets are depreciated over their useful lives, taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
8
12
THE PULSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 7 -
4
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 July 2021
13,839
17,421
31,260
Additions
1,984
1,984
At 30 June 2022
13,839
19,405
33,244
Depreciation and impairment
At 1 July 2021
13,459
16,457
29,916
Depreciation charged in the year
219
1,532
1,751
At 30 June 2022
13,678
17,989
31,667
Carrying amount
At 30 June 2022
161
1,416
1,577
At 30 June 2021
380
964
1,344
5
Fixed asset investments
2022
2021
£
£
Investments
7,426
7,426
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 July 2021 & 30 June 2022
7,426
Carrying amount
At 30 June 2022
7,426
At 30 June 2021
7,426
6
Subsidiaries
Details of the company's subsidiaries at 30 June 2022 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Ekaleco Limited
England & Wales
Ordinary
100.00
Pulse Group FZ-LLC
United Arab Emirates
Ordinary
100.00
THE PULSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 8 -
7
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
604,639
135,872
Amounts recoverable on contracts
370,478
37,108
Corporation tax recoverable
58,988
286,064
Amounts owed by subsidiaries
805,770
1,638,779
Other debtors
34,731
121,568
Prepayments
18,684
27,375
1,893,290
2,246,766
8
Creditors: amounts falling due within one year
2022
2021
£
£
Bank overdrafts
146,143
Other borrowings
70,000
Trade creditors
959,445
674,085
Amounts owed to subsidiaries
421,575
526,606
Taxation and social security
34,977
296,884
Deferred income
302,946
236,706
Other creditors
49,259
45,990
Accruals
52,451
75,382
1,890,653
2,001,796
Included within creditors is deferred income of £302,946 (2021: £236,706). Deferred income relates to fees billed on ongoing projects with completion dates after the period end, as the company's policy is to recognise revenue after the relevant event has taken place.
9
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
11,000,000
11,000,000
110,000
110,000
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2022
2021
£
£
13,840
7,076
THE PULSE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 9 -
11
Related party transactions
At the balance sheet date, £805,770 (2021: £1,633,879) was due from fellow group undertakings.
At the balance sheet date, £421,575 (2021: £526,606) was owed to fellow group undertakings.
Included within other creditors at the balance sheet date is a balance of £21,761 (2021: £17,913) due to Mr G Ellender, a director and shareholder of the company.
Included within other creditors at the balance sheet date is a balance of £13,702 (2021: £13,702) due to Drum Design & Marketing Limited. Drum Design & Marketing Limited is a related party by virtue of common ownership and control.
Included within other creditors at the balance sheet date is a balance of £70,000 (2021: £nil) due to C Knights. C Knights is a related party by virtue of being a partner of the director.
Included within other debtors at balance sheet date is a balance of £9,500 (2021: £9,500) due from Championship Sport Limited. Championship Sport Limited is a related party by virtue of common ownership and control.
The company has taken advantage of the exemption available in FRS102 Section 33 "Related party disclosures" whereby it has not disclosed transactions with any wholly owned subsidiary undertakings of the group.
12
Retentions
As further explained in note 1, the company's policy is not to recognise retentions until receipt is virtually certain. At the reporting date the company was owed £nil (2021: £949,973) in outstanding retentions and the company owed £nil (2021: £378,029) in relation to retentions withheld from its subcontractors.