Gravity Global Performance Marketing Ltd
(Formerly Further Digital Marketing Ltd)
Financial Statements
For Filing with Registrar
For the year ended 31 December 2020
Company Registration No. 06459835 (England and Wales)
Gravity Global Performance Marketing Ltd
(Formerly Further Digital Marketing Ltd)
Company Information
Directors
P Anderson
A Daynes
Z Ireson
S M Jaggard
L M Roberts
R Welsby
Company number
06459835
Registered office
47-49 Colegate
Norwich
United Kingdom
NR3 1DD
Auditor
Moore Kingston Smith LLP
Charlotte Building
17 Gresse Street
London
W1T 1QL
Business address
47-49 Colegate
Norwich
United Kingdom
NR3 1DD
Gravity Global Performance Marketing Ltd
(Formerly Further Digital Marketing Ltd)
Contents
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 10
Gravity Global Performance Marketing Ltd
(Formerly Further Digital Marketing Ltd)
Balance Sheet
As at 31 December 2020
Page 1
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
4
45,161
31,776
Current assets
Debtors
5
787,847
313,811
Cash at bank and in hand
794,411
356,590
1,582,258
670,401
Creditors: amounts falling due within one year
6
(611,294)
(300,353)
Net current assets
970,964
370,048
Total assets less current liabilities
1,016,125
401,824
Provisions for liabilities
7
(8,410)
(5,402)
Net assets
1,007,715
396,422
Capital and reserves
Called up share capital
8
356
356
Share premium account
11,298
11,298
Capital redemption reserve
325
325
Profit and loss reserves
995,736
384,443
Total equity
1,007,715
396,422
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
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 24 August 2021 and are signed on its behalf by:
L M Roberts
Director
Company Registration No. 06459835
Gravity Global Performance Marketing Ltd
(Formerly Further Digital Marketing Ltd)
Statement of Changes in Equity
For the year ended 31 December 2020
Page 2
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2019
308
3,396
325
218,670
222,699
Year ended 31 December 2019:
Profit and total comprehensive income for the year
-
-
-
596,673
596,673
Issue of share capital
8
48
7,902
-
-
7,950
Dividends
-
-
-
(430,900)
(430,900)
Balance at 31 December 2019
356
11,298
325
384,443
396,422
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
-
-
611,293
611,293
Balance at 31 December 2020
356
11,298
325
995,736
1,007,715
Gravity Global Performance Marketing Ltd
(Formerly Further Digital Marketing Ltd)
Notes to the Financial Statements
For the year ended 31 December 2020
Page 3
1
Accounting policies
Company information
Gravity Global Performance Marketing Ltd is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
47-49 Colegate, Norwich, United Kingdom, NR3 1DD.
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 financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest pound.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
At the balance sheet date, the company had net assets of £1,007,715 (2019: £396,422). The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons. The company was affected by the impact of the coronavirus pandemic and the measures taken to contain it, including the introduction of the tier system and the temporary lockdown imposed in England in November 2020.
true
The directors continue to monitor the impact of the COVID-19 pandemic and have prepared detailed cash flow projections which are based on their current expectations of trading prospects. The company has positive cash reserves at the date of approval of the financial statements and has been trading profitably since the year end. This will enable it to continue to meet its liabilities as they fall due for at least the next twelve months.
The company has assessed the potential risks and the impact on the business as a result of the pandemic. The company does not have a high level of fixed costs, however should there be a negative impact, a cost deferral and reduction plan will be put in place in order to minimise the impact of any potential risks. This will be proportionate to any anticipated drop off in revenues and cash inflows.
As a result the directors are confident that they have the ability to respond effectively to continued uncertainty and as a result, the directors believe that the company will be able to continue to meet its liabilities as they fall due for a period of at least twelve months from the date of approval of the financial statements. Consequently the financial statements have been prepared on a going concern basis.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Gravity Global Performance Marketing Ltd
(Formerly Further Digital Marketing Ltd)
Notes to the Financial Statements (Continued)
For the year ended 31 December 2020
1
Accounting policies
(Continued)
Page 4
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.5
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:
Office equipment
15% straight line
Fixtures and fittings
20% straight line
Computer equipment
33% straight line
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
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible 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.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Gravity Global Performance Marketing Ltd
(Formerly Further Digital Marketing Ltd)
Notes to the Financial Statements (Continued)
For the year ended 31 December 2020
1
Accounting policies
(Continued)
Page 5
1.7
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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.
Basic financial liabilities
Basic financial liabilities, including creditors, 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
paymen
ts 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. A
m
ounts 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 direct issue 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 and deferred tax.
Gravity Global Performance Marketing Ltd
(Formerly Further Digital Marketing Ltd)
Notes to the Financial Statements (Continued)
For the year ended 31 December 2020
1
Accounting policies
(Continued)
Page 6
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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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
Share-based payments
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the
Black-Scholes
model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
1.14
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to income 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 lease asset are consumed.
Gravity Global Performance Marketing Ltd
(Formerly Further Digital Marketing Ltd)
Notes to the Financial Statements (Continued)
For the year ended 31 December 2020
1
Accounting policies
(Continued)
Page 7
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 are included in the profit and loss account for the period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 38
(2019 - 33).
3
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2020 and 31 December 2020
364,000
Amortisation and impairment
At 1 January 2020 and 31 December 2020
364,000
Carrying amount
At 31 December 2020
At 31 December 2019
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2020
71,673
Additions
32,311
At 31 December 2020
103,984
Depreciation and impairment
At 1 January 2020
39,897
Depreciation charged in the year
18,926
At 31 December 2020
58,823
Carrying amount
At 31 December 2020
45,161
At 31 December 2019
31,776
Gravity Global Performance Marketing Ltd
(Formerly Further Digital Marketing Ltd)
Notes to the Financial Statements (Continued)
For the year ended 31 December 2020
Page 8
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
93,892
164,778
Amounts due from group undertakings
603,269
72,476
Other debtors
90,686
76,557
787,847
313,811
6
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
56,432
17,916
Amounts due to group undertakings
94,507
9,384
Corporation tax
85,980
54,051
Other taxation and social security
275,233
144,192
Other creditors
99,142
74,810
611,294
300,353
7
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2020
2019
Balances:
£
£
Accelerated capital allowances
8,410
5,402
2020
Movements in the year:
£
Liability at 1 January 2020
5,402
Charge to profit or loss
3,008
Liability at 31 December 2020
8,410
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
Gravity Global Performance Marketing Ltd
(Formerly Further Digital Marketing Ltd)
Notes to the Financial Statements (Continued)
For the year ended 31 December 2020
Page 9
8
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
4,560 A Ordinary shares of 5p each
228
228
1,140 B Ordinary shares of 5p each
57
57
460 C Ordinary shares of 5p each
23
23
966 E Ordinary shares of 5p each
48
48
356
356
The Ordinary A, B, C and E shares rank pari passu in all respects except that only the board can in its absolute discretion decide how to allocate dividends between the respective classes of shares.
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Esther Carder.
The auditor was Moore Kingston Smith LLP.
10
Financial commitments, guarantees and contingent liabilities
A composite guarantee has been given to the Gravity Global Limited's lenders in respect of any debts or liabilities owing to the lenders by any party to the guarantee. The parties to the guarantee are the companies listed below:
Gravity London Limited
Gravity Oxford Limited
Gravity Global Performance Marketing Ltd
Gravity Global Digital Ltd
At the balance sheet date, the Gravity Global Limited's indebtedness to its lenders was £9,805,976.
Gravity Global Performance Marketing Ltd
(Formerly Further Digital Marketing Ltd)
Notes to the Financial Statements (Continued)
For the year ended 31 December 2020
Page 10
11
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:
2020
2019
£
£
Within one year
31,406
32,657
Between two and five years
16,504
47,999
47,910
80,656
12
Related party transactions
As permitted by FRS 102 Section 33 "related party disclosures", the financial statements do not disclose transactions with the immediate parent company and wholly owned fellow subsidiaries on the basis that group financial statements are prepared.
At 31 December 2020, the Company was owed £217 (2019: £217) by the directors. The loans are repayable on demand and are included within other debtors due within one year.
During the year, advances of £nil (2019: £165,331) were made to the directors. These were repayable on demand. The company also paid personal expenses totalling £nil (2019: £2,157) on behalf of the directors. Amounts repaid by the director during the year totalled £nil (2019: £169,666).
13
Parent company
The immediate and ultimate parent undertaking is Gravity Global Limited, a company incorporated in England and Wales.
Gravity Global Limited is the smallest and largest group for which consolidated financial statements including the company are prepared. The consolidated financial statements of Gravity Global Limited are available from its registered office, 69 Wilson Street, London, United Kingdom, EC2A 2BB.
The directors consider there to be no single ultimate controlling party.
2020-12-31
2020-01-01
false
25 August 2021
CCH Software
CCH Accounts Production 2021.100
No description of principal activity
This audit opinion is unqualified
P Anderson
A Daynes
Z Ireson
S M Jaggard
L M Roberts
R Welsby
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