258 Marketing Limited
|
Strategic Report |
|
The directors presents their strategic report on the company for the year ended 29 February 2020. |
|
Business review |
|
The company's principal business activity is marketing services for sponsorships and endorsements. The turnover of the company from the provision of its services analysed by territory is as follows: |
|
|
|
2020 |
|
2019 |
Territory |
UK |
EU |
Non-EU |
|
UK |
EU |
Non-EU |
Sponsorships |
3,070,706 |
1,303,231 |
2,246,194 |
|
3,213,695 |
1,098,837 |
2,160,297 |
|
|
The sponsorships and endorsements division has increased by 2% from 2019 to 2020. This is as a result of third parties placing more value on the use of the fighter's image rights. The fighter's social media presence has also grown and this has led to being able to target larger audiences. The company faces a number of risks and uncertainties and the director believes the key business risks are in respect of competition from both within the UK and international markets. In view of this risk and uncertainty, the director is aware that the development of the company may be affected by factors outside its control. |
|
Principal risks and uncertainties |
|
Risk |
|
Impact on Company |
|
|
Mitigation |
|
Advertising |
The company must ensure that the fighter's image rights are not used in a negative manner. |
|
The company ensures that it does not enter into contracts that may harm the image of the fighter. The fighter has also built a very good image of themselves to the public through various media outlets such as YouTube and Instagram. |
|
COVID-19 |
The pandemic has had an impact on the company being able to effectively fulfil its marketing services. |
|
The company has worked closely with key stakeholders, its sponsors, to ensure that any prior engagements are carried out in accordance with government guidelines for COVID-19 compliance. |
|
The directors have considered the effect of 'Brexit' on the business specifically. Given that the company currently operates within the UK market and its customers are based in the UK, there is no direct or immediate impact envisaged by the director, on the company. The directors do acknowledge that there may be contingent liabilities, such as the potential impact on profitability of non-recoverable VAT for companies which currently incur and recover input VAT in other EU states, the effect upon the availability of EU grants and subsidies and the effect upon available workforce, that may arise from 'Brexit', depending on the dissolution terms to be agreed with the EU. |
|
Future developments |
|
The directors anticipates the business environment will remain competitive. The directors believes that the company is in a good financial position and that the risks that have been identified are being well managed. The directors are confident in the company's ability to maintain and build on this position, albeit with cautious growth expectations. |
|
Financial instruments |
|
The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are only conducted in sterling. The company does not enter into any hedging transactions. |
|
Research and development |
|
The company is currently undertaking research and development to improve its sponsorship income from the provision of the fighter's image rights. |
|
This report was approved by the board on 12 February 2021 and signed on its behalf. |
|
|
|
Mr A O O Joshua |
Director |
|
● |
have been prepared in accordance with the requirements of the Companies Act 2006. |
|
Basis of 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. |
|
Conclusions relating to going concern |
|
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: |
|
● |
the director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
● |
the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
|
Other information |
|
The directors are responsible for the other information. The other information comprises the information included in the annual report,36 other than the financial statements and our auditor’s report thereon. 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. |
|
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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. |
|
The previous period's figures were not audited. |
|
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 year 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 |
|
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. |
|
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: |
|
● |
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
|
● |
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group’s internal control. |
|
● |
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
|
● |
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s or the parent company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. |
|
● |
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
|
● |
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. |
|
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
|
|
|
Adrian Platt (Senior Statutory Auditor)
|
For and on behalf of Platts (Statutory Auditor) |
Churchill House |
120 Bunns Lane, Suite 112 - 118 |
Mill Hill |
London |
NW7 2AS |
|
|
|
12 February 2021
|
|
258 Marketing Limited |
Notes to the Accounts |
For the year ended 29 February 2020 |
|
1 |
Summary of significant accounting policies |
|
|
Basis of preparation |
|
These financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value. The company (a wholly owned subsidiary) has taken advantage of the exemption under FRS 102, Section 33.1A, in that, disclosures need not be given of transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member. The Company’s functional and presentation currency is the pound sterling.
|
|
|
258 Marketing Limited is a limited company incorporated in England. The address of the company's registered office is, Churchill House, Suite 112 - 118, Bunns Lane, Mill Hill, London, NW7 2AS. |
|
|
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 rendering of endorsements and sponsorship deals. Turnover from the rendering of endorsement and sponsorship deals is recognised as the contract progresses. Turnover from endorsement and sponsorship income is recognised in accordance with the specific endorsement or sponsorship agreement in place. For each agreement, certain obligations have to be fulfilled and conditions met prior to recognition by reference to stage of completion of an agreement.
|
|
|
Employee Benefits |
|
The Company provides a range of benefits to employees, including annual bonus arrangements, paid holiday arrangements and defined contribution pension plans. i. Short term benefits Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received. ii. Defined contribution pension plans The Company operates a UK 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. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the Group in independently administered funds. iii. Annual bonus plan The Company operates an annual bonus plan for employees. An expense is recognised in the profit and loss account when the Company has a legal or constructive obligation to make payments under the plans as a result of past events and a reliable estimate of the obligation can be made. |
|
|
Investments |
|
Listed investments are measured at fair value. Changes in fair value are included in the profit and loss account.
|
|
|
Debtors
|
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, 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.
|
|
|
2 |
Critical accounting estimates and judgements |
|
|
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
|
|
|
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
|
|
(i) Impairment of debtors The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 9 for the net carrying amount of the debtors and associated impairment provision. |
|
|
3 |
Analysis of turnover |
2020 |
|
2019 |
£ |
£ |
|
|
Services rendered |
6,620,131 |
|
6,472,829 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
3,070,706 |
|
2,433,819 |
|
Europe |
1,303,231 |
|
1,645,797 |
|
Rest of world |
2,246,194 |
|
2,393,213 |
|
|
|
|
|
|
6,620,131 |
|
6,472,829 |
|
|
|
|
|
|
|
|
|
|
4 |
Operating profit |
2020 |
|
2019 |
£ |
£ |
|
This is stated after charging: |
|
|
Auditors' remuneration for audit services |
5,000 |
|
- |
|
Key management personnel compensation (including director's emoluments) |
|
145,277 |
|
144,142 |
|
|
|
|
|
|
|
|
|
|
5 |
Directors' emoluments |
2020 |
|
2019 |
£ |
£ |
|
|
Emoluments |
144,004 |
|
143,370 |
|
Company contributions to defined contribution pension plans |
1,273 |
|
772 |
|
|
|
|
|
|
145,277 |
|
144,142 |
|
|
|
|
|
|
|
|
|
|
Highest paid director: |
|
Emoluments |
144,004 |
|
143,370 |
|
Company contributions to defined contribution pension plans |
1,273 |
|
772 |
|
|
|
|
|
|
145,277 |
|
144,142 |
|
|
|
|
|
|
|
|
|
|
|
Number of directors to whom retirement benefits accrued: |
2020 |
|
2019 |
Number |
Number |
|
|
Defined contribution plans |
1 |
|
1 |
|
|
|
|
|
|
|
|
|
|
6 |
Staff costs |
2020 |
|
2019 |
£ |
£ |
|
|
Wages and salaries |
244,144 |
|
180,465 |
|
Social security costs |
26,615 |
|
20,195 |
|
Other pension costs |
2,429 |
|
1,125 |
|
|
|
|
|
|
273,188 |
|
201,785 |
|
|
|
|
|
|
|
|
|
|
|
Average number of employees during the year |
Number |
Number |
|
|
Administration |
4 |
|
4 |
|
|
|
|
|
|
|
|
|
|
7 |
Taxation |
2020 |
|
2019 |
£ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
1,115,942 |
|
1,122,997 |
|
|
|
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: |
|
|
|
|
|
|
|
2020 |
|
2019 |
£ |
£ |
|
Profit on ordinary activities before tax |
5,836,810 |
|
5,910,213 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK
|
19% |
|
19% |
|
£ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
1,108,994 |
|
1,122,940 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
6,980 |
|
- |
|
Unrealised (Gains)/losses not assessable for tax purposes |
(32) |
|
57 |
|
|
Current tax charge for period |
1,115,942 |
|
1,122,997 |
|
|
|
|
|
|
|
|
|
|
8 |
Investments |
|
Other |
investments |
£ |
|
Cost |
|
At 1 March 2019 |
275 |
|
Revaluation |
162 |
|
|
At 29 February 2020 |
437 |
|
|
9 |
Debtors |
2020 |
|
2019 |
£ |
£ |
|
|
Trade debtors |
1,435,289 |
|
1,093,700 |
|
Other debtors |
15,697 |
|
- |
|
Prepayments and accrued income |
7,560 |
|
- |
|
|
|
|
|
|
1,458,546 |
|
1,093,700 |
|
|
|
|
|
|
|
|
|
|
10 |
Creditors: amounts falling due within one year |
2020 |
|
2019 |
£ |
£ |
|
|
Amounts owed to group undertakings and undertakings in which the company has a participating interest |
|
184,969 |
|
128,030 |
|
Corporation tax |
545,942 |
|
1,122,997 |
|
Other taxes and social security costs |
60,737 |
|
73,222 |
|
Other creditors |
22,596 |
|
11,716 |
|
|
|
|
|
|
814,244 |
|
1,335,965 |
|
|
|
|
|
|
|
|
|
|
11 |
Share capital |
Nominal |
|
2020 |
|
2020 |
|
2019 |
value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares
|
£1 each |
|
100 |
|
1 |
|
1 |
|
|
|
|
|
|
|
|
|
|
12 |
Dividends |
2020 |
|
2019 |
£ |
£ |
|
|
Dividends on ordinary shares |
40,000 |
|
11,500 |
|
|
|
|
|
|
|
|
|
|
|
13 |
Events after the reporting date |
|
|
On 23 March 2020, as a result of the COVID 19 pandemic, most UK businesses closed, including the group's businesses causing disruption to the group's events provisionally agreed to be attended or staged. As a result of the COVID 19 pandemic, revenue from marketing services, is expected to decrease.
|
|
|
14 |
Related party transactions |
|
|
The company (a wholly owned subsidiary) has taken advantage of the exemption under FRS 102, Section 33.1A, in that, disclosures need not be given of transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member. Included within Other Debtors are as follows: At the balance sheet date, the company was owed an amount in the sum of £12,240 (2019 - £Nil) from 258 Management Limited, a company controlled by a common director and shareholder. The balance has arisen due to providing working capital assistance. The receivable is repayable on demand and is unsecured. At the balance sheet date, the company was owed an amount in the sum of £3,457 (2019 - £Nil) from 258 Merchandise Limited, a company controlled by a common director and shareholder. The balance has arisen due to providing working capital assistance. The receivable is repayable on demand and is unsecured. See note 5 for disclosure of the director's remuneration. Key management compensation for the year amounted to £145,277 (2019 - £144,142).
|
|
|
15 |
Controlling party |
|
|
The immediate parent undertaking is Sparta Promotions Limited. The ultimate controlling party is Mr A O O Joshua. The address from which consolidated accounts can be obtained is Churchill House, 120 Bunns Lane, Suite 112 - 118, Mill Hill, London, NW7 2AS.
|
|
|
16 |
Functional and presentation currency |
|
|
The company's functional and presentation currency is the pound sterling.
|
|
|
17 |
Legal form of entity and country of incorporation |
|
|
258 Marketing Limited is a private company limited by shares and incorporated in England. |
|
|
18 |
Principal place of business |
|
|
The address of the company's principal place of business is: |
|
|
Unit 23, Flotilla House |
|
Juniper Drive |
|
Battersea Reach |
|
SW18 1FX |