for the Period Ended 31 December 2020
Directors report | |
Profit and loss | |
Balance sheet | |
Additional notes | |
Balance sheet notes |
Directors' report period ended
The directors present their report with the financial statements of the company for the period ended 31 December 2020
Principal activities of the company
Additional information
The directors present their annual report and financial statements for the year ended 31 December 2020.The company has taken advantage of the exemption from preparing a strategic report available under section 414(b) of the Companies Act 2006.Company informationTeam Life Global Limited (registered number 00964286) is a private company limited by shares. The company is registered in England and Wales and has its registered office at Greater London House, Hampstead Road, London NW1 7QP. Business review, principal activities and future outlookThe company is a wholly owned subsidiary of WPP plc and operated as part of the group’s Advertising and Media Investment Management sector.The company has ceased trading and the company’s operations integrated with Wunderman Thompson (UK) Limited from 1 January 2021. The principal activity of the company until 31 December 2020 was to act as advertising agents and consultants in the UK and the rest of the world. The income statement of the financial statements discloses a profit before tax of £251,973 (2019: loss of £626,562). The balance sheet of the financial statements shows that the company held cash of £6,798,597 (2019: £7,770,972), net current assets of £6,800,304 (2019: £6,548,331) and net assets of £6,800,304 (2019: £6,548,331).The company paid no interim dividends to the ordinary £1 shareholder in 2020 and 2019 and no final dividend is proposed (2019: £nil). Key performance indicators The company is a wholly owned subsidiary of WPP plc. For this reason, the company's directors believe that any further key performance indicators for the company are not necessary or appropriate for an understanding of the development, performance or position of the business. The performance of WPP plc, which includes this company, is discussed in the WPP plc Annual Report which does not form part of this Report. The financial statements of WPP plc are available at www.wpp.com/investors.Going concern As stated in the Business review, principle activities and future outlook above, the company has ceased trading and the company’s operations integrated with Wunderman Thompson (UK) Limited from 1 January 2021. The financial statements have thus been prepared on a basis other than that of the going concern. This basis includes consideration by the Directors whether writing down the company assets to net realisable value and providing for the costs of terminating the business is appropriate. It was concluded no write-downs or additional provisions were required for the financial year ended 31 December 2020. Covid-19 The coronavirus pandemic has touched all our lives. At WPP, and in the company, the first priority remains the wellbeing of our people and doing what we can to limit the impact of the virus on society. The second priority has been the continuity of service for our clients. We have thrown ourselves into achieving both objectives. Despite the negative impact of the pandemic on the financial performance of the company during the year, the company did not access any financial support measures made available by the UK and other governments other than the HMRC VAT deferral scheme for the quarterly return for the period ended 31 March 2020. This account was settled on 31 March 2021.The extent of the continued impact of the Covid-19 pandemic on our business will depend on numerous factors that we are not able to accurately predict, including the duration and scope of the pandemic, government actions to mitigate the effects of the pandemic and the intermediate and long-term impact of the pandemic on our clients spending plans. However, as stated above, the company has ceased trading and become a dormant entity from 1 January 2021. As such, it is anticipated the future impact of the Covid-19 pandemic on the company will be limited. External stakeholder engagementThe company recognises the importance of its continued partnerships with its wider stakeholders including suppliers and customers. The company aims to have an open and transparent relationship which is based on honesty and respect. The company engages in constant conversation with clients and suppliers on improving delivery of services and relationships.A detailed statement on the WPP plc group’s external stakeholder engagement can be found in the WPP plc annual report which does not make up part of this report. Financial risk management and principal risksThe financial risks facing the company as a result of its activities and the management of those risks are described below.Cash flow and liquidity riskThe directors do not believe that the company is exposed to any significant cash flow or liquidity risk. The company currently has sufficient cash to fund its activities. However, in the event that additional liquidity were to be required for ongoing operations and future developments, the company participates in group banking arrangements with its parent, WPP plc, and has access to a group cash management facility.Credit riskThe company is subject to credit risk through the default of a client or other counterparty.The company commits to media and production purchases on behalf of some of our clients as principal or agent depending on the client and market circumstances. If a client is unable to pay sums due, media and production companies may look at us to pay those amounts and there could be an adverse effect on our working capital and cash flow.A significant number of our clients and suppliers are adversely financially impacted by the Covid-19 pandemic and economic activity across markets in periods of lockdown. Clients may seek to renegotiate payment terms, ask for discounts or fail to honour their payment obligations which would have an adverse impact on our working capital and operating cash flow.We are working closely with our clients during this period of economic uncertainty to ensure timely payment of services in line with contractual commitments and with vendors to maintain the settlement flow on media.There is increased management processes to manage working capital and review cash outflows and receipts during the Covid-19 pandemic. Client’s ongoing creditworthiness is evaluated and monitored – and, when appropriate, credit insurance or payments in advance requested.The company's principal financial assets are its bank balances, trade, intercompany and other receivables. The company's main credit risk is primarily attributable to its key trade and intercompany receivables. The company has no other significant concentration of credit risk, with exposure spread over a large number of counterparties and clients. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.Currency riskThe company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates. Foreign currency transactions are where possible kept to a minimum and are in stable currencies. The company, through WPP 2005 Ltd's treasury function, uses currency hedging on its financial activities when appropriate. The directors keep the situation under review and consult with the WPP 2005 Ltd treasury team with regard to appropriate risk management. Cyber security and Information Technology staffThe company is reliant on third parties for the performance of a significant portion of our worldwide information technology and operations functions. A failure to provide these functions could have an adverse effect on our business.A cyber-attack could result in disruption to our business or compromise the security of data.These could all have a legal, financial or reputational consequence on the company. With the majority of our employees working remotely as a consequence of the Covid-19 pandemic, there is the potential of an increased risk of compromised data security and cyber-attacks.The company mitigates the risk of cyber-security and information technology breaches by adhering to strict information security protocol and by monitoring and logging out network and systems. We are also raising our employee’s security awareness through our training. Environment The WPP plc group recognises the importance of its environmental responsibilities, monitors its impact on the environment, and designs and implements policies to reduce any damage that might be caused by the Group's activities. The company operates in accordance with WPP plc Group policies, which are described in the Group's Corporate Responsibility report which does not form part of this Report. Initiatives designed to minimise the company's impact on the environment include improving our energy use efficiency, paper use and recycling. Future developments The company has ceased trading and has become a dormant entity from 1 January 2021.DirectorsThe directors of the company who served during the year and subsequent to the year-end are set out on page 1.Directors’ indemnities The ultimate parent company, WPP plc, has made qualifying third-party indemnity provisions for the benefit of the company directors. These provisions were made during the year and remain in force at the date of this report.
Directors
The directors shown below have held office during the whole of the period from
1 January 2020 to 31 December 2020
Secretary
The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006
This report was approved by the board of directors on
And signed on behalf of the board by:
Name:
Status: Director
for the Period Ended
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The notes form part of these financial statements
This report was approved by the board of directors on
and signed on behalf of the board by:
Name:
Status: Director
The notes form part of these financial statements
for the Period Ended 31 December 2020
Basis of measurement and preparation
Turnover policy
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