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Registered number: 02398515 |
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PHONE-PAID SERVICES AUTHORITY LIMITED
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DIRECTORS REPORT AND FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 MARCH 2019 |
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Phone-paid Services Authority Limited |
(A Company Limited by Guarantee) |
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COMPANY INFORMATION |
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Directors |
D Edmonds CBE
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M Munn
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S Ricketts
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J Porter
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K Brown
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A Cook
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Registered number |
02398515 |
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Registered Office |
25th Floor
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40 Bank Street
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Canary Wharf
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London
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E14 5NR
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Independent Auditors |
National Audit Office
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157 - 197 Buckingham Palace Road |
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Victoria |
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London |
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SW1W 9SP |
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Bankers |
HSBC
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1 Bishopsgate |
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London |
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EC2N 4BQ |
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Aldermore
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50 St Mary Axe |
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London |
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EC3A 8FR |
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Solicitors |
Fieldfisher LLP
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2 Swan Lane |
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London |
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EC4R 3TT |
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Phone-paid Services Authority Limited |
(A Company Limited by Guarantee) |
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Page |
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Strategic Report |
1 - 9 |
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Directors' Report |
10 - 11 |
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Independent Auditors' Report |
12 - 15 |
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Statement of Income and Retained Earnings |
16 |
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Statement of Financial Position |
17 |
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Statement of Cash Flows |
18 |
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Notes to the Financial Statements |
19 - 33 |
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Phone-paid Services Authority Limited |
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(A Company Limited by Guarantee) |
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STATEMENT OF INCOME AND RETAINED EARNINGS |
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FOR THE YEAR ENDED 31 MARCH 2019 |
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2019 |
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2018 |
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£ |
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£ |
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Note |
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Turnover |
3 |
7,257,650
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6,645,110
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Administrative expenses |
Schedule to detailed P&L
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(4,008,275) |
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(3,843,822) |
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Bad debts |
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(3,276,565) |
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(2,827,505) |
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Operating loss |
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(27,190) |
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(26,217) |
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Interest receivable |
8 |
34,377
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32,772
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Interest payable |
9 |
(1,027) |
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- |
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Profit on ordinary activity before taxation |
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6,160
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6,555
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Taxation on interest |
10 |
(6,160) |
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(6,555) |
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Profit on ordinary activity after taxation |
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- |
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- |
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Retained surplus at the beginning of the year |
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2,375,038
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2,375,038
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Profit for the year |
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- |
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- |
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Retained surplus at the end of the year |
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2,375,038
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2,375,038
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The notes on pages 19to 33 form part of these financial statements |
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Phone-paid Services Authority Limited |
(A Company Limited by Guarantee) |
Registered number: 02398515 |
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STATEMENT OF FINANCIAL POSITION |
AS AT 31 MARCH 2019 |
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2019 |
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2018 |
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£ |
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£ |
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Note |
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Fixed assets |
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Tangible assets |
11 |
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289,074
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334,483
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Investments |
12 |
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- |
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1
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289,074
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334,484
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Current assets |
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Debtors: amounts falling due within one year |
13 |
969,714
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772,929
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Cash at bank and in hand |
14 |
5,399,343
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6,878,552
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6,369,057
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7,651,481
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Creditors: amounts falling due within one year |
15 |
(4,098,449) |
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(5,426,283) |
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Net current assets |
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2,270,608
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2,225,198
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Total assets less current liabilities |
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2,559,682
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2,559,682
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Provisions for Liabilities |
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Other provisions |
17 |
(184,644) |
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(184,644) |
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(184,644) |
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(184,644) |
Net assets |
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2,375,038
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2,375,038
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Capital and reserves |
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Retained surplus |
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2,375,038
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2,375,038
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2,375,038
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2,375,038
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The financial statements were approved by the board and were signed on its behalf by: |
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J Porter
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Director |
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Date: |
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The notes on pages 19 to 33 form part of these financial statements |
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Phone-paid Services Authority Limited |
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(A Company Limited by Guarantee) |
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STATEMENT OF CASH FLOWS |
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FOR THE YEAR ENDED 31 MARCH 2019 |
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2019 |
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2018 |
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£ |
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£ |
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Note |
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Profit for the financial year |
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- |
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- |
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Adjustments for: |
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Depreciation of tangible assets |
11 |
80,891
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100,146
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Profit / (loss) on disposal of tangible assets |
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10
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- |
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Interest received |
8 |
(34,377) |
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(32,772) |
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Interest paid |
9 |
1,027
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- |
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Taxation |
10 |
6,160
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6,555
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Decrease in debtors |
13 |
(196,785) |
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1,072,217
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Decrease in creditors |
15 |
(1,327,811) |
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(717,702) |
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Corporation tax |
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(6,184) |
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(5,950) |
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Net cash generated from operating activities |
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(1,477,069) |
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422,494
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Cash flows from investing activities |
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Purchase and sale of tangible fixed assets |
11 |
(35,490) |
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(16,014) |
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Interest received |
8 |
34,377
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32,772
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Net cash from investing activities |
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(1,113) |
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16,758
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Cash flows from financing activities |
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Interest paid |
9 |
(1,027) |
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- |
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Net cash used in financing activities |
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(1,027) |
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- |
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Net (decrease) / increase in cash and cash equivalents |
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(1,479,209) |
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439,252
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Cash and cash equivalents at beginning of year |
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6,878,552
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6,439,300 |
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Cash and cash equivalents at end of year |
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5,399,343
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6,878,552
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Cash and cash equivalents at end of year comprise: |
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Cash at bank and in hand |
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5,399,343
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6,878,552
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5,399,343
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6,878,552
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Phone-paid Services Authority Limited |
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(A Company Limited by Guarantee) |
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NOTES TO THE FINANCIAL STATEMENTS
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FOR THE YEAR ENDED 31 MARCH 2019 |
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1. |
Accounting policies |
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1.1 |
Basis of preparation of financial statements |
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Phone-paid Services Authority Limited (the Company) is a private Company limited by guarantee incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company’s registered office is 40 Bank Street, London, E14 5NR. The nature of the company's operations are to apply and enforce the Company's Code of Practice relating to premium rate telephone services (the Code). The Code is approved by Ofcom under the Communications Act 2003 (the Act).
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The financial statements have been prepared under the historical cost convention, and in accordance with Financial Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council. The Company has applied the amendments to FRS 102 issued by the FRC in December 2017 prior to their mandatory effective date of accounting periods beginning on or after 1 January 2019.
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The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 2).
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The following principal accounting policies have been applied: |
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1.2 |
Revenue |
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Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following criteria must also be met before revenue is recognised:
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Recognition of income |
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Income received from the network operators is on the basis of a levy on income from premium rate services. The levy is set at the beginning of each year, based on budgeted expenditure, so as to reimburse Phone-paid Services Authority Limited for costs incurred.
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An adjustment is made at the year end to reflect any differences between the income received and costs incurred during the year and the resulting balance is reflected in accumulated fines and administrative charges (retained funds).
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Where a difference does arise between the level of income received from network operators and the costs incurred by Phone-paid Services Authority Limited in any year, this is taken into account in setting the levy for the following year and taking into considering its reserves balance, so as to ensure Phone-Paid Services Authority Limited continues to recover its costs.
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Income from fines and administrative charges is recognised as soon as the Tribunal orders them to be paid and it is made publicly available.
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A provision is made in full where fines are in dispute. |
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Rendering of services |
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Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
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- the amount of revenue can be measured reliably; |
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- it is probable that the Company will receive the consideration due under the contract;
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- the stage of completion of the contract at the end of the reporting period can be measured reliably, and;
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- the costs incurred and the costs to complete the contract can be measured reliably. |
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1.3 |
Tangible fixed assets |
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Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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Depreciation is charged so as to allocate the costs of assets less their residual value over their estimated useful lives, using the straight-line method.
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Depreciation is provided on the following basis: |
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Leasehold improvements 5 - 7 years |
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Furniture 5 years |
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Office equipment 3 - 5 years |
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Computer equipment 3 - 5 years |
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Registration database 5 years |
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Purchases over £500 are capitalised. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
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Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'other operating income' in the Statement of Income and Retained Earnings.
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1.4 |
Operating leases: Lessee |
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Rentals paid under operating leases are charged to the profit or loss on a straight line basis over the period of the lease.
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1.5 |
Debtors |
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Short term debtors are measured at transaction price, less any impairment.
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1.6 |
Cash and cash equivalents |
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than six months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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1.7 |
Financial instruments |
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The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable.
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Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised costs using the effective interest method.
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1.8 |
Defined contribution pension plan |
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The Company operates a 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 payments obligations.
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The contributions are recognised as an expense when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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1.9 |
Retained surplus / Contingency reserve |
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The Company has allocated amounts collected from Network Operators to provide working capital funding for the Company and in particular to provide funding in the event of a sudden change in the nature and volume of activity of the Company. These amounts are included in the profit and loss reserve.
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1.10 |
Provisions for liabilities |
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
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Provisions are charged as an expense to the Statement of Income and Retained Earnings in the year that the Company becomes aware of the obligation and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
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When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
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No discounting is applied for the time value of money as the effect would be negligible.
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1.11 |
Taxation |
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Corporation tax is assessed on interest received at the current date.
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2. |
Judgements in applying accounting policies and key sources of estimation uncertainty |
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In the application of the Company’s accounting policies, which are described in note 1, the directors are required to make judgements (other than those involving estimations) that have a significant impact on the amounts recognised and to make estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The following are the critical judgements, apart from those involving estimations (which are dealt with separately below), that the directors have made in the process of applying the Company’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements:
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Phone-paid Services Authority Limited calculated the dilapidations provision on a basis of £36 per square foot. This is considered a reasonable accounting estimate. The market was reviewed at the time of taking out the provision in 2016, and the upper end of cost estimates at that time was taken.
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Bad debt provision is made on an individual basis, against specific debts. This is based on the evidence relating to that debt, as the collection process proceeds. No general provision is made for doubtful debts against the debtors balance as a whole.
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Phone-paid Services Authority Limited |
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(A Company Limited by Guarantee) |
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NOTES TO THE FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 MARCH 2019 |
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3. |
Analysis of turnover |
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An analysis of turnover by class of business is as follows: |
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2019 |
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2018 |
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£ |
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£ |
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Levy |
2,043,636 |
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1,852,903 |
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Adjustment for accumulated fines & administrative charges (retained funds) (see 1.2) |
1,550,991 |
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628,948 |
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Administrative charges |
91,868 |
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149,845 |
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Fines |
3,380,000 |
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3,800,000 |
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Registration fees |
190,605 |
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212,964 |
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Other |
550
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450
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7,257,650
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6,645,110
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Turnover is received only from within the UK |
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4. |
Operating loss |
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The operating loss is stated after charging: |
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2019 |
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2018 |
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£ |
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£ |
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Depreciation of tangible fixed assets |
80,891
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100,146
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Operating lease payments |
196,119
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196,119
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Defined contribution pension cost |
140,677
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119,776
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417,687 |
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416,041 |
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5. |
Auditors remuneration |
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2019 |
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2018 |
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£ |
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£ |
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Fees payable to the Company's auditor and its associates for the audit of the Company's annual accounts |
12,000
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10,000
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12,000
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10,000
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Analysis of audit fees: |
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National Audit Office |
12,000
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10,000
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12,000
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10,000
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Phone-paid Services Authority Limited |
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(A Company Limited by Guarantee) |
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NOTES TO THE FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 MARCH 2019 |
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6. |
Employees |
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|
Staff costs, including directors' remuneration, were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
|
|
£ |
|
£ |
|
Wages and salaries |
|
2,175,310
|
|
2,097,661
|
|
Social security costs |
|
204,811
|
|
198,264
|
|
Costs of defined contribution scheme |
|
140,677
|
|
119,776
|
|
|
|
2,520,798
|
|
2,415,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The average monthly number of employees, including the directors, during the year was as follows: |
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
|
|
No. |
|
No. |
|
|
|
|
|
|
|
Board |
|
6 |
|
7 |
|
Staff |
|
43 |
|
44 |
|
Independent Complaints Assessor - part time |
|
1 |
|
1 |
* |
Code Adjudication Panel - part time |
|
11 |
|
11 |
|
Consumer Panel |
|
6 |
|
- |
|
|
|
67
|
|
63
|
|
|
|
|
|
|
|
Staff costs and staff numbers information include amounts relating to the Code Adjudication Panel (CAP), the Independent Appeals Body (IAB) and the Consumer Panel. All members of the CAP are employed by the Company for administrative purposes only, and are otherwise independent of the Company.
|
|
|
|
The total of 67 (2018: 63) is made up of FTE employees and part-time office-holders (which includes Board members). A Consumer panel was establised for the first time in 2018 with 6 office-holders including the Chair.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Phone-paid Services Authority Limited |
|
(A Company Limited by Guarantee) |
|
|
|
|
|
|
|
NOTES TO THE FINANCIAL STATEMENTS |
|
FOR THE YEAR ENDED 31 MARCH 2019 |
|
|
|
|
|
|
7. |
Directors remuneration |
|
|
|
|
|
|
|
2019 |
|
2018 |
|
|
|
£ |
|
£ |
|
Directors emoluments |
|
245,644
|
|
254,029
|
|
Company contributions to defined contribution pension schemes |
|
18,078
|
|
17,724
|
|
|
|
263,722
|
|
271,753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During the year retirement benefits were accruing to 1 director (2018 - 1) in respect of defined contribution pension schemes.
|
|
|
|
The highest paid director received remuneration of £129,384 (2018 - £126,889). |
|
|
|
The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £18,078 (2018 - £17,724).
|
|
|
|
The total accrued pension provision of the highest paid director at 31 March 2019 amounted to £1,507 (2018 - £1,477).
|
|
|
|
|
|
|
8. |
Interest receivable |
|
|
|
|
|
|
|
2019 |
|
2018 |
|
|
|
£ |
|
£ |
|
Other interest receivable |
|
34,377
|
|
32,772
|
|
|
|
34,377
|
|
32,772
|
|
|
|
|
|
|
|
|
|
|
|
|
9. |
Interest payable and similar charges |
|
|
|
|
|
|
|
2019 |
|
2018 |
|
|
|
£ |
|
£ |
|
Other interest payable |
|
1,027
|
|
- |
|
|
|
1,027
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Phone-paid Services Authority Limited |
|
(A Company Limited by Guarantee) |
|
|
|
|
|
|
|
NOTES TO THE FINANCIAL STATEMENTS |
|
FOR THE YEAR ENDED 31 MARCH 2019 |
|
|
|
|
|
|
10.
|
Taxation |
|
|
|
|
|
The tax payable is due on the bank interest received. Phone-paid Services Authority Limited is a not-for-profit organisation therefore no tax arises on its other activities as any in-year surplus, if it arises, is treated as deferred income.
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
|
|
£ |
|
£ |
|
Corporation tax |
|
|
|
|
|
|
|
|
|
|
|
Taxation on interest |
|
6,160
|
|
6,555
|
|
|
|
|
|
|
|
Taxation on interest |
|
6,160
|
|
6,555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for the year |
|
|
|
|
|
|
|
|
|
|
|
The tax assessed for the year is higher than (2017 - higher than) the standard rate of corporation tax in the UK of 19% (2017 - 19%). The differences are explained below:
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
|
|
£ |
|
£ |
|
|
|
|
|
|
|
Profit on ordinary activities before tax |
|
6,160
|
|
6,555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
2018 |
|
|
|
£ |
|
£ |
|
|
|
|
|
|
|
Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2017 - 19%) |
|
1,170
|
|
1,311
|
|
|
|
|
|
|
|
Effects of: |
|
|
|
|
|
|
|
|
|
|
|
Prior year adjustment |
|
(371) |
|
0
|
|
Other differences leading to an increase / (decrease) in the tax charge |
|
5,361
|
|
5,244
|
|
|
|
|
|
|
|
Total tax charge for the year |
|
6,160
|
|
6,555
|
|
|
|
|
|
|
|
Factors that may affect future tax charges |
|
|
|
|
|
|
|
|
|
|
|
At Summer Budget 2015, the government announced legislation setting the Corporation Tax main rate (for all profits except ring fence profits) at 19% for the years starting the 1 April 2017, 2018 and 2019 and at 18% for the year starting 1 April 2020. At Budget 2016, the government announced a further reduction to the Corporation Tax main rate (for all profits except ring fence profits) for the year starting 1 April 2020, setting the rate at 17%.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Phone-paid Services Authority Limited |
|
(A Company Limited by Guarantee) |
|
|
|
|
|
|
|
|
|
|
|
|
NOTES TO THE FINANCIAL STATEMENTS |
|
FOR THE YEAR ENDED 31 MARCH 2019 |
|
|
|
|
|
|
|
|
|
|
|
11.
|
Tangible fixed assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Registration database |
|
Fixtures & Fittings |
|
Furniture & office equipment |
|
Computer equipment |
|
Total |
|
|
£ |
|
£ |
|
£ |
|
£ |
|
£ |
|
Cost or valuation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 April 2018 |
693,195
|
|
318,707
|
|
125,989
|
|
314,689
|
|
1,452,580
|
|
Additions |
- |
|
4,339
|
|
4,962
|
|
26,180
|
|
35,481
|
|
Disposals |
- |
|
- |
|
(7,613) |
|
(814) |
|
(8,427) |
|
At 31 March 2019 |
693,195
|
|
323,046
|
|
123,338
|
|
340,055
|
|
1,479,634
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 April 2018 |
630,528
|
|
95,857
|
|
102,247
|
|
289,465
|
|
1,118,097
|
|
Charge owned for the period |
16,000
|
|
40,381
|
|
8,445
|
|
16,065
|
|
80,891
|
|
Disposals |
- |
|
- |
|
(7,613) |
|
(814) |
|
(8,427) |
|
At 31 March 2019 |
646,528
|
|
136,238
|
|
103,079
|
|
304,716
|
|
1,190,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net book value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 March 2019 |
46,667
|
|
186,808
|
|
20,259
|
|
35,339
|
|
289,074
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 March 2018 |
62,667
|
|
222,850
|
|
23,742
|
|
25,224
|
|
334,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Phone-paid Services Authority Limited |
|
(A Company Limited by Guarantee) |
|
|
|
|
|
|
|
NOTES TO THE FINANCIAL STATEMENTS |
|
FOR THE YEAR ENDED 31 MARCH 2019 |
|
|
|
|
|
|
12.
|
Fixed asset investments |
|
|
|
|
|
|
|
|
|
|
|
The subsidiary IMCB Limited was previously held at a nominal value of £1. The subsidiary is now dissolved and the value written off.
|
|
|
|
|
|
|
|
|
|
|
|
|
13.
|
Debtors |
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
|
|
£ |
|
£ |
|
|
|
|
|
|
|
Trade debtors |
|
614,504
|
|
451,735
|
|
Other debtors |
|
136,743
|
|
105,052
|
|
Prepayments and accrued income |
|
218,467
|
|
216,142
|
|
|
|
969,714
|
|
772,929
|
|
|
|
|
|
|
|
|
|
|
|
|
14.
|
Cash at bank and in hand |
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
|
|
£ |
|
£ |
|
Cash at bank and in hand |
|
5,399,343
|
|
6,878,552
|
|
|
|
5,399,343
|
|
6,878,552
|
|
|
|
|
|
|
|
|
|
|
|
|
15.
|
Creditors: Amounts falling due within one year |
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
|
|
£ |
|
£ |
|
Trade creditors |
|
358,204
|
|
108,114
|
|
Corporation tax |
|
6,532
|
|
6,555
|
|
Taxation and social security |
|
- |
|
- |
|
Other creditors |
|
175,705
|
|
175,465
|
|
Accumulated fines & administrative charges (retained funds) |
|
3,043,372 |
|
4,594,362 |
|
Accruals and deferred income |
|
514,636
|
|
541,786
|
|
|
|
4,098,449
|
|
5,426,283
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
Accumulated fines & administrative charges (retained funds) |
|
£ |
|
£ |
|
Opening balance |
|
4,594,363 |
|
5,223,310 |
|
Net fines and administrative charges |
|
131,059 |
|
1,058,248 |
|
Amount utilised during year to offset levy |
|
(1,682,050) |
|
(1,687,195) |
|
Balance available to offset future levy requirements |
|
3,043,372 |
|
4,594,363 |
|
|
|
|
|
|
|
Other creditors includes £159,747 banked monies that is held in respect of refunds to consumers. |
|
|
|
|
|
|
|
Phone-paid Services Authority Limited |
|
(A Company Limited by Guarantee) |
|
|
|
|
|
|
|
NOTES TO THE FINANCIAL STATEMENTS |
|
FOR THE YEAR ENDED 31 MARCH 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
16.
|
Financial instruments |
|
|
|
|
|
|
|
2019 |
|
2018 |
|
|
|
£ |
|
£ |
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
Financial assets that are debt instruments measured at amortised cost |
|
751,247
|
|
556,787
|
|
|
|
751,247
|
|
556,787
|
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities measured at amortised cost |
|
(976,875) |
|
(750,002) |
|
|
|
(976,875) |
|
(750,002) |
|
|
|
|
|
|
|
Financial assets that are debt instruments measured at amortised cost comprise trade and other debtors. The Company has net income attributable from financial assets that are debt instruments measured at amortised cost is £194,460 (2018: £1,149,998).
|
|
|
|
|
|
|
|
Financial liabilities measured at amortised cost comprise trade and other creditors and accruals. The Company has net expense attributable from financial liabilities measured at amortised cost is £226,874 (2018: £13,964).
|
|
|
|
|
|
|
|
|
|
|
|
|
17.
|
Provisions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dilapidations provision |
|
Total |
|
|
|
£ |
|
£ |
|
|
|
|
|
|
|
At 1 April 2018 |
|
184,644
|
|
184,644
|
|
Additions |
|
- |
|
- |
|
Amounts used |
|
- |
|
- |
|
|
|
|
|
|
|
At 31 March 2019 |
|
184,644
|
|
184,644
|
|
|
|
|
|
|
|
Dilapidations provision: |
|
|
|
|
|
The dilapidations provision reflects the expected cost of reinstating the premises occupied by the company, in line with relevant contractual terms. The lease expires in December 2022 and a provision has been made at £36 per square foot. The need for a provision is ongoing until the end of the lease.
|
|
|
|
|
|
|
|
Fines provision: |
|
|
|
|
|
Our policy is to provide fully for fines that are expected to be reviewed in the subsequent financial year, should they arise. The provision for the current financial year is £Nil.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Phone-paid Services Authority Limited |
|
(A Company Limited by Guarantee) |
|
|
|
|
|
|
|
NOTES TO THE FINANCIAL STATEMENTS |
|
FOR THE YEAR ENDED 31 MARCH 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
18.
|
Prior year adjustments |
|
|
|
|
|
|
|
|
|
|
|
There are no prior year adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19.
|
Pension commitments |
|
|
|
|
|
|
|
|
|
|
|
The company operates a defined contribution pension scheme. The funds of the scheme are adminstered by Trustees and are separate from the Company.
|
|
|
|
|
|
|
|
The pension cost charge represents contributions payable by the Company to the fund and amounted to £140,677 (2018: £119,766). At the year end the Company owed £15,470 (2018: £15.296).
|
|
|
|
|
|
|
|
|
|
|
|
|
20.
|
Commitments under operating leases |
|
|
|
|
|
At 31 March 2019 the Company had future minimum lease payments under non-cancelling operating leases as follows:
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
|
|
£ |
|
£ |
|
Land and Buildings |
|
|
|
|
|
|
|
|
|
|
|
Not later than 1 year |
|
246,192
|
|
246,192
|
|
Later than 1 year and not later than 5 years |
|
678,546
|
|
924,738
|
|
Later than 5 years |
|
- |
|
- |
|
Total |
|
924,738
|
|
1,170,930
|
|
|
|
|
|
|
|
The sole lease held is for business premises at 25th Floor, 40 Bank Street E14 5NR |
|
|
|
|
|
|
|
Total operating lease payments made by the Company in 2019 were £246,192 (2018: £169,636).
|
|
|
|
|
|
|
|
|
|
|
|
|
21.
|
Related party transactions |
|
|
|
|
|
|
|
|
|
|
|
The companies of which certain directors are employees paid levies to the Company on the same basis as other members.
|
|
|
|
|
|
|
|
The directors of the Company are considered key management personnel of the Company. See note 7 for remuneration details.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Phone-paid Services Authority Limited |
|
(A Company Limited by Guarantee) |
|
|
|
|
|
|
|
DETAILED INCOME & EXPENDITURE ACCOUNT |
|
FOR THE YEAR ENDED 31 MARCH 2019 |
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
|
|
£ |
|
£ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover |
|
7,257,650 |
|
6,645,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: overheads |
|
|
|
|
|
|
|
|
|
|
|
Administration expenses |
|
(7,284,840) |
|
(6,671,327) |
|
Operating loss |
|
(27,190) |
|
(26,217) |
|
|
|
|
|
|
|
Interest receivable |
|
34,377 |
|
32,772 |
|
Interest payable |
|
(1,027) |
|
- |
|
Taxation on profit on ordinary activities |
|
(6,160) |
|
(6,555) |
|
|
|
|
|
|
|
Profit for the year |
|
- |
|
- |
|
|
|
|
|
|
|
|
Phone-paid Services Authority Limited |
(A Company Limited by Guarantee) |
|
|
|
|
SCHEDULE TO THE DETAILED ACCOUNTS |
FOR THE YEAR ENDED 31 MARCH 2019 |
|
|
|
|
Turnover |
|
|
|
|
2019 |
|
2018 |
|
£ |
|
£ |
Levy |
2,043,636 |
|
1,852,903 |
Adjustment for accumulated fines & administrative charges (retained funds) (see 1.2) |
1,550,991 |
|
628,948 |
Fines |
3,380,000 |
|
3,800,000 |
Registration fees |
190,605 |
|
212,964 |
Administrative charges |
91,868 |
|
149,845 |
Other |
550 |
|
450 |
|
7,257,650 |
|
6,645,110 |
|
|
|
|
|
|
|
|
Administrative expenses |
|
|
|
|
2019 |
|
2018 |
|
£ |
|
£ |
Staff costs (excl. CAP fee recovery) |
2,696,479 |
|
2,594,560 |
Policy, external relations and communications |
145,872 |
|
144,336 |
Legal fees |
101,803 |
|
64,856 |
IT system costs |
375,784 |
|
296,662 |
Telecoms charges |
62,676 |
|
59,008 |
Premises costs |
426,387 |
|
437,474 |
Finance and governance |
46,631 |
|
76,938 |
Overheads |
71,762 |
|
69,843 |
Depreciation |
80,881 |
|
100,146 |
|
4,008,275 |
|
3,843,822 |
|
|
|
|
|
|
|
|
Bad debts |
|
|
|
|
2019 |
|
2018 |
|
£ |
|
£ |
Bad debts |
3,276,565 |
|
2,827,505 |
|
3,276,565 |
|
2,827,505 |
|
|
|
|
Interest receivable |
|
|
|
|
2019 |
|
2018 |
|
£ |
|
£ |
Bank interest receivable |
34,377 |
|
32,772 |
|
34,377 |
|
32,772 |
|
|
|
|
Interest payable |
|
|
|
|
2019 |
|
2018 |
|
£ |
|
£ |
Other interest - on prior year VAT adjustment |
1,027 |
|
- |
|
1,027 |
|
- |