Forster Lamond Limited
Unaudited Financial Statements
For Filing with Registrar
For the year ended 31 March 2021
Company Registration No. 03200688 (England and Wales)
Forster Lamond Limited
Contents
Page
Directors' report
1 - 2
Balance sheet
3 - 4
Notes to the financial statements
5 - 10
Forster Lamond Limited
Directors' Report
For the year ended 31 March 2021
Page 1
The directors present their annual report and financial statements for the year ended 31 March 2021.
Principal activities
We trade as Forster Communications and are an award-winning B Corp. Our purpose is to use the power of communication to protect and improve lives.
Business review
Forster Communications helps organisations turn their sustainability ambitions into action. Our specialist communications services bring together experience, insights and connections to tackle the barriers that are preventing progress, change policies into practice, and create tangible value for our clients, their stakeholders and society.
In an unprecedented year, which started in the COVID-19 enforced lockdown and finished under similar restrictions, we are incredibly proud of what we have achieved both inside and outside our business. From global policies to individual actions, we know that what we do matters. We were delighted to have our actions recognised by winning Consultancy of the Year 2021 in the Edie Sustainability Leaders Awards.
We exceeded our EBITDA targets by 300% while also growing our pro-bono support for smaller charities by 224% on the previous year. The health and wellbeing of our team was paramount across the year and we increased our investment in team learning, development and one-to-one coaching by 400%.
Our drive to help put us at the heart of the pandemic emergency response, with activity including high profile communications support for NHS Charities Together, Neighbourly, Eden Project Communities, Helpforce and RVS.
We also reiterated our commitment to cutting carbon emissions through delivery of our industry leading Climate Positive Plan, working in partnership with our clients including Selfridges, Patagonia, Energy Savings Trust, Danone and Consumer Goods Forum.
In a year which saw the unequal impact of the pandemic on people in the UK and the global Black Lives Matter movement, we recognised we needed to do more to build equality and diversity. We have been members of the Living Wage Campaign since 2014 and 33% of our suppliers are now members, a 6% increase on the previous year. We created a new Diversity and Inclusion plan for the business and expect this to change the make-up of our team in the coming years.
We are founded on the belief that social and environmental challenges can be solved through innovation, collaboration and desire for change at every level of society. The pandemic has reiterated how important this is and we are already seeing renewed interest from organisations of all types to act now and deliver change.
Thank you to everyone who has invested directly or indirectly in our progress over the last year. We look forward to continuing to deliver against our values of Curious Minds, Collaborative Attitudes and Pioneering Actions, and to increasing our positive impact in the year ahead.
For further information about how we run the business, please see our Impact Reports and Climate Positive Plan which are published on www.forster.co.uk.
Forster Lamond Limited
Directors' Report (Continued)
For the year ended 31 March 2021
Page 2
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
P Gilheany
A Powell-Smith
G Ames
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
A Powell-Smith
Director
20 July 2021
Forster Lamond Limited
Balance Sheet
As at 31 March 2021
Page 3
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
5
4,741
23,049
4,741
23,049
Current assets
Debtors
6
452,080
612,313
Cash at bank and in hand
595,002
148,364
1,047,082
760,677
Creditors: amounts falling due within one year
7
(276,385)
(241,315)
Net current assets
770,697
519,362
Total assets less current liabilities
775,438
542,411
Creditors: amounts falling due after more than one year
8
(46,857)
Provisions for liabilities
(2,250)
Net assets
728,581
540,161
Capital and reserves
Called up share capital
9
1,000
1,000
Profit and loss reserves
727,581
539,161
Total equity
728,581
540,161
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 March 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
T
he directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
Forster Lamond Limited
Balance Sheet (Continued)
As at 31 March 2021
Page 4
The financial statements were approved by the board of directors and authorised for issue on 20 July 2021 and are signed on its behalf by:
A Powell-Smith
Director
Company Registration No. 03200688
Forster Lamond Limited
Notes to the Financial Statements
For the year ended 31 March 2021
Page 5
1
Accounting policies
Company information
Forster Lamond Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
The Loom, 14 Gowers Walk, London, E1 8PY.
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” (“Section 1A of 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 made a profit for the year of £204,463, and had net assets at that date of £744,624. The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons.
true
The directors have prepared cash flow forecasts for a period of 12 months from the date of approval of these financial statements which indicate that, taking account of reasonably possible downsides, the company will have sufficient funds, to meet its liabilities as they fall due for that period.
The directors have considered the potential impact of the COVID-19, and the various measures taken to contain it, on the operations of the business in the near future. The directors will continue to monitor the government announcements, and in the event income is impacted significantly they will consider cost cutting measures in order to ensure the long term viability of the business.
Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements 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.
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.
Forster Lamond Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2021
1
Accounting policies
(Continued)
Page 6
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Leasehold
Over term of lease
Fixtures, fittings & equipment
5 years straight line basis
Computer equipment
3 years straight line basis
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
.
1.5
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.
1.6
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.
1.7
Financial instruments
The Company only has basic financial instruments measured at amortised cost, with no financial instruments classified as other or basic instruments measured at fair value.
1.8
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.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Forster Lamond Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2021
1
Accounting policies
(Continued)
Page 7
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.
1.10
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.
1.11
Retirement benefits
The company operated a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.
1.12
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.
1.13
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
Forster Lamond Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2021
Page 8
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 14
(2020: 15).
3
Directors' remuneration
2021
2020
£
£
Remuneration paid to directors
264,885
251,350
4
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
23,893
Deferred tax
Origination and reversal of timing differences
(6,392)
(3,020)
Total tax charge/(credit)
17,501
(3,020)
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2020
4,783
127,634
132,417
Additions
245
245
At 31 March 2021
4,783
127,879
132,662
Depreciation and impairment
At 1 April 2020
4,783
104,585
109,368
Depreciation charged in the year
18,553
18,553
At 31 March 2021
4,783
123,138
127,921
Carrying amount
At 31 March 2021
4,741
4,741
At 31 March 2020
23,049
23,049
Forster Lamond Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2021
Page 9
6
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
133,072
240,228
Corporation tax recoverable
10,304
Amounts due from group undertakings
207,183
204,270
Other debtors
110,703
157,511
450,958
612,313
Deferred tax asset
1,122
452,080
612,313
7
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans and overdrafts
3,143
Trade creditors
27,617
57,757
Corporation tax
23,903
Other taxation and social security
122,590
86,054
Other creditors
99,132
97,504
276,385
241,315
8
Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
46,857
9
Called up share capital
2021
2020
£
£
Ordinary share capital
Issued and fully paid
100,000 Ordinary shares of 1p each
1,000
1,000
1,000
1,000
Forster Lamond Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2021
Page 10
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2021
2020
£
£
Within one year
72,575
72,575
Between two and five years
3,537
76,112
76,112
148,687
11
Related party transactions
The company has taken the exemption under Section 33 Related Party Disclosures paragraph 33.1A from disclosing the transactions with other members of a wholly owned group.
12
Control
The company is a wholly owned subsidiary of 1349 Limited, a company registered in England and Wales. There is no ultimate controlling party.