Company Registration No. 03300783 (England and Wales)
NOVA INTERNATIONAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
NOVA INTERNATIONAL LIMITED
COMPANY INFORMATION
Directors
Sir B Foster - Charmain
E M Wilkins
Secretary
G Wright
Company number
03300783
Registered office
Newcastle House
Albany Court
Monarch Road
Newcastle upon Tyne
NE4 7YB
Auditor
RMT Accountants & Business Advisors Ltd
Gosforth Park Avenue
Newcastle upon Tyne
NE12 8EG
Bankers
Lloyds Bank Plc
102 Grey Street
Newcastle upon Tyne
NE99 1SL
NOVA INTERNATIONAL LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
NOVA INTERNATIONAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 1 -
The directors present the strategic report and financial statements for the year ended 31 December 2019.
Principal activity
The company's principal activity during the year was events organisation and management
.
Fair review of the business
The year to December 201
9
saw another period of strong performance from the company, both financially and operationally, with another year of increased participant numbers across the portfolio of Great Run events.
The company continues to be focused on consolidating its existing events base and exploring new opportunities in mass participation.
The Directors consider the company to be in a healthy and competitive position with the strategic focus to drive continued growth.
Key performance indicators
The directors consider operating profit margin and EBITDA (earnings before interest, tax, depreciation
,
amortisation
and amounts written off investments
) to be the key measures of the
c
ompany's performance.
The
c
ompany’s net asset position has improved during the period, increasing to £
2,020,978
(201
8
- £
1,271,109
).
The director
s
consider the
c
ompany's results to be satisfactory in the light of current trading conditions.
NOVA INTERNATIONAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
Principal risks and uncertainties
The company's principal financial instruments comprise cash and cash equivalents. Other financial assets and liabilities, such as trade debtors, trade creditors and related party balances, arise directly from the company's operating activities.
The main risks associated with the company's financial assets and liabilities are set out below. The company does not undertake any hedging activity.
Interest rate risk
The company invests surplus cash in fixed and floating interest deposit accounts. Therefore financial assets, interest income and cash flows can be affected by movements in interest rates. However, the directors do not consider there to be any significant exposure.
Price risk
There is no significant exposure to changes in the carrying value of financial liabilities.
Credit risk
The company's policy is aimed at minimising such losses, and requires that deferred terms are granted only to customers who demonstrate an appropriate payment history and satisfy creditworthiness procedures. Individual exposures and overdue debts are monitored with customers subject to credit limits to ensure that the company's exposure to bad debts is not significant.
Liquidity risk
The company aims to mitigate liquidity risk by managing cash generated by its operations. Capital expenditure is approved by the directors and flexibility is maintained by retaining surplus cash in readily accessible bank accounts.
Foreign currency risk
The company's principal transactions in foreign currency arise directly from the company's operating activities. As a result, the company's cash flows arising from these transactions can be affected by movements in the Euro and Dollar exchange rates. No hedging activity is undertaken to mitigate this risk as it is not considered to be significant.
COVID-19 risk
The ongoing COVID-19 pandemic continues to generate a significant level of uncertainty in the economy. The
directors regularly assess the likely effects on company operations in an attempt to mitigate the risk as far as
practicable.
Brexit risk
The UK’s decision to leave the European Union continues to generate a significant level of uncertainty in the economy. The directors regularly assess the likely effects on
company
revenue and profitability in an attempt to mitigate the risk as far as practicable.
By order of the board
G Wright
Secretary
Approved by the board on 8 December 2020
NOVA INTERNATIONAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2019.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Sir B Foster - Charmain
E M Wilkins
J Flynn - Non executive
(Resigned 18 July 2019)
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £505,000. The directors do not recommend payment of a further dividend.
Future developments
The directors aim to maintain the management policies which have resulted in the company's continued growth over the last few years.
Auditor
In accordance with the company's articles, a resolution proposing that RMT Accountants & Business Advisors Ltd be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure in the Strategic Report
The
company
has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the
group
's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of
the exposure of the company and it's subsidiary undertakings included in the consolidation to price risk, credit risk and liquidity risk.
NOVA INTERNATIONAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 4 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
By order of the board
G Wright
Secretary
Approved by the board on 8 December 2020
NOVA INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NOVA INTERNATIONAL LIMITED
- 5 -
Opinion
We have audited the financial statements of Nova International Limited (the 'company') for the year ended 31 December 2019 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 December 2019 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
The impact of uncertainties due to the United Kingdom exiting the European Union on our audit
Brexit is one of the most significant economic events for the UK in recent history, and at the date of this report its effects are subject to unprecedented levels of uncertainty, with the full range of possible consequences unknown. We applied a standardised firm-wide approach in response to that uncertainty when assessing the company's future prospects and performance. However, no audit should be expected to predict the unknowable factors or all possible future implications for a company and this is particularly the case in relation to Brexit.
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 directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have 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
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, 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.
NOVA INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NOVA INTERNATIONAL LIMITED
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors' r
eport 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
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
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.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
NOVA INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NOVA INTERNATIONAL LIMITED
- 7 -
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Maxine Pott (Senior Statutory Auditor)
for and on behalf of RMT Accountants & Business Advisors Ltd
Statutory Auditor
Gosforth Park Avenue
Newcastle upon Tyne
NE12 8EG
Date: 18 December 2020
NOVA INTERNATIONAL LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 8 -
2019
2018
Notes
£
£
Turnover
3
10,580,763
11,463,161
Cost of sales
(6,359,337)
(7,915,206)
Gross profit
4,221,426
3,547,955
Administrative expenses
(2,790,612)
(3,141,013)
Operating profit
4
1,430,814
406,942
Amounts written off intercompany loans
(22)
-
Profit before taxation
1,430,792
406,942
Taxation
7
(175,923)
(46,762)
Profit for the financial year
1,254,869
360,180
The profit and loss account has been prepared on the basis that all operations are continuing operations.
NOVA INTERNATIONAL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2019
- 9 -
2019
2018
£
£
Profit for the year
1,254,869
360,180
Other comprehensive income
-
-
Total comprehensive income for the year
1,254,869
360,180
NOVA INTERNATIONAL LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 10 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
9
146,703
377,984
Current assets
Debtors
10
7,981,976
6,771,484
Cash at bank and in hand
348
217
7,982,324
6,771,701
Creditors: amounts falling due within one year
11
(6,091,054)
(5,857,592)
Net current assets
1,891,270
914,109
Total assets less current liabilities
2,037,973
1,292,093
Provisions for liabilities
12
(16,995)
(20,984)
Net assets
2,020,978
1,271,109
Capital and reserves
Called up share capital
15
3
3
Profit and loss reserves
2,020,975
1,271,106
Total equity
2,020,978
1,271,109
The financial statements were approved by the board of directors and authorised for issue on 8 December 2020 and are signed on its behalf by:
E M Wilkins
Director
Company Registration No. 03300783
NOVA INTERNATIONAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2018
3
910,926
910,929
Year ended 31 December 2018:
Profit and total comprehensive income for the year
-
360,180
360,180
Balance at 31 December 2018
3
1,271,106
1,271,109
Year ended 31 December 2019:
Profit and total comprehensive income for the year
-
1,254,869
1,254,869
Dividends
8
-
(505,000)
(505,000)
Balance at 31 December 2019
3
2,020,975
2,020,978
NOVA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 12 -
1
Accounting policies
Company information
Nova International Limited is a
company
limited by shares
incorporated in England and Wales.
The registered office is
Newcastle House, Albany Court, Monarch Road, Newcastle upon Tyne, NE4 7YB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
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 £.
The financial statements have been prepared on the historical cost convention.
The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares
;
-
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash
f
low and related notes and disclosures
;
-
Section 11 ‘Basic Financial Instruments’ – Carrying amounts
; and
-
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
Nova Marketing Limited, the ultimate parent company
. These consolidated financial statements are available from its registered office,
Newcastle House, Albany Court, Monarch Road, Newcastle upon Tyne, NE4 7YB
.
1.2
Going concern
The directors have adopted the going concern basis in preparing these financial statements after assessing the principal risks and having considered the impact of COVID-19.
true
On the 20
March 2020, the UK Government announced restrictions on mass participation events following the outbreak of COVID-19 in the UK and subsequently all events in the 2020 calendar were cancelled. The directors acknowledge the depth and duration of COVID-19 is an unknown factor and has and will continue to have a detrimental impact on the trading performance of the business.
Although there is doubt on when mass participation events can re-commence, the directors are hopeful that events can resume in 2021 due to the lifting of restrictions and the introduction of a vaccine in the UK.
The directors considered the impact of the current COVID-19 environment on the business for the next 12 months from the approval of the balance sheet date and concluded that the business has access to adequate financial resources to enable it to trade at a reduced level for the foreseeable future.
NOVA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 13 -
1.3
Turnover
Revenue arises from events organisation and events management. Revenue is measured at the fair value of the consideration received or receivable and represents amounts for the sale of services in the normal course of business, net of discounts and other sales-related taxes.
For events owned by the company, revenue is recognised in the month that the event is held. For events where the company is contracted, by a third party, to act in an event management or public relations capacity, revenue is released to the profit and loss account as activity progresses. Profit is only recognised when the event is completed.
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:
Plant and machinery
over 3 to 10 years straight line
Fixtures, fittings and equipment
over 3 to 20 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Impairment of fixed assets
At each reporting end date, the
company
reviews the carrying amounts of its tangible 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).
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's
balance sheet
when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other
debtors, loans
to
fellow group subsidiaries
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
NOVA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 14 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other
creditors
, loans from
fellow group companies are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future receipts discounted at a market rate of interest.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade
creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers.
Trade creditors
are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade
creditor
s are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
NOVA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
NOVA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 16 -
1.9
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
,
if considered material to the financial statements.
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
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
s
asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Assessing indicators of impairment
In assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions and experience of recoverability. There have been no indicators of impairments identified during the current financial year.
NOVA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
2
Judgements and key sources of estimation uncertainty
(Continued)
- 17 -
Key sources of estimation uncertainty
Determining residual values and useful economic lives of tangible fixed assets
The company depreciates tangible fixed assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.
Judgement is applied by management when determining the residual values for tangible fixed assets. When determining the residual value management aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices. The carrying amount of tangible fixed assets at the reporting end date was £146,703 (2018 - £377,984).
Recoverability of debtors
The company establishes a provision for debtors that are estimated not to be recoverable. When assessing the recoverability the directors consider factors such as the aging of debtors, past experience of recoverability, and the credit profile of individual or groups of customers. The carrying value of this provision is £19,986 (2018 - £5,000).
Assessment of outstanding creditors
The company establishes a provision for creditors relating to the current period. When assessing the level of this provision the directors consider factors such as purchase orders raised for individual events not offset against purchase invoices and past experience of recoverability of prior year accruals. The carrying value of this provision is £36,484 (2018 - £52,642) included within accruals and deferred income.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2019
2018
£
£
Turnover analysed by class of business
Events organisation
10,580,763
11,463,161
2019
2018
£
£
Turnover analysed by geographical market
United Kingdom
9,307,480
9,863,552
Europe
1,172,570
1,443,130
Other
100,713
156,479
10,580,763
11,463,161
Turnover is stated after trade discounts, other sales taxes and net of VAT.
NOVA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 18 -
4
Operating profit
2019
2018
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
5,000
5,000
Depreciation of owned tangible fixed assets
93,973
208,780
Profit on disposal of tangible fixed assets
(24,188)
(250)
Operating lease charges
66,560
74,355
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Office and management
17
22
Their aggregate remuneration comprised:
2019
2018
£
£
Wages and salaries
717,099
844,258
Social security costs
71,371
84,166
Pension costs
65,383
71,430
853,853
999,854
6
Directors' remuneration
2019
2018
£
£
Remuneration for qualifying services
-
84,246
7
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
179,912
65,918
NOVA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
7
Taxation
2019
2018
£
£
(Continued)
- 19 -
Deferred tax
Origination and reversal of timing differences
(3,989)
(19,156)
Total tax charge
175,923
46,762
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
Profit before taxation
1,430,792
406,942
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
271,850
77,319
Tax effect of expenses that are not deductible in determining taxable profit
(502)
4,878
Effect of change in corporation tax rate
-
2,254
Group relief
(91,718)
(26,599)
Permanent capital allowances in excess of depreciation
5,738
-
Research and development tax credit
(4,850)
(11,090)
Profit on sale of fixed assets
(4,595)
-
Taxation charge for the year
175,923
46,762
8
Dividends
2019
2018
£
£
Final paid
505,000
-
NOVA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 20 -
9
Tangible fixed assets
Plant and machinery
Fixtures, fittings and equipment
Total
£
£
£
Cost
At 1 January 2019
1,164,717
446,367
1,611,084
Additions
19,860
18,644
38,504
Disposals
(21,727)
(303,739)
(325,466)
At 31 December 2019
1,162,850
161,272
1,324,122
Depreciation and impairment
At 1 January 2019
1,045,755
187,345
1,233,100
Depreciation charged in the year
42,138
51,835
93,973
Eliminated in respect of disposals
(18,468)
(131,186)
(149,654)
At 31 December 2019
1,069,425
107,994
1,177,419
Carrying amount
At 31 December 2019
93,425
53,278
146,703
At 31 December 2018
118,962
259,022
377,984
10
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
809,502
932,739
Amounts owed by group undertakings
6,511,643
5,139,824
Other debtors
289,039
255,264
Prepayments and accrued income
371,792
443,657
7,981,976
6,771,484
11
Creditors: amounts falling due within one year
2019
2018
£
£
Payments received on account
4,545,388
4,369,317
Trade creditors
93,745
370,779
Corporation tax
161,866
65,918
Other taxation and social security
84,042
44,661
Accruals and deferred income
1,206,013
1,006,917
6,091,054
5,857,592
NOVA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 21 -
12
Provisions for liabilities
2019
2018
Notes
£
£
Deferred tax liabilities
13
16,995
20,984
13
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2019
2018
Balances:
£
£
Accelerated capital allowances
16,995
20,984
2019
Movements in the year:
£
Liability at 1 January 2019
20,984
Credit to profit or loss
(3,989)
Liability at 31 December 2019
16,995
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
14
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
65,383
71,430
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund. At the reporting date contributions of £8,369 are included as an outstanding creditor in the balance sheet.
NOVA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 22 -
15
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
3 Ordinary shares of £1 each
3
3
The company has one class of ordinary shares which carry no right to fixed income.
16
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2019
2018
£
£
Within one year
86,288
92,067
Between two and five years
169,734
231,623
In over five years
-
21,724
256,022
345,414
17
Events after the reporting date
On the 20
March 2020, the UK Government announced restrictions on mass participation events following the outbreak of COVID-19 in the UK and subsequently all events in the 2020 calendar were cancelled.
Although there is doubt on when mass participation events can re-commence, the directors are hopeful that events can resume in 2021 due to the lifting of restrictions and the introduction of a vaccine in the UK.
The directors have determined that these events are non-adjusting subsequent events. Accordingly, the financial position and results of operations as of and for the year ended 31 December 2019 have not been adjusted to reflect their impact.
18
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Purchases
2019
2018
2019
2018
£
£
£
£
Companies under common control
37,849
33,215
37,849
-
NOVA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
18
Related party transactions
(Continued)
- 23 -
The following amounts were outstanding at the reporting end date:
2019
2018
Amounts due from related parties
£
£
Companies under common control
289,039
255,264
Other information
The company is a wholly owned subsidiary of Nova Marketing Limited and as such has taken advantage of the exemption permitted by Section 33 Related Party Disclosures not to provide disclosures of transactions entered into with other wholly owned members of the group.
19
Ultimate controlling party
The company's immediate parent undertaking is Nova Holdings Limited, a company incorporated in England and Wales.
The company's ultimate parent undertaking is Nova Marketing Limited, a company incorporated in England and Wales.
In the opinion of the directors, the overall controlling party is B Foster, the Chairman, by virtue of his shareholding in the ultimate parent company Nova Marketing Limited.
2019-12-31
2019-01-01
false
CCH Software
CCH Accounts Production 2020.200
E M Wilkins
J Flynn - Non executive
J Flynn - Non executive
G Wright
03300783
2019-01-01
2019-12-31
03300783
bus:Chairman
2019-01-01
2019-12-31
03300783
bus:Director1
2019-01-01
2019-12-31
03300783
bus:CompanySecretaryDirector1
2019-01-01
2019-12-31
03300783
bus:Director2
2019-01-01
2019-12-31
03300783
bus:Director3
2019-01-01
2019-12-31
03300783
bus:CompanySecretary1
2019-01-01
2019-12-31
03300783
bus:RegisteredOffice
2019-01-01
2019-12-31
03300783
bus:Agent1
2019-01-01
2019-12-31
03300783
2019-12-31
03300783
2018-01-01
2018-12-31
03300783
core:RetainedEarningsAccumulatedLosses
2018-01-01
2018-12-31
03300783
core:RetainedEarningsAccumulatedLosses
2019-01-01
2019-12-31
03300783
2018-12-31
03300783
core:PlantMachinery
2019-12-31
03300783
core:FurnitureFittings
2019-12-31
03300783
core:PlantMachinery
2018-12-31
03300783
core:FurnitureFittings
2018-12-31
03300783
core:CurrentFinancialInstruments
core:WithinOneYear
2019-12-31
03300783
core:CurrentFinancialInstruments
core:WithinOneYear
2018-12-31
03300783
core:ShareCapital
2019-12-31
03300783
core:ShareCapital
2018-12-31
03300783
core:RetainedEarningsAccumulatedLosses
2019-12-31
03300783
core:RetainedEarningsAccumulatedLosses
2018-12-31
03300783
core:ShareCapital
2017-12-31
03300783
core:RetainedEarningsAccumulatedLosses
2017-12-31
03300783
2017-12-31
03300783
core:PlantMachinery
2019-01-01
2019-12-31
03300783
core:FurnitureFittings
2019-01-01
2019-12-31
03300783
core:UKTax
2019-01-01
2019-12-31
03300783
core:UKTax
2018-01-01
2018-12-31
03300783
1
2019-01-01
2019-12-31
03300783
core:PlantMachinery
2018-12-31
03300783
core:FurnitureFittings
2018-12-31
03300783
2018-12-31
03300783
core:CurrentFinancialInstruments
2019-12-31
03300783
core:CurrentFinancialInstruments
2018-12-31
03300783
core:WithinOneYear
2019-12-31
03300783
core:WithinOneYear
2018-12-31
03300783
core:BetweenTwoFiveYears
2019-12-31
03300783
core:BetweenTwoFiveYears
2018-12-31
03300783
core:MoreThanFiveYears
2018-12-31
03300783
bus:PrivateLimitedCompanyLtd
2019-01-01
2019-12-31
03300783
bus:FRS102
2019-01-01
2019-12-31
03300783
bus:Audited
2019-01-01
2019-12-31
03300783
bus:FullAccounts
2019-01-01
2019-12-31
xbrli:pure
xbrli:shares
iso4217:GBP