Company Registration No. 05413537 (England and Wales)
CENTIGRADE INTERNATIONAL LIMITED
GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
CENTIGRADE INTERNATIONAL LIMITED
COMPANY INFORMATION
Directors
Mr N Matthews
Ms J Barnard
Secretary
S Neill
Company number
05413537
Registered office
Countrywide House
23 West Bar
Banbury
Oxfordshire
England
OX16 9SA
Accountants
Ellacotts LLP
Countrywide House
23 West Bar
Banbury
Oxfordshire
England
OX16 9SA
CENTIGRADE INTERNATIONAL LIMITED
CONTENTS
Page
Chairman's statement
1
Directors' report
2
Accountants' report
3
Group profit and loss account
4
Group balance sheet
5 - 6
Company balance sheet
7 - 8
Group statement of changes in equity
9
Company statement of changes in equity
10
Notes to the financial statements
11 - 21
CENTIGRADE INTERNATIONAL LIMITED
CHAIRMAN'S STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 1 -
As expected, COVID-19 impacted on the 2020 performance. Despite the pandemic, Centigrade Group achieved Sales of £4.0m (2019: £8.7m) and Profit before Tax on continuing operations of £247,791 (2019: £329,183).
During the year we completed the divestment of our European business to the Management Team and we wish them well with their future endeavours. We believe this will protect Centigrade from any hiatus due to Brexit.
CENTIGRADE INTERNATIONAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 2 -
The directors present their report and
the
financial statements
of the group
for the year ended 31 December 2020.
Principal activities
The principal activity of the group is that of supplying marketing services to international businesses in North America and across Europe. The group is an international, integrated, marketing services agency that works with clients across more than 30 countries. Centigrade International Limited is the ultimate holding company of the group.
The group has three operating businesses being Centigrade Inc. in the USA, Centigrade Europe B.V. in mainland Europe and Centigrade Europe Limited in the UK.
At the year end the group had centres of operation in Atlanta, Brussels, Detroit, Eindhoven, Hong Kong and Los Angeles with its head office in the UK.
The principal activities of the group includes; Strategy, Advertising, Public Relations, Marketing Communications, CRM, Digital, Event Management and Motorsport Operations.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr N Matthews
Ms J Barnard
Mr B Reading
(Resigned 7 July 2020)
Small Company Provisions
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption
of the Companies Act 2006.
On behalf of the board
Mr N Matthews
Director
24 September 2021
CENTIGRADE INTERNATIONAL LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF CENTIGRADE INTERNATIONAL LIMITED FOR THE YEAR ENDED 31 DECEMBER 2020
- 3 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the
group financial statements of Centigrade International Limited (the 'parent company') and its subsidiaries (together 'the group')
for the year ended 31 December 2020 which comprise the group profit and loss account, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which
are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance
.
This report is made solely to the Board of Directors of Centigrade International Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of Centigrade International Limited
and state those matters that we have agreed to state to the Board of Directors of Centigrade International Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Centigrade International Limited and its Board of Directors as a body, for
our work or for this report.
It is your duty to ensure that
the group
has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets,
liabilities, financial position and loss of
the group
. You consider that Centigrade International Limited is exempt from the statutory audit
requirement for the year.
We have not been instructed to carry out an audit or a review of the
group financial statements of Centigrade International Limited. For this reason, we have not verified the accuracy or completeness of the
accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Ellacotts LLP
Chartered Accountants
Countrywide House
23 West Bar
Banbury
Oxfordshire
OX16 9SA
28 September 2021
CENTIGRADE INTERNATIONAL LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 4 -
Continuing
Discontinued
31 December
Continuing
Discontinued
31 December
operations
operations
2020
operations
operations
2019
Notes
£
£
£
£
£
£
Turnover
3,645,471
366,258
4,011,729
6,355,625
2,294,815
8,650,440
Cost of sales
(2,058,254)
(528,137)
(2,586,391)
(4,606,203)
(1,664,790)
(6,270,993)
Gross profit
1,587,217
(161,879)
1,425,338
1,749,422
630,025
2,379,447
Administrative expenses
(1,608,141)
(295,802)
(1,903,943)
(1,391,232)
(627,627)
(2,018,859)
Other operating income
176,321
-
176,321
-
-
-
Operating (loss)/profit
155,397
(457,681)
(302,284)
358,190
2,398
360,588
Interest payable and similar expenses
(25,482)
-
(25,482)
(29,007)
-
(29,007)
Profit/(loss) on disposal of operations
- Centigrade Europe BV
117,876
-
117,876
-
-
-
(Loss)/profit before taxation
247,791
(457,681)
(209,890)
329,183
2,398
331,581
Tax on (loss)/profit
(6,761)
-
(6,761)
(64,522)
(1,196)
(65,718)
(Loss)/profit for the financial year
241,030
(457,681)
(216,651)
264,661
1,202
265,863
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
CENTIGRADE INTERNATIONAL LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2020
31 December 2020
- 5 -
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
5
273,674
325,153
Tangible assets
6
547,535
469,102
821,209
794,255
Current assets
Debtors
9
223,575
939,255
Cash at bank and in hand
397,850
355,845
621,425
1,295,100
Creditors: amounts falling due within one year
10
(407,720)
(835,081)
Net current assets
213,705
460,019
Total assets less current liabilities
1,034,914
1,254,274
Creditors: amounts falling due after more than one year
11
(285,700)
(214,637)
Provisions for liabilities
(86,291)
(88,768)
Net assets
662,923
950,869
Capital and reserves
Called up share capital
13
1,900
2,100
Share premium account
228,188
159,713
Capital redemption reserve
775
300
Profit and loss reserves
432,060
788,756
Total equity
662,923
950,869
For the financial year ended 31 December 2020 the
group
was entitled to exemption from audit under section
477
of the Companies Act 2006
.
Directors' responsibilities
under the Companies Act 2006
:
-
The members have not required the
company
to obtain an audit of its financial statements for the year in question in accordance with section 476;
-
The directors acknowledge their responsibilities for complying with the requirements of the Act
with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to
groups and
companies subject to the small companies' regime
of the Companies Act 2006
.
CENTIGRADE INTERNATIONAL LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2020
31 December 2020
- 6 -
The financial statements were approved by the board of directors and authorised for issue on 24 September 2021 and are signed on its behalf by:
24 September 2021
Mr N Matthews
Director
CENTIGRADE INTERNATIONAL LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2020
31 December 2020
- 7 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
6
124
319
Investments
7
808
808
932
1,127
Current assets
Debtors
9
304,483
329,385
Creditors: amounts falling due within one year
10
(138,863)
(131,765)
Net current assets
165,620
197,620
Net assets
166,552
198,747
Capital and reserves
Called up share capital
13
1,900
2,100
Share premium account
228,188
159,713
Capital redemption reserve
775
300
Profit and loss reserves
(64,311)
36,634
Total equity
166,552
198,747
As permitted by s408 Companies Act 2006, the
c
ompany has not presented its own profit and loss account. The
c
ompany’s profit for the year was £17,805 (2019 - £27,233 profit).
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 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 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
of the Companies Act 2006
.
CENTIGRADE INTERNATIONAL LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2020
31 December 2020
- 8 -
The financial statements were approved by the board of directors and authorised for issue on 24 September 2021 and are signed on its behalf by:
24 September 2021
Mr N Matthews
Director
Company Registration No. 05413537
CENTIGRADE INTERNATIONAL LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020
- 9 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2019
2,100
159,713
300
553,870
715,983
Year ended 31 December 2019:
Profit for the year
-
-
-
265,863
265,863
Other comprehensive income:
Currency translation differences
-
-
-
(30,977)
(30,977)
Total comprehensive income for the year
-
-
-
234,886
234,886
Balance at 31 December 2019
2,100
159,713
300
788,756
950,869
Year ended 31 December 2020:
Loss for the year
-
-
-
(216,651)
(216,651)
Other comprehensive income:
Currency translation differences
-
-
-
(21,295)
(21,295)
Total comprehensive income for the year
-
-
-
(237,946)
(237,946)
Issue of share capital
13
275
68,475
-
-
68,750
Own shares acquired
-
-
-
(118,275)
(118,275)
Redemption of shares
13
(475)
-
475
(475)
(475)
Balance at 31 December 2020
1,900
228,188
775
432,060
662,923
CENTIGRADE INTERNATIONAL LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020
- 10 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2019
2,100
159,713
300
9,401
171,514
Year ended 31 December 2019:
Profit and total comprehensive income for the year
-
-
-
27,233
27,233
Balance at 31 December 2019
2,100
159,713
300
36,634
198,747
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
-
-
17,805
17,805
Issue of share capital
13
275
68,475
-
-
68,750
Own shares acquired
-
-
-
(118,275)
(118,275)
Redemption of shares
13
(475)
-
475
(475)
(475)
Balance at 31 December 2020
1,900
228,188
775
(64,311)
166,552
CENTIGRADE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 11 -
1
Accounting policies
Company information
Centigrade International Limited
(“the company”)
is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
given on the company information page.
The group consists of Centigrade International Limited and all of its subsidiaries.
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 as applicable to companies and groups subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 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. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
-
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues
:
The
disclosure
requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A;
-
Section 26 ‘Share based Payment’
:
Share based payment arrangements required under FRS 102 paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
1.2
Basis of consolidation
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.
I
nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
The consolidated group financial statements consist of the financial statements of the parent company
Centigrade International Limited together with
all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates
.
All financial statements are made up to 31 December 2020
.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the
g
roup.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
CENTIGRADE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 12 -
1.3
Going concern
The company has been adversely affected by the ongoing COVID-19 pandemic in the new financial year. The duration of the outbreak and the impact on the industry cannot be accurately determined, however the company continues to be in a strong financial position and therefore at the date of approving the financial statements, the directors are satisfied that the company will continue its operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The company's overdraft facility is due for renewal in June 2021 and the directors have no reason to believe that this would not be renewed on a similar basis.
1.4
Turnover
The turnover shown in the group profit and loss account represents amounts supplied during the year, exclusive of Value Added Tax.
In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done during the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.
1.5
Intangible fixed assets - goodwill
Positive purchased goodwill arising on acquisitions is capitalised, classified as an asset on the Balance Sheet and amortised over its useful economic life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed
10
years. Useful eco
nom
ic lives are reviewed at the end of each reporting period and revised if necessary, subject to the constraint that the revised life shall not exceed
1
0 years from the date of acquisition. The carrying amount at the date of revision is depreciated over the revised estimate of remaining useful economic life.
Amortisation is calculated so as to write off the cost of an asset over the useful economic life of that asset as follows:
Goodwill - straight line over 10 years
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Software
- straight line over 10 years
1.7
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.
CENTIGRADE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 13 -
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:
Leasehold property
- straight line over 4 years
Equipment
- straight line over 3 years
Fixtures & fittings
- straight line over 2 to 3 years
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 recognised in the profit and loss account.
1.8
Fixed asset investments
Equity in
vest
ments are measured at fair value through profit or loss
,
except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably
,
which are recognised at cost less impairment until a reliable measure of fair value becomes available.
I
n the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the
group. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The
group
considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the
g
roup’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method.
Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the
parent c
ompany financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the
group
has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.9
Cash at bank and in hand
Cash a
t bank and in hand
are basic financial assets and include 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.
CENTIGRADE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 14 -
1.10
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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 debtors 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
m
ethod 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.
Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
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. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.11
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
group’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
CENTIGRADE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 15 -
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the following exceptions:
Provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets, and gains on disposal of fixed assets that have been rolled over into replacement assets, only to the extent that, at the balance sheet date, there is a binding agreement to dispose of the assets concerned. However, no provision is made where, on the basis of all available evidence at the balance sheet date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the replacement assets are sold.
Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss
so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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
d
asset are consumed.
CENTIGRADE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 16 -
1.15
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.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on transactions are included in the profit and loss account for the period.
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
3
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2020
2019
2020
2019
Number
Number
Number
Number
Total
16
36
4
Discontinued operations
The operations of Centigrade Europe BV were discontinued during 2020.
CENTIGRADE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 17 -
5
Intangible fixed assets
Group
Goodwill
Other
Total
£
£
£
Cost
At 1 January 2020
154,319
353,306
507,625
Disposals
(148,396)
-
(148,396)
Exchange adjustments
344
-
344
At 31 December 2020
6,267
353,306
359,573
Amortisation and impairment
At 1 January 2020
141,458
41,014
182,472
Amortisation charged for the year
12,885
38,618
51,503
Disposals
(148,396)
-
(148,396)
Exchange adjustments
320
-
320
At 31 December 2020
6,267
79,632
85,899
Carrying amount
At 31 December 2020
-
273,674
273,674
At 31 December 2019
12,861
312,292
325,153
The company had no intangible fixed assets at 31 December 2020 or 31 December 2019.
CENTIGRADE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 18 -
6
Tangible fixed assets
Group
Leasehold property
Equipment
Fixtures & fittings
Total
£
£
£
£
Cost
At 1 January 2020
140,066
696,343
15,648
852,057
Additions
5,249
342,162
-
347,411
Disposals
-
(197,648)
-
(197,648)
Exchange adjustments
(4,229)
(18,072)
912
(21,389)
At 31 December 2020
141,086
822,785
16,560
980,431
Depreciation and impairment
At 1 January 2020
18,719
352,683
11,553
382,955
Depreciation charged in the year
29,836
69,796
4,307
103,939
Eliminated in respect of disposals
-
(51,355)
-
(51,355)
Exchange adjustments
(2,321)
(1,022)
700
(2,643)
At 31 December 2020
46,234
370,102
16,560
432,896
Carrying amount
At 31 December 2020
94,852
452,683
-
547,535
At 31 December 2019
121,347
343,660
4,095
469,102
Company
Equipment
£
Cost
At 1 January 2020 and 31 December 2020
5,527
Depreciation and impairment
At 1 January 2020
5,208
Depreciation charged in the year
195
At 31 December 2020
5,403
Carrying amount
At 31 December 2020
124
At 31 December 2019
319
CENTIGRADE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 19 -
7
Fixed asset investments
Group
Company
2020
2019
2020
2019
£
£
£
£
Shares in group undertakings and participating interests
-
-
808
808
-
-
808
808
8
Subsidiaries
Details of the company's subsidiaries at 31 December 2020 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Centigrade Europe Limited
United Kingdom
Intermediate holding company
Ordinary
100.00
Centigrade Inc
United States of America
Marketing Services
Ordinary
100.00
Centigrade Asia
Hong Kong
Marketing Services
Ordinary
100.00
Centigrade Sports & Entertainment mangement inc
United States of America
Marketing Services
Ordinary
100.00
Indirect
9
Debtors
Group
Company
2020
2019
2020
2019
Amounts falling due within one year:
£
£
£
£
Trade debtors
117,815
629,226
Corporation tax recoverable
52,375
3,117
Amounts due from group undertakings
-
-
290,483
290,965
Other debtors
10,179
74,900
14,000
28,824
Prepayments and accrued income
43,206
232,012
9,596
223,575
939,255
304,483
329,385
CENTIGRADE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 20 -
10
Creditors: amounts falling due within one year
Group
Company
2020
2019
2020
2019
£
£
£
£
Bank loans and overdrafts
12
157,278
260,806
71,207
82,591
Obligations under finance leases
17,290
8,428
Trade creditors
48,284
454,463
465
1,574
Other taxation and social security
1,592
41,421
-
-
Dividends payable
-
39,600
39,600
Other creditors
1,837
256
59,191
Accruals and deferred income
181,439
30,107
8,000
8,000
407,720
835,081
138,863
131,765
11
Creditors: amounts falling due after more than one year
Group
Company
2020
2019
2020
2019
Notes
£
£
£
£
Bank loans and overdrafts
12
43,788
-
Obligations under finance leases
-
146,753
Other borrowings
12
242,343
67,884
Other creditors
(431)
-
285,700
214,637
Obligations under finance leases are secured against the asset.
12
Loans and overdrafts
Group
Company
2020
2019
2020
2019
£
£
£
£
Bank loans
129,859
178,215
Bank overdrafts
71,207
82,591
71,207
82,591
Other loans
242,343
67,884
-
-
443,409
328,690
71,207
82,591
Payable within one year
157,278
260,806
71,207
82,591
Payable after one year
286,131
67,884
Bank loans are secured on the assets of Centigrade Inc. The bank overdraft is secured by way of a personal guarantee from the director, Nick Matthews. In addition, other loans are secured by way of a personal guarantee from the director, Julie Barnard.
CENTIGRADE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 21 -
13
Share capital
Group and company
2020
2019
Ordinary share capital
£
£
Issued and fully paid
190,000 of 1p each
1,900
2,100
14
Financial commitments, guarantees and contingent liabilities
At 31 December 2020 the group was committed to making future payments of £1,079,697 under non-cancellable operating leases (2019: £927,859).
15
Related party transactions
During the year, Centigrade International Limited paid £265,207 (2019: £380,137) to non-group companies under the control of the directors.
On 13 January 2020, the company issued 27,500 Ordinary shares to a Director for consideration of £68,475.
On 7 July 2020, the company repurchased 47,500 Ordinary shares from a director for consideration of £118,275.
During the year, the
group
disposed of the shares it held in
a subsidiary f
or their carrying value of
£16,191. The shares were sold to a Director
of the parent company.
No other transactions with related parties were undertaken such as are required to be disclosed under FRS 102 Section 1A.
2020-12-31
2020-01-01
false
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Mr N Matthews
Ms J Barnard
Mr B Reading
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2020-01-01
2020-12-31
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