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Financial Statements for the Year Ended 31 December 2021 |
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Northstar Research Partners (UK) Limited |
REGISTERED NUMBER:
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Financial Statements for the Year Ended 31 December 2021 |
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for |
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Northstar Research Partners (UK) Limited |
Northstar Research Partners (UK) Limited (Registered number: 04131126) |
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Contents of the Financial Statements |
for the Year Ended 31 December 2021 |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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Northstar Research Partners (UK) Limited |
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Company Information |
for the Year Ended 31 December 2021 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITOR: |
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Statutory Auditor |
PO Box 27075 |
London |
N2 0FZ |
Northstar Research Partners (UK) Limited (Registered number: 04131126) |
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Balance Sheet |
31 December 2021 |
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2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
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CURRENT ASSETS |
Stocks | 5 |
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Debtors | 6 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 7 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CAPITAL AND RESERVES |
Called up share capital | 8 |
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Retained earnings |
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SHAREHOLDERS' FUNDS |
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In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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Northstar Research Partners (UK) Limited (Registered number: 04131126) |
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Notes to the Financial Statements |
for the Year Ended 31 December 2021 |
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1. | STATUTORY INFORMATION |
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Northstar Research Partners (UK) Limited is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Preparation of consolidated financial statements |
The subsidiary company established in Indonesia ceased operating in November 2017. The value of the investment and debts due from the subsidiary have been written off in the previous accounting periods. The subsidiary is in the process of being dissolved under the Indonesian regulatory process. Consequently, these financial statements deal with the results of the company as a single entity. |
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Turnover |
Turnover represents income from projects ongoing from previous year and those entered into during the year , whether completed or incomplete at the balance sheet date. Turnover is calculated by accounting for the value of the work done which incorporates recoverable third party cost and value of professional research and analysis on all of the projects. |
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Tangible fixed assets |
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Leasehold improvements | - |
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Office equipment | - |
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Fixtures and fittings | - |
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Computer equipment | - |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that that have been enacted or substantively enacted by the balance sheet date. |
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Northstar Research Partners (UK) Limited (Registered number: 04131126) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
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2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Foreign currencies |
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
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Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the profit and loss account within 'finance (expense)/income'. All other foreign exchange gains and losses are presented in the profit and loss account within 'Other operating (losses)/gains'. |
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Pension costs and other post-retirement benefits |
The Company operates a defined contribution plan. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate fund. Under defined contribution plans, the company has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. |
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For defined contribution plans, the company pays contributions to privately administered pension plans on a contractual or voluntary basis. The company has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available. |
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Work in progress |
Long-term contracts are assessed on a contract by contract basis and are reflected in the income statement by recording turnover on the basis of project completed and related costs as contract activity progresses. Where the outcome of each long-term contract can be assessed with reasonable certainty before its conclusion the attributable profit is recognised in the income statement as the difference between the reported turnover and related costs for that contract. |
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Where the outcome of the contract cannot be assessed with reasonable certainty , the amounts earned that exceed amounts invoiced are included in amounts recoverable on contracts within debtors. The amounts invoiced on contracts that exceed amounts earned are shown as payments on account within creditors. The excess of costs related to earned income of the projects over actual costs recorded is included within trade creditors. Conversely where the actual costs exceed the cost related to earned income on any open projects are included as work in progress at the year end. |
Northstar Research Partners (UK) Limited (Registered number: 04131126) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
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2. | ACCOUNTING POLICIES - continued |
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Government grants |
The grant in respect of furloughed employees is shown as income within the profit or loss.` |
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Operating lease |
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease. |
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Incentives received to enter into an operating lease are credited to the profit and loss account, to reduce the lease expense, on a straight-line basis over the period of the lease. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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4. | TANGIBLE FIXED ASSETS |
Fixtures |
Leasehold | Office | and | Computer |
improvements | equipment | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2021 |
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Additions |
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At 31 December 2021 |
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DEPRECIATION |
At 1 January 2021 |
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Charge for year |
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At 31 December 2021 |
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NET BOOK VALUE |
At 31 December 2021 |
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At 31 December 2020 |
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5. | STOCKS |
2021 | 2020 |
£ | £ |
Work-in-progress long term |
contract balances |
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Northstar Research Partners (UK) Limited (Registered number: 04131126) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
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6. | DEBTORS |
2021 | 2020 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
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Amounts recoverable on long |
term contracts | 341,383 | 156,986 |
Amounts owed by group undertakings |
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Other debtors |
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Tax |
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VAT |
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Prepayments |
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Amounts falling due after more than one year: |
Other debtors |
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Aggregate amounts |
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Debtors over more than one year relates to the rent deposit. |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade creditors |
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Payments received on account |
of long term contracts | 121,543 | 91,167 |
Amounts owed to group undertakings |
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Social security and other taxes |
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VAT | - | 122,001 |
Other creditors |
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Accrued expenses |
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The company entered into a lease on 26 June 2020 for a period of 3 years at an annual rental of £125,752. The total commitment at 31 December 2021 is £188,628. |
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Amounts owed to group undertakings include £14,057 owed re share compensation (2020 £13,239). |
Northstar Research Partners (UK) Limited (Registered number: 04131126) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
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8. | CALLED UP SHARE CAPITAL |
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Allotted called up and fully paid |
Equity Interests: |
1,770 Ordinary shares class A of 10p each | 177 | 177 |
1,000 Ordinary shares class B of 10p each | 100 | 100 |
1,723 Deferred shares of £1 | 1,723 | 1,723 |
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2,000 | 2,000 |
Allotted called up and partly paid |
Non-equity interests |
311,600 Preference shares class A of £1 | 202,540 | 202,540 |
16,400 Preference shares class B of £1 each | 10,660 | 10,660 |
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215,200 | 215,200 |
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The A and B Preference Shares shall be separate classes of shares and shall not receive a dividend unless the Board recommends a payment of a dividend. They can be redeemed at any time at the Company's discretion as outlined in the Memorandum and Articles and Association. |
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9. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditor was unqualified. |
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Statutory Auditor |
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10. | RELATED PARTY DISCLOSURES |
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Northstar Research Partners Inc. |
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Parent company until 26 July 2021 |
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Net salaries recharged to UK subsidiary £101,694 £ (2020 - £137,207) |
Net revenue received £39,122 (£8,726 - 2020) |
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MDC Partners Inc |
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Ultimate parent company until 26 July 2021 |
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During the year the Company borrowed £800,000 (2020 £1,097,211 fully repaid in the year ) for working capital from MDC Partners Inc. Intercompany loan interest payable to MDC Partners Inc amounts to £11,975 (2020-£5,987) |
Northstar Research Partners (UK) Limited (Registered number: 04131126) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
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10. | RELATED PARTY DISCLOSURES - continued |
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Northstar Research Partners(USA) LLC |
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Subsidiary of parent of former parent company |
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Northstar Research Partners (USA) LLC controls some of the Northstar UK projects and acts as a point of convenience in respect of these and other jobs in North America. They contract for and pay 3rd party liabilities regarding these jobs if it is convenient to do so in the USA. On occasions they collect monies on behalf of Northstar UK. |
Net revenue received £54,943 (£87,326 - 2020) |
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2021 | 2020 |
£ | £ |
Amount due (to)/from related party at the balance sheet date | (1,016,098 | ) | 43,806 |
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11. | POST BALANCE SHEET EVENTS |
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On 10 June 2022 the company owed Maxxcom Inc £811,975.34. It was agreed that this debt would be assigned to MDC Partners UK Holdings Limited (the company's immediate parent) and would be converted into 811,976 Ordinary A shares of £1 each. |
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12. | ULTIMATE CONTROLLING PARTY |
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The controlling party is Stagwell Inc. |
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The ultimate controlling party which was MDC Partners Inc merged with Stagwell Marketing Group LLC and now combined company is called Stagwell Inc. |
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Stagwell Inc - One World Trade Center, Floor 65 New York NY10007 |
a company incorporated in USA |
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The parent company consolidates this subsidiary in its accounts. |
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13. | BANK CHARGE ON ALL THE ASSETS OF THE COMPANY |
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There is a fixed and floating charge on all assets of the Company in respect of borrowings from Wells Fargo Capital Finance LLC by its Ultimate Parent Company Stagwell Inc. |