pegasus public relations limited financial...

REGISTERED NUMBER: 03005235 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31st December 2014

for

PEGASUS PUBLIC RELATIONS LIMITED

PEGASUS PUBLIC RELATIONS LIMITED Financial Accounts 2014-12-31

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PEGASUS PUBLIC RELATIONS LIMITED (REGISTERED NUMBER: 03005235)

Contents of the Financial Statementsfor the Year Ended 31st December 2014

Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Profit and Loss Account 6

Balance Sheet 7

Cash Flow Statement 8

Notes to the Cash Flow Statement 9

Notes to the Financial Statements 11





PEGASUS PUBLIC RELATIONS LIMITED

CompanyInformation

for the Year Ended 31st December 2014

DIRECTORS: Mrs L H BradleyS R M HackettT P AdamsMrs H GogginS HehirMs J SpadaccinoD Mackenzie-ReidG Broadbent

SECRETARY: R Calvert

REGISTERED OFFICE: 38 Salisbury RoadWorthingWest SussexBN11 1RD

REGISTERED NUMBER: 03005235 (England and Wales)

AUDITORS: MastersFullerChartered Certified Accountants &

Registered Auditors38 Salisbury RoadWorthingWest SussexBN11 1RD






Strategic Reportfor the Year Ended 31st December 2014

The directors present their strategic report for the year ended 31st December 2014.

REVIEW OF BUSINESS2014 turned out to be a key year for the business. Under our 'Inspiring Healthy Decisions'proposition, we established sixstrategic business units (SBU's) - Pharma, OTC, Healthy Beauty, Animal Health, Food &Nutrition and ConsumerHealth - supported by a range of specialist services, including creative/design, digital/onlinedevelopment and services,social media and corporate communications expertise.

All of these SBU's and specialist services contributed to the business seeing a year of steadygrowth with Gross Profitsincreasing by 9.5% over the year to £6.356m. The company also moved to new Brightonoffices, doubling its propertycapacity and bringing it into the heart of Brighton's media/digital hub. We believe that this movewill help fuel thegrowth of the business and ease the securing of new talent to support such growth.

Normalised EBITDA - adjusting for £207k of one-off property costs incurred during thetransition from Worthing toBrighton - was £1,291m, earned at a margin of 20% (EBITDA/Gross Profit).

The year was also highly successful in terms of new business wins - adding a number of blue-chip clients to ourportfolio, with a very strong pitch/win ratio; and also award wins, achieving the covetedaccolades of Consultancy ofYear with PR Week, the PRCA and Communique plus The Sabre award for best EMEAHealthcare Consultancy of theYear.

These successes mean that the future outlook for the business is very good. 2015 is alreadyseeing very strong growthwith Gross Profits expected to increase by over 30%.

PRINCIPAL RISKS AND UNCERTAINTIESThe company faces a number of business risks due to competition in the market place. To helpcontrol this risk thedirectors focus on managing the resourcing of the business activities, which together withinvestment in new innovationallows the company to remain competitive and maintain market position.

ON BEHALF OF THE BOARD:

Mrs L H Bradley - Director

25th September 2015






Report of the Directorsfor the Year Ended 31st December 2014

The directors present their report with the financial statements of the company for the yearended 31st December 2014.

PRINCIPAL ACTIVITYThe principal activity of the company in the year under review was that of the provision of publicrelations services.

DIVIDENDSAn interim dividend of £8.29 per share was paid on 29 July 2014. The Directors recommendedthe payment of a finaldividend of £20.65 per share which was paid on 16 March 2015 in respect of the financial yearended 31 December2014. Accordingly, the total dividend for the 2014 financial year is £28.94 per share.

DIRECTORSThe directors shown below have held office during the whole of the period from 1st January2014 to the date of thisreport.

Mrs L H BradleyS R M HackettT P AdamsMrs H GogginS HehirMs J Spadaccino

Other changes in directors holding office are as follows:

D Mackenzie-Reid - appointed 3rd March 2014G Broadbent - appointed 1st November 2014

STATEMENT OF DIRECTORS' RESPONSIBILITIESThe directors are responsible for preparing the Report of the Directors and the financialstatements in accordance withapplicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year.Under that law the directorshave elected to prepare the financial statements in accordance with United Kingdom GenerallyAccepted AccountingPractice (United Kingdom Accounting Standards and applicable law). Under company law thedirectors must notapprove the financial statements unless they are satisfied that they give a true and fair view ofthe state of affairs of thecompany and of the profit or loss of the company for that period. In preparing these financialstatements, the directorsare 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 topresume that the companywill continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient toshow and explain thecompany's transactions and disclose with reasonable accuracy at any time the financialposition of the company andenable them to ensure that the financial statements comply with the Companies Act 2006. Theyare also responsible forsafeguarding the assets of the company and hence for taking reasonable steps for theprevention and detection of fraudand other irregularities.






Report of the Directorsfor the Year Ended 31st December 2014

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORSSo far as the directors are aware, there is no relevant audit information (as defined by Section418 of the Companies Act2006) of which the company's auditors are unaware, and each director has taken all the stepsthat he or she ought to havetaken as a director in order to make himself or herself aware of any relevant audit informationand to establish that thecompany's auditors are aware of that information.

ON BEHALF OF THE BOARD:


25th September 2015





Report of the Independent Auditors to the Members ofPegasus Public Relations Limited

We have audited the financial statements of Pegasus Public Relations Limited for the yearended 31st December 2014on pages six to fifteen. The financial reporting framework that has been applied in theirpreparation is applicable lawand United Kingdom Accounting Standards (United Kingdom Generally Accepted AccountingPractice).

This report is made solely to the company's members, as a body, in accordance with Chapter 3of Part 16 of theCompanies Act 2006. Our audit work has been undertaken so that we might state to thecompany's members thosematters we are required to state to them in a Report of the Auditors and for no other purpose.To the fullest extentpermitted by law, we do not accept or assume responsibility to anyone other than the companyand the company'smembers as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditorsAs explained more fully in the Statement of Directors' Responsibilities set out on page three,the directors are responsible for the preparation of the financial statements and for beingsatisfied that they give a true and fair view. Our responsibility is to audit and express an opinionon the financial statements in accordance with applicable law and International Standards onAuditing (UK and Ireland). Those standards require us to comply with the Auditing PracticesBoard's Ethical Standards for Auditors.

Scope of the audit of the financial statementsAn audit involves obtaining evidence about the amounts and disclosures in the financialstatements sufficient to givereasonable assurance that the financial statements are free from material misstatement,whether caused by fraud or error.This includes an assessment of: whether the accounting policies are appropriate to thecompany's circumstances andhave been consistently applied and adequately disclosed; the reasonableness of significantaccounting estimates made bythe directors; and the overall presentation of the financial statements. In addition, we read allthe financial andnon-financial information in the Strategic Report and the Report of the Directors to identifymaterial inconsistencies withthe audited financial statements and to identify any information that is apparently materiallyincorrect based on, ormaterially inconsistent with, the knowledge acquired by us in the course of performing the audit.If we become aware ofany apparent material misstatements or inconsistencies we consider the implications for ourreport.

Opinion on financial statementsIn our opinion the financial statements:

-give a true and fair view of the state of the company's affairs as at 31st December 2014 andof its profit for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally AcceptedAccounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006In our opinion the information given in the Strategic Report and the Report of the Directors forthe financial year forwhich the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters where the Companies Act 2006requires us to report to youif, in our opinion:

-adequate accounting records have not been kept, or returns adequate for our audit have notbeen 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





- 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.

Peter Smith FCCA (Senior Statutory Auditor)for and on behalf of MastersFullerChartered Certified Accountants &

Registered Auditors38 Salisbury RoadWorthingBN11 1RD

25th September 2015 Page 5






Profit and Loss Accountfor the Year Ended 31st December 2014

2014 2013Notes £ £

TURNOVER 8,313,959 7,659,473

Cost of sales 1,957,848 1,847,532GROSS PROFIT 6,356,111 5,811,941

Administrative expenses 5,436,460 4,509,843919,651 1,302,098

Other operating income 4,409 2,619OPERATING PROFIT 4 924,060 1,304,717

Interest receivable and similar income 9,404 9,304933,464 1,314,021

Interest payable and similarcharges 5 31,309 10,630

PROFIT ON ORDINARY ACTIVITIESBEFORE TAXATION 902,155 1,303,391

Tax on profit on ordinary activities 6 180,664 337,615PROFIT FOR THE FINANCIAL YEAR 721,491 965,776

CONTINUING OPERATIONSNone of the company's activities were acquired or discontinued during the current year orprevious year.

TOTAL RECOGNISED GAINS AND LOSSESThe company has no recognised gains or losses other than the profits for the current year orprevious year.

The notes form part of these financial statements






Balance Sheet31st December

2014

2014 2013Notes £ £ £ £

FIXED ASSETSIntangible assets 8 - -Tangible assets 9 433,783 154,074

433,783 154,074

CURRENT ASSETSDebtors 10 2,714,453 2,011,553Investments 11 217,839 215,399Cash at bank and in hand 1,348,316 1,554,172

4,280,608 3,781,124CREDITORSAmounts falling due within one year 12 1,874,840 1,521,815NET CURRENT ASSETS 2,405,768 2,259,309TOTAL ASSETS LESS CURRENT LIABILITIES 2,839,551 2,413,383

CAPITAL AND RESERVESCalled up share capital 14 123 123Share premium 15 242,001 242,001Profit and loss account 15 2,597,427 2,171,259SHAREHOLDERS' FUNDS 17 2,839,551 2,413,383

The financial statements were approved by the Board of Directors on 25th September 2015 andwere signed on its behalf by:








Cash FlowStatement

for the Year Ended 31st December 2014

2014 2013Notes £ £ £ £

Net cash inflowfrom operating activities 1 892,404 1,394,732

Returns on investments andservicing of finance 2 (24,344) (3,763)

Taxation (337,616) (293,627)

Capital expenditure 2 (440,242) (48,051)

Equity dividends paid (295,323) (352,775)(205,121) 696,516

Financing 2 (735) 162,132(Decrease)/increase in cash in the period (205,856) 858,648Reconciliation of net cash flowto movement in net funds 3

(Decrease)/increasein cash in the period (205,856) 858,648Cash outflowfrom increase in liquid resources 2,440 2,437Change in net funds resultingfrom cash flows (203,416) 861,085Movement in net funds in the period (203,416) 861,085Net funds at 1st January 1,769,571 908,486Net funds at 31st December 1,566,155 1,769,571







Notes to the Cash Flow Statementfor the Year Ended 31st December 2014

1.RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROMOPERATING ACTIVITIES

2014 2013£ £

Operating profit 924,060 1,304,717Depreciation charges 163,928 138,421(Profit)/loss on disposal of fixed assets (3,396) 2,611Increase in debtors (702,165) (433,532)Increase in creditors 509,977 382,515Net cash inflow from operating activities 892,404 1,394,732

2. ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOWSTATEMENT

2014 2013£ £

Returns on investments and servicing of financeInterest received 6,965 6,867Exchange rate loss (31,309) (10,630)Net cash outflow for returns on investments andservicing of finance (24,344) (3,763)

Capital expenditurePurchase of tangible fixed assets (456,592) (54,066)Sale of tangible fixed assets 16,350 6,015Net cash outflow for capital expenditure (440,242) (48,051)

FinancingAmount introduced by directors 5,000 7,200Amount withdrawn by directors (5,735) (5,068)Share issue - 160,000Net cash (outflow)/inflow from financing (735) 162,132







Notes to the Cash Flow Statementfor the Year Ended 31st December 2014

3. ANALYSIS OF CHANGES IN NET FUNDSAt

At 1.1.14 Cash flow 31.12.14£ £ £

Net cash:Cash at bank and in hand 1,554,172 (205,856) 1,348,316

1,554,172 (205,856) 1,348,316

Liquid resources:Current asset investments 215,399 2,440 217,839

215,399 2,440 217,839

Total 1,769,571 (203,416) 1,566,155







Notes to the Financial Statementsfor the Year Ended 31st December 2014

1. ACCOUNTING POLICIES

Accounting conventionThe financial statements have been prepared under the historical cost convention and arein accordance withapplicable accounting standards.

TurnoverTurnover represents net invoiced sales of services and goods, excluding value added tax.

GoodwillGoodwill, being the amount paid in connection with the acquisition of a business in 1995,has been written offevenly over its estimated useful life of three years.

Tangible fixed assetsDepreciation is provided at the following annual rates in order to write off each asset overits estimated useful life.

Short leasehold - over the term of the leaseOffice equipment - 25% on costMotor vehicles - 25% on reducing balanceComputer equipment - 33% on cost

Foreign currenciesAssets and liabilities in foreign currencies are translated into sterling at the rates ofexchange ruling at thebalance sheet date. Transactions in foreign currencies are translated into sterling at therate of exchange ruling atthe date of transaction. Exchange differences are taken into account in arriving at theoperating result.

Hire purchase and leasing commitmentsRentals paid under operating leases are charged to the profit and loss account on astraight line basis over theperiod of the lease.

Pension costs and other post-retirement benefits

2. STAFF COSTS2014 2013

£ £ Wages and salaries 3,867,665 3,398,619Social security costs 104,388 88,353Other pension costs 26,400 26,400

3,998,453 3,513,372

The average monthly number of employees during the year was as follows:2014 2013

Office and administration 70 60Directors 6 5

76 65

The company operates a defined contribution pension scheme. Contributions payable tothe company's pensionscheme are charged to the profit and loss account in the period to which they relate.





continued...






Notes to the Financial Statements - continuedfor the Year Ended 31st December 2014

3. DIRECTORS' EMOLUMENTS2014 2013

£ £ Directors' remuneration 805,147 680,299Directors' pension contributions to money purchase schemes 26,400 26,400

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

No directors exercised share options during the year (2013 - three directors).

Information regarding the highest paid director is as follows:2014 2013

£ £ Emoluments etc 173,466 173,312

In addition contributions to a money purchase pension scheme of £26,400 (2013:£26,400) were made for thehighest paid director.

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2014 2013£ £

Other operating leases 354,212 102,358Depreciation - owned assets 163,929 138,422(Profit)/loss on disposal of fixed assets (3,396) 2,611Auditor's remuneration 5,600 -Other non- audit services 24,000 24,350

5. INTEREST PAYABLE AND SIMILAR CHARGES2014 2013

£ £ Exchange rate loss 31,309 10,630

6. TAXATION

Analysis of the tax chargeThe tax charge on the profit on ordinary activities for the year was as follows:

2014 2013£ £

Current tax:UK corporation tax 180,664 337,615Tax on profit on ordinary activities 180,664 337,615





continued...







7. DIVIDENDS2014 2013

£ £ Ordinary shares of 1p eachPaid 295,323 352,775

At 31 December 2014 £253,995 was set aside from the 2014 profits for a final dividend of£20.65 per sharewhich was paid in March 2015.

8. INTANGIBLE FIXED ASSETSGoodwill

£ COSTAt 1st January 2014and 31st December 2014 36,000AMORTISATIONAt 1st January 2014and 31st December 2014 36,000NET BOOK VALUEAt 31st December 2014 -At 31st December 2013 -

9. TANGIBLE FIXED ASSETSShort Office Motor Computer

leasehold equipment vehicles equipment Totals£ £ £ £ £

COSTAt 1st January 2014 71,044 189,453 44,746 282,883 588,126Additions 267,611 128,809 - 60,172 456,592Disposals - (38,765) (29,267) (131,537) (199,569)At 31st December2014 338,655 279,497 15,479 211,518 845,149

DEPRECIATIONAt 1st January 2014 53,994 152,731 20,652 206,675 434,052Charge for year 61,501 44,194 4,059 54,175 163,929Eliminated on disposal - (37,270) (19,391) (129,954) (186,615)At 31st December2014 115,495 159,655 5,320 130,896 411,366

NET BOOK VALUEAt 31st December2014 223,160 119,842 10,159 80,622 433,783

At 31st December2013 17,050 36,722 24,094 76,208 154,074





continued...







10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR2014 2013

£ £ Trade debtors 2,317,951 1,718,794Other debtors 290,302 236,163Director's loan account 5,736 5,001Prepayments 100,464 51,595

2,714,453 2,011,553

11. CURRENT ASSET INVESTMENTS2014 2013

£ £ Listed investments 217,839 215,399Market value of listed investments at 31st December 2014 - £ 248,717 (2013 - £ 231,598).

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR2014 2013

£ £ Trade creditors 240,652 136,962Corporation tax reserve 180,054 337,006PAYE & NIC control 181,594 187,630VAT 253,481 210,771Other creditors 332,263 293,773Credit card account 46,491 30,139Accrued expenses 640,305 325,534

1,874,840 1,521,815

13. OPERATING LEASE COMMITMENTS

The following operating lease payments are committed to be paid within one year:

Land and buildings2014 2013

£ £ Expiring:Within one year 31,046 -Between one and five years 223,177 58,476

254,223 58,476

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:Number: Class: Nominal 2014 2013

value: £ £ 12,300 Ordinary 1p 123 123

On 5 November 2014 the Company granted an option on 333 ordinary 1p shares at anacquisition price of £206per share. The option is exercisable from 4 November 2017 and expires on 4 November2024.





continued...







15. RESERVESProfit

and loss Shareaccount premium Totals

£ £ £

At 1st January 2014 2,171,259 242,001 2,413,260Profit for the year 721,491 721,491Dividends (295,323) (295,323)At 31st December 2014 2,597,427 242,001 2,839,428

16. RELATED PARTY DISCLOSURES

During the year, total dividends of £288,120 (2013 - £342,500) were paid to the directors .

17. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS2014 2013

£ £ Profit for the financial year 721,491 965,776Dividends (295,323) (352,775)New share capital subscribed - 160,000Net addition to shareholders' funds 426,168 773,001Opening shareholders' funds 2,413,383 1,640,382Closing shareholders' funds 2,839,551 2,413,383

18. CONTROLLING PARTY

The following significant transactions and balances with related parties are included in thefinancial statements:

2014 2013£ £

T P Adams (a director),Administrative expenses 36,000 36,000

G Broadbent (a director),Administrative expenses 47,382 -

The company is controlled by Mrs L H Bradley who is the managing director and majorityshareholder.





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