Company registration number 05604336 (England and Wales)
SUTHERLAND GLOBAL SERVICES UK LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
SUTHERLAND GLOBAL SERVICES UK LTD
COMPANY INFORMATION
Directors
A Jain
N Gordon
(Appointed 3 May 2023)
Secretary
A Piccirillo
Company number
05604336
Registered office
843 Finchley Road
London
NW11 8NA
Auditor
Glazers
843 Finchley Road
London
NW11 8NA
Business address
33rd Floor
30 St Mary Axe
London
EC3A 8EP
SUTHERLAND GLOBAL SERVICES UK LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 25
SUTHERLAND GLOBAL SERVICES UK LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The directors present the strategic report for the year ended 30 June 2023.

Review of the business

Sutherland Global Services UK Ltd. (the 'company') is a business development centre which sources European & Global leads for the group. The company also provides business transformation, research design and strategy services for large corporate customers. Additionally, when not being used for internal research purpose, the company rents its research facility to third party vendors on a fee basis. The company also acts as a financing entity for the group.

 

The company is 100% owned by SGS Cayman LP, the Ultimate Parent company is Sutherland Global Holdings Inc. Incorporated in the US.

 

During the year the turnover increased by 21%, up from £9.1m to £11m driven by group business development services provided to the ultimate parent operating entity of the group. We expect business development services to increase in the coming year. In our separate business lines, there was a decrease of 27% and 10% in sales provided to our external corporate customers for facility rentals and business development respectively due to the demand in the market.

 

Principal risks and uncertainties

The company is a part of the Sutherland group which is global provider of business transformation services. They offer an integrated portfolio of digital, analytics-driven services, including back-office and customer facing solutions, that support the entire customer lifecycle.

 

The company is continually engaged in efforts to identify, measure and where possible mitigate risks associated with its operations. Outlined below is a list of these risks. This is not an exhaustive list nor are they listed in any priority.

 

Price competitions

The type of services the company provides is highly competitive.

 

Dependency on group companies

A large part of the income is driven by group transactions. The business development line of business has remained the company’s largest revenue producing income stream due to this the company depends on the group turnover which has seen an increase year over year.

 

Currency fluctuations

Turnover from group companies is transacted in USD or GBP. Turnover in USD is converted into GBP for reporting purpose. The company can suffer from both positive and adverse currency movements which directly affect the margin achieved.

 

 

 

 

 

 

 

 

 

 

 

 

 

SUTHERLAND GLOBAL SERVICES UK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
Key performance indicators

The company’s key performance indicators are sale growth and profit margin. As mentioned above, the sales have increased by 21%. Overall, profit margin before tax for the year ended 30 June 2023 increased to 12.85% which is an increase since June 2022 which was a loss of £484k. The company had profit before tax of £1.4m in the year ended 30 June 2023 which is £1.9m higher than the previous year and expected to increase further for the year ended 30 June 2024 due to demands for the company’s business development services provided to the Sutherland group.

 

The company’s ultimate parent operating company Sutherland Global Holdings Inc. has confirmed that it will continue to provide necessary financial support for the foreseeable future to ensure the company can continue to develop the business.

 

On behalf of the board

.............................................
A Jain
Director
Date: .............................................
SUTHERLAND GLOBAL SERVICES UK LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 June 2023.

Principal activities

The principal activity of the company continued to be that of business development centre and provider of business transformation services.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

A Jain
N Gordon
(Appointed 3 May 2023)
Financial instruments

The company uses various financial instruments including cash, trade receivable and payable that arise directly from its operations. The existence of these financial instruments exposes the company to a number of financial risks, of which more significant risks are foreign currency risk, liquidity risk and credit risk. The director review and agree policies to manage each of these risks and they are summaries below:

 

Foreign currency risk

The majority of the income are in USD and GBP. The company hold bank accounts in these currencies to reduce the impact of foreign exchange transaction costs.

 

Liquidity risk

The company manages its cash requirements in order to ensure the company has sufficient liquidity resources to meet the operating needs of the business.

 

Credit risk

All clients with credit terms are subject to credit verification procedures. Trader debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Future developments

The company is part of a global group and the company's and the group aim is to help their clients maximise their customer lifetime value and increase their competitive advantage by helping drive productivity and efficiency while delivering measurable results.

Auditor

The auditor, Glazers, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

SUTHERLAND GLOBAL SERVICES UK LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 4 -
On behalf of the board
A Jain
Director
30 October 2023
SUTHERLAND GLOBAL SERVICES UK LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023
- 5 -

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:

 

 

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.

SUTHERLAND GLOBAL SERVICES UK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SUTHERLAND GLOBAL SERVICES UK LTD
- 6 -
Opinion

We have audited the financial statements of Sutherland Global Services UK Ltd (the 'company') for the year ended 30 June 2023 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 significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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:

Basis for opinion

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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

SUTHERLAND GLOBAL SERVICES UK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SUTHERLAND GLOBAL SERVICES UK LTD
- 7 -
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 identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

SUTHERLAND GLOBAL SERVICES UK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SUTHERLAND GLOBAL SERVICES UK LTD
- 8 -
Philippe Herszaft ACA
Senior Statutory Auditor
For and on behalf of Glazers
31 October 2023
Chartered Accountants
Statutory Auditor
843 Finchley Road
London
NW11 8NA
SUTHERLAND GLOBAL SERVICES UK LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
10,967,932
9,126,632
Administrative expenses
(10,308,495)
(9,097,161)
Other operating income
113,834
18,559
Operating profit
4
773,271
48,030
Interest receivable and similar income
7
30,339,040
-
0
Interest payable and similar expenses
8
(29,697,009)
-
0
Profit before taxation
1,415,302
48,030
Tax on profit
9
(220,367)
7,303
Profit for the financial year
1,194,935
55,333

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SUTHERLAND GLOBAL SERVICES UK LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 10 -
2023
2022
£
£
Profit for the year
1,194,935
55,333
Other comprehensive income
Cash flow hedges gain arising in the year
5,630,110
-
0
Cash flow hedges loss reclassified to profit or loss
(1,608,490)
-
0
Tax relating to other comprehensive income
(1,005,405)
-
0
Other comprehensive income for the year
3,016,215
-
0
Total comprehensive income for the year
4,211,150
55,333
SUTHERLAND GLOBAL SERVICES UK LTD
BALANCE SHEET
AS AT
30 JUNE 2023
30 June 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
389,086
427,280
Investments
11
577,261
577,261
966,347
1,004,541
Current assets
Debtors falling due after more than one year
14
483,725,805
613,485
Debtors falling due within one year
14
22,634,638
4,465,020
Cash at bank and in hand
49,597,446
427,862
555,957,889
5,506,367
Creditors: amounts falling due within one year
15
(54,520,673)
(3,937,008)
Net current assets
501,437,216
1,569,359
Total assets less current liabilities
502,403,563
2,573,900
Creditors: amounts falling due after more than one year
16
(494,772,402)
(160,243)
Provisions for liabilities
Deferred tax liability
18
1,047,972
41,618
(1,047,972)
(41,618)
Net assets
6,583,189
2,372,039
Capital and reserves
Called up share capital
19
1
1
Hedging reserve
3,016,215
-
0
Profit and loss reserves
3,566,973
2,372,038
Total equity
6,583,189
2,372,039

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 30 October 2023 and are signed on its behalf by:
A Jain
Director
Company registration number 05604336 (England and Wales)
SUTHERLAND GLOBAL SERVICES UK LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -
Share capital
Hedging reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 July 2021
1
-
0
2,316,705
2,316,706
Year ended 30 June 2022:
Profit and total comprehensive income
-
-
55,333
55,333
Balance at 30 June 2022
1
-
0
2,372,038
2,372,039
Year ended 30 June 2023:
Profit
-
-
1,194,935
1,194,935
Other comprehensive income:
Cash flow hedges gains
-
5,630,110
-
5,630,110
Gains reclassified to profit or loss
-
(1,608,490)
-
(1,608,490)
Tax relating to other comprehensive income
-
(1,005,405)
-
0
(1,005,405)
Total comprehensive income
-
3,016,215
1,194,935
4,211,150
Balance at 30 June 2023
1
3,016,215
3,566,973
6,583,189
SUTHERLAND GLOBAL SERVICES UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 13 -
1
Accounting policies
Company information

Sutherland Global Services UK Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 843 Finchley Road, London, NW11 8NA.

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 amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under 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. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Sutherland Global Holdings, Inc. These consolidated financial statements are available from its registered office, 1160 Pittsford-Victor Rd. Pittsford, NY 14534, United States of America.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

SUTHERLAND GLOBAL SERVICES UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 14 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Leasehold
Over the term of the lease
Office equipment
15% straight line
Computer equipment
20-33% 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
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

1.6
Impairment of fixed assets

At each reporting period 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

SUTHERLAND GLOBAL SERVICES UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 15 -
1.8
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 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 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. Financial assets classified as receivable within one year are not amortised.

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.

SUTHERLAND GLOBAL SERVICES UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities

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 payments 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.

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 subsequently 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 through 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.

1.9
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.

1.10
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.

 

SUTHERLAND GLOBAL SERVICES UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 17 -
1.11
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.

1.12
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 leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.13
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 translation in the period are included in profit or loss.

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.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Group sales commission
8,336,131
5,982,740
Meeting room rental
608,861
891,707
Other services
2,022,940
2,252,185
10,967,932
9,126,632
SUTHERLAND GLOBAL SERVICES UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
3
Turnover and other revenue
(Continued)
- 18 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
2,631,801
3,120,623
United States of America
8,336,131
6,006,009
10,967,932
9,126,632
2023
2022
£
£
Other revenue
Interest income
30,339,040
-
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(2,017)
(168,542)
Fees payable to the company's auditor for the audit of the company's financial statements
21,500
21,500
Depreciation of owned tangible fixed assets
182,489
203,103
Operating lease charges
1,438,996
1,332,405
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Sales and administration
39
35

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
5,723,464
4,518,665
SUTHERLAND GLOBAL SERVICES UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 19 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
527,403
-
0
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
527,403
-
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
333,754
-
0
Other interest income
30,005,286
-
0
Total income
30,339,040
-
0
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
31,305,499
-
Reclassification of gains/losses on cash flow hedge to profit or loss
(1,608,490)
-
0
29,697,009
-
0
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
262,172
-
0
Double tax relief
(42,754)
-
0
Total current tax
219,418
-
0
Deferred tax
Origination and reversal of timing differences
949
(7,303)
Total tax charge/(credit)
220,367
(7,303)
SUTHERLAND GLOBAL SERVICES UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
9
Taxation
(Continued)
- 20 -

The actual charge/(credit) 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:

2023
2022
£
£
Profit before taxation
1,415,302
48,030
Expected tax charge based on the standard rate of corporation tax in the UK of 20.50% (2022: 19.00%)
290,137
9,126
Tax effect of expenses that are not deductible in determining taxable profit
20,281
-
0
Tax effect of utilisation of tax losses not previously recognised
-
0
(37,274)
Change in unrecognised deferred tax assets
(70,841)
-
0
Double tax relief
(42,754)
-
0
Permanent capital allowances in excess of depreciation
10,610
(10,441)
Depreciation on assets not qualifying for tax allowances
-
0
38,589
Remeasurement of deferred tax for changes in tax rates
12,934
(7,303)
Taxation charge/(credit) for the year
220,367
(7,303)

In addition to the amount charged/(credited) to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£
£
Deferred tax arising on:
Revaluation of financial instruments treated as cash flow hedges
1,005,405
-
0
SUTHERLAND GLOBAL SERVICES UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 21 -
10
Tangible fixed assets
Land and buildings Leasehold
Office equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 July 2022
1,258,434
500,867
1,330,242
3,089,543
Additions
-
0
2,920
141,375
144,295
At 30 June 2023
1,258,434
503,787
1,471,617
3,233,838
Depreciation and impairment
At 1 July 2022
1,097,893
388,221
1,176,149
2,662,263
Depreciation charged in the year
94,460
13,638
74,391
182,489
At 30 June 2023
1,192,353
401,859
1,250,540
2,844,752
Carrying amount
At 30 June 2023
66,081
101,928
221,077
389,086
At 30 June 2022
160,541
112,646
154,093
427,280
11
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
12
577,261
577,261
12
Subsidiaries

Details of the company's subsidiaries at 30 June 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Sutherland Global Services Saudi Arabia LLC
Saudi Arabia
Ordinary Shares
95.00

Sutherland Global Services Saudi Arabia LLC was disposed on 01/07/2023 to a related party at market value. The proceeds for the portion owned by Sutherland Global Services UK Limited was SAR 3,836,100 which is £810,861 at the year end rate.

SUTHERLAND GLOBAL SERVICES UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 22 -
13
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Cash flow hedge measured at fair value
5,832,450
-
Carrying amount of financial liabilities
Measured at fair value
- Cash flow hedge measured at fair value
1,810,830
-
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
304,906
538,640
Amounts owed by group undertakings
16,530,556
3,394,380
Derivative financial instruments
5,066,371
-
Other debtors
127,511
93,351
Prepayments and accrued income
605,294
438,649
22,634,638
4,465,020
2023
2022
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
482,346,241
-
0
Derivative financial instruments
766,079
-
Other debtors
613,485
613,485
483,725,805
613,485
Total debtors
506,360,443
5,078,505

 

 

15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
17
50,404,661
-
0
Trade creditors
10,412
5,622
Amounts owed to group undertakings
2,927,660
2,868,447
Corporation tax
219,418
-
0
Accruals and deferred income
958,522
1,062,939
54,520,673
3,937,008
SUTHERLAND GLOBAL SERVICES UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 23 -
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
492,756,770
-
0
Derivative financial instruments
1,810,830
-
0
Accruals and deferred income
204,802
160,243
494,772,402
160,243
17
Loans and overdrafts
2023
2022
£
£
Bank loans
543,161,431
-
0
Payable within one year
50,404,661
-
0
Payable after one year
492,756,770
-
0

During the year, the Company took out two loans which totalled to $710,000,000.

 

The rate of interest on both loans is a margin of 2.90% plus SOFR paid quarterly.

 

Capital repayments for the first loan commenced on 14 March 2023 for $1,250,000 per quarter until 14 September 2026, with the remaining balance to be repaid over the next 12 months.

 

Capital repayments for the second loan are to commence on 30 November 2023 $500,000 per quarter until 30 May 2027, with the remaining balance to be repaid over the next 12 months.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
42,567
41,618
Hedging instruments
1,005,405
-
1,047,972
41,618
SUTHERLAND GLOBAL SERVICES UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
18
Deferred taxation
(Continued)
- 24 -
2023
Movements in the year:
£
Liability at 1 July 2022
41,618
Charge to profit or loss
949
Charge to other comprehensive income
1,005,405
Liability at 30 June 2023
1,047,972

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.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1
1
1
1
20
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:

2023
2022
£
£
Within one year
1,030,312
1,030,312
Between two and five years
1,200,021
2,230,333
2,230,333
3,260,645
21
Events after the reporting date

In July 2023, the Company disposed of its 95% holding in Sutherland Global Services Saudi Arabia LLC for SAR 3,836,100 which is £810,861. This was sold to a related party and the market rate.

22
Related party transactions

No disclosure has been made of any transactions with any subsidiary wholly owned by the group in accordance with the exemption under FRS 102. The company is a wholly owned subsidiary of Sutherland Global Holdings Inc.

SUTHERLAND GLOBAL SERVICES UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 25 -
23
Ultimate controlling party

The immediate parent undertaking is SGS Cayman L.P., a limited partnership incorporated in the Cayman Islands.

 

The ultimate parent undertaking is Sutherland Global Holdings Inc., a company incorporated and domiciled in United States of America.

 

2023-06-302022-07-01falseCCH SoftwareCCH Accounts Production 2023.200A JainN GordonA Piccirillo056043362022-07-012023-06-3005604336bus:Director12022-07-012023-06-3005604336bus:Director22022-07-012023-06-3005604336bus:CompanySecretary12022-07-012023-06-3005604336bus:RegisteredOffice2022-07-012023-06-30056043362023-06-30056043362021-07-012022-06-3005604336core:HedgingReserve2022-07-012023-06-3005604336core:HedgingReserve2021-07-012022-06-3005604336core:RetainedEarningsAccumulatedLosses2022-07-012023-06-30056043362022-06-3005604336core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-06-3005604336core:PlantMachinery2023-06-3005604336core:ComputerEquipment2023-06-3005604336core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-06-3005604336core:PlantMachinery2022-06-3005604336core:ComputerEquipment2022-06-3005604336core:Non-currentFinancialInstrumentscore:AfterOneYear2023-06-3005604336core:Non-currentFinancialInstrumentscore:AfterOneYear2022-06-3005604336core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-3005604336core:CurrentFinancialInstrumentscore:WithinOneYear2022-06-3005604336core:CurrentFinancialInstruments2023-06-3005604336core:CurrentFinancialInstruments2022-06-3005604336core:Non-currentFinancialInstruments2023-06-3005604336core:Non-currentFinancialInstruments2022-06-3005604336core:ShareCapital2023-06-3005604336core:ShareCapital2022-06-3005604336core:HedgingReserve2023-06-3005604336core:HedgingReserve2022-06-3005604336core:RetainedEarningsAccumulatedLosses2023-06-3005604336core:RetainedEarningsAccumulatedLosses2022-06-3005604336core:ShareCapital2021-06-3005604336core:HedgingReserve2021-06-3005604336core:RetainedEarningsAccumulatedLosses2021-06-3005604336core:LandBuildingscore:LongLeaseholdAssets2022-07-012023-06-3005604336core:PlantMachinery2022-07-012023-06-3005604336core:ComputerEquipment2022-07-012023-06-300560433612022-07-012023-06-300560433612021-07-012022-06-3005604336core:UKTax2022-07-012023-06-3005604336core:UKTax2021-07-012022-06-300560433622022-07-012023-06-300560433622021-07-012022-06-3005604336core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-06-3005604336core:PlantMachinery2022-06-3005604336core:ComputerEquipment2022-06-30056043362022-06-3005604336core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-07-012023-06-3005604336core:AfterOneYear2023-06-3005604336core:AfterOneYear2022-06-3005604336core:WithinOneYear2023-06-3005604336core:WithinOneYear2022-06-3005604336core:BetweenTwoFiveYears2023-06-3005604336core:BetweenTwoFiveYears2022-06-3005604336bus:PrivateLimitedCompanyLtd2022-07-012023-06-3005604336bus:FRS1022022-07-012023-06-3005604336bus:Audited2022-07-012023-06-3005604336bus:FullAccounts2022-07-012023-06-30xbrli:purexbrli:sharesiso4217:GBP