Company Registration No. 05597367 (England and Wales)
Sparta Global Limited
Annual report and financial statements
for the year ended 31 December 2023
Sparta Global Limited
Company information
Directors
David Rai
Tim Staton
Nicholas Day
Secretary
David Rai
Company number
05597367
Registered office
125 London Wall
London
EC2Y 5AS
Independent auditor
Saffery LLP
71 Queen Victoria Street
United Kingdom
London
EC4V 4BE
Sparta Global Limited
Contents
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 9
Income statement
10
Statement of financial position
11
Statement of changes in equity
12
Notes to the financial statements
13 - 26
Sparta Global Limited
Strategic report
For the year ended 31 December 2023
1

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

Sparta Global Limited (“Sparta Global”) is a B-Corp certified provider of technology and business consulting services to public and private sector organisations, including the finance, insurance, public sector, media, retail, technology, legal and telco industries. Sparta Global is headquartered in London, and trains new Spartans from across the UK. In addition, Condor Topco is the ultimate holding company of a number of other subsidiary businesses including Sparta Global Technology Services AB (“Sparta AB”) in Sweden and Sparta Global Inc in north America (together the “Sparta Group”).

 

Sparta Group hires recent graduates and other suitably skilled individuals, who are taken through an intensive development programme through one of our dedicated academies to train or upskill them in areas such as Software Development, DevOps, Data Engineering, Testing, Business analysis and Project Management. After successful completion of this initial training, they become technology consultants known as ‘Spartans’ and are assigned to work on projects with Sparta Global clients across the UK. During this time Sparta Global provides further learning and development pathways to develop the Spartans and create their first steps in a successful and long career in technology.

 

At the heart of this business is a mission to be the partner of choice with our clients in the provision of graduate/ early careers programmes with diversity and inclusion at the very centre of this. In the UK we are also very proud to be a Living Wage Employer and in 2023 achieved the Inclusive Employers Standard and became Youth Group Verified. In addition, we have been selected as a winner of the following awards which help to demonstrate our commitment to graduate employment, diversity and inclusion and our own diverse and inclusive workforce:

 

 

Adding to the list of awards we have received in previous years:

 

 

Sparta Global holds ISO9001, ISO14001, ISO27001, ISO22301, BS10012 and ISO27701, Cyber Security and Cyber Security Plus quality and security accreditations.

Sparta Global Limited
Strategic report (continued)
For the year ended 31 December 2023
2
Results and Financial Performance

Despite the ongoing uncertainty in the global economy Sparta Group was able to react to the market with its agile business model and minimise impacts to earnings before interest, tax, depreciation and amortisation (“EBITDA”).

 

Revenues in the year ended 31 December 2023 stayed relatively flat at £40.0m due to a continued move away from associate revenues and despite increased Spartan revenue. Gross profit also remained flat at £21.2m and Gross profit margin increased slightly to 52.9 % (2022: 52.5%). EBITDA for the year was £7.1m (2022: £7.8m) and is stated after charging training costs (cost of the Spartan in training up until assignment) of £2.7m (2022: £3.2m).

 

Business environment

The challenging macro-economic backdrop that started to impact client budget and hiring decisions in the later part of 2022 has continued through 2023, delaying the assignment of Spartans into clients against previously expected levels. Our agile business processes allow us to adapt to market demand changes quickly with training quickly aligned to pipeline changes to minimise cost impact. However, this did lead to a net reduction in Spartans on assignment by the end of 2023 compared to the start, as clients continued to take advantage of the option to convert the Spartans to their employees at the end of the two year programme, in combination with returns to bench due to customer budget constraints.

 

Throughout this period however, companies have reassessed their buying channels and with a clear understanding of the benefits of Sparta Global's services to them have undertaken procurement strategies that have resulted in Sparta Global being awarded new master service agreements with many new blue chip clients from a range of sectors. These new client wins plus the unlocking of budgets in our existing clients will allow us to return to a growth in Spartans on assignment numbers.

 

A continued shortage of skilled technology workers in the UK combined with the high demand for technology services, further accelerated by the need for digital transformation during and after the pandemic and still creates significant growth opportunities for Sparta Global even with a period of macro-economic pressures, as the budgets of our clients unlock.

 

Our model of delivering high skilled and dynamic technology professionals at a low cost and high ROI for our clients compared to traditional contractor or employee resource gives us an appealing proposition to most businesses who are seeing their IT spend balloon and need ways to control it, especially in this environment.

 

Strategy

The company's success is dependent on the quality, pricing and utilisation of its Spartan consultants in the rapidly advancing technology space. Sparta Group must attract and retain the best graduates from its target universities and ensure training at our academies meet the high standards expected by our clients. In order to achieve this, we are investing in new technologies, our people across all the business, marketing and talent attraction in order to generate the supply and continuously support the highly skilled Spartan's our clients require in high demand areas.

 

Sparta Global Limited
Strategic report (continued)
For the year ended 31 December 2023
3
Key performance indicators

We have made significant progress throughout the year in relation to key elements of our strategy.

 

The Board monitors the progress of the Sparta Group by reference to the following KPls:

 

 

YE 31 Dec 2023

£’m

YE 31 Dec 2022

£’m

Movement

Turnover

40.0

40.2

-0.2

Gross Profit

21.2

21.1

+0.1

Gross Profit %

52.9%

52.5%

+0.4pp

 

 

 

 

EBITDA

7.1

7.8

-0.6

 

 

 

 

Spartans trained in the period

372

667

-295

Spartans assigned at period end

456

646

-190

 

Principal risk and uncertainties

The process of risk acceptance and risk management is addressed through a framework of policies,

procedures and internal controls. All policies are subject to Board approval and ongoing review by

management, risk management and internal audit. Compliance with regulation, legal and ethical standards is a high priority for the Company and the compliance team and finance department take on an Important oversight role in this regard.

 

The principal risks from our business arise from:

 

To mitigate these risks we have invested in our operations team and marketing strategy to attract graduate talent and work closely with our clients to understand their business needs in order to ensure our course content remains relevant. We are also able to provide specialist upskilling to our Spartans in order to ensure we meet any specific client need where it Is deemed required. Our bench cost is managed carefully to ensure Its impact on profitability is minimised by a careful resource planning process.

 

The Sparta Group does not consider it is currently exposed to any financial risks such as exchange rate or interest rate risk due to its business being conducted primarily in GBP and relatively simple debt arrangements.

Liquidity risk

Liquidity risk is the risk of not being able to make payments as they become due because there is insufficient cash or availability of financial facilities. The company seeks to mitigate and minimise any liquidity risk through the operation of credit facilities with its bank with limits agreed to provide sufficient headroom for the company’s cash requirements. These facilities and related working capital needs are managed on a continuous basis and the company works closely with the bank to ensure facilities meet its needs.

 

Future developments

Sparta Group continues to invest in its people and systems across the business to support the ongoing growth strategy.

Sparta Global Limited
Strategic report (continued)
For the year ended 31 December 2023
4
Section 172 (1) statement

The directors consider, both individually and together that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:

 

The directors prepare a long term business plan to guide decision making and against which actual results are regularly reviewed. The company reviews its strategy in detail each year and updates its business plan accordingly.

As a people business, the interests of the company’s employees are at the heart of what we do. This includes, but is not limited to, the support of diversity and inclusion initiatives throughout the company, support for the wellbeing of all staff through the adoption of physical and mental health programmes, ongoing training and upskilling programmes to enhance employees professional development throughout their employment at Sparta Global and regular Town Halls and events to engage with employees.

Sparta Global works as a technology and talent partner with its customers, providing services that enable its clients to meet their own business goals, with alignment of core objectives, whilst delivering the skills and talent needed. This requires consistent and ongoing co-ordination and understanding built through the fostering of strong and deep relationships in the organisations.

Delivery of the company’s services whilst considering the environmental, social and governance (“ESG”) implications of our operations is a fundamental part of the business as demonstrated by the B Corp certification achieved.

The directors and the company are committed to high standards of business conduct which are reflected in the company’s policies and procedures. The company utilises the support and guidance of suitably qualified advisor to ensure standards are maintained and best practice followed in order to protect and maintain its reputation.

The company is a wholly owned subsidiary of Condor Bidco Limited, a company incorporated in England. The ultimate parent company is Condor Topco Limited, a company incorporated in England.

 

On behalf of the board

David Rai
Director
25 April 2024
Sparta Global Limited
Directors' report
For the year ended 31 December 2023
5

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of the provision of technology and business services to public and private sector organisations, including the finance, insurance, public sector, media, retail, legal and telco industries.

Results and dividends

The results for the year are set out on page 10.

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:

David Rai
Tim Staton
Nicholas Day
Supplier payment policy

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

 

The company's current policy concerning the payment of trade creditors is to:

 

Trade creditors of the company at the year end were equivalent to 25 day's purchases, based on the average daily amount invoiced by suppliers during the year.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

Sparta Global’s policy is to consult and discuss with employees, through Town Hall events and at meetings, matters likely to affect employees' interests.

 

Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the group's performance.

Sparta Global Limited
Directors' report (continued)
For the year ended 31 December 2023
6
Auditor

In accordance with the company's articles, a resolution proposing that Saffery LLP be reappointed as auditor of the company will be put at a General Meeting.

Energy and carbon report

As the company is a subsidiary undertaking of a parent entity that includes a group energy and carbon report, the company is not required to report on its individual emissions, energy consumption or energy efficiency activities.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

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.

Matters covered in the Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and financial risk management.

On behalf of the board
David Rai
Director
25 April 2024
Sparta Global Limited
Independent auditor's report
To the members of Sparta Global Limited
7
Opinion

We have audited the financial statements of Sparta Global Limited (the 'company') for the year ended 31 December 2023 which comprise the income statement, the statement of financial position, 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 101 Reduced Disclosure Framework (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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

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 the audit:

Sparta Global Limited
Independent auditor's report (continued)
To the members of Sparta Global Limited
8
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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

 

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

Sparta Global Limited
Independent auditor's report (continued)
To the members of Sparta Global Limited
9

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

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. Also, 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.

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.

Jamie Cassell (Senior Statutory Auditor)
For and on behalf of Saffery LLP
26 April 2024
Chartered Accountants
Statutory Auditors
71 Queen Victoria Street
United Kingdom
London
EC4V 4BE
Sparta Global Limited
Income statement
For the year ended 31 December 2023
10
Year
Year
ended
ended
31 December
31 December
2023
2022
Notes
£
£
Revenue
3
40,028,476
40,153,510
Cost of sales
(18,852,508)
(19,080,016)
Gross profit
21,175,968
21,073,494
Administrative expenses
(14,603,174)
(14,481,333)
Other operating income
97,654
565,150
Operating profit
5
6,670,448
7,157,311
Investment income
8
106,079
-
Finance costs
9
(84,244)
(82,781)
Profit before taxation
6,692,283
7,074,530
Tax on profit
10
(796,764)
(1,008,839)
Profit and total comprehensive income for the financial year
5,895,519
6,065,691
Sparta Global Limited
Statement of financial position
As at 31 December 2023
11
2023
2022
Notes
£
£
£
£
Non-current assets
Intangible assets
11
11,819
16,500
Property, plant and equipment
12
435,839
855,583
Investments
13
1,000
1,000
448,658
873,083
Current assets
Trade and other receivables
15
17,048,451
15,559,486
Cash and cash equivalents
6,991,793
4,734,203
24,040,244
20,293,689
Current liabilities
16
(3,226,960)
(5,363,226)
Net current assets
20,813,284
14,930,463
Total assets less current liabilities
21,261,942
15,803,546
Non-current liabilities
16
-
(437,123)
Net assets
21,261,942
15,366,423
Equity
Called up share capital
22
1,002
1,002
Retained earnings
21,260,940
15,365,421
Total equity
21,261,942
15,366,423
The financial statements were approved by the board of directors and authorised for issue on 25 April 2024 and are signed on its behalf by:
David Rai
Director
Company Registration No. 05597367
Sparta Global Limited
Statement of changes in equity
For the year ended 31 December 2023
12
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2022
1,002
9,299,730
9,300,732
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
6,065,691
6,065,691
Balance at 31 December 2022
1,002
15,365,421
15,366,423
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
5,895,519
5,895,519
Balance at 31 December 2023
1,002
21,260,940
21,261,942
Sparta Global Limited
Notes to the financial statements
For the year ended 31 December 2023
13
1
Accounting policies
Company information

Sparta Global Limited is a private company limited by shares incorporated in England and Wales. The registered office is 125 London Wall, London, EC2Y 5AS.

1.1
Accounting convention

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

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 principal accounting policies adopted are set out below.

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:

- a reconciliation of the number of shares outstanding at the start and end of the

prior period; and

- reconciliations of the carrying amounts of property, plant and equipment and intangibles

assets the start and the end of the prior period.

 

In addition, and in accordance with FRS 101, further disclosure exemptions have been applied because equivalent disclosures are included in the consolidated financial statements of Condor Topco Limited. These financial statements do not include certain disclosures in respect of:

The financial statements contain information about Sparta Global Limited as an individual company and do not contain consolidated financial information. The company has taken advantage of the exemption conferred by s400 of the Companies Act 2006 not to produce consolidated financial statements.

 

Where required, equivalent disclosures are given in the group accounts of Condor Topco Limited. The group accounts of Condor Topco Limited are available to the public and can be obtained from 125 London Wall, London, England, EC2Y 5AS. This is smallest set of consolidated accounts the company's results are included in.

Sparta Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
14
1.2
Going concern

The current economic climate may have significant changes in the way businesses operate, impacting the company's clients, suppliers and own operations. trueDespite the challenging market conditions as outlined in the strategic report, the company continues to be profitable, adopting agile business processes and effectively managing day to day working capital.

 

At 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
Revenue

The company recognises revenue from the placement of Spartans and IT contractors.

 

Performance obligations in contracts with customers are satisfied as services are provided. In general, services are billed to customers each month and payment terms are typically within 30 days.

Revenue recognised in respect of services performed for which no invoice has yet been raised at the balance sheet date is recognised as an other receivable. The extent of other receivables at a given point in time reflects unbilled revenue for services provided in the ordinary course of business.

 

Revenue is recognised over time and is calculated based on the number of days worked by Spartans and contractors, which is based on timesheets provided to the entity. This method depicts the satisfaction of obligations by the entity to fulfil its contracts with customers.

The transaction price for a given contract is the fixed amounts of consideration stated in the contract and excludes VAT.

1.4
Property, plant and equipment

Property, plant and equipment 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:

Right-of-use assets
Over the life of the lease
Leasehold improvements
4 years straight line
Fixtures and fittings
3 years straight line
Computers
3 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit and loss.

1.5
Non-current investments

The company has an investment in a subsidiary which is reviewed for impairment every year.

1.6
Impairment of tangible and intangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible 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.

Sparta Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
15

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

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.

 

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 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.

1.8
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Impairment of financial assets

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

 

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

Sparta Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
16
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.9
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

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 income statement 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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to 'other comprehensive income', in which case the deferred tax is also dealt with in 'other comprehensive income'. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Sparta Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
17
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 inventories or non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

A termination benefit liability is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognises any related restructuring costs.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense when employees have rendered the service entitling them to the contributions.

1.14
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

1.15
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 are included in the income statement for the period.

2
Critical accounting 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.

Key sources of estimation uncertainty
Recoverability of intercompany balances

Intercompany loans are considered to be repayable on demand and so held at cost. Consideration is made as to whether the owing entity is able to clear the debt should it be recalled. The Directors review the cashflows of the corresponding entities to assess for any indication of impairment. This can be based on future events which cannot always be readily predicted. The main assumptions are as alluded to above, the future performance of the group and the demand and profitability of the company.

 

The balances as at the end of the period are disclosed in the notes to the financial statements.

Sparta Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
2
Critical accounting judgements and key sources of estimation uncertainty (continued)
18
Right of use assets

At the initial recognition date, the directors had made a judgement that they expected the lease break clause to be exercised at the first available opportunity. As such, the lease liability and depreciation period had been calculated up to this point. In the prior year, the directors made the decision to not exercise the break clause and so the right of use asset was modified to reflect the additional period to the end of the lease in March 2025. This is the directors' best estimate as to when they are likely to no longer require the properties. Likewise, the dilapidations provision has been estimated for the right of use workings as the expected amounts payable on termination of the lease. This assumes no other major works or damage occurs to bring the property back to condition as stipulated by the lease.

 

The balances as at the end of the period are disclosed in the notes to the financial statements.

Where the interest rate implicit in the lease cannot be readily determined, lease liabilities are discounted at the lessee’s incremental borrowing rate. This is the rate of interest that the lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. This involves assumptions and estimates, which would affect the carrying value of the lease liabilities and the corresponding right-of-use assets.

 

To determine the incremental borrowing rate the company uses recent third-party financing as a starting point, and adjusts this for conditions specific to the lease such as its term and security.

3
Revenue
2023
2022
£
£
Revenue analysed by class of business
Government clients
9,913,149
10,879,180
Other clients
30,115,327
29,274,330
40,028,476
40,153,510

 

4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
53,000
49,000
5
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
5,695
20,845
Depreciation of property, plant and equipment
429,856
601,047
Amortisation of intangible assets (included within administrative expenses)
6,581
1,500
Sparta Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
19
6
Employees

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

2023
2022
Number
Number
HQ staff
97
88
Consultants
716
771
Total
813
859

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
24,137,561
23,655,692
Social security costs
2,129,384
2,038,684
Pension costs
418,058
352,651
26,685,003
26,047,027
7
Directors' remuneration
During the current year, statutory directors of the company were remunerated through another group entity and as a result no remuneration was recognised in Sparta Global Limited.
8
Investment income
2023
2022
£
£
Interest income
Interest on bank deposits
106,079
-
0
9
Finance costs
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on lease liabilities
84,244
82,781
Sparta Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
20
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
915,680
956,732
Adjustments in respect of prior periods
(99,993)
83,079
Total UK current tax
815,687
1,039,811
Deferred tax
Origination and reversal of temporary differences
(14,621)
(38,390)
Changes in tax rates
(3,382)
(12,123)
Benefit arising from a previously unrecognised tax loss, tax credit or temporary difference
(920)
19,541
(18,923)
(30,972)
Total tax charge
796,764
1,008,839

On 1 April 2023 the corporation tax rate for the UK increased from 19% to 25%.

The charge for the year can be reconciled to the profit per the income statement as follows:

2023
2022
£
£
Profit before taxation
6,692,283
7,074,530
Expected tax charge based on a corporation tax rate of 23.52% (2022: 19.00%)
1,574,062
1,344,161
Effect of expenses not deductible in determining taxable profit
14,192
9,999
Utilisation of tax losses not previously recognised
2
19,541
Effect of change in UK corporation tax rate
(920)
(12,123)
Group relief
(687,197)
(435,818)
Under/(over) provided in prior years
(103,375)
83,079
Taxation charge for the year
796,764
1,008,839
Sparta Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
21
11
Intangible fixed assets
Website
£
Cost
At 31 December 2022
39,000
Additions - purchased
1,900
At 31 December 2023
40,900
Amortisation and impairment
At 31 December 2022
22,500
Charge for the year
6,581
At 31 December 2023
29,081
Carrying amount
At 31 December 2023
11,819
At 31 December 2022
16,500
12
Property, plant and equipment
Right-of-use assets
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 January 2023
2,109,755
666,253
196,910
305,260
3,278,178
Additions
-
0
-
0
2,488
7,624
10,112
Disposals
-
0
-
0
-
0
(21,326)
(21,326)
At 31 December 2023
2,109,755
666,253
199,398
291,558
3,266,964
Accumulated depreciation and impairment
At 1 January 2023
1,386,048
624,612
183,333
228,602
2,422,595
Charge for the year
333,129
41,641
11,648
43,438
429,856
Eliminated on disposal
-
0
-
0
-
0
(21,326)
(21,326)
At 31 December 2023
1,719,177
666,253
194,981
250,714
2,831,125
Carrying amount
At 31 December 2023
390,578
-
0
4,417
40,844
435,839
At 31 December 2022
723,707
41,641
13,577
76,658
855,583

Included in the right of use asset category is the IFRS adjustment required to bring long term leases onto the balance sheet. No other assets included within this category.

Sparta Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
22
13
Investments
Current
Non-current
31 December
31 December
31 December
31 December
2023
2022
2023
2022
£
£
£
£
Investments in subsidiaries
-
-
1,000
1,000
Fair value of financial assets carried at amortised cost

Except as detailed below the directors believe that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.

14
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of shares held
% Held
Direct
Indirect
Testing Circle Limited
125 London Wall, London, England, EC2Y 5AS
Ordinary
100.00
-
15
Trade and other receivables
Current
Non-current
31 December
31 December
31 December
31 December
2023
2022
2023
2022
£
£
£
£
Trade receivables
3,206,516
4,694,876
-
-
Amounts owed by fellow group undertakings
10,957,786
5,881,182
-
0
-
0
Other receivables
63,224
335,126
-
-
Prepayments and accrued income
2,791,776
4,638,076
-
-
17,019,302
15,549,260
-
-
Deferred tax asset
-
-
29,149
10,226
17,019,302
15,549,260
29,149
10,226

Amounts owed by group undertakings are considered repayable on demand and do not bear any interest.

Sparta Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
23
16
Liabilities
Current
Non-current
31 December
31 December
31 December
31 December
2023
2022
2023
2022
Notes
£
£
£
£
Trade and other payables
17
1,767,349
2,440,152
-
0
-
0
Taxation and social security
970,543
2,538,080
-
0
-
0
Lease liabilities
19
489,068
384,994
-
437,123
3,226,960
5,363,226
-
437,123
17
Trade and other payables
31 December
31 December
2023
2022
£
£
Trade payables
509,013
519,134
Amounts owed to fellow group undertakings
185,127
750,620
Accruals and deferred income
756,644
836,794
Other payables
316,565
333,604
1,767,349
2,440,152

An unlimited multilateral guarantee has been given by Sparta Global Limited, Sparta Global Group Limited.

18
Provisions for liabilities

Within the accruals and deferred income balance, there is a £243,000 (2022: £243,000) dilapidations provision for amounts expected to be paid on the cessation of a property lease. This is a best estimate made by the management team at year end and best represents the expected cost of returning the office space to the condition as stipulated in the lease. There remains some uncertainty around what the final balance may be given there are unknown future events.

Sparta Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
24
19
Lease liabilities
All leases are over office premises. Lease payments to the end of the contractual term have been recognised as the directors have decided to not exercise the break clause.
31 December
31 December
2023
2022
Maturity analysis
£
£
Within one year
489,067
384,995
In two to five years
-
437,124
Total liabilities
489,067
822,119
31 December
31 December
2023
2022
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
84,244
82,781
Expenses in relation to low-value and short-term leases are immaterial.
The total cash outflow from lease payments during the period was £419,882 (2022: £459,036).
Sparta Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
25
20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

Accelerated capital allowances
Other temporary differences
Total
£
£
£
Liability at 1 January 2022
33,503
(12,757)
20,746
Deferred tax movements in prior year
Charge/(credit) to profit or loss
(26,484)
7,635
(18,849)
Effect of change in tax rate - profit or loss
(12,123)
-
(12,123)
Asset at 1 January 2023
(5,104)
(5,122)
(10,226)
Deferred tax movements in current year
Charge/(credit) to profit or loss
(6,087)
(12,836)
(18,923)
Asset at 31 December 2023
(11,191)
(17,958)
(29,149)
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
418,058
352,651

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

22
Share capital
31 December
31 December
31 December
31 December
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,002
1,002
1,002
1,002

The ordinary shares carry a right to vote (one vote per shareholder). They do not carry the right to a dividend or to participate in a distribution (including on winding up). The shares are not redeemable.

Sparta Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
26
23
Related party transactions
Other information

FRS 101 exempts preparers from the requirements of para. 17 and 18A of IAS 24, meaning that FRS 101 accounts do not disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned within the group. All transactions are with wholly owned companies within the group.

24
Directors' transactions

At the year end, a director owed the company £14,500 (2022: £14,500). The loan is considered repayable on demand and does not accrue any interest.

25
Controlling party

The immediate parent company of Sparta Global Limited is Sparta Global Group Limited, a company incorporated in England & Wales. Its registered office is 125 London Wall, London, England, EC2Y 5AS.

The ultimate parent of the company is Condor Topco Limited which is a company incorporated in England & Wales with the same registered office address as above. The smallest and largest group to prepare consolidated accounts is Condor Topco Limited, both of which included the company's results.

 

The ultimate controlling party is Inflexion Enterprise V Investments LP, registered in Guernsey, which is controlled by institutional investors and funds managed by Inflexion.

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