Company Registration No. 10486436 (England and Wales)
SIZE GROUP LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SIZE GROUP LTD
COMPANY INFORMATION
Directors
D Size
S Cox
P Daly
P Turner
C Jones
(Appointed 6 April 2024)
Company number
10486436
Registered office
Unit G.07, The Light Box
111 Power Road
London
W4 5PY
Auditor
Evans Mockler Limited
5 Beauchamp Court
Victors Way
Barnet
London
EN5 5TZ
SIZE GROUP LTD
CONTENTS
Page
Strategic report
1 - 8
Directors' report
9
Directors' responsibilities statement
10
Independent auditor's report
11 - 13
Group statement of comprehensive income
14
Group balance sheet
15
Company balance sheet
16
Group statement of changes in equity
17
Company statement of changes in equity
18
Group statement of cash flows
19
Company statement of cash flows
20
Notes to the financial statements
21 - 36
SIZE GROUP LTD
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 Business

Size Group is a unique collection of independent businesses, providing the highest quality construction, specialist crafts and maintenance services to private clients with luxury residences in London, the surrounding countryside and occasionally further afield.

 

Our services include construction, property maintenance, joinery, cabinet making, fine furniture, luxury flooring and highly complex structural works.

 

Unlike many firms in our sector, Size Group believe in directly employing as many of our professionals and skilled artisans as possible, as well as training our own craft apprentices and graduates in many key disciplines. This is a key part of how Size Group consistently delivers the highest possible levels of quality and service across our projects, and we see this as being crucially important in the current climate, when the construction industry is suffering so badly from an unprecedented skills shortage, exacerbated by the UK’s departure from the European Union.

 

The groups subsidiaries each operate autonomously under their own management, but also provide complimentary services, with many of our customers engaging two or more of our group companies to carry out work on the same luxury property.

 

The core businesses of our subsidiary companies can be summarised as follows:

 

 

 

 

 

 

 

 

SIZE GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
2023 was a successful year for the group, however, group turnover did fall to £66.9m (2022: £79m), while profit before tax fell to £4.4m (2022: £8.8m).
The fall in group turnover was a result of one very large construction project, which should have started on site in 2022, and would have provided a large proportion of turnover in 2023, being cancelled, due to our client being sanctioned by the UK government, following Russia's invasion of Ukraine.
Those sanctions caused the group, along with many other firms in our niche market, to lose considerable revenue, while we have also been unable to obtain payment for some works carried out before the war, due to our client's assets being frozen. Thankfully, Size Group is well placed to deal with such challenges, due to the strength of our business, while many other UK companies, who also cannot get paid for their work through no fault of their own, will inevitably not have been so lucky.
We have been successful in securing new, high quality projects, to replace the workload lost as a result of sanctions, however the resultant increase in turnover will not be seen until 2024.
In the coming years, the likely increases in taxes for overseas individuals residing in the UK will undoubtedly cause some of our target clients to leave the UK, which will inevitably reduce sales opportunities for our group, and other firms in our sector.
Thankfully, Size Group is well insulated against such risks, through careful and prudent risk management in each of our group companies.
The performance of our subsidiary companies is briefly outlined below:
Construction (London & Country)
During the reporting period, our construction businesses successfully completed a number of high quality London projects, including large extensions and whole house refurbishments of prime residences in Mayfair, St John's Wood, Belgravia, Fitzrovia, Kensington & Chelsea, as well as a number of large country house projects.
Exciting new projects were secured throughout the super prime areas of London and in the surrounding countryside, with both new and existing clients, as Size Group's reputation for producing the highest possible quality led to a large number of high quality sales enquiries.
Size Group (Construction) Ltd's results are explained in more detail within that company's financial statements.
Maintenance
Size Group's specialist maintenance company had a very positive year in 2023, with demand for our unique, tailored property care services increasing both in London and in the countryside.
As in previous years, many of Size Group's construction clients chose to engage our maintenance arm after the main construction works were completed, which is extremely positive for the group, as it allows us to maintain long term relationships with these luxury property owners. In addition, our services are increasingly being requested by external clients, who have not used our construction business, as word of our bespoke, high quality, property management service spreads.
2024 is expected to be another positive year, with increasing sales and growing staff numbers, meaning the future of our maintenance business therefore looks very positive.
SIZE GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Paddy Turner Handcrafted Flooring
Our bespoke flooring company enjoyed another positive year, with turnover and profitability rising in line with projections. Most of our flooring projects are carried out on Size Group's construction projects, which allows Size Group to better control quality and programme on its projects.
In addition, our flooring team are increasingly being asked to carry out bespoke, high quality projects for external clients, including interiors designers and other main contractors, as our reputation for producing the highest quality bespoke floors spreads within our niche marketplace.
Our flooring business is therefore in excellent health and there is every reason to believe that it will continue to be successful in the coming years.
Joinery/Furniture Making
2023 was an excellent year at Smith & Brown, as we completed a number of extremely high quality commissions and increased both the size and skill levels of our team of artisan furniture makers.
During the year, we continued to invest in premises, plant, machinery, office equipment as well as staff recruitment and training of apprentices, with a view to establishing one of the highest quality bespoke joinery and furniture making facilities in the UK.
During the year, we secured several large, high quality cabinet making projects, mainly on Size Group's construction projects, and our future order book is therefore very solid. Our furniture making team are also establishing a reputation for producing truly high quality on every project, which in turn is leading to increased demand and higher quality enquiries.
We are therefore confident that our continued investment will ensure that our bespoke furniture making firm will be a key part of Size Group, contributing to the success of our projects, the profitability of our business and the opportunities that we can offer our staff.
Structures
Our Structures team, who are focussed on delivering highly complex engineering and structural works on Size Group's construction projects, as well as providing those services to certain external clients, enjoyed a very successful 2023.
During 2023, our Structures team secured a number of large, exciting projects, which provides a great platform for future success, whilst we invested heavily in purchasing new plant, as well as recruitment and training of key staff.
2024 promises to be an even more exciting year, as our first major basement project will be completed in Kensington, showcasing our ability to successfully complete some of the largest and most complex basements in London, using our own in-house resources. Another large, complex, retained façade/basement project is also due to complete in 2024 in Hampstead, and a large scheme is due to commence in Surrey, so the prospects for future years for this new business are really exciting.
One of the key areas we need to focus is on training and developing the next generation of engineers, which has commenced with the engagement of our first 3 Structures graduates, and this will be a key area for growth in future years.
SIZE GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Special Projects
In direct response to requests from a number of key clients, Size Group established a new Special Projects division in 2021, designed to provide extra focus on a few bespoke projects which sometimes need a slightly different approach to our larger construction projects. Our Special Projects team have enjoyed considerable success since then, with a number of projects now successfully completed and new projects secured in Belgravia, Hampstead, Kensington and Mayfair and other prime areas of London, while further new commissions are on the horizon.
Group issues:
Demand for our unique blend of services continues to be strong, despite the challenging global economic environment, and we continue to receive high levels of enquiries, meaning we have many reasons to be optimistic about 2024 and beyond.
One of the key ongoing challenges to the business is the recruitment and retention of high quality staff, who are capable of delivering to Size Group's extremely high standards. The firm is delighted to have made significant progress in this area during the period, with several key senior people being added to the team, along with a number of important internal promotions.
The Size Group Graduate Scheme continues to be an important aspect of our long term plan for the recruitment and development of high calibre managers, and it gives our directors great pride to see previous members of this scheme now performing very senior management roles in our firm.
Several trainees are now also studying on day release programmes, providing an alternative entry route for bright young people who do not wish to attend university full time.
Size Group's craft apprenticeship scheme also continues to be very successful with several craft apprentices completing their training and others joining the scheme during the year.
In addition to recruitment of new staff, Size Group have also been able to improve the training and benefits that are offered to existing team members during the period, which is a critically important element of the firm's growth and development strategy.
Another key area where Size Group focused our effort during this period has been on the management and fair treatment of our supply-chain. This has meant an increased focus on pre-selecting suppliers to ensure that Size Group only use the very highest quality firms, along with a continued emphasis on ensuring that all of our suppliers are paid fairly and quickly for their work.
Size Group also made further improvements during this period in how we manage the health & safety of staff, suppliers and other people who are affected by our works, as well as how we limit the effect of our works on the wider environment. Our directors are confident that the systems in place surpass any statutory obligations the firm may have, but this will not deter us from continually striving to improve this area of our business.
Environmental issues
Of particular importance is our focus on environmental issues and the sustainability of our operations. Our directors have been working with external advisers to review every aspect of our business, from head office through to our workshops and sites, to identify opportunities where we can reduce our environmental impact.
Early changes have meant moving away from combustion engines wherever possible, so our fleet of vans and cars are now fully electric and our plant fleet is moving in the same direction.
We have also increased the amount of recycling that we do, reduced waste from site, reduced paper usage, etc. We are also working with design teams to reduce the environmental impact of the buildings which we construct, avoiding harmful materials wherever we can, and again these are all areas where we will be focusing increased efforts in future years.
SIZE GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
SECR report
Introduction
In order to ensure the correct processes are followed, the Greenhouse Gas Protocol – Corporate Standard has been used to provide a guide to the reporting structure and calculations, to ensure compliance with the GHG emissions and energy consumption reporting requirements of the Companies Act 2006 (Strategic and Directors' Reports) Regulations 2013, and with  Streamlined Energy and Carbon Reporting Regulations (SECR) 2019.
Sources of emissions
Scope 1 comprises of direct emissions from operational sources controlled by Size Group Ltd. As per the GHG Protocol this focus is on transportation of materials, products, waste and employees. Size Group has considered all Heavy Goods Vehicle emissions from the group and well as fuel usage from the van and car fleet.
Scope 2 include the emissions from the generation of purchased electricity that is consumed at the Group head office.
Size Group Ltd do not report on the scope 3 Emissions at present.
Identifying emission sources
Energy consumption associated with Scope 1 and 2 greenhouse gas emissions are measured and reported in line with SECR reporting requirements. Where available, energy use is captured directly (e.g. kWh of electricity) or otherwise it is converted from available units to energy units using UK Government conversion factors (e.g. for diesel).
Emission reporting
In accordance with the Paris Agreement, Size Group Ltd measures and reports emissions arising from the seven main greenhouse gases that contribute to climate change, namely carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3).
The effect of these emissions is reported as a single figure, carbon dioxide equivalent (CO2e), which represents their combined global warming potential. Greenhouse gas emissions are calculated in line with the UK Government's ‘Conversion Factors 2022.
The Scope 1 and 2 intensity metric is greenhouse gas emissions normalised by turnover - ‘tCO2e per £1 million turnover. This metric is used in mainstream housebuilding financial reporting, and therefore encouraged by industry benchmarks such as NextGeneration, with uptake across the industry.
Due to the varying number of projects and different clients Size Group have, the company will be reporting per turnover.
SIZE GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
Summary in table 1 below:
Table 1
tCO2e
Source
2023
2022
Scope
Site fuel
85.06
106.09
1
Head Office Electricity
2.37
2.33
2
Fleet Usage
6.98
7.91
1
Total
94.41
116.33
Total Scope 1
92.04
114.00
Total Scope 2
2.37
2.33
Intensity ratio (tCO2e/£m turnover)
1.38
1.47
Consolidated
Changes in emissions
2023 saw a general reduction in activity, and emissions reduced in line with this.
Head office electricity usage has been consistent year on year (2023 – 12,256 kWh; 2022 – 12,032 kWh), with a small increase due to the rental of a second office in the second half of the financial year.
Energy efficiency action
Many of our sites are registered for the Considerate Constructors Scheme,  and this aids in promoting a positive culture in relation to the environment and sustainability. In addition, a minimum of 95% of all waste produced was recycled, with some sites able to achieve 98% recycled with only 2% to landfill. Each of these measures is expected to have a significant positive impact on the company's emissions and energy consumption over the coming years. The company will continue to review opportunities to reduce its carbon footprint in a similar fashion going forward, especially in terms of its fleet of vehicles & heavy machinery.
Charitable donations
Our CEO, Darren Size, is a trustee of the HQR London Charitable Foundation, which raises funds for charities though various activities, including its annual HQR Summer Ball, which is attended by up to 700 of our industry friends each year. During the year we were delighted to be able to continue our support for various worthy charities including The Lighthouse Construction Charity, which is very important to the directors, as well as supporting Great Ormond Street Hospital and several grass roots and underage sports teams.
SIZE GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
Principle risks and uncertainties

The following comprises a summary, in the opinion of the directors, of the principal risks to which the group is exposed. These risks could adversely impact on the operation of the group, should significant problems be encountered in any of these areas:

 

 

 

 

 

 

 

 

 

 

The directors have established robust risk management procedures to manage each of the above risks, as well as the other less critical risks to our business, and in the opinion of the directors, the group is well protected from all foreseeable risks.

Development & Performance


As stated in the above fair review of the business, the group made significant progress during the period, particularly in key areas such as:

 

 

The directors are satisfied that the group is performing well in each of these key areas and are completely focused on ensuring that we continue to develop in the coming years.

SIZE GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
Financial Key Performance Indicators

2023 turnover decreased to £66.9m, from £79m in 2022, a decrease of 15%.

 

Gross Profit in 2023 was £5.6m, compared to £10.4m in 2022, a decrease of 46%.

 

Profit before tax was £4.4m, down from £8.8m in 2022, a decrease of 50%.

Future developments
Size Group has enjoyed considerable success since its formation, establishing a strong reputation for delivering excellence in an increasing number of areas, which include construction, specialist crafts and maintenance services.
That reputation continues to generate new sales opportunities on a regular basis in London and in the surrounding countryside, and we are therefore confident that we can continue to grow our firm within this space in the medium term. Longer term planning is always challenging, as we are so heavily affected by the wider economy, together with domestic and international politics, so it does make accurate, long term business planning somewhat difficult.
The group has an established business plan, which is focused on continuing our growth and development, in London and the surrounding countryside, and, gradually, into a wider geographical area. This plan allows for a certain amount of flexibility as we must be able to react to any changes in the wider economy, either positive or negative.
A number of external acquisitions will be completed in 2024, including Asplin Whiteley, a bespoke, luxury furniture maker based in Yorkshire, and Aquarius Master Decorators, a high quality decorating firm based in London. These additions to the group will add further breadth to the unique blend of services that we can offer to our clients, and also offer new opportunities for our team members to gain experience in these areas of our niche sector.
Size Group expects turnover to grow significantly in 2024, subject of course to the wider economic and geopolitical environment remaining relatively positive.
Conclusion
The outlook for our business is very positive, and Size Group's directors look forward to continuing our constant drive to be successful by providing the highest possible levels of quality, service and value to each of our clients, whilst also providing massively rewarding careers and opportunities for each of our team members.

On behalf of the board

D Size
CEO
19 September 2024
SIZE GROUP LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -

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

Directors

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

D Size
S Cox
P Daly
P Turner
C Jones
(Appointed 6 April 2024)
Results and dividends

The results for the year are set out on page 14.

Ordinary dividends were paid amounting to £1,736,452. The directors do not recommend payment of a further dividend.

Auditor

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

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
D Size
CEO
19 September 2024
SIZE GROUP LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SIZE GROUP LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SIZE GROUP LTD
- 11 -
Opinion

We have audited the financial statements of Size Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows 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 group and parent 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 group's and parent 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:

SIZE GROUP LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SIZE GROUP LTD
- 12 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent 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 parent 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.

Extent to which the audit was capable of detecting irregularities, including fraud

 

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

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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 are to become aware of it.

SIZE GROUP LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SIZE GROUP LTD
- 13 -

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.

Simon Toghill (Senior Statutory Auditor)
For and on behalf of Evans Mockler Limited
19 September 2024
Chartered Certified Accountant
Statutory Auditor
5 Beauchamp Court
Victors Way
Barnet
London
EN5 5TZ
SIZE GROUP LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
Turnover
3
66,914,391
79,055,747
Cost of sales
(61,323,579)
(68,677,693)
Gross profit
5,590,812
10,378,054
Administrative expenses
(2,494,776)
(1,404,728)
Other operating income
8,250
15,285
Operating profit
4
3,104,286
8,988,611
Interest receivable and similar income
7
889,800
124,745
Interest payable and similar expenses
8
(121,688)
(2,945)
Amounts written off investments
9
520,923
(278,976)
Profit before taxation
4,393,321
8,831,435
Tax on profit
10
(1,502,241)
(708,868)
Profit for the financial year
2,891,080
8,122,567
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
SIZE GROUP LTD
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 15 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
597,515
261,595
Investments
14
3,256,206
9,403,092
3,853,721
9,664,687
Current assets
Debtors
16
10,632,492
12,597,653
Investments
17
17,185,159
4,979,175
Cash at bank and in hand
4,028,356
14,028,670
31,846,007
31,605,498
Creditors: amounts falling due within one year
18
(17,489,225)
(23,671,381)
Net current assets
14,356,782
7,934,117
Total assets less current liabilities
18,210,503
17,598,804
Creditors: amounts falling due after more than one year
19
(11,000)
(589,469)
Provisions for liabilities
20
(86,007)
(50,467)
Net assets
18,113,496
16,958,868
Capital and reserves
Called up share capital
22
220
220
Profit and loss reserves
18,113,276
16,958,648
Total equity
18,113,496
16,958,868
The financial statements were approved by the board of directors and authorised for issue on 19 September 2024 and are signed on its behalf by:
19 September 2024
D Size
CEO
SIZE GROUP LTD
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 16 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
11,485,634
17,630,520
Current assets
Debtors
16
412,258
400,250
Investments
17
17,185,159
4,979,175
Cash at bank and in hand
447,302
5,376,095
18,044,719
10,755,520
Creditors: amounts falling due within one year
18
(11,170,864)
(10,379,109)
Net current assets
6,873,855
376,411
Total assets less current liabilities
18,359,489
18,006,931
Creditors: amounts falling due after more than one year
19
(15,381,583)
(13,352,735)
Net assets
2,977,906
4,654,196
Capital and reserves
Called up share capital
22
220
220
Profit and loss reserves
2,977,686
4,653,976
Total equity
2,977,906
4,654,196

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £60,163 (2022 - £1,799,562 profit).

The financial statements were approved by the board of directors and authorised for issue on 19 September 2024 and are signed on its behalf by:
19 September 2024
D Size
CEO
Company Registration No.
SIZE GROUP LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
220
12,648,432
12,648,652
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
8,122,567
8,122,567
Dividends
11
-
(3,812,351)
(3,812,351)
Balance at 31 December 2022
220
16,958,648
16,958,868
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
2,891,080
2,891,080
Dividends
11
-
(1,736,452)
(1,736,452)
Balance at 31 December 2023
220
18,113,276
18,113,496
SIZE GROUP LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
220
6,666,764
6,666,984
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
1,799,563
1,799,563
Dividends
11
-
(3,812,351)
(3,812,351)
Balance at 31 December 2022
220
4,653,976
4,654,196
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
60,162
60,162
Dividends
11
-
(1,736,452)
(1,736,452)
Balance at 31 December 2023
220
2,977,686
2,977,906
SIZE GROUP LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
23
(1,073,252)
(4,467,958)
Interest paid
(17,130)
(2,945)
Corporation taxes (paid)/refunded
(1,955,058)
836,799
Net cash outflow from operating activities
(3,045,440)
(3,634,104)
Investing activities
Purchase of tangible fixed assets
(487,667)
(140,813)
Proceeds on disposal of tangible fixed assets
22,178
39,123
Purchase of investments
(5,538,175)
(14,661,243)
Loans repaid/(made)
-
3,453,729
Interest received
846,015
124,745
Dividends received
43,785
-
0
Net cash used in investing activities
(5,113,864)
(11,184,459)
Financing activities
Repayment of borrowings
(104,558)
-
Payment of finance leases obligations
-
(1,406)
Dividends paid to equity shareholders
(1,736,452)
(3,812,351)
Net cash used in financing activities
(1,841,010)
(3,813,757)
Net decrease in cash and cash equivalents
(10,000,314)
(18,632,320)
Cash and cash equivalents at beginning of year
14,028,670
32,660,990
Cash and cash equivalents at end of year
4,028,356
14,028,670
SIZE GROUP LTD
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
2,024,490
23,717,059
Interest paid
(2,074)
(571)
Income taxes (paid)/refunded
(383,852)
570
Net cash inflow from operating activities
1,638,564
23,717,058
Investing activities
Purchase of subsidiaries
(2,000)
(1,000)
Purchase of investments
(5,538,175)
(14,661,243)
Interest received
770,043
121,808
Dividends received
43,785
-
0
Net cash used in investing activities
(4,726,347)
(14,540,435)
Financing activities
Repayment of borrowings
(104,558)
-
Dividends paid
(1,736,452)
(3,812,351)
Net cash used in financing activities
(1,841,010)
(3,812,351)
Net (decrease)/increase in cash and cash equivalents
(4,928,793)
5,364,272
Cash and cash equivalents at beginning of year
5,376,095
11,823
Cash and cash equivalents at end of year
447,302
5,376,095
SIZE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
1
Accounting policies
Company information

Size Group Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit G.07, The Light Box, 111 Power Road, London, W4 5PY.

 

The group consists of Size Group Ltd and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Size Group Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

SIZE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and 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.

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Tangible fixed assets

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

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:

Plant and equipment
20% straight line
Computers
20% straight line
Motor vehicles
25% reducing balance

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

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

SIZE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

SIZE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 24 -
1.10
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.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs.

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 group 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 group after deducting all of its liabilities.

SIZE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 25 -
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.

 

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 group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

SIZE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 26 -
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.

 

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 profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.

1.14
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.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
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 leased asset are consumed.

1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.18
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.

SIZE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Construction contracts
66,914,391
79,055,747
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
66,914,391
79,055,747
2023
2022
£
£
Other revenue
Interest income
846,015
124,745
Dividends received
43,785
-
Grants received
8,250
15,285
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
1,303
702
Government grants
(8,250)
(15,285)
Depreciation of owned tangible fixed assets
145,805
106,235
Depreciation of tangible fixed assets held under finance leases
7,449
-
Profit on disposal of tangible fixed assets
(16,236)
(7,816)
Operating lease charges
47,718
-
SIZE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
1,250
1,250
Audit of the financial statements of the company's subsidiaries
28,959
39,000
30,209
40,250
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Production staff
112
111
-
-
Management staff
19
19
-
-
131
130
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
10,299,195
7,262,919
-
0
-
0
Social security costs
1,113,353
889,695
-
-
Pension costs
331,783
219,901
-
0
-
0
11,744,331
8,372,515
-
0
-
0
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
94,999
89,589
Other interest income
751,016
35,156
Total interest revenue
846,015
124,745
Other income from investments
Dividends received
43,785
-
0
Total income
889,800
124,745
SIZE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Interest receivable and similar income
(Continued)
- 29 -
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
94,999
89,589
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
401
-
Other finance costs:
Finance costs for financial instruments measured at fair value through profit or loss
104,558
-
0
Other interest
16,729
2,945
Total finance costs
121,688
2,945
9
Fair value gains/(losses) on financial instruments
2023
2022
£
£
Gain/(loss) on financial assets held at fair value through profit or loss
520,923
(278,976)
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
492,477
507,492
Adjustments in respect of prior periods
91,531
(204)
Total current tax
584,008
507,288
Deferred tax
Origination and reversal of timing differences
35,540
20,636
Adjustment in respect of prior periods
882,693
180,944
Total deferred tax
918,233
201,580
Total tax charge
1,502,241
708,868
SIZE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 30 -

The actual charge 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
4,393,321
8,831,435
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
1,098,330
1,677,973
Tax effect of expenses that are not deductible in determining taxable profit
15,791
19,300
Tax effect of income not taxable in determining taxable profit
(1,383)
-
0
Gains not taxable
(2,676)
(1,485)
Adjustments in respect of prior years
-
0
19,159
Effect of change in corporation tax rate
(73,196)
-
Group relief
244,085
(348,522)
Permanent capital allowances in excess of depreciation
(101,256)
(22,740)
Depreciation on assets not qualifying for tax allowances
36,451
20,185
Adjustments in respect of financial assets
(41,521)
-
0
Under/(over) provided in prior years
799,275
161,582
Dividend income
(10,946)
-
Deferred tax movement
(635,663)
20,635
Research and development claim
174,950
(813,774)
Utilised bfwd losses
-
0
(23,445)
Taxation charge
1,502,241
708,868
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
1,736,452
3,812,351
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
6,015,235
Amortisation and impairment
At 1 January 2023 and 31 December 2023
6,015,235
SIZE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Intangible fixed assets
(Continued)
- 31 -
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
13
Tangible fixed assets
Group
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
184,457
25,256
534,733
744,446
Additions
325,476
-
0
162,191
487,667
Disposals
-
0
-
0
(24,439)
(24,439)
At 31 December 2023
509,933
25,256
672,485
1,207,674
Depreciation and impairment
At 1 January 2023
183,140
25,256
274,455
482,851
Depreciation charged in the year
62,781
-
0
83,024
145,805
Eliminated in respect of disposals
-
0
-
0
(18,497)
(18,497)
At 31 December 2023
245,921
25,256
338,982
610,159
Carrying amount
At 31 December 2023
264,012
-
0
333,503
597,515
At 31 December 2022
1,317
-
0
260,278
261,595
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
8,229,428
8,227,428
Unlisted investments
3,256,206
9,403,092
3,256,206
9,403,092
3,256,206
9,403,092
11,485,634
17,630,520
SIZE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Fixed asset investments
(Continued)
- 32 -
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 January 2023
9,403,092
Disposals
(6,146,886)
At 31 December 2023
3,256,206
Carrying amount
At 31 December 2023
3,256,206
At 31 December 2022
9,403,092
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023
8,227,428
9,403,092
17,630,520
Additions
2,000
-
2,000
Disposals
-
(6,146,886)
(6,146,886)
At 31 December 2023
8,229,428
3,256,206
11,485,634
Carrying amount
At 31 December 2023
8,229,428
3,256,206
11,485,634
At 31 December 2022
8,227,428
9,403,092
17,630,520
SIZE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
15
Subsidiaries

The company owns 100% of the ordinary share capital of the following subsidiaries at 31 December 2022. All the subsidiaries operate in the construction sector and have the same registered office of Unit G.07, The Light Box, 111 Power Road, London W4 5PY.

 

Size Group (Construction) Ltd

Size Group (Maintenance) Ltd

Paddy Turner Handcrafted Flooring Ltd

Smith & Brown Joinery Ltd

Size Group (Services) Ltd

Size Group Structures Ltd

Size Group Special Projects Ltd

Size Group London Ltd

Size Group Country Houses Ltd

Asplin Whiteley Ltd

Aquarius Master Decorators Ltd

16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,892,148
5,644,155
-
0
-
0
Gross amounts owed by contract customers
6,263,876
4,567,995
-
0
-
0
Corporation tax recoverable
639,647
19,000
-
0
-
0
Other debtors
613,573
483,322
400,258
400,250
Prepayments and accrued income
223,248
1,883,181
-
0
-
0
10,632,492
12,597,653
400,258
400,250
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
-
12,000
-
Total debtors
10,632,492
12,597,653
412,258
400,250
17
Current asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Short term deposits
17,185,159
4,979,175
17,185,159
4,979,175
SIZE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
1,901,170
4,274,905
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
10,364,586
10,343,778
Corporation tax payable
823,669
691,379
509,996
35,331
Other taxation and social security
1,330,353
928,915
-
-
Other creditors
6,112,934
8,916,493
-
0
-
0
Accruals and deferred income
7,321,099
7,333,435
296,282
-
0
17,489,225
22,145,127
11,170,864
10,379,109
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Amounts owed to group undertakings
-
0
-
0
15,370,583
13,341,735
Other creditors
11,000
589,469
11,000
11,000
11,000
589,469
15,381,583
13,352,735
20
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
86,007
50,467
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
50,467
-
Charge to profit or loss
35,540
-
Liability at 31 December 2023
86,007
-
SIZE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
331,783
219,901

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
104 Ordinary shares of £1 each
104
104
93 Ordinary A shares of £1 each
93
93
11 Ordinary B shares of £1 each
11
11
12 Ordinary C shares of £1 each
12
12
220
220
23
Cash absorbed by group operations
2023
2022
£
£
Profit for the year after tax
2,891,080
8,122,567
Adjustments for:
Taxation charged
1,502,241
708,868
Finance costs
121,688
2,945
Investment income
(889,800)
(124,745)
Gain on disposal of tangible fixed assets
(16,236)
(7,816)
Depreciation and impairment of tangible fixed assets
145,805
106,235
Other gains and losses
(520,923)
278,976
Movements in working capital:
Decrease/(increase) in debtors
2,585,808
(2,198,277)
Decrease in creditors
(6,892,915)
(11,356,711)
Cash absorbed by operations
(1,073,252)
(4,467,958)
SIZE GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
24
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
60,162
1,799,563
Adjustments for:
Taxation charged
858,517
34,761
Finance costs
106,632
571
Investment income
(813,828)
(121,808)
Other gains and losses
(520,923)
278,976
Movements in working capital:
Increase in debtors
(12,008)
(400,250)
Increase in creditors
2,345,938
22,125,246
Cash generated from operations
2,024,490
23,717,059
25
Analysis of changes in net funds - group
1 January 2023
Cash flows
Market value movements
31 December 2023
£
£
£
£
Cash at bank and in hand
14,028,670
(10,000,314)
-
4,028,356
Borrowings excluding overdrafts
-
104,558
(104,558)
-
14,028,670
(9,895,756)
(104,558)
4,028,356
26
Analysis of changes in net funds - company
1 January 2023
Cash flows
Market value movements
31 December 2023
£
£
£
£
Cash at bank and in hand
5,376,095
(4,928,793)
-
447,302
Borrowings excluding overdrafts
-
104,558
(104,558)
-
5,376,095
(4,824,235)
(104,558)
447,302
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