Company registration number 14392486 (England and Wales)
SIZE GROUP LONDON LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
SIZE GROUP LONDON LTD
COMPANY INFORMATION
Directors
D Size
(Appointed 3 October 2022)
P Daly
(Appointed 3 October 2022)
C Jones
(Appointed 3 October 2022)
Company number
14392486
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 LONDON LTD
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 20
SIZE GROUP LONDON LTD
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -

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

Review of Business

Size Group London Ltd is a subsidiary of Size Group (Construction) Ltd, which, in turn, is a highly specialist building company, which partners with its customers and their design teams, to create some of the very finest private residences in London and the surrounding countryside, as well as carrying out occasional international projects for certain key clients.

 

In 2023, two new subsidiaries, Size Group London and Size Group Country Houses, were established to split the workload of our construction team into distinct geographical areas, headed by separate leadership teams. This allowed these teams to have increased focus, autonomy and accountability in their respective areas, while still allowing each division to continue to share key knowledge and resources where appropriate.

 

In its first year as a separate division of the group, Size Group London achieved turnover of £55.2m, gross profit of £4.2m and a net profit of £3m, all of which were in line with projections.

 

Developments in our construction business are further explained within the annual report of Size Group (Construction) Ltd.

 

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.

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 London Ltd. As per the GHG Protocol this focus is on transportation of materials, products, waste and employees. SG 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 London Ltd do not report on the scope 3 Emissions at present.
SIZE GROUP LONDON LTD
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -
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 London 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.
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
94.41
92.04
Total Scope 2
2.37
2.33
Intensity ratio (tCO2e/ £m turnover)
1.69
London
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.
SIZE GROUP LONDON LTD
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -
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 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.
Principal Risks & Uncertainties

The following comprises a summary, in the opinion of the directors, of the principal risks to which the company 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 company is well protected from all foreseeable risks.

SIZE GROUP LONDON LTD
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 4 -
Development & Performance

As stated in the above Review of Business, the company made significant progress during the period, particularly in key areas such as:

 

 

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

Financial Key Performance Indicators

2023 turnover was £55.2m;

 

Gross Profit in 2023 was £4.2m;

 

Profit before tax was £3m.

Future Developments

Size Group expects turnover in London to remain broadly stable in 2024, subject of course to the wider economic and geopolitical environment remaining relatively positive.

Conclusion

The outlook for our construction business in London 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 LONDON LTD
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 5 -

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

Principal activities

The principal activity of the company is that of specialised construction activities.

Results and dividends

The results for the period 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 period and up to the date of signature of the financial statements were as follows:

D Size
(Appointed 3 October 2022)
P Daly
(Appointed 3 October 2022)
C Jones
(Appointed 3 October 2022)
Auditor

Evans Mockler Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed 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 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.

On behalf of the board
D Size
CEO
19 September 2024
SIZE GROUP LONDON LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 6 -

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.

SIZE GROUP LONDON LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SIZE GROUP LONDON LTD
- 7 -
Opinion

We have audited the financial statements of Size Group London Ltd (the 'company') for the period ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

SIZE GROUP LONDON LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF SIZE GROUP LONDON LTD
- 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.

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 LONDON LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF SIZE GROUP LONDON LTD
- 9 -

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 member 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 member those matters we are required to state to the member 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 member, 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 Accountants
Statutory Auditor
5 Beauchamp Court
Victors Way
Barnet
London
EN5 5TZ
SIZE GROUP LONDON LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 10 -
Period
ended
31 December
2023
Notes
£
Turnover
3
55,154,423
Cost of sales
(50,944,469)
Gross profit
4,209,954
Administrative expenses
(1,195,790)
Profit before taxation
3,014,164
Tax on profit
6
(37,984)
Profit for the financial period
2,976,180

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

SIZE GROUP LONDON LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
Notes
£
£
Current assets
Debtors
7
18,434,840
Cash at bank and in hand
3,515
18,438,355
Creditors: amounts falling due within one year
8
(9,332,565)
Net current assets
9,105,790
Creditors: amounts falling due after more than one year
9
(6,128,610)
Net assets
2,977,180
Capital and reserves
Called up share capital
10
1,000
Profit and loss reserves
2,976,180
Total equity
2,977,180
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:
D Size
CEO
Company registration number 14392486 (England and Wales)
SIZE GROUP LONDON LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 3 October 2022
-
0
-
0
-
Period ended 31 December 2023:
Profit and total comprehensive income
-
2,976,180
2,976,180
Issue of share capital
10
1,000
-
1,000
Balance at 31 December 2023
1,000
2,976,180
2,977,180
SIZE GROUP LONDON LTD
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 13 -
2023
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
13
2,515
Financing activities
Proceeds from issue of shares
1,000
Net cash generated from/(used in) financing activities
1,000
Net increase in cash and cash equivalents
3,515
Cash and cash equivalents at beginning of period
-
0
Cash and cash equivalents at end of period
3,515
SIZE GROUP LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

Size Group London Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit G.07, The Light Box, 111 Power Road, London, W4 5PY.

1.1
Reporting period

The company was incorporated on 3 October 2022 and commenced trading on 1 January 2023.

 

The financial statements have been prepared for the year ended 31 December 2023.

1.2
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.

1.3
Going concern

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

1.4
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.

1.5
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.

SIZE GROUP LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.6
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

SIZE GROUP LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.7
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.8
Taxation

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

Current tax

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

SIZE GROUP LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
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 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.

1.9
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.

2
Judgements and key sources of estimation uncertainty

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

 

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

3
Turnover
2023
£
Turnover analysed by class of business
55,154,423
2023
£
Turnover analysed by geographical market
55,154,423
SIZE GROUP LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 18 -
4
Operating profit
2023
Operating profit for the period is stated after charging:
£
Fees payable to the company's auditor for the audit of the company's financial statements
3,500
5
Employees

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

2023
Number
Total
-
0
6
Taxation
2023
£
Current tax
UK corporation tax on profits for the current period
37,984

The actual charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:

2023
£
Profit before taxation
3,014,164
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00%
753,541
Tax effect of expenses that are not deductible in determining taxable profit
254
Effect of change in corporation tax rate
(44,608)
R&D Claim
(671,203)
Taxation charge for the period
37,984
SIZE GROUP LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 19 -
7
Debtors
2023
Amounts falling due within one year:
£
Trade debtors
646,814
Gross amounts owed by contract customers
1,488,784
Other debtors
3,860
2,139,458
2023
Amounts falling due after more than one year:
£
Amounts owed by group undertakings
16,295,382
Total debtors
18,434,840
8
Creditors: amounts falling due within one year
2023
£
Trade creditors
1,426,404
Corporation tax
37,984
Other taxation and social security
425,794
Other creditors
2,832,808
Accruals and deferred income
4,609,575
9,332,565
9
Creditors: amounts falling due after more than one year
2023
£
Amounts owed to group undertakings
6,128,610
10
Share capital
2023
2023
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
SIZE GROUP LONDON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 20 -
11
Related party transactions

The company is a wholly owned subsidiary of Size Group (Construction) Ltd and is included in its consolidated financial statements. Size Group (Construction) Ltd is, in turn, a wholly owned subsidiary of Size Group Ltd and is also included in Size Group Ltd's consolidated financial statements. Consequently, the company is exempt under the terms of FRS 102 'The Financial Reporting Standard' from disclosing related party transactions with Size Group Ltd or its wholly owned subsidiaries. There are no other related party transactions to report.

12
Ultimate controlling party

Size Group (Construction) Ltd is the immediate parent company. These financial statements are consolidated in the financial statements of Size Group (Construction) Ltd. The registered office of Size Group (Construction) Ltd is Unit G.07 The Light Box, 111 Power Road, London, England, W4 5PY.

The company is ultimately controlled by Darren Size by virtue of his majority shareholding in the ultimate parent company Size Group Ltd. The registered address for the company and Size Group Ltd, is Unit G.07 The Light Box, 111 Power Road, London, England, W4 5PY.

13
Cash generated from/(absorbed by) operations
2023
£
Profit for the period after tax
2,976,180
Adjustments for:
Taxation charged
37,984
Movements in working capital:
Increase in debtors
(18,434,840)
Increase in creditors
15,423,191
Cash generated from/(absorbed by) operations
2,515
14
Analysis of changes in net funds
3 October 2022
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
-
3,515
3,515
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