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Registered number: 03096503










CAVENDISH CONSULTING LIMITED






ANNUAL REPORT AND FINANCIAL STATEMENTS





FOR THE YEAR ENDED 31 MARCH 2024



 
CAVENDISH CONSULTING LIMITED
 

COMPANY INFORMATION


Directors
M Camplin 
S Clough 
C Daruvalla 
R George 
J Gordon 
S Pomeroy 
G Morgan (appointed 25 January 2024)
S Park (appointed 25 January 2024)




Registered number
03096503



Registered office
8-10 Mansion House Place

London

EC4N 8BJ




Independent auditor
James Cowper Kreston Audit
Chartered Accountants and Statutory Auditor

2 Chawley Park

Cumnor Hill

Oxford

Oxfordshire

OX2 9GG





 
CAVENDISH CONSULTING LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 3
Directors' Report
 
4 - 5
Independent Auditor's Report
 
6 - 9
Consolidated Statement of Comprehensive Income
 
10 - 11
Consolidated Balance Sheet
 
12 - 13
Company Balance Sheet
 
14 - 15
Consolidated Statement of Changes in Equity
 
16 - 17
Company Statement of Changes in Equity
 
18
Notes to the Financial Statements
 
19 - 45


 
CAVENDISH CONSULTING LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
The Directors present their strategic report of the Group for the year ended 31 March 2024.
The Directors have elected to present the financial statements of Cavendish Consulting Limited as a consolidated group.

Business review
 
The Company and Group offers a fully integrated solution for public affairs, corporate communications, digital engagement and creative.
In the year to 31 March 2024 the Company, and the Group of which the company is the intermediate holding company, continued to consolidate its position as a market leading public affairs and political communications consultancy. The Group enjoyed organic fee growth, strengthened its fee-earner teams, attracted new blue-chip clients and won further industry awards. Fees billed were £12.3 million (2023: £11.7 million) and earnings before interest, tax, depreciation, amortisation and exceptional items from both continued and discontinued operations were £2.04 million (2023: £1.51 million). Of this, £2.07m relates to continuing operations for financial year 2024.
Crowd Technologies Limited - discontinued operation
Crowd Technologies Limited has continued to develop its data intelligence and AI tool, Cavendish Insights; for the time being for internal use in adding value to client projects but with the future intention of offering paid subscriptions.
In February 2023 ‘X’ (formerly Twitter) announced new charges for partner data access which meant that 
SoCrowd, the social media management platform offered by Crowd Technologies Limited since 2011, ceased to be commercially viable. SoCrowd was withdrawn from the external market, the clients were referred to a former competitor, from whom introduction fees of £414,340 were received, and SoCrowd was repurposed as a political listening tool for a future release of Cavendish Insights.
At 31 March 2023 the Company made a £500,000 provision for the impairment of a 2021 intra-group loan to Crowd Technologies Limited.  On 28 March 2024 the same £500,000 was forgiven. All other monies owed to the Company by Crowd Technologies Limited have been repaid in full during the year ended 31 March 2024. 
On 28 March 2024 the Company made a distribution in specie of the entire issued share capital of Crowd Technologies Limited at book value to its parent company, Cavendish Consulting Group Limited.
Acquisition of MCE (N.I.) Ltd
On 28 March 2024, the Company acquired MCE (N.I.) Ltd (‘MCE’), a Belfast-based public affairs and corporate communications agency with a satellite office in Dublin. Consideration was £1.8 million, which included loan notes that the vendors of MCE together exchanged for 3% of the enlarged issued share capital of Cavendish Consulting Group Limited. The transaction was part-funded with an additional £600,000 secured loan through Cavendish Consulting Group Limited acquisition funder.
In the 14-month period to March 2024, MCE had turnover of £1.49 million and made operating profits of £290,000 (these results are not consolidated in these financial statements as the acquisition took place on 28 March 2024). The Directors believe that the acquisition of MCE will allow the Group to extend its services into the island of Ireland, strengthen the Group’s national corporate communications offer and deliver cost reductions through group synergies.     
Hive up of subsidiaries
In June 2023 the Group rebranded and restructured to create and offer a fully integrated solution for public affairs, corporate communications, digital engagement and creative under the brand ‘Cavendish’. In the opinion of the Directors this simplification is proving beneficial in terms of the reputation and market positioning of the Cavendish Group and in the service it offers to clients.
 
Page 1

 
CAVENDISH CONSULTING LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

During the year ended 31 March 2024, the Group reviewed its contract relationships with customers. Certain customer contracts were renewed in Cavendish Consulting Limited to further strengthen the Cavendish brand. In preparing these financial statements, the Directors assessed whether the trade and assets of its subsidiaries had been hived up, in substance, due to the customer contracts and relationships transferring over time to Cavendish Consulting Limited.
The Directors have determined that at 31 March 2024, the trade of Liberty One Communications Limited had been hived up into Cavendish Consulting Limited.

Principal risks and uncertainties
 
The Board sees the principal risks and uncertainties facing the Group as follows:
Financial – the Group is price competitive and delivers its services at standard industry profit margins. Clients are typically blue-chip companies with a significant UK base, presenting minimal credit and foreign exchange risk and adhering to payment terms.  
Post-tax profits are the principal driver of liquidity and are a proxy for cash generation before debt service. A revolving credit facility is in place to fund the working capital cycle and cash flow fluctuations. Cavendish Consulting Group Limited has managed the Group's interest rate risk by fixing its borrowing rate through to October 2027. 
People – to deliver its services the Group requires high quality consultants across the political spectrum and at all levels.  Recruitment, retention, training and employee wellbeing are high priorities. Retention is helped by 22 key employees being shareholders in the Company’s parent company, Cavendish Consulting Group Limited.
Political – political change brings new public policy and with it uncertainty and risk in terms of the impact on the sectors in which the Group operates and the services it offers. However, housing, Fast-Moving Consumer Goods (FMCG) and renewable energy are welcome constants, and political change creates the opportunity for the Group to deliver advisory services to clients affected by it.   
Operational – the Group collects and uses personal data, delivers services that may include the use of AI, and faces the usual cybersecurity and business continuity threats. The Group invests in cloud-based technology infrastructure to manage its IT and business continuity risks, and has in place processes, policies, people and training to manage key compliance risks including the use of AI, the General Data Protection Regulation, the Bribery Act and the regulatory requirements of the public affairs sector.

Financial key performance indicators

Key performance indicators for the Group, in respect of both continuing and discontinued operations, are as follows:
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Page 2

 
CAVENDISH CONSULTING LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024


This report was approved by the board and signed on its behalf.



C Daruvalla
Director

Date: 22 October 2024

Page 3

 
CAVENDISH CONSULTING LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The Directors present their report and the financial statements for the year ended 31 March 2024.

Directors

The Directors who served during the year were:

M Camplin 
S Clough 
C Daruvalla 
R George 
J Gordon 
S Pomeroy 
G Morgan (appointed 25 January 2024)
S Park (appointed 25 January 2024)

Directors' responsibilities statement

The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the Directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The Group and Company's principal activity is public affairs, government relations, corporate communications, marketing and digital consultancy.

Results and dividends

The profit for the year, after taxation, amounted to £1,313,431 (2023 - loss £273,345).

During the year ended 31 March 2024, the Company paid dividends of £1,287,911 (2023: £650,235).

Matters covered in the Group Strategic Report

Certain matters are disclosed in the Strategic Report that would otherwise be disclosed in the Directors' Report.

Page 4

 
CAVENDISH CONSULTING LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Disclosure of information to auditor

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Post balance sheet events

There are no post balance sheet events.

Auditor

The auditor, James Cowper Kreston Auditwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





C Daruvalla
Director

Date: 22 October 2024

Page 5

 
CAVENDISH CONSULTING LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CAVENDISH CONSULTING LIMITED
 

Opinion


We have audited the financial statements of Cavendish Consulting Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2024, which comprise the Group Statement of Comprehensive Income, the Group and Company Balance Sheets, the Group and Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 March 2024 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 or the 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.


Page 6

 
CAVENDISH CONSULTING LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CAVENDISH CONSULTING LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of Directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of Directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 Group's and 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
CAVENDISH CONSULTING LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CAVENDISH CONSULTING LIMITED (CONTINUED)


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 Group financial statements.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows: 
 
Enquiry of management and those charged with governance around actual and potential litigation and       claims;
Reviewing minutes of meetings of those charged with governance;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management override of controls, including testing of journal                  entries and other adjustments for appropriateness, evaluating the business rationale of significant               transactions outside the normal course of business and reviewing accounting estimates for bias;
Attending year-end audit meetings with the component auditor and inquiring of the component auditor if such component remains in compliance with laws and regulations and reviewing procedures carried out in respect of fraud assessment.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.


Page 8

 
CAVENDISH CONSULTING LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CAVENDISH CONSULTING LIMITED (CONTINUED)


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 2006Our 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.





Sue Staunton MA FCA CF (Senior Statutory Auditor)
  
for and on behalf of
James Cowper Kreston Audit
 
Chartered Accountants and Statutory Auditor
  
2 Chawley Park
Cumnor Hill
Oxford
Oxfordshire
OX2 9GG

22 October 2024
Page 9

 
CAVENDISH CONSULTING LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

Continuing operations
Discontinued operations
Total
Continuing operations
Discontinued operations
Total
2024
2024
2024
2023
2023
2023
Note
£
£
£
£
£
£

  

Turnover
 4 
14,118,726
204,654
14,323,380
12,977,034
564,869
13,541,903

Cost of sales
  
(7,901,603)
(220,933)
(8,122,536)
(7,185,144)
(785,745)
(7,970,889)

Gross profit
  
6,217,123
(16,279)
6,200,844
5,791,890
(220,876)
5,571,014

Administrative expenses
  
(4,148,296)
(8,392)
(4,156,688)
(3,908,324)
(136,643)
(4,044,967)

Depreciation and amortisation
  
(267,945)
(63,288)
(331,233)
(257,536)
(296,540)
(554,076)

Exceptional administrative expenses
  
(338,740)
-
(338,740)
(311,245)
(799,333)
(1,110,578)

Other operating income
 5 
-
504,232
504,232
-
-
-

Other operating charges
  
-
(187,630)
(187,630)
-
-
-

Operating profit/(loss)
 6 
1,462,142
228,643
1,690,785
1,314,785
(1,453,392)
(138,607)

Interest receivable and similar income
 10 
1,086
166
1,252
1
4
5

Interest payable and similar expenses
 11 
-
-
-
(60,330)
(55,357)
(115,687)

Profit/(loss) before taxation
  
1,463,228
228,809
1,692,037
1,254,456
(1,508,745)
(254,289)

Tax on profit/(loss)
 12 
(400,027)
21,421
(378,606)
(229,731)
210,675
(19,056)

Profit/(loss) for the financial year
  
1,063,201
250,230
1,313,431
1,024,725
(1,298,070)
(273,345)

Profit/(loss) for the year attributable to:
  

Owners of the parent Company
  
1,063,202
250,229
1,313,431
1,024,725
(1,298,070)
(273,345)

There was no other comprehensive income for 2024 (2023:£NIL).

Page 10

 
CAVENDISH CONSULTING LIMITED
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

The notes on pages 19 to 45 form part of these financial statements.

Page 11

 
CAVENDISH CONSULTING LIMITED
REGISTERED NUMBER: 03096503

CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Goodwill
 16 
2,224,313
1,286,333

Negative goodwill
 16 
-
(53,860)

Intangible fixed assets
 16 
58,680
396,721

Tangible assets
 17 
131,249
190,115

  
2,414,242
1,819,309

Current assets
  

Debtors: amounts falling due within one year
 19 
4,330,458
3,476,724

Cash at bank and in hand
 20 
1,308,730
541,934

  
5,639,188
4,018,658

Creditors: amounts falling due within one year
 21 
(5,005,328)
(3,124,207)

Net current assets
  
 
 
633,860
 
 
894,451

Total assets less current liabilities
  
3,048,102
2,713,760

Creditors: amounts falling due after more than one year
 22 
(300,000)
-

Provisions for liabilities
  

Deferred taxation
 23 
(12,611)
(43,202)

Provisions
 24 
(50,000)
(50,000)

  
 
 
(62,611)
 
 
(93,202)

Net assets
  
2,685,491
2,620,558


Capital and reserves
  

Called up share capital 
 25 
579
579

Share premium account
 26 
1,624,686
1,624,686

Capital redemption reserve
 26 
88,681
88,681

Share-based payment reserve
 26 
39,413
-

Profit and loss account
 26 
932,132
906,612

  
2,685,491
2,620,558


Page 12

 
CAVENDISH CONSULTING LIMITED
REGISTERED NUMBER: 03096503

CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




C Daruvalla
Director

Date: 22 October 2024

The notes on pages 19 to 45 form part of these financial statements.

Page 13

 
CAVENDISH CONSULTING LIMITED
REGISTERED NUMBER: 03096503

COMPANY BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 16 
490,325
41,390

Tangible assets
 17 
119,220
190,115

Investments
 18 
3,323,094
2,715,359

  
3,932,639
2,946,864

Current assets
  

Debtors: amounts falling due within one year
 19 
3,367,019
2,859,066

Cash at bank and in hand
 20 
954,201
341,285

  
4,321,220
3,200,351

Creditors: amounts falling due within one year
 21 
(5,099,514)
(3,244,780)

Net current liabilities
  
 
 
(778,294)
 
 
(44,429)

Total assets less current liabilities
  
3,154,345
2,902,435

  

Creditors: amounts falling due after more than one year
 22 
(300,000)
-

Provisions for liabilities
  

Deferred taxation
 23 
(9,686)
(42,681)

Provisions
 24 
(50,000)
(50,000)

  
 
 
(59,686)
 
 
(92,681)

Net assets
  
2,794,659
2,809,754


Capital and reserves
  

Called up share capital 
 25 
579
579

Share premium account
 26 
1,624,686
1,624,686

Capital redemption reserve
 26 
88,681
88,681

Share-based payment reserve
 26 
39,413
-

Profit and loss account
 26 
1,041,300
1,095,808

  
2,794,659
2,809,754


Page 14

 
CAVENDISH CONSULTING LIMITED
REGISTERED NUMBER: 03096503

COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



C Daruvalla
Director

Date: 22 October 2024

The notes on pages 19 to 45 form part of these financial statements.

Page 15

 
CAVENDISH CONSULTING LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Share premium account
Capital redemption reserve
Share-based payment reserve
Profit and loss account
Total equity

£
£
£
£
£
£

At 1 April 2023
579
1,624,686
88,681
-
906,612
2,620,558



Profit for the year
-
-
-
-
1,313,431
1,313,431

Dividends: Equity capital
-
-
-
-
(1,287,911)
(1,287,911)

Share-based payment charge
-
-
-
39,413
-
39,413


At 31 March 2024
579
1,624,686
88,681
39,413
932,132
2,685,491


The notes on pages 19 to 45 form part of these financial statements.

Page 16

 

 
CAVENDISH CONSULTING LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023



Called up share capital
Share premium account
Capital redemption reserve
Share-based payment reserve
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity


£
£
£
£
£
£
£
£


At 1 April 2022
518
1,181,947
88,681
15,927
1,926,230
3,213,303
(62,291)
3,151,012





Loss for the year
-
-
-
-
(273,345)
(273,345)
-
(273,345)


Dividends: Equity capital
-
-
-
-
(650,235)
(650,235)
-
(650,235)


Shares issued during the year
61
442,739
-
-
-
442,800
-
442,800


Transfer to/from profit and loss account
-
-
-
(15,927)
15,927
-
-
-


Shareholding acquisition
-
-
-
-
(98,880)
(98,880)
49,206
(49,674)


Transfer between reserves
-
-
-
-
(13,085)
(13,085)
13,085
-



At 31 March 2023
579
1,624,686
88,681
-
906,612
2,620,558
-
2,620,558



The notes on pages 19 to 45 form part of these financial statements.

Page 17

 
CAVENDISH CONSULTING LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Share premium account
Capital redemption reserve
Share-based payment reserve
Profit and loss account
Total equity

£
£
£
£
£
£

At 1 April 2023
579
1,624,686
88,681
-
1,095,808
2,809,754



Profit for the year
-
-
-
-
1,440,893
1,440,893

Hive up adjustment
-
-
-
-
(207,490)
(207,490)

Dividends: Equity capital
-
-
-
-
(1,287,911)
(1,287,911)

Share-based payment charge
-
-
-
39,413
-
39,413


At 31 March 2024
579
1,624,686
88,681
39,413
1,041,300
2,794,659



COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Share premium account
Capital redemption reserve
Share-based payment reserve
Profit and loss account
Total equity

£
£
£
£
£
£

At 1 April 2022
518
1,181,947
88,681
15,927
1,659,401
2,946,474



Profit for the year
-
-
-
-
70,715
70,715

Dividends: Equity capital
-
-
-
-
(650,235)
(650,235)

Shares issued during the year
61
442,739
-
-
-
442,800

Transfer to/from profit and loss account
-
-
-
(15,927)
15,927
-


At 31 March 2023
579
1,624,686
88,681
-
1,095,808
2,809,754


The notes on pages 19 to 45 form part of these financial statements.

Page 18

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

Cavendish Consulting Limited is a private limited company, incorporated and domiciled in England and Wales with registered number 03096503.
 
The Company's registered office is 8-10 Mansion House Place, London, England, EC4N 8BJ.
The Group and Company's principal activity is public affairs, government relations, corporate communications, marketing and digital consultancy.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The financial statements are presented in pound Sterling, the functional currency of the Company, and rounded to the nearest pound.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.



The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Parent Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Cavendish Consulting Group Limited as at 31 March 2024 and these financial statements may be obtained from 8-10 Mansion House Place, London, England, EC4N 8BJ.

Page 19

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.3

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives of 5 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

Page 20

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.10

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

Page 21

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.12

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

 
2.13

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life of 10 years.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 22

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
Straight line over remaining lease term
Fixtures and fittings
-
20%
Computer equipment
-
33%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.15

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 23

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.20

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

 
2.21

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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, 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
 
Page 24

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.21
Financial instruments (continued)


Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

 
2.22

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 25

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements required Management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from the estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Estimates are based on historical experience and other assumptions that are considered reasonable in the circumstances. The actual amount of values may vary in certain instances from the assumption and estimates made.
Changes will be recorded, with corresponding effect in the Consolidated Statement of Comprehensive Income, when, and if, better information is obtained. 
Information about assumptions and estimation uncertainties that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below:
Business combinations and goodwill
The Company/Group accounts for business combinations using the acquisition method of accounting. The costs of the business combination are measured as the aggregate of the fair values of assets given, liabilities incurred or assumed and equity instruments issued. The determination of fair value requires Management to make estimations that include internal and market data. Any variation in estimation would have an impact on the resulting goodwill arising on consolidation.
Goodwill is determined as the consideration paid, plus the fair value of any shareholding held prior to obtaining control, plus non-controlling interest and less the fair value of the identifiable assets and liabilities of the acquiree.
Goodwill is amortised over the useful economic life of 10 years. Management review the useful economic life of goodwill annually and revise the estimate if conditions exist that indicate a change in the useful economic life of the acquired company.
Hive up of subsidiaries
In June 2023 the group rebranded and restructured to create and offer a fully integrated solution for public affairs, corporate communications, digital engagement and creative under the brand ‘Cavendish’. In the opinion of the Directors this simplification is proving beneficial in terms of the reputation and market positioning of the Cavendish Group and in the service it offers to clients.
During the year ended 31 March 2024, the Group reviewed its contract relationships with customers. Certain customer contracts were renewed in Cavendish Consulting Limited to further strengthen the Cavendish brand. In preparing these financial statements, the Directors assessed whether the trade and assets of its subsidiaries had been hived up, in substance, due to the customer contracts and relationships transferring over time to Cavendish Consulting Limited.
The Directors have determined that at 31 March 2024, the trade of Liberty One Communications Limited had been hived up into Cavendish Consulting Limited.
Impairment of intangible assets
Management assesses its capitalised development expenditure and other intangible assets for impairment on an ongoing basis. In determining whether an impairment loss should be recorded in the Consolidated Statement of Comprehensive Income, Management makes judgements as to whether there is observable data indicating a measurable decrease in the estimated future cash flows of that intangible asset.
Fair value of contingent consideration
Management recognise a liability at the year-end for future consideration payable in respect of acquired subsidiaries achieving pre-defined metrics. Management make judgements as to whether the pre-defined metrics will be achieved in the future and recognise a liability at the best estimate of fair value.

Page 26

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Client fees - continuing operations
12,299,019
11,733,714

Recharged expenses - continuing operations
1,805,807
1,243,320

Technology licenses - discontinued operations
218,554
564,869

14,323,380
13,541,903


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
14,323,380
13,541,903



5.


Other operating income

2024
2023
£
£

Gain on disposal of subsidiary - discontinued operations
89,892
-

Other income from sale of contracts - discontinued operations
414,340
-

504,232
-


See note 28 for further details on the gain on disposal of subsidiary.
In February 2023 ‘X’ (formerly Twitter) announced new charges for partner data access which meant that 
SoCrowd, the social media management platform offered by Crowd Technologies Limited since 2011, ceased to be commercially viable. SoCrowd was withdrawn from the external market, the clients were referred to a former competitor, from whom introduction fees of £414,340 were received, and SoCrowd was repurposed as a political listening tool for a future release of Cavendish Insights.


6.


Operating profit/(loss)

The operating profit/(loss) from continuing operations is stated after charging:

As restated
2024
2023
£
£

Tangible fixed assets - depreciation
94,926
86,299

Intangible fixed assets - amortisation
172,966
173,018

Operating lease rentals - buildings
505,329
502,313

Operating lease rentals - equipment
18,737
21,611

Defined contribution pension costs
150,882
121,878

Page 27

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

7.


Auditor's remuneration

During the year, the Group obtained the following services from the Company's auditor:


2024
2023
£
£

Fees payable to the Company's auditor for the audit of the consolidated and parent Company's financial statements
20,000
17,500

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


8.


Employees

Staff costs, including Directors' remuneration, were as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
6,243,516
5,770,822
6,087,158
4,752,307

Social security costs
579,490
570,748
568,931
479,238

Cost of defined contribution scheme
151,329
132,150
148,669
111,784

6,974,335
6,473,720
6,804,758
5,343,329


The average monthly number of employees, including the Directors, during the year was as follows:



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Directors
6
7
6
7



Technology
7
15
6
-



Fee earners
103
97
103
97



Central
18
14
18
14



Marketing
5
6
5
5

139
139
138
123

Page 28

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
794,043
829,481

Group contributions to defined contribution pension schemes
26,050
22,354

820,093
851,835


During the year retirement benefits were accruing to 8 Directors (2023 - 8) in respect of defined contribution pension schemes.

The highest paid Director received remuneration of £132,500 (2023 - £131,794).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £4,500 (2023 - £3,900).

Page 29

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

10.


Interest receivable

2024
2023
£
£


Other interest receivable
1,252
5

Of total interest receivable above, £166 (2023: £4) relates to discontinued operations.


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
-
39,512

Other interest payable
-
76,175

-
115,687

Of total interest payable above, £nil (2023: £55,357) relates to discontinued operations.


12.


Taxation


As restated
2024
2023
£
£

Corporation tax


Corporation tax - continuing operations
411,601
210,674

Adjustments in respect of previous periods
-
(102)

Corporation tax - discontinued operation
-
(210,674)


Total current tax
411,601
(102)

Deferred tax


Origination and reversal of timing differences
(32,995)
19,158

Total deferred tax
(32,995)
19,158


Taxation on profit on ordinary activities
378,606
19,056
Page 30

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,692,037
1,254,456


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
423,009
238,347

Effects of:


Expenses not deductible for tax purposes
53,523
7,272

Capital allowances for year in excess of depreciation
990
(6,135)

Adjustment in respect of prior period
-
(102)

Group relief surrendered/(reclaimed)
(70,436)
-

Payment(receipt) for group relief
70,436
-

Income not taxable for tax purposes
(22,578)
30,528

Other timing differences leading to an increase (decrease) in taxation
15
(40,179)

Deferred tax not recognised
(76,353)
-

Total tax charge for the year
378,606
229,731


13.


Dividends

2024
2023
£
£


Dividends paid
1,287,911
650,235


14.


Exceptional items

2024
2023
£
£


Group restructure expenses - continuing operations
338,740
287,635

Impairment of intangible assets - discontinued operations
-
799,333

Other exceptional expenditure - discontinued operations
-
23,610

At 31 March 2023, the Directors reviewed the carrying value of capitalised development costs and identified an impairment charge of £799,333. No impairment was recognised during the year ended 31 March 2024.

Page 31

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

15.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent Company for the year was £1,440,893 (2023 - £70,715).


16.


Intangible assets

Group





Development expenditure
Trademarks
Goodwill
Negative goodwill
Total

£
£
£
£
£



Cost


At 1 April 2023
1,765,979
45,156
2,044,377
(70,252)
3,785,260


Additions
295,496
13,524
1,110,946
-
1,419,966


On disposal of subsidiaries
(2,061,475)
-
-
70,252
(1,991,223)



At 31 March 2024

-
58,680
3,155,323
-
3,214,003



Amortisation


At 1 April 2023
1,414,414
-
758,044
(16,392)
2,156,066


Charge for the year on owned assets
70,313
-
172,966
(7,025)
236,254


On disposal of subsidiaries
(1,484,727)
-
-
23,417
(1,461,310)



At 31 March 2024

-
-
931,010
-
931,010



Net book value



At 31 March 2024
-
58,680
2,224,313
-
2,282,993



At 31 March 2023
351,565
45,156
1,286,333
(53,860)
1,629,194



Page 32

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
           16.Intangible assets (continued)

Company




Trademarks
Goodwill
Total

£
£
£



Cost


At 1 April 2023
41,390
-
41,390


Additions
17,322
-
17,322


Hive up of subsidiary
-
431,613
431,613



At 31 March 2024

58,712
431,613
490,325






Net book value



At 31 March 2024
58,712
431,613
490,325



At 31 March 2023
41,390
-
41,390

Page 33

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

17.


Tangible fixed assets

Group






Long-term leasehold property
Fixtures and fittings
Computer equipment
Total

£
£
£
£



Cost or valuation


At 1 April 2023
30,382
73,179
442,539
546,100


Additions
-
6,988
17,043
24,031


Acquisition of subsidiary
-
12,029
-
12,029



At 31 March 2024

30,382
92,196
459,582
582,160



Depreciation


At 1 April 2023
5,354
34,179
316,452
355,985


Charge for the year on owned assets
5,084
12,783
77,059
94,926



At 31 March 2024

10,438
46,962
393,511
450,911



Net book value



At 31 March 2024
19,944
45,234
66,071
131,249



At 31 March 2023
25,028
39,000
126,087
190,115

Page 34

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

           17.Tangible fixed assets (continued)


Company






Long-term leasehold property
Fixtures and fittings
Computer equipment
Total

£
£
£
£

Cost or valuation


At 1 April 2023
30,382
65,037
438,700
534,119


Additions
-
6,988
17,043
24,031



At 31 March 2024

30,382
72,025
455,743
558,150



Depreciation


At 1 April 2023
5,354
26,037
312,613
344,004


Charge for the year on owned assets
5,084
12,783
77,059
94,926



At 31 March 2024

10,438
38,820
389,672
438,930



Net book value



At 31 March 2024
19,944
33,205
66,071
119,220



At 31 March 2023
25,028
39,000
126,087
190,115






Page 35

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

18.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 April 2023
3,134,688


Additions
1,798,519


Disposals
(287,911)


Hive up of subsidiary
(639,103)



At 31 March 2024

4,006,193



Impairment


At 1 April 2023
419,329


Charge for the period
263,770



At 31 March 2024

683,099



Net book value



At 31 March 2024
3,323,094



At 31 March 2023
2,715,359

On 31 March 2024, the trade and assets of Liberty One Communications Limited were deemed by the Directors to be hived up to Cavendish Consulting Limited. This resulted in investments of £639,103 being accounted for as goodwill in the Company as at 31 March 2024. Subsequent to this hive up adjustment, the Directors reviewed the carrying value of the remaining investment balance of £263,770 held in Liberty One Communications Limited and determined this to be impaired.

Page 36

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

BECG Limited
8-10 Mansion House Place, London, England, EC4N 8BJ
Ordinary
100%
Built Environment Communications Group Limited
8-10 Mansion House Place, London, England, EC4N 8BJ
Ordinary
100%
Remarkable Group Limited
8-10 Mansion House Place, London, England, EC4N 8BJ
Ordinary
100%
Liberty One Communications Limited
Spaces, 1 West Regent Street, Glasgow, Scotland, G2 1RW
Ordinary
100%
Cavendish Advocacy Limited
8-10 Mansion House Place, London, England, EC4N 8BJ
Ordinary
100%
MCE (N.I.) Limited
16 Mount Charles, Belfast, BT7 1NZ
Ordinary
100%


19.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
3,154,816
2,598,370
2,662,179
1,727,816

Amounts owed by group undertakings
-
-
-
613,000

Other debtors
469,208
487,388
149,730
141,863

Prepayments and accrued income
658,841
373,601
555,110
359,022

Tax recoverable
47,593
17,365
-
17,365

4,330,458
3,476,724
3,367,019
2,859,066


Included in amounts owed by group undertakings at 31 March 2023 was a loan receivable of £1,113,000. At 31 March 2023 the Company made a £500,000 provision for the impairment of this intra-group loan due from Crowd Technologies Limited. On 28 March 2024 the same £500,000 was forgiven. All other monies owed to the Company by Crowd Technologies Limited have been repaid in full during the year ended 31 March 2024. This loan was unsecured, non-interest bearing and repayable on demand.


20.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
1,308,730
541,934
954,201
341,285


Page 37

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

21.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Trade creditors
881,698
424,510
816,087
402,467

Contingent and deferred consideration
79,316
61,453
79,316
61,453

Amounts owed to group undertakings
1,658,999
531,134
2,066,155
1,063,619

Corporation tax
205,958
-
126,814
-

Other taxation and social security
1,230,828
1,111,452
1,142,405
1,073,786

Other creditors
103,926
94,476
92,833
91,732

Accruals and deferred income
844,603
901,182
775,904
551,723

5,005,328
3,124,207
5,099,514
3,244,780


Contingent consideration of £79,316 at 31 March 2024 represents future consideration payable on the acquisition of MCE (N.I.) Limited in the year ended 31 March 2024.
Deferred consideration at 31 March 2023 represented future consideration payable on the acquisition of Cavendish Advocacy Limited and Liberty One Communications Limited in the year ended 31 March 2021. This deferred consideration was settled during the year ended 31 March 2024. 
Amounts owed to group undertakings are unsecured, repayable on demand and non-interest bearing.


The following liabilities held by Cavendish Consulting Group Limited were secured:
Group
Group
2024
2023
£
£

Other loans
5,023,267
4,257,663

5,023,267
4,257,663

Details of security provided:

Other loans represents a loan received from external parties in support of the Group restructure completed on 14 October 2022 by Cavendish Consulting Group Limited and settlement of existing bank loans and other external lending facilities, and a revised and extended new loan received in Cavendish Consulting Group Limited from this external party in support of the Group acquisition on 28 March 2024. These loans payable in Cavendish Consulting Group Limited are in respect of the following:
Facility A - repayable over 5 years from the date of drawdown of the loan;
Facility B - repayable in one installment 5 years from the date of drawdown of the loan;
Revolving facility - repayable in one installment 3 years from the date of drawdown of the loan;
Facility D - repayable from the date of drawdown of the loan to 14 October 2027.
 
Page 38

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

The total loan facility held by Cavendish Consulting Group Limited is interest bearing at a rate of 8.5%-10.75% per annum and contains a fixed and floating charge over the assets of the Group owned by Cavendish Consulting Group Limited.


22.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Contingent consideration
300,000
-
300,000
-


Contingent consideration of £300,000 at 31 March 2024 represents future consideration payable on the acquisition of MCE (N.I.) Limited in the year ended 31 March 2024. This contingent consideration is payable in equal installments in 2025 and 2026.



Page 39

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

23.


Deferred taxation


Group





2024
2023


£

£






At beginning of year
(43,202)
(24,044)


Charged to profit or loss
32,995
(19,158)


Arising on business combinations
(2,404)
-



At end of year
(12,611)
(43,202)

Company




2024
2023


£

£






At beginning of year
(42,681)
(23,523)


Charged to profit or loss
32,995
(19,158)



At end of year
(9,686)
(42,681)

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Accelerated capital allowances
(12,611)
(43,202)
(9,686)
(42,681)


24.


Provisions


Group





Dilapidation provision

£





At 1 April 2023
50,000



At 31 March 2024
50,000

Dilapidation provisions represent the Directors' best estimate of future costs to be incurred on termination of leases in the Group. The provision is expected to be utilised at the end of each respective lease in the Group. 

Page 40

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Company




Dilapidation provision
Total

£
£





At 1 April 2023
50,000
50,000



At 31 March 2024
50,000
50,000

Dilapidation provisions represent the Directors' best estimate of future costs to be incurred on terminations of leases in the Group. The provision is expected to be utilised at the end of each respective lease in the Group.


25.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



57,857 (2023 - 57,857) Ordinary shares of £0.01 each
579
579

Ordinary shares entitle each holder to one vote per share and rank pari passu in respect of dividends and other distributions.



26.


Reserves

Share premium account

The share premium account represents the amounts received for shares in issue above the nominal value of share capital.

Capital redemption reserve

The capital redemption reserve represents amounts transferred following the purchase of the Company's own shares.

Share-based payment reserve

The share-based payment reserve represents the cumulative charge in respect of share-based payment arrangements.

Profit and loss account

The profit and loss account is the Group's accumulated retained profits or losses as at the year end.

Page 41

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

27.


Share-based payments

During the year ended 31 March 2024, Cavendish Consulting Group Limited granted 2,201 EMI share options to employees of Cavendish Consulting Limited. The fair values of employee options granted are measured at the date of grant by the use of a Black-Scholes pricing model, the assumptions used in the model varying depending on the date of grant and vesting period. The inputs used in the Black-Scholes model are further detailed below.
All options have a maximum term of 10 years from date of grant and are settled in equity upon exercise. No options expired in the year. The vesting conditions of all EMI options in the Company are conditional on Cavendish Consulting Group Limited achieving an Exit.

Weighted average exercise price (pence)
2024
Number
2024
Weighted average exercise price
(pence)
2023
Number
2023

Outstanding at the beginning of the year


-

7,178
 
6,355
 
Granted during the year

13,300

2,201

 
-
 
Forfeited during the year

13,300

(71)

 
-
 
Exercised during the year


-

(7,178)
 
(6,355)
 
Outstanding at the end of the year
13,300

2,130

-
 
-
 

2024
2023

Option pricing model used


Black-Scholes

Black-Scholes
 
Weighted average share price (pence)


22,500

2,500-12,050
 
Exercise price (pence)


13,300

2,500-12,050
 
Weighted average contractual life (days)


1,577

1,460-3,285
 
Expected volatility


10.96%

12%-19%
 
Risk-free interest rate


3.9%

1.3%-2.2%
 

2024
2023



Equity-settled schemes
39,413
-

Page 42

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

28.
 

Business combinations

On 28 March 2024, the Company acquired a 100% shareholding in MCE (N.I.) Limited.

Acquisition of MCE (N.I.) Limited

Recognised amounts of identifiable assets acquired and liabilities assumed

Book value
Fair value
£
£

Fixed Assets

Tangible
12,029
12,029

12,029
12,029

Current Assets

Debtors
879,621
879,621

Cash at bank and in hand
133,191
133,191

Total Assets
1,024,841
1,024,841

Creditors

Due within one year
(311,038)
(311,038)

Deferred taxation
(2,404)
(2,404)

Total Identifiable net assets
711,399
711,399


Goodwill
1,087,120

Total purchase consideration
1,798,519

Consideration

£


Cash
400,000

Other cash consideration - third party loan support (through Cavendish Consulting Group Limited)
600,000

Debt instruments - loan notes
360,684

Contingent consideration
379,316

Directly attributable costs
58,519

Total purchase consideration
1,798,519

Page 43

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

28.Business combinations (continued)

Cash outflow on acquisition

£


Purchase consideration settled in cash, as above
1,000,000

Directly attributable costs
58,519

1,058,519

Less: Cash and cash equivalents acquired
(133,191)

Net cash outflow on acquisition
925,328

The goodwill arising on acquisition is attributable to the profitability of the acquired business. It will not be deductible for tax purposes.
As MCE (N.I.) Limited was acquired on 28 March 2024, there is no turnover or profit/(loss) recognised in these consolidated financial statements from this acquired subsidiary.


29.


Discontinued operations

On 28 March 2024, the Company sold its 100% shareholding in Crowd Technologies Limited to Cavendish Consulting Group Limited. The profit on disposal of Crowd Technologies Limited is as follows:

£


Cash proceeds (via intercompany account)
287,911

287,911

Net assets disposed of:


Intangible fixed assets
(580,513)

Negative goodwill
46,847

Debtors
(47,140)

Cash
(16,876)

Creditors
399,684

 
 
197,998

Profit on disposal before tax
89,913

£

Page 44

 
CAVENDISH CONSULTING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

30.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group from continuing operations to the fund and amounted to £151,329 (2023: £121,878). Contributions totaling £55,419 (2023: £50,413) were payable to the fund at the balance sheet date and are included in creditors.


31.


Commitments under operating leases

At 31 March 2024 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
Group
£
£


Not later than 1 year
232,595
276,040

Later than 1 year and not later than 5 years
114,487
178,048

347,082
454,088


32.


Related party transactions

The Company has taken advantage of the disclosure exemption under Section 33.1A of FRS 102 not to disclose transactions entered into between two or more 100% owned group companies.
During the year ended 31 March 2024, the Group incurred costs for Director services of £29,400 with Directors of the Group (2023: £83,224). At the year-end, £16,800 was outstanding in creditors (2023: £4,682).
During the year ended 31 March 2023, two Directors acquired £195,248 of Ordinary shares in the Company.
During the year ended 31 March 2024, the Group made sales of £nil (2023: £4,460) to a company controlled by a common Director. No amounts were outstanding in relation to this at 31 March 2024 (2023: £Nil).


33.


Controlling party

Cavendish Consulting Group Limited is considered to be the ultimate controlling party by virtue of its 100% shareholding in the Company.

Page 45