Registered number: 08235569
Social Communications Group Limited
Unaudited
Directors' Report and Financial Statements
For the Period Ended 31 December 2024
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Social Communications Group Limited
Company Information
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Hurst Accountants Limited
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Social Communications Group Limited
Contents
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Statement of Comprehensive Income
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Statement of Changes in Equity
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Notes to the Financial Statements
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Social Communications Group Limited
Directors' Report
For the Period Ended 31 December 2024
The directors present their report and the financial statements for the period ended 31 December 2024.
The company’s principal activity during the period under review was providing public relations consultancy and communications consultancy services.
The company returned to profit in the shortened nine-month accounting period up to the end of December 2024. This is supported by strong liquidity and a healthy cash flow position as we move into 2025.
This strong financial performance allowed the company to invest into a number of important areas, including:
• Brand relaunch – a refreshed Social brand that better reflects our services and sectors, including a new website launched in May.
• Expanded services – reflecting areas of growth and opportunity, we invested in our consultation and design services, bringing new colleagues and skills into the business.
• Great Places to Work – certified as a Great Place to Work with a staff satisfaction score of 96% (against a national average of 54%)
• Taylor Bennett Foundation – a charity providing opportunities for young people from Black and Asian Minority Ethnic backgrounds for careers in communications, we supported two 4-month placements. Both are now in full time positions.
• Channel 4 Content Creatives – a programme providing placements in the creative sector to young people from disadvantaged backgrounds, we supported two 4-month placements which will run through to March 2025.
• Staff bonuses – we paid an agency wide end of year staff bonus to recognise the work delivered by the team.
On top of these various initiatives and investments, the company achieved a £14k pre-tax profit for the shortened accounting period from 1 April to 31 December 2024.
The Future
Despite the ongoing economic challenges, the company remains financially secure and is approaching the future with confidence. The senior management team is exploring options to grow the business with potential organic expansion of our office network and strategic acquisitions. A five-year plan will set out the overall ambitions for growth alongside a continued focus on delivering long-term value to our clients, colleagues, and stakeholders.
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Social Communications Group Limited
Directors' Report (continued)
For the Period Ended 31 December 2024
The directors who served during the period were:
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C R L Phillips (resigned 1 April 2024)
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D Cowan (resigned 1 April 2024)
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In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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J P Quinton-Barber
Director
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Social Communications Group Limited
Statement of Comprehensive Income
For the Period Ended 31 December 2024
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9 months to December 2024
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9 months to December 2024
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9 months to December 2024
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Exceptional administrative expenses
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit/(loss) for the financial period
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There was no other comprehensive income for December 2024 (March 2024:£NIL).
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The notes on pages 7 to 15 form part of these financial statements.
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Social Communications Group Limited
Registered number: 08235569
Balance Sheet
As at 31 December 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Social Communications Group Limited
Registered number: 08235569
Balance Sheet (continued)
As at 31 December 2024
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the period in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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J P Quinton-Barber
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The notes on pages 7 to 15 form part of these financial statements.
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Social Communications Group Limited
Statement of Changes in Equity
For the Period Ended 31 December 2024
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Comprehensive income for the period
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Other comprehensive income for the period
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Total comprehensive income for the period
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Contributions by and distributions to owners
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Shares cancelled during the period
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Total transactions with owners
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Comprehensive income for the period
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Other comprehensive income for the period
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Total comprehensive income for the period
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Total transactions with owners
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The notes on pages 7 to 15 form part of these financial statements.
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Social Communications Group Limited
Notes to the Financial Statements
For the Period Ended 31 December 2024
Social Communications Group Limited is a private company, limited by shares and incorporated in England & Wales. The address of the registered office is 3 Stockport Exchange, Stockport, SK1 3GG.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The directors have reviewed the financial position of the company, which achieved a pre-tax profit of £13,741 for the 9 month period. As at 31 December 2024, the company was in a net asset position of £536,387 (March 2024: £487,612). After assessing cash flow forecasts for the next 12 months, the directors believe the company has adequate resources to continue in operational existence. Therefore, these financial statements are prepared on a going concern basis.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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 Company 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.
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Operating leases: the Company as lessee
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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.
Interest income is recognised in profit or loss using the effective interest method.
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Social Communications Group Limited
Notes to the Financial Statements
For the Period Ended 31 December 2024
2.Accounting policies (continued)
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.
All borrowing costs are recognised in profit or loss in the period in which they are incurred.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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Current and deferred taxation
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The tax expense for the period 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 operates and generates 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; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
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.
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
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Social Communications Group Limited
Notes to the Financial Statements
For the Period Ended 31 December 2024
2.Accounting policies (continued)
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.
Amortisation is provided on the following bases:
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, on a reducing balance basis.
Depreciation is provided on the following basis:
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Fixtures, fittings and equipment
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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.
Investments in subsidiaries are measured at cost less accumulated impairment.
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.
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Cash and cash equivalents
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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.
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Social Communications Group Limited
Notes to the Financial Statements
For the Period Ended 31 December 2024
2.Accounting policies (continued)
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.
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
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The average monthly number of employees, including directors, during the period was 28 (March 2024 - 33).
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During the period, the company had redundancy costs of £Nil (March 2024: £122,108), which are considered outside of the ordinary activities of the company.
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Social Communications Group Limited
Notes to the Financial Statements
For the Period Ended 31 December 2024
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Charge for the period on owned assets
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Social Communications Group Limited
Notes to the Financial Statements
For the Period Ended 31 December 2024
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Charge for the period on owned assets
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Shares in group undertakings and participating interests
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Social Communications Group Limited
Notes to the Financial Statements
For the Period Ended 31 December 2024
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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A bank loan is secured by a fixed & floating charge over the assets of the company.
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Creditors: Amounts falling due after more than one year
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A bank loan is secured by a fixed & floating charge over the assets of the company.
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Social Communications Group Limited
Notes to the Financial Statements
For the Period Ended 31 December 2024
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Social Communications Group Limited
Notes to the Financial Statements
For the Period Ended 31 December 2024
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At beginning of the period
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Charged to the profit or loss
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The deferred taxation balance is made up as follows:
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Accelerated capital allowances
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Tax losses carried forward
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The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £15,578 at the period end 31 December 2024 (March 2024: £46,493). Contributions totalling £5,615 (March 2024: £4,298) were payable to the fund at the balance sheet date.
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Commitments under operating leases
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At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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