The directors present the strategic report for the year ended 31 May 2024.
The principal activity of the company and group during the financial year remained focused on delivering compliance-driven global workforce solutions. This is achieved through our cloud-based, end-to-end proprietary software and managed services tailored for our customers. The directors are committed to continuing the promotion and expansion of this core activity.
Financial performance
Gross profit was £8.2m (2023 - £9.0m) and profit before taxation was £3.4m (2023 - £3.5m).
The minor reduction in profit before taxation from the previous year reflects Giant Precision Group's strategy to invest in operations, IT and sales team for future growth.
We continue to focus on quality led technology, processes, and support services to fulfil our strategy across the Giant Precision Group of companies of providing compliance driven global workforce solutions via our cloud-based, end to end proprietary software and managed services.
The Group’s key financial and other performance indicators during the year are as follows:
2024 2023
£ £
Turnover 291,647,340 285,622,002
Gross profit 8,202,440 9,042,121
Profit before tax 3,426,298 3,531,694
Average number of workers on assignment 3,483 3,393
The company’s principal activity during the financial year remained providing comprehensive compliance-focused global workforce solutions through our cloud-based, end-to-end proprietary software and managed services for our customers. The directors plan to continue promoting this core activity. Through ongoing service innovation and deep understanding of clients and market needs, Giant Precision Group continues to deliver a straightforward, compliant service to all clients.
Our strict adherence to the international security standard ISO 27001 ensures that sensitive data is secure and GDPR-compliant, safeguarding against financial and reputational risks. We also maintain ISO 9001 for international quality standards and ISO 14001 for environmental management. Our most recent compliance audit was completed in October 2023.
Investment in our business
Our investment planning and decision-making process takes into account both our clients' needs and our solutions. We maintain a strong focus on quality processes and staff training to excellent exceptional customer service.
We continue to invest in our business to keep pace with evolving tax and employment legislation, meet client requirements, and continuously enhance our information technology capabilities.
Investment in our communities
Our company remains committed to supporting our communities where we can either via our key customers or suppliers or from our contacts within the local business community.
Vision of the future
Our strategy across the Giant Precision Group is to deliver comprehensive compliance-focused global workforce solutions through our cloud-based, end-to-end proprietary software and managed services.
The directors are firm in their conviction that the group is responsible for maintaining exemplary customer service, driving continuous innovation, and upholding core compliance values. These commitments are crucial for sustaining and boosting revenue growth in the coming year. To achieve organic expansion, the directors are actively exploring both existing and new markets.
Giant Precision group aims to increase its market share by strategically planning global operational expansion. Recently, Giant Precision Group has launched a new UK based subsidiary, Giant Global Payroll Limited, which is set to provide worldwide payroll services. This initiative is expected to enhance Giant Precision's global recognition and create potential new revenue streams for the future.
Going concern
Management’s attention is given to the cash flow forecast on a daily basis. The Board is satisfied that the cash flow forecasts for the period of 12 months from the date of signing the financial statements show that the group can meet its liabilities as they fall due.
The Company holds ISO 14001 certification demonstrating its commitment to reducing its impact on the environment and providing assurance to management and employees as well as external stakeholders that its environmental impact is being measured and improved.
Charitable Donations
The Company has continued with "giant giving" - its charitable initiative. The primary chosen charity is the Great Ormond Street Hospital (GOSH), who the Company has entered a corporate partnership with and is committed to raising both donations and awareness of the hospital.
Principal risks and uncertainties
Our regular meetings at various management levels across the business continue to operate an effective corporate governance system to identify and evaluate the key business risks against the strategic objectives in place.
Our market sectors, competitors, partnerships, and the impact of political decisions may influence our trading activity and are therefore are our primary sources for risk assessments.
Risk management
Price risk
Within a highly competitive industry, price risk remains a focus. As a result, the company is continually engaged in understanding the competitive landscape by studying existing market offerings and assessing various pricing strategies.
Liquidity Risk
The company oversees all facets of its cash needs to guarantee ample liquid resources for meeting operational requirements. During periods of elevated interest rates and robust cash reserves, the business has effectively utilised deposit rates to generate a substantial amount of interest income throughout the financial year.
Credit risk
The group proactively manages its credit risks to ensure the stability of its financial position and protect against potential disruptions to cash flows. The company diligently assesses the creditworthiness of both new and existing customers by evaluating their credit scores, payment history, and any other relevant external factors.
Furthermore, the risk of delayed or non-payments persists due to unfavourable economic conditions or challenges in industry. As a result, appropriate credit limits are established at the outset of any new customer relationship, and credits provided outside of standard terms are only extended when a relevant credit insurance plan is in place.
Cash flow risk
The group finances its operations through a mixture of retained profits and cash balances. It operates a treasury function appropriate for the sale and complexity of its business, which is responsible for managing the regulatory, liquidity and credit risks. Cash flow forecasting serves as one of the important functions performed by the finance team where weekly, monthly, and quarterly forecasts are regularly monitored, and necessary measures are undertaken.
Foreign currency risk
Currently the exchange risk for the company is relatively low as the company predominately trades in pounds sterling.
We have implemented extensive security controls within our information infrastructure and conduct comprehensive training to familiarise our employees with the latest GDPR requirements, specific risks, scenarios, and the preventive/corrective actions to be undertaken. Keeping up with strong, scalable functional frameworks is significant in an exceptionally transactional business. The group takes the issue of network protection very seriously due to which we have undertaken extensive penetration testing of frameworks, fortified information back-up processes and invested in new hardware and firewall infrastructures.
Inflation risk
In the present economic environment, the group faces the risk of inflation. Ongoing vigilance is maintained regarding the uncertainties stemming from the deceleration in the UK economy. To mitigate the risk associated with inflation, the group persists in diversifying both its client base and income sources.
Environmental, Social, and Governance (ESG) Report
Environmental, Social, and Governance (ESG) factors are integral to our company’s long-term success and sustainability. In the Giant Precision Group, we are committed to embedding ESG principles into our core operations, strategy, and culture. This report outlines our ESG initiatives, performance, and future commitments, showing our dedication to sustainable and ethical business practices.
Environmental
Carbon Neutral Plan
The Giant Precision Group aims to close or reduce its office space. Giant Precision Group's workforce is mostly homeworkers. We project that carbon emissions will increase in the short term due to the addition of additional data sources to define our baseline better. The projected business growth over the next three years will increase. However, decrease over the following/subsequent 23 years to 0 kgCO2e by 2050 as Giant Precision Group works towards achieving UK Net Zero. This is a reduction of 100%.
Moving forward, Giant Precision Group plans to do the following for the coming years:
Encourage business travel reduction and ensure business travel only takes place when deemed essential and via Public Transport only.
Further plans include energy efficiency measures, renewable energy sources, and carbon offsetting initiatives.
Continue providing training to Giant Precision Group employees to raise awareness around sustainability.
It is our intent to define measurable targets of energy consumptions risks by Financial Year 25/26.
Climate Change
We commit to educating our staff regarding climate change and encourage our staff to come up with initiatives through which we can make a positive impact on society at large.
Social
Disabled Employees
Giant Precision Group is proudly recognised as a disability confident employer, committed to creating an inclusive workplace and supporting employees with disabilities. We consider disability inclusion as a key priority at Giant Precision Group, and we regularly review our hiring processes and employment policies to ensure that we have a level playing field for disabled colleagues. In the event that any member of staff becomes disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. We prioritise proper training for managers to ensure that they understand the distinct needs of disabled people and to ensure that any bias is removed.
Diversity, Equity, Inclusion and Belongings
Giant Precision Group fosters a culture of inclusivity through Diversity, Equity, Inclusion, and Belonging (DEIB) initiatives, ensuring all voices are heard and respected. Our company is deeply committed to promoting Diversity, Equity, and Inclusion and Belonging (DEIB) within its workforce. This commitment is reflected in our core values and is integral to our culture. We have implemented a range of practices and initiatives to ensure that our workplace is diverse, equitable, and inclusive for all employees.
Giant Precision Group is proudly recognised as a Disability Confident Employer, committed to creating an inclusive workplace and supporting employees with disabilities.
Giant Precision Group is a registered partner of the Armed Forces Covenant – supporting the employment of members of the Armed Forces Community and their families, and the employment of Veterans.
Giant Precision Group supports work experience placements with local secondary schools (e.g. students carrying out work experience placements with us).
Our recruitment processes are designed to minimise bias and ensure equal opportunities for all applicants. The job descriptions are inclusive and free from any biased language.
We are providing bi-annual refresher training sessions to all employees that include the topic of DEIB to raise awareness and foster a culture of inclusion and a sense of belonging.
Our aims/targets for the coming year are as follows:
To further enhance our DEIB efforts, we aim to develop our data collection and analysis process. We will collect data to assess diversity within our workplace and then monitor progress over time. We will be setting targets to improve.
Our future plan is to also consider introducing Employee Resource Groups (ERGs). ERGs can help with fostering a diverse, inclusive, and supportive workplace environment. Providing employees with a platform to connect, share experiences, and collaborate on initiatives, we believe that it will further promote diversity, equity, inclusion and belonging.
Health & Safety and Employee Wellbeing Program
The Giant Precision Group is dedicated to maintaining a safe and healthy work environment through comprehensive health and safety measures and ongoing wellness programs. Some highlights from Giant:
Assistance Helpline: Giant precision Group provides access to a dedicated helpline staffed by qualified professionals offering support for various issues such as anxiety and financial worries.
Development Dozen webinars: Webinars that cover topics around, professional development, physical health, personal development, people management etc.
Mental Health and Stress: Giant Precision Group Implemented a comprehensive policy to promote mental well-being and manage stress. Mental Health First Aiders and support for 'The Mental Health at Work Commitment standards' are provided.
Employee Assistance Program: Giant Precision Group offers the EAP as part of its Mental Health Awareness and Support initiative. The EAP, provided by Care First, offers 24-hour advice, information, and counselling services.
Bi-annual Refresher training: Giant Precision Group provides bi-annual refresher training to all its HQ staff to raise awareness about the environment, climate change, information security, modern slavery laws, anti-bribery act, fraud, corporate criminal offence, artificial intelligence and its usage, and DEI&B practices.
Employee Consultation/Involvement
At Giant Precision Group, we want to become better in involving our employees to not only keep them informed but engage them for their input on matters affecting them as employees, and on the various factors affecting the performance of the company. This is achieved through formal and informal meetings, the company intranet and the annual process. We are certified with ISO9001 Quality Management operational procedures, and we put it into practice through:
ongoing training which is provided with operational documentation;
each department is measured on delivering operational procedures and meeting targets, which are regularly reviewed by management;
staff are assessed on achieving departmental targets and performance is constantly reviewed e.g. one-on-one / team meetings, performance appraisals etc; and
complaints are analysed so that corrective and preventative actions can be identified and implemented (to avoid reoccurrence).
We further ensure that our employees are satisfied with their jobs. There are several ways to achieve that, including:
understanding and communicating the impact of each job role;
accurately describing the job role on the respective job description;
conducting bi-annual Giant Precision Group appraise conversations that include two-way feedback;
having a clear career path for each job role;
encouraging both professional and personal learning and development;
encouraging consistency in management practices; and
by conducting surveys.
Giving Back to the Community (Charitable Donations)
Giant Giving: Giant Precision Group has continued with “Giant Giving” as its charitable initiative. The primary chosen charity is the Great Ormond Street Hospital (GOSH) with which Giant has entered into a corporate partnership and is committed to raising both donations and awareness of the hospital. As a corporate partner, we're committed to raising a minimum of £50,000 over a period from 1st June 2023 – 31st May 2025. This is achieved by Giant Precision Group and its employees actively contributing to the fundraising efforts and taking part in activities, such as charity walks or hikes, including matching donations from the company.
Accessible learning with Giant: In our Pakistan office, we are working towards an educative initiative for underprivileged children for their primary education.
Giant Precision Group’s Culture
Attracting right talent and keeping existing talent relies on some basic foundations, one of which is ‘culture’. Culture emerges based on values and behaviours that our people adopt and embody. At Giant Precision Group, we believe that the success of our strategy is highly connected with the set of values and behaviours of the people in our entire group. However, culture ‘consistency’ becomes a key. Therefore, our culture message needs to be integrated into any communication, including as part of our recruitment processes and employee lifecycle communication, job descriptions, Giant Precision Group ‘appraise’ and other regular meetings.
We have identified key values and behaviours that we believe would be needed in order to establish a healthy culture. These fall broadly under 3 groups which allow us to deliver a more focused message across all levels of our business.
Straightforward Communication |
| Being Passionate to Improve |
| Cultivating Trusting Teams |
We believe that honest and open conversations, supported by effective listening and emotional intelligence, will foster caring and courageous communication, resulting in deeper insights and better connections. |
| In order to evolve and improve, we need to be agile, celebrate 'black box thinking’ where we learn from our mistakes and be innovative with our solutions. This means having a growth mindset and getting comfortable with being stretched to reach new highs. |
| Efficient collaboration & team work flourish in trusting teams that not only prioritise equality, diversity and inclusion but create a sense of belonging where every team member feels respected and empowered to contribute. |
Governance
Giant Precision Group has adopted the UK Corporate Governance Code and Wates Principles – It’s a commitment to uphold the principles of transparency, accountability, and effective board leadership as outlined in the UK Corporate Governance Code.
Anti-corruption Measures and Ethical Business Practices
Giant Precision Group believes and hence adheres to high ethical standards in all business operations, promoting transparency, integrity, and trust in our practices. Giant Precision Group implements robust measures to prevent corruption, including strict adherence to anti-bribery and anti-corruption policies.
Compliance and Legal Issue
Giant Precision Group is committed to upholding regulatory requirements and legal standards, ensuring adherence to all applicable laws and regulations.
Data Privacy and Security
Giant Precision Group implements security and IT policies to protect the privacy and security of data, ensuring compliance with data protection laws and safeguarding sensitive information.
ESG Focus Group
Giant Precision Group is committed to forming a dedicated group to drive Environmental, Social, and Governance (ESG) initiatives, working towards integrating sustainable practices into our operations.
SECTION 172(1) STATEMENT
This section of the Strategic Report outlines how the directors have considered the matters stated in Section 172(1) of the Companies Act 2006 ('s172') while fulfilling their duty to promote the success of the company for the benefit of its shareholders. The Board acknowledges its obligations to enhance the firm's performance for the benefit of its members and all other stakeholders, who play a crucial role in the ongoing success of the company. The board ensures fair and equitable treatment of all stakeholders to ensure sustained business success. Regarding the matters outlined in Section 172 of the Act, the directors believe they have acted in good faith to advance the group's success on behalf of the stakeholders. We consider our employees, clients, suppliers, and regulatory bodies as the main stakeholders and the engagements we have with them are outlined below:
Employee interest
In discharging our duties as directors of the Giant Precision Group, we acknowledge and consider the importance of our employees as an integral factor in the long-term growth and success of the company. Hence, we are devoted to making sure that the company succeeds in the long run, benefiting everyone, including our employees.
When making decisions that may affect employees, we focus on their working conditions, diversity and inclusion, and growth opportunities. We understand that a motivated and skilled workforce is key to our company's success.
We are also committed to engaging with employees through various channels, including internal newsletters, notice boards, the intranet, and surveys. These communication methods will ensure that their perspectives and concerns are considered when making strategic decisions that may affect them. Additionally, our commitment extends to corporate training programs, health and safety initiatives, and bi-annual appraisals. These measures aim to enhance employee well-being, skill development, and overall job satisfaction.
This collaborative approach reflects our commitment to maintaining a positive and inclusive working environment.
Clients
As directors of Giant Precision Group, we acknowledge that our clients are our most valuable assets, standing as one of the prime pillars towards our growth and the primary driving force behind our ability to innovate.
We are deeply committed to prioritising the interests and satisfaction of our clients in every decision and action we undertake. Our commitment to client interests encompasses the following:
Competitive Product Offerings: We strive to provide competitive and innovative products/services that meet or exceed the expectations of our clients.
Customer Relations: We recognise the importance of maintaining strong relationships with our clients. We do this by maintaining open lines of communication, addressing concerns promptly, and actively seeking feedback to enhance our services.
Access to Service and Support Staff: We are committed to providing accessible and responsive service and support staff, ensuring that our clients have a reliable and efficient channel for assistance and guidance.
Information and Transparency: We are committed to maintaining a high level of transparency in our interactions with clients, providing accurate and timely information where necessary.
Client feedback is also essential to our commitment towards continuous improvement. We actively seek and value the insights of our clients.
By upholding these principles, we aim to align our services with client expectations, fostering a climate of trust and mutual success.
Suppliers
We place a high value on maintaining positive relations with our suppliers, recognising their indispensable role in our service delivery.
Our commitment to these relationships is reflected in the following principles:
Fair Payment Practices: We are committed to ensuring that our suppliers are paid fairly and promptly for their goods and services, following the best payment practices as prevailing in the industry.
Transparent Communication: We prioritise clear and open communication with our suppliers to foster collaboration and understanding of expectations.
Fair Payment Terms: We promise to maintain fair payment terms in line with industry standards, aiming for mutually beneficial and positive relationships with our suppliers.
By following these principles, our goal is to build a mutually beneficial partnership that supports the success of both parties.
Regulators
As directors of Giant Precision, we are dedicated to maintaining positive connections with regulators, acknowledging their vital role in maintaining necessary oversight so that our business runs in a compliant manner. Our efforts extend to our commitment to FCSA accreditation, further exemplifying our commitment to industry best practices.
Our dedication to transparency, adherence to regulations, and cooperative efforts encompasses the following actions:
Meetings, Calls, and Correspondence: We ensure to actively engage in open and constructive communication through meetings, calls, and correspondence with regulators. This commitment ensures a continuous exchange of information and provides them with a clear understanding of our business activities.
Site Visits: We welcome and facilitate site visits from regulatory authorities. This commitment allows regulators to gain firsthand insights into our operations, promoting transparency and providing an opportunity for building mutual understanding.
Responding to Consultations and Calls for Evidence: We participate in consultations and respond to calls for evidence initiated by regulatory bodies.
By following FCSA accreditation standards, we show regulators our commitment to working together, being transparent, and actively participating and following industry benchmarks. This thorough approach builds trust and understanding, making Giant Precision Group a strong supporter of responsible, compliant, and ethical business practices in the eyes of regulators and the wider industry community.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 May 2024.
We have audited the financial statements of Giant Precision Limited (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended 31 May 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cashflows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and the parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group 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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
the information given in the 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 Strategic Report and the Directors’ Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors’ Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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.
As explained more fully in the Directors’ Responsibilities Statement set out on page 15, 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 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.
Our objectives are to obtain reasonable assurance about whether the group and parent company financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the group and parent company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent company by discussions with directors and by updating our understanding of the sector in which the group and parent company operate.
Laws and regulations of direct significance in the context of the group and parent company include The Companies Act 2006, and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of group and parent company financial statement disclosures. We reviewed the parent company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
This report is made solely to the parent company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,467,800 (2023 - £2,871,766 profit).
Giant Precision Limited (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is Fourth Floor, 90 High Holborn, London, England, WC1V 6LJ.
The group consists of Giant Precision Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Giant Precision Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 May 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Revenue is recognised to the extent that the group obtains the right to consideration in exchange for its performance. Revenue is measured at fair value of the consideration received excluding discounts, rebates, VAT and other sales taxes.
Revenue from a contract to provide employment services is recognised in the period in which the services are provided and once the associated costs can be reliably measured.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably
committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Exceptional Item
Contained within exceptional items are certain one-off charges or credits that have a material impact on the company's financial results as 'exceptional items'.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Holiday Pay
The group operates both accrued and rolled up holiday pay schemes. All workers are given monthly reminders to take their holiday.
A provision is made for bad and doubtful debts, where management believes there is an issue in the recoverability of trade and other debtors. In the current year, management believe all balances to be recoverable and hence no provision is included within the financial statements.
Giant Precision Limited has provided a guarantee under Section 479C of the Companies Act 2006 for Giant Global Payroll Limited (14434623), Giant Precision Planning Limited (12669159), Giant Precision Workforce Limited (12614216), and Giant Precision Services Limited (10315415) for the financial year ended 31 May 2024. This guarantee covers all outstanding liabilities of Giant Global Payroll Limited, Giant Precision Planning Limited, Giant Precision Workforce Limited, and Giant Precision Services Limited as of 31 May 2024 until they are satisfied in full. Giant Global Payroll Limited, Giant Precision Planning Limited, Giant Precision Workforce Limited, and Giant Precision Services Limited are exempt from the requirements of the Companies Act 2006 relating to the audit of individual accounts by virtue of Section 479C. Giant Global Payroll Limited, Giant Precision Planning Limited, Giant Precision Workforce Limited, and Giant Precision Services Limited are included in the consolidated accounts of Giant Precision Limited for the year ended 31 May 2024.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 31 May 2024 are as follows:
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period. The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The outstanding amount included in creditors for pension contributions as at 31 May 2024 amounted to £510,089 (2023: £499,807).
This reserve records the nominal value of shares repurchased by the company
This represents cumulative profits or losses net of distributions to owners and other adjustments.
The company has taken advantage of the exemption provided by section 33 of FRS 102 'Related Party Disclosures' and has not disclosed transactions entered into between two or more members of the group, provided that any subsidiary undertaking which is party to the transactions is wholly owned by a member of the group.
During the year the group entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
The following amounts were outstanding at the reporting end date:
Dividends totaling £2,750,010 (2023 - £2,150,052) were paid in the year in respect of shares held by the company's directors.
The ultimate controlling party is Matthew Brown, a director of the company and majority shareholder of Giant Precision Limited.