Company registration number 05075056 (England and Wales)
GIANT PRECISION LIMITED
ANNUAL REPORT AND GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
GIANT PRECISION LIMITED
COMPANY INFORMATION
Directors
Mr M J Brown
Mr M Henry
Mr M McAllister
Ms S Rabbani
Mr S Pegley
Company number
05075056
Registered office
Fourth Floor
90 High Holborn
London
United Kingdom
WC1V 6LJ
Auditor
Saffery LLP
Trinity
16 John Dalton Street
Manchester
United Kingdom
M2 6HY
GIANT PRECISION LIMITED
CONTENTS
Page
Strategic report
1 - 9
Directors' report
10 - 12
Directors' responsibilities statement
13
Independent auditor's report
14 - 17
Group statement of comprehensive income
18
Group balance sheet
19
Company balance sheet
20
Group statement of changes in equity
21
Company statement of changes in equity
22
Group statement of cash flows
23
Notes to the financial statements
24 - 39
GIANT PRECISION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

The directors present the strategic report for the year ended 31 May 2024.

 

Principal Activity
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

GIANT PRECISION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
Fair Review of the Business

 

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.

GIANT PRECISION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
Corporate social responsibility

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.

GIANT PRECISION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 4 -
Data Protection and Cybersecurity risk

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:

 

 

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 LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 5 -

 

Our aims/targets for the coming year are as follows:

 

 

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:

 

 

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:

 

GIANT PRECISION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 6 -

We further ensure that our employees are satisfied with their jobs. There are several ways to achieve that, including:

 

Giving Back to the Community (Charitable Donations)

 

 

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.

GIANT PRECISION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 7 -

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.

GIANT PRECISION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 8 -

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:

 

 

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:

 

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.

GIANT PRECISION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 9 -

Our dedication to transparency, adherence to regulations, and cooperative efforts encompasses the following actions:

 

 

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

Michael Henry
Director
21 February 2025
GIANT PRECISION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 10 -

The directors present their annual report and financial statements for the year ended 31 May 2024.

Results and dividends
The results for the year are set out on page 01.

Ordinary dividends were £2,750,010 in 2024 (2023: £2,150,000). The directors do not recommend payment of a final dividend for the financial year.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Michael Henry
Mark McAllister
Matthew Brown
Scott Pegley
Selina Rabbani
Financial instruments
The Giant Precision Group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.There is a minimum level of exchange risk for the company as trading is predominately in pound sterling.
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The group's policy is to consult directly with employees, at meetings and through bulletins or reports on matters likely to affect employees' interests.
Employment and employee engagement
Our people and their welfare
As a privately owned and managed business, our success hinges on having the right people, principles, and culture. While we offer a helpline (Employee Assistance Program) for additional support, we find that our "open door" policy, combined with clear and straightforward communication, is the most effective approach. This ensures a transparent and accessible environment, fostering a culture that values openness and direct communication.
Employee voice and communication
The group's policy is to consult and discuss with employees at meetings matters likely to affect employees' interests. Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

The business has invested in and promoted a training session for professional development that has significantly increased employee satisfaction and personal development.
Diversity
The Group continues to attract and employ regardless of ethnic, religious, culture or gender background. This is reflected in many levels of management across the company as well as amongst our teams.
GIANT PRECISION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 11 -
Disability
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Corporate Governance
Giant Precision Group has implemented the Wates Corporate Governance Principles for large private companies, as published by the Financial Reporting Council (FRC) in December 2018, for the period ending on May 31, 2024. The application of these principles serves as a framework for disclosing corporate governance arrangements. The Group's adherence to these principles is evident in the following areas:
Purpose and Leadership
Our Group envisions providing a straightforward compliant service to all clients while continuously developing opportunities for our employees. Through ongoing innovation of services and a deep understanding of clients and the market, we prioritise effective decision-making that considers the interests of our employees and the business relationships with our customers and suppliers.
Business Relationships
The Directors and Operational Board consistently evaluate how the Group maintains positive relationships with all stakeholders, including suppliers, customers, and others. We ensure that our payment terms with suppliers align with fair and customary practices. The Group has cultivated a strong reputation for customer service and actively engages with our partners.
Remuneration
Giant Precision Group has established transparent remuneration structures aligned with the company's purpose, values, and culture. Our policies rigorously consider reputational and behavioral risks to the company arising from inappropriate incentives and excessive rewards. This approach reflects our commitment to responsible corporate governance practices.
Culture
The values of the Groups employees serve as the culture's guiding principles, and are used by the Board, acting as a guiding framework for decision making. Good governance and effective communication are essential to ensuring business decisions and conduct are of a high standard. This assists with the delivery of our purpose, whilst at the same time protecting the company's reputation.
Training
There remains continuous training and development plans to ensure that director awareness of standards, policies and company strategy are understood.
Staff
Working from home continues to be the business and its employees preferred option. Individuals have the flexibility to work from the office where there is a business or personal need. There are regular one-to-ones to set clear goals and regular company-wide management briefings. Our wellness sessions for all employees with an external provider continued throughout the year and are still ongoing.
Opportunity and risk
As noted in our strategic report, our matrix of meetings at various management levels across the business continue to operate and be effective for decision making and evaluating key business risks. All risks are assessed against the strategic objectives in place. Our rigorous international security standard ISO 27001 assures that sensitive data is secure and GDPR-compliant, providing protection from financial and reputational risk. We also adhere to ISO 9001 - international quality standard and ISO 14001 - environmental management. Compliance audit was last completed in October 2023.
GIANT PRECISION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 12 -
Streamlined energy and carbon report (SECR) 2023/2024
The Company is committed to achieving net zero carbon emissions by 2050, in line with the UK Government's overall target. The Company will deliver this by building on our track record of innovation. Underpinned by our model of self-delivery.
Energy consumption
The reporting boundary is the financial year 2023/24 and covers the operations of the Group. Since the closure of our office in April 2023, most of our workforce has been working through home; resulting in less energy directly consumed or controlled by Giant Precision Group. Based on our best estimate, the Group consumed less than 40,000 kWH of energy. Due to low power consumption below the 40,000-kWH threshold, the group qualifies as a low energy user as defined within SECR reporting guidelines and therefore the SECR disclosures are not required.
Disclosure in the strategic report
The company has chosen, in accordance with Section 414 C(ii) of the Companies Act 2006, and as noted in this Directors' report, to include certain matters in its Strategic Report that would otherwise be required to disclose in this Directors' report, specifically in respect of the review of the business, key performance indicators, business relationships, principal business risks and uncertainties and future developments for the company.
Auditor
Saffery LLP have expressed their willingness to remain in office as auditors of the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
To the best knowledge of each director who approved this report, there is no pertinent audit information that the company's auditor is unaware of. Furthermore, each director has individually undertaken the requisite measures expected of them in their capacity to ensure awareness of all relevant audit information and to ascertain that the company auditor is duly informed of such information.
Board composition
This comprises the Group Chief Technical Officer and the Group Chief Financial Officer who are also directors of the company. In addition, both the Group CEO and Group Chief Operating Officer sit on the board as well as there being representation from Directors from associated companies. The Company holds Board meetings throughout the year and is supported by management and various departmental divisions providing timely and detailed information in support of the Board's decision making. The Board operates an agenda of items appropriate to the size and complexity of the business.
On behalf of the board
Michael Henry
Director
21 February 2025
2025-02-25
GIANT PRECISION LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 13 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

GIANT PRECISION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GIANT PRECISION LIMITED
- 14 -
Opinion

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).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and 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.

GIANT PRECISION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GIANT PRECISION LIMITED
- 15 -

Opinions on other matters prescribed by the Companies Act 2006

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

 

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors’ Report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the Directors’ Responsibilities Statement 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.

GIANT PRECISION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GIANT PRECISION LIMITED
- 16 -
Auditor's responsibilities for the audit of the financial statements

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.

GIANT PRECISION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GIANT PRECISION LIMITED
- 17 -

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.

Simon Kite
(Senior Statutory Auditor)
For and on behalf of Saffery LLP
21 February 2025
Statutory Auditor
Trinity
16 John Dalton Street
Manchester
United Kingdom
M2 6HY
GIANT PRECISION LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 18 -
2024
2023
Notes
£
£
Turnover
3
291,647,340
285,622,002
Cost of sales
(283,444,900)
(276,579,881)
Gross profit
8,202,440
9,042,121
Administrative expenses
(6,132,064)
(6,072,796)
Other operating (expenses)/income
(210)
196,026
Exceptional item
4
325,000
(14,866)
Operating profit
6
2,395,166
3,150,485
Interest receivable and similar income
1,118,967
381,209
Interest payable and similar expenses
(87,835)
-
0
Profit before taxation
3,426,298
3,531,694
Tax on profit
10
(794,819)
(654,695)
Profit for the financial year
21
2,631,479
2,876,999
Other comprehensive income
Currency translation gain/(loss) taken to retained earnings
2,504
(208,987)
Total comprehensive income for the year
2,633,983
2,668,012
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
GIANT PRECISION LIMITED
GROUP BALANCE SHEET
AS AT 31 MAY 2024
31 May 2024
- 19 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
349,724
247,242
Tangible assets
13
615,762
440,647
965,486
687,889
Current assets
Debtors
16
12,953,676
7,304,080
Cash at bank and in hand
27,358,668
27,556,688
40,312,344
34,860,768
Creditors: amounts falling due within one year
17
(37,520,851)
(31,713,698)
Net current assets
2,791,493
3,147,070
Total assets less current liabilities
3,756,979
3,834,959
Provisions for liabilities
Deferred tax liability
18
181,132
143,085
(181,132)
(143,085)
Net assets
3,575,847
3,691,874
Capital and reserves
Called up share capital
20
409
409
Capital redemption reserve
21
658,031
658,031
Profit and loss reserves
21
2,917,407
3,033,434
Total equity
3,575,847
3,691,874
The financial statements were approved by the board of directors and authorised for issue on 21 February 2025 and are signed on its behalf by:
21 February 2025
Michael Henry
Director
Company registration number 05075056 (England and Wales)
GIANT PRECISION LIMITED
COMPANY BALANCE SHEET
AS AT 31 MAY 2024
31 May 2024
- 20 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
349,724
247,242
Tangible assets
13
396,084
342,950
Investments
14
1,308
1,308
747,116
591,500
Current assets
Debtors
16
3,779,454
1,191,625
Cash at bank and in hand
8,946,465
6,106,956
12,725,919
7,298,581
Creditors: amounts falling due within one year
17
(10,743,085)
(4,915,967)
Net current assets
1,982,834
2,382,614
Total assets less current liabilities
2,729,950
2,974,114
Provisions for liabilities
Deferred tax liability
18
181,132
143,085
(181,132)
(143,085)
Net assets
2,548,818
2,831,029
Capital and reserves
Called up share capital
20
409
409
Capital redemption reserve
21
658,031
658,031
Profit and loss reserves
21
1,890,378
2,172,589
Total equity
2,548,818
2,831,029

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).

The financial statements were approved by the board of directors and authorised for issue on 21 February 2025 and are signed on its behalf by:
21 February 2025
Michael Henry
Director
Company registration number 05075056 (England and Wales)
GIANT PRECISION LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 21 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 June 2022
409
658,031
2,515,474
3,173,914
Year ended 31 May 2023:
Profit for the year
-
-
2,876,999
2,876,999
Other comprehensive income:
Currency translation differences
-
-
(208,987)
(208,987)
Total comprehensive income
-
-
2,668,012
2,668,012
Dividends
11
-
-
(2,150,052)
(2,150,052)
Balance at 31 May 2023
409
658,031
3,033,434
3,691,874
Year ended 31 May 2024:
Profit for the year
-
-
2,631,479
2,631,479
Other comprehensive income:
Currency translation differences
-
-
2,504
2,504
Total comprehensive income
-
-
2,633,983
2,633,983
Dividends
11
-
-
(2,750,010)
(2,750,010)
Balance at 31 May 2024
409
658,031
2,917,407
3,575,847
GIANT PRECISION LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 22 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 June 2022
409
658,031
1,450,875
2,109,315
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
-
2,871,766
2,871,766
Dividends
11
-
-
(2,150,052)
(2,150,052)
Balance at 31 May 2023
409
658,031
2,172,589
2,831,029
Year ended 31 May 2024:
Profit and total comprehensive income
-
-
2,467,799
2,467,799
Dividends
11
-
-
(2,750,010)
(2,750,010)
Balance at 31 May 2024
409
658,031
1,890,378
2,548,818
GIANT PRECISION LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 23 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
2,765,591
8,943,380
Interest paid
(87,835)
-
0
Income taxes paid
(632,940)
(504,872)
Net cash inflow from operating activities
2,044,816
8,438,508
Investing activities
Purchase of intangible assets
(130,353)
(252,384)
Purchase of tangible fixed assets
(483,944)
(178,986)
Interest received
1,118,967
381,209
Net cash generated from/(used in) investing activities
504,670
(50,161)
Financing activities
Dividends paid to equity shareholders
(2,750,010)
(2,150,052)
Net cash used in financing activities
(2,750,010)
(2,150,052)
Net (decrease)/increase in cash and cash equivalents
(200,524)
6,238,295
Cash and cash equivalents at beginning of year
27,556,688
21,527,380
Effect of foreign exchange rates
2,504
(208,987)
Cash and cash equivalents at end of year
27,358,668
27,556,688
GIANT PRECISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 24 -
1
Accounting policies
Company information

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.

1.1
Accounting convention

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

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Business combinations

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

 

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

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company 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.

1.4
Going concern

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

GIANT PRECISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 25 -
1.5
Turnover

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.

1.6
Intangible fixed assets - goodwill

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

 

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

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
10 years straight line
Amortisation is included in administrative expenses in the profit and loss account.
1.8
Tangible fixed assets

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
3 years straight line
Computers
3 years straight line

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.

Depreciation is included in administrative expenses in the profit and loss account.
GIANT PRECISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 26 -
1.9
Fixed asset investments

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

 

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

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.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

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

1.11
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

1.12
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are 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.

GIANT PRECISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 27 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

Derecognition of financial liabilities

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

1.13
Equity instruments

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

1.14
Taxation

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

GIANT PRECISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 28 -
Current tax

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

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

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.

1.16
Retirement benefits

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

1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.19

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'.

GIANT PRECISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 29 -
2
Judgements and key sources of estimation uncertainty

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

 

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

Critical judgements

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.

Bad Debt Provision

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.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
283,457,740
280,578,569
Europe
6,876,462
88,005
United States of America
326,800
490,558
Jersey
986,338
4,464,870
291,647,340
285,622,002
2024
2023
£
£
Other revenue
Interest income
1,118,967
381,209
4
Exceptional item
2024
2023
£
£
Expenditure
Exceptional (income)/ cost
(325,000)
14,866
Exceptional income refers to insurance income received, related to prior years. The expenses associated with these events have also been treated as exceptional in the period in which they incurred.
GIANT PRECISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 30 -
5
Parental Guarantee

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.

 

6
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Exchange losses
61,516
30,103
Depreciation of owned tangible fixed assets
308,829
161,539
Amortisation of intangible assets
27,871
5,142
Operating lease charges
145,835
114,244
7
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
19,965
18,260
Audit of the financial statements of the company's subsidiaries
45,754
64,635
65,719
82,895
For other services
Taxation compliance services
-
8,095
Accounts preparation
-
9,535
-
17,630
GIANT PRECISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 31 -
8
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Flexible Workers
3,483
3,393
-
-
Administrative
216
168
59
57
Directors
2
2
2
2
Total
3,701
3,563
61
59

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
171,801,197
171,664,289
2,361,244
2,131,455
Social security costs
18,746,720
20,019,833
305,130
263,568
Pension costs
1,785,542
1,610,239
67,268
59,695
192,333,459
193,294,361
2,733,642
2,454,718
9
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
418,593
319,775
Company pension contributions to defined contribution schemes
6,050
5,750
424,643
325,525
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
312,332
213,575
Company pension contributions to defined contribution schemes
6,050
5,750
GIANT PRECISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 32 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
828,208
630,455
Adjustments in respect of prior periods
-
0
(18,205)
Total current tax
828,208
612,250
Deferred tax
Origination and reversal of timing differences
(33,389)
45,811
Adjustment in respect of prior periods
-
0
(3,366)
Total deferred tax
(33,389)
42,445
Total tax charge
794,819
654,695

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:

2024
2023
£
£
Profit before taxation
3,426,298
3,531,694
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
856,575
706,339
Group relief
(130,268)
-
0
Permanent capital allowances in excess of depreciation
(12,583)
(6,209)
Amortisation on assets not qualifying for tax allowances
-
0
1,600
Under/(over) provided in prior years
(23,241)
(18,205)
Deferred tax adjustments in respect of prior years
(2,126)
(3,366)
Dividend income
-
(110,015)
Tax effect of expenses that are not deductible in determining taxable profit
39,887
97,273
Tax effect of income not taxable in determining taxable profit
42,271
(21,849)
Deferred tax
24,304
12,680
Other timing difference
-
0
284
Fixed asset differences
-
(3,837)
Taxation charge
794,819
654,695
GIANT PRECISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 33 -
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
2,750,010
2,150,052
12
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 June 2023
580,000
252,384
832,384
Additions
-
0
130,353
130,353
At 31 May 2024
580,000
382,737
962,737
Amortisation and impairment
At 1 June 2023
580,000
5,142
585,142
Amortisation charged for the year
-
0
27,871
27,871
At 31 May 2024
580,000
33,013
613,013
Carrying amount
At 31 May 2024
-
0
349,724
349,724
At 31 May 2023
-
0
247,242
247,242
13
Tangible fixed assets
Group
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 June 2023
256,491
1,744,313
2,000,804
Additions
34,618
449,326
483,944
At 31 May 2024
291,109
2,193,639
2,484,748
Depreciation and impairment
At 1 June 2023
187,793
1,372,364
1,560,157
Depreciation charged in the year
28,255
280,574
308,829
At 31 May 2024
216,048
1,652,938
1,868,986
Carrying amount
At 31 May 2024
75,061
540,701
615,762
At 31 May 2023
68,698
371,949
440,647
GIANT PRECISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
13
Tangible fixed assets
(Continued)
- 34 -
Company
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 June 2023
146,749
1,614,456
1,761,205
Additions
-
0
276,491
276,491
At 31 May 2024
146,749
1,890,947
2,037,696
Depreciation and impairment
At 1 June 2023
146,749
1,271,506
1,418,255
Depreciation charged in the year
-
0
223,357
223,357
At 31 May 2024
146,749
1,494,863
1,641,612
Carrying amount
At 31 May 2024
-
0
396,084
396,084
At 31 May 2023
-
0
342,950
342,950
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
1,473
1,308
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 June 2023 and 31 May 2024
1,308
Additions
165
Carrying amount
At 31 May 2024
1,473
At 31 May 2023
1,308
15
Subsidiaries

Details of the company's subsidiaries at 31 May 2024 are as follows:

GIANT PRECISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
15
Subsidiaries
(Continued)
- 35 -
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Giant Employment Limited
1
Third party payroll services
100.00
Giant Precision Resourcing Limited
1
Third party payroll services
100.00
Giant Business Connect Limited
1
Provision of contractor services
100.00
Giant Precision Contracts Limited
1
Third party payroll services
100.00
Giant Precision Services Limited
1
Third party payroll services
100.00
Giant Precision Planning Limited
1
Third party payroll services
100.00
Giant Precision Workforce Limited
1
Third party payroll services
100.00
Giant Global Payroll Limited
1
Third party payroll services
Ordinary
100.00
Giant Precision (Pakistan) Limited
2
Back office services
Ordinary
100.00
Giant Global Payroll USA INC
1
Third party payroll services
-
Giant Global Payroll Portugal
1
Third party payroll services
-
Giant Global Payroll Poland
1
Third party payroll services
-
Giant Global Ireland Limited
1
Third party payroll services
-
Giant Global Payroll NL B.V.
1
Third party payroll services
-
Giant Global Payroll ApS
1
Third party payroll services
-
1.
Fourth Floor, 90 High Holborn, London, WC1V 6LJ
2.
4th Floor, Askari Corporate Tower, 75 / 76 D-1, Main Boulevard, Block D 1, Gulberg III, Lahore
3
The undertakings in Giant Global Payroll Ireland Limited, Giant Global USA INC, GGP Portugal, Giant Global Poland Limited, Giant Global Payroll ApS and Giant Global Payroll NL B.V. are indirectly held by group, as these are subsidaries of Giant Global Payroll Limited.
GIANT PRECISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 36 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
7,966,639
5,606,477
24,326
189,351
Corporation tax recoverable
758,113
-
0
702,491
-
0
Amounts due from related parties
56,769
-
2,444,748
395,004
Other debtors
3,331,230
902,990
13,218
72,585
Prepayments and accrued income
765,493
747,422
594,671
534,685
12,878,244
7,256,889
3,779,454
1,191,625
Deferred tax asset (note 18)
75,432
47,191
-
0
-
0
12,953,676
7,304,080
3,779,454
1,191,625
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
3,425,471
548,268
365,897
222,962
Amounts due to related parties
6,500,000
-
0
6,587,148
418,958
Corporation tax payable
336,710
184,637
-
0
60,019
Other taxation and social security
14,108,325
15,477,672
672,225
611,397
Other creditors
7,263,058
9,854,881
2,986,263
3,403,423
Accruals and deferred income
5,887,287
5,648,240
131,552
199,208
37,520,851
31,713,698
10,743,085
4,915,967
The terms relating to amounts due to related parties are as follows: £4,000,000 is unsecured, with interest accruing at Bank of England base rate +0.25% per annum and is repayable within 12 month of written notice from the related party. £2,500,000 is unsecured, repayable within 12 months. All other balances are unsecured, interest free and repayable on demand.
18
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
183,953
145,750
3,759
-
Short term timing differences
(2,821)
(2,665)
71,673
47,191
181,132
143,085
75,432
47,191
GIANT PRECISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
18
Deferred taxation
(Continued)
- 37 -
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
183,953
145,750
-
-
Short term timing differences
(2,821)
(2,665)
-
-
181,132
143,085
-
-
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 June 2023
94,551
143,085
Charge to profit or loss
9,806
38,047
Liability at 31 May 2024
104,357
181,132

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.

19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,785,548
1,610,239

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).

20
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
40,891
40,891
409
409
21
Reserves
Capital redemption reserve

This reserve records the nominal value of shares repurchased by the company

GIANT PRECISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
21
Reserves
(Continued)
- 38 -
Profit and loss reserves

This represents cumulative profits or losses net of distributions to owners and other adjustments.

22
Related party transactions
Transactions with related parties

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:

Sales
Purchases
2024
2023
2024
2023
£
£
£
£
Group
Other related parties
2,701,182
2,981,466
2,034,316
338,187
Company
Other related parties
2,533,258
2,770,115
475,074
308,813

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Other related parties
6,501,224
133,019
Company
Other related parties
6,500,000
-
Of the above balances £6,500,000 (2023: Nil) is included in amounts due from related parties.£4,000,000 is unsecured, with interest accruing at Bank of England base rate +0.25% per annum and is repayable within 12 month of written notice from the company. During the year interest of £87,835 was paid in relation to these balances. £2,500,000 is unsecured, repayable within 12 months. All other balances are unsecured, interest free and repayable on demand.

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Other related parties
2,563,437
-
GIANT PRECISION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 39 -
23
Directors' transactions

Dividends totaling £2,750,010 (2023 - £2,150,052) were paid in the year in respect of shares held by the company's directors.

24
Controlling party

The ultimate controlling party is Matthew Brown, a director of the company and majority shareholder of Giant Precision Limited.

25
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
2,631,479
2,876,999
Adjustments for:
Taxation charged
794,819
654,695
Finance costs
87,835
-
0
Investment income
(1,118,967)
(381,209)
Amortisation and impairment of intangible assets
27,871
5,142
Depreciation and impairment of tangible fixed assets
308,829
161,539
Movements in working capital:
Increase in debtors
(5,621,355)
(1,543,441)
Increase in creditors
5,655,080
7,169,655
Cash generated from operations
2,765,591
8,943,380
26
Analysis of changes in net funds - group
1 June 2023
Cash flows
Exchange rate movements
31 May 2024
£
£
£
£
Cash at bank and in hand
27,556,688
(200,524)
2,504
27,358,668
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