Company registration number 01703449 (England and Wales)
SCHLESINGER GROUP UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
SCHLESINGER GROUP UK LIMITED
COMPANY INFORMATION
Directors
H Schlesinger
S Schlesinger
A Fine
Company number
01703449
Registered office
9 Kingsway
London
WC2B 6XF
Auditor
Sanders
1 Bickenhall Mansions
Bickenhall Street
London
W1U 6BP
SCHLESINGER GROUP UK LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Group statement of comprehensive income
8
Group statement of financial position
9
Company statement of financial position
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 32
SCHLESINGER GROUP UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present the strategic report for the year ended 31 December 2022.

Review of the business

The company is a market research company and its principal activity for the parent company and subsidiaries is data collection for qualitative and quantitative research services in Germany, France, Spain and the United Kingdom.

 

The main business conducted is the recruitment of participants for market research, use of our facilities in Europe to perform data collection and ancillary services such as moderation and translation.

Principal risks and uncertainties

The process of risk acceptance and risk management is addressed through a framework of policies, procedures and internal controls. All policies are subject to senior management approval and ongoing review by directors, management and shareholders. Compliance with regulation, legal and ethical standards is a high priority for the Group and the Group finance department take on an important oversight role in this regard.

The group finance departments are responsible for satisfying themselves that a proper internal control framework exists to manage financial risks and that controls operate effectively. The Group has developed a framework for identifying the risks that each business sector, and the Group as a whole, is exposed to and their impact on economic capital.

This process is risk based and uses Individual Capital Assessment principles to manage our capital requirements and to ensure we have the financial strength and capital adequacy to support the growth of the business and to meet the requirements of shareholders, regulators and stakeholders both internal and external.

The principal risks in our data collection business arise from inaccurate pricing.

Analysis of Development and Performance including Key Performance Indicators

The results of the Group for the year, as set out in our statutory accounts, show turnover of €24m (2021: €23m) and a loss on ordinary activities before tax of €3.5m (2021: €2.5m).

During 2020 the company shifted its focus more to digital solutions which continued to show strong growth during 2021 (+58% vs 2020). In 2021 Digital solutions contributed 84% of revenue compared to 67% in 2020. In 2022 the proportion of Digital solutions was 80% of total revenue as we saw more of a return to our In-Person business post the COVID-19 pandemic. However, there was some negative impact mainly across mainland Europe on the Market Research business which continued to be impacted by the return from the COVID-19 pandemic and ongoing economic factors. This led to the closure or reduction of facilities. There is currently an increased focus in sales, business development and operations, which resulted in improves in the Gross Profit Margin’s (from 56% to 58%), and the Group have made further key hires to accelerate this. The Group has made stronger efforts and will continue to improve on our controls and disciplines around pricing to make sure customer satisfaction continues to grow. Our European offices are now taking a particular focus in the expansion of our online quantitative offering which will strengthen our relationships with clients.

On behalf of the board

A Fine
Director
17 March 2025
SCHLESINGER GROUP UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company and group was that of providing specialist market research and specialist venues for market research.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

H Schlesinger
S Schlesinger
M Sullivan
(Resigned 17 March 2023)
A Fine
(Appointed 17 March 2023)
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Post reporting date events

The directors refer to Note 25 Events after the Reporting date in respect of post reporing date events.

Future developments

The directors refer to the Going Concern Section of this Directors' Report in respect of the future developments of the business.

Statement of directors' responsibilities

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.

SCHLESINGER GROUP UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Going Concern

The Group continued to see some recovery at the beginning of 2022 from the COVID-19 pandemic which severely impacted the business in 2020. However, the Group remained loss making due to investments across the team to prepare for expected high growth performance in 2022, which did not materialize. At the end of 2022 the directors decided to restructure its European business to reduce its cost base due to ongoing pressure on sales resulting from the shift in the landscape of the Market Research Business post COVID-19 and from the ongoing state of the general economy.

In 2023, the Group continued to see an adverse impact on turnover, due to these factors and posted a loss for the year – albeit a smaller one than that incurred in 2022.

In 2024 the Group continued to see the trend of challenging market conditions which led to a further cutting of costs back to the level prior to the investments in 2021 mentioned above. This includes reviewing the ongoing In-Person business which continues to show signs of slowdown. The Market Research Business has shifted, since Covid, particularly reflecting the use of online tools and opportunities which has resulted in the significant reduction of “in-Person Business”.

The directors have given due consideration to the Group's historical and current trading, together with the forward-looking projections to 2025/2026 and note that the Group is dependent upon the continued support of its ultimate parent company Schlesinger Group Holdings, LLC and related subsidiaries. As at 31 December 2022 the Group owed the ultimate parent company circa. €5m and since that date up to 31 December 2024 further loans have been received totalling €0.5m. The directors have received a letter of support from the ultimate parent company which states they will not request repayment of the monies owed until the Group has adequate funds. In addition, the directors are satisfied that there is both the ability and intention to continue to provide this support, and any additional support should it be required. The ultimate parent company is currently in negotiations with its lender to extend the repayment date of term loans totalling $174m in July 2025. The ultimate parent company directors feel confident that an extension or re-finance will be achieved based on previous discussions.

As such, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements. The financial statements do not include the adjustments that would result if the Group and Company were unable to continue as a going concern.

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
A Fine
Director
17 March 2025
SCHLESINGER GROUP UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SCHLESINGER GROUP UK LIMITED
- 4 -

Qualification for limitation of scope

We have audited the financial statements of Schlesinger Group UK Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

Basis for qualified opinion

The parent company has fixed asset investments totaling €4.5m. These are represented by the three trading subsidiaries in France, Germany, and Spain. These companies incurred losses in 2022 and management accounts covering the period since that date up to 31 December 2024, show losses have continued. The directors have prepared forecasts that indicate these subsidiaries will return to profit in 2025. Forecasts are inherently uncertain and we are unable to determine whether the companies will be consistently profitable and hence whether any adjustment is required to the parent company’s carrying value of the fixed asset investments.

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

 

 

Material uncertainty related to going concern

 

We draw attention to the financial statements, which shows that the group incurred a net loss of €3.5m during the year ended 31 December 2022 and that, as at that date, the group had net current liabilities of €6.3m and total liabilities exceeded its total assets by €5.1m. As stated in note 1.3, the group continued to trade at a loss after the balance sheet date. As a result, the group relies on the continued support of the ultimate parent company which is currently in negotiations with its lender to extend the repayment date of term loans. As the parent company support is required, the on-going negotiations with the lender indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

 

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

SCHLESINGER GROUP UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCHLESINGER GROUP UK LIMITED
- 5 -

Other information

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

 

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the carrying value, as at 31 December 2022, of the fixed asset investments of the parent company of €4.5m.

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matters described in the basis for qualified opinion section of our report in our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

Except for the matters described in the basis for qualified opinion section of our report, 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.

 

Arising solely from the limitation on the scope of our work relating to group goodwill and parent company fixed asset investments, referred to above:

• we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and

• we were unable to determine whether adequate accounting records have been kept

 

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

 

Responsibilities of directors

As explained more fully in the directors' report, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

SCHLESINGER GROUP UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCHLESINGER GROUP UK LIMITED
- 6 -
Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Extent to which the audit was capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit.

However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

 

Audit procedures included:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

SCHLESINGER GROUP UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCHLESINGER GROUP UK LIMITED
- 7 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s 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 company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Iain McManus (Senior Statutory Auditor)
For and on behalf of Sanders
17 March 2025
Chartered Accountants
Statutory Auditor
1 Bickenhall Mansions
Bickenhall Street
London
W1U 6BP
SCHLESINGER GROUP UK LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
2022
2021
Notes
Turnover
3
24,452,731
23,114,868
Cost of sales
(10,239,177)
(10,161,731)
Gross profit
14,213,554
12,953,137
Administrative expenses
(17,804,164)
(15,580,655)
Other operating income
12,274
96,426
Operating loss
4
(3,578,336)
(2,531,092)
Interest payable and similar expenses
8
(3,932)
-
0
Loss before taxation
(3,582,268)
(2,531,092)
Tax on loss
9
(666)
100,929
Loss for the financial year
(3,582,934)
(2,430,163)
Other comprehensive income
Currency translation differences
38,329
(42,111)
Total comprehensive (loss) for the year
(3,544,605)
(2,472,274)
Loss for the financial year is all attributable to the owner of the parent company.
Total comprehensive income for the year is all attributable to the owner of the parent company.
SCHLESINGER GROUP UK LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
31 December 2022
- 9 -
2022
2021
Notes
Fixed assets
Intangible assets
10
261,487
356,289
Tangible assets
11
963,204
1,428,702
1,224,691
1,784,991
Current assets
Debtors
14
6,442,547
7,778,206
Cash at bank and in hand
327,233
766,860
6,769,780
8,545,066
Creditors: amounts falling due within one year
15
(13,046,322)
(11,497,151)
Net current liabilities
(6,276,542)
(2,952,085)
Total assets less current liabilities
(5,051,851)
(1,167,094)
Creditors: amounts falling due after more than one year
16
(61,176)
(125,137)
Net liabilities
(5,113,027)
(1,292,231)
Capital and reserves
Called up share capital
19
7,197
7,197
Share premium account
501,340
501,340
Other reserves
20
6,330
282,521
Profit and loss reserves
(5,627,894)
(2,083,289)
Total equity
(5,113,027)
(1,292,231)

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 17 March 2025 and are signed on its behalf by:
17 March 2025
A Fine
Director
Company registration number 01703449 (England and Wales)
SCHLESINGER GROUP UK LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
31 December 2022
- 10 -
2022
2021
Notes
Fixed assets
Tangible assets
11
214,742
358,282
Investments
12
4,501,936
728,937
4,716,678
1,087,219
Current assets
Debtors
14
2,805,120
1,342,046
Cash at bank and in hand
21,884
81,618
2,827,004
1,423,664
Creditors: amounts falling due within one year
15
(7,506,557)
(2,146,078)
Net current liabilities
(4,679,553)
(722,414)
Total assets less current liabilities
37,125
364,805
Creditors: amounts falling due after more than one year
16
(61,176)
(125,137)
Net (liabilities)/assets
(24,051)
239,668
Capital and reserves
Called up share capital
19
7,197
7,197
Share premium account
501,340
501,340
Profit and loss reserves
(532,588)
(268,869)
Total equity
(24,051)
239,668

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was €261,672 (2021 - €318,115 loss).

The financial statements were approved by the board of directors and authorised for issue on 17 March 2025 and are signed on its behalf by:
17 March 2025
A Fine
Director
Company Registration No. 01703449
SCHLESINGER GROUP UK LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
Balance at 1 January 2021
7,197
501,340
2,521
388,985
900,043
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
-
-
(2,430,163)
(2,430,163)
Currency translation differences
-
-
-
(42,111)
(42,111)
Capital contributions
-
-
280,000
-
280,000
Balance at 31 December 2021
7,197
501,340
282,521
(2,083,289)
(1,292,231)
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
-
(3,582,934)
(3,582,934)
Currency translation differences
-
-
-
38,329
38,329
Capital contribution reversal
-
-
(276,191)
-
(276,191)
Balance at 31 December 2022
7,197
501,340
6,330
(5,627,894)
(5,113,027)
SCHLESINGER GROUP UK LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Balance at 1 January 2021
7,197
501,340
42,787
551,324
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
-
(318,115)
(318,115)
Currency translation differences
-
-
6,459
6,459
Balance at 31 December 2021
7,197
501,340
(268,869)
239,668
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(261,672)
(261,672)
Currency translation differences
-
-
(2,047)
(2,047)
Balance at 31 December 2022
7,197
501,340
(532,588)
(24,051)
SCHLESINGER GROUP UK LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
2022
2021
Notes
Cash flows from operating activities
Cash (absorbed by)/generated from operations
23
(472,013)
58,994
Interest paid
(3,932)
-
0
Income taxes (paid)/refunded
(3,963)
24,509
Net cash (outflow)/inflow from operating activities
(479,908)
83,503
Investing activities
Purchase of tangible fixed assets
(34,662)
(359,809)
Net cash used in investing activities
(34,662)
(359,809)
Net decrease in cash and cash equivalents
(514,570)
(276,306)
Cash and cash equivalents at beginning of year
766,860
1,105,136
Effect of foreign exchange rates
74,943
(61,970)
Cash and cash equivalents at end of year
327,233
766,860
SCHLESINGER GROUP UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
1
Accounting policies
Company information

Schlesinger Group UK Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 9 Kingsway, London, WC2B 6XF.

 

The group consists of Schlesinger Group UK 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 euros, which is the functional currency of the group. The company's functional currency is sterling. 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 company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Schlesinger Group UK Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 December 2022. 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.

SCHLESINGER GROUP UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -
1.3
Going concern

The Group continued to see some recovery at the beginning of 2022 from the COVID-19 pandemic which severely impacted the business in 2020. However, the Group remained loss making due to investments across the team to prepare for expected high growth performance in 2022, which did not materialize. At the end of 2022 the directors decided to restructure its European business to reduce its cost base due to ongoing pressure on sales resulting from the shift in the landscape of the Market Research Business post COVID-19 and from the ongoing state of the general economy.

In 2023, the Group continued to see an adverse impact on turnover, due to these factors and posted a loss for the year – albeit a smaller one than that incurred in 2022.

In 2024 the Group continued to see the trend of challenging market conditions which led to a further cutting of costs back to the level prior to the investments in 2021 mentioned above. This includes reviewing the ongoing In-Person business which continues to show signs of slowdown. The Market Research Business has shifted, since Covid, particularly reflecting the use of online tools and opportunities which has resulted in the significant reduction of “in-Person Business”.

The directors have given due consideration to the Group's historical and current trading, together with the forward-looking projections to 2025/2026 and note that the Group is dependent upon the continued support of its ultimate parent company Schlesinger Group Holdings, LLC and related subsidiaries. As at 31 December 2022 the Group owed the ultimate parent company circa. €5m and since that date up to 31 December 2024 further loans have been received totalling €0.5m. The directors have received a letter of support from the ultimate parent company which states they will not request repayment of the monies owed until the Group has adequate funds. In addition, the directors are satisfied that there is both the ability and intention to continue to provide this support, and any additional support should it be required. The ultimate parent company is currently in negotiations with its lender to extend the repayment date of term loans totalling $174m in July 2025. The ultimate parent company directors feel confident that an extension or re-finance will be achieved based on previous discussions.

As such, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements. The financial statements do not include the adjustments that would result if the Group and Company were unable to continue as a going concern.

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

1.4
Turnover

Project turnover

Turnover is accounted for on a receivable basis in the year to which it relates. Income is stated net of VAT. Income from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the value of the consideration due. Where a contract has only been partially completed at the Consolidated Statement of Financial Position date, income represents the value of the service provided to date based on a proportion of the total contract value. The proportion is determined by the value of work done at the Consolidated Statement of Financial Position date compared to total value of work expected over the life of the contract.

 

Incentive turnover

Turnover is recognised net of value added tax at a point in time at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services.

 

SCHLESINGER GROUP UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -
1.5
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.

1.6
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:

Databases
10% straight line
Software
33.3% straight line
1.7
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:

Short-term leasehold property
over the life of the lease term
Fixtures and fittings
20% straight line
Computer equipment
33% 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 income statement.

1.8
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.

SCHLESINGER GROUP UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 17 -
1.9
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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
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 statement of financial position 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.

SCHLESINGER GROUP UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 18 -
Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the 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.

SCHLESINGER GROUP UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 19 -
Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.12
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.

1.13
Taxation

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

Current tax

The tax currently payable is based on taxable loss for the year. Taxable loss differs from net loss as reported in the income statement 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 income statement, 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.

SCHLESINGER GROUP UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 20 -
1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

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

1.16
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.

1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

SCHLESINGER GROUP UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 21 -
1.18
Foreign exchange

Functional and presentation currency

The Company's functional currency is Sterling. This differs from the presentational currency which is Euros, which has been used as this is the functional currency of the majority of the Group.

 

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

 

At each period end foreign currency monetary items are translated using the closing rate. Non­ monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using· the exchange rate when fair value was determined.

 

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated Statement of Comprehensive Income except when deferred in other comprehensive income as qualifying cash flow hedges.

 

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Consolidated Statement of Comprehensive Income within 'other operating income'.

 

On consolidation, the results of the Parent Company are translated into Euros at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 

SCHLESINGER GROUP UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 22 -
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.

Key sources of estimation uncertainty

The following are key sources of estimation uncertainty that the directors have applied in the process of applying the Company's accounting policies that have the most significant effect on the amounts recognised in the financial statements:

Impairment of non-financial assets

Where there are indicators of impairment of individual assets, the company performs impairment tests based on fair value less costs to sell or a value in use calculation.

Debtors

Management applies judgement in evaluating the recoverability of debtors. This judgement is base on the ageing profile of debtors and historical experience. To the extent that the directors believe debtors not to be recoverable they have been provided for in the financial statements.

Tangible and intangible fixed assets

Tangible fixed assets and intangible assets are depreciated/amortised over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account.' Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Fixed asset investments

Where there are indicators of impairment of the fixed asset investments held, the company performs impairment tests on each subsidiary as a single asset.

3
Turnover and other revenue
2022
2021
Turnover analysed by geographical market
United Kingdom
2,154,132
1,882,029
Europe
11,398,645
8,599,620
Rest of the world
10,899,954
12,633,219
24,452,731
23,114,868
SCHLESINGER GROUP UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
3
Turnover and other revenue
(Continued)
- 23 -
2022
2021
Other revenue
Grants received
-
76,410
Other income
12,274
20,016
4
Operating loss
2022
2021
Operating loss for the year is stated after charging/(crediting):
Exchange (gains)/losses
(200,049)
151,642
Government grants
-
(76,410)
Depreciation of owned tangible fixed assets
343,113
391,760
Loss on disposal of tangible fixed assets
120,433
64,968
Amortisation of intangible assets
94,802
97,398
Operating lease charges
661,281
1,115,696
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
For audit services
Audit of the financial statements of the group and company
79,000
58,500
For other services
Statutory accounts preparation 2022
60,000
-
Statutory accounts preparation 2021
42,000
-
Taxation compliance services
1,500
1,500
103,500
1,500
6
Employees

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

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Administration
19
14
6
3
Project
192
235
35
18
Director (group and subsidiary companies)
-
4
-
1
Total
211
253
41
22
SCHLESINGER GROUP UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
6
Employees
(Continued)
- 24 -

Their aggregate remuneration comprised:

Group
Company
2022
2021
2022
2021
Wages and salaries
8,378,484
7,366,744
1,885,802
1,590,459
Social security costs
2,137,500
1,818,343
291,334
221,102
Pension costs
123,909
122,491
123,909
122,491
10,639,893
9,307,578
2,301,045
1,934,052
7
Directors' remuneration
2022
2021
Remuneration for qualifying services
-
147,348
Company pension contributions to defined contribution schemes
-
27,773
-
175,121

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2021 - 1).

8
Interest payable and similar expenses
2022
2021
Other interest
3,932
-
SCHLESINGER GROUP UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 25 -
9
Taxation
2022
2021
Current tax
Adjustments in respect of prior periods
-
0
(101,715)
Foreign current tax on profits for the current period
666
786
Total current tax
666
(100,929)

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

2022
2021
Loss before taxation
(3,582,268)
(2,531,092)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(680,631)
(480,907)
Tax effect of expenses that are not deductible in determining taxable profit
32,409
68,423
Tax effect of income not taxable in determining taxable profit
(16,325)
-
0
Change in unrecognised deferred tax assets
990,897
567,556
Adjustments in respect of prior years
-
0
(101,715)
Effect of overseas tax rates
(325,684)
(134,364)
Depreciation and amortisation in excess of capital allowances
-
0
(19,922)
Taxation charge/(credit)
666
(100,929)
SCHLESINGER GROUP UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 26 -
10
Intangible fixed assets
Group
Goodwill
Software and databases
Total
Cost
At 1 January 2022
3,272,097
364,007
3,636,104
Transfers
(469,106)
469,106
-
0
At 31 December 2022
2,802,991
833,113
3,636,104
Amortisation and impairment
At 1 January 2022
2,919,360
360,455
3,279,815
Amortisation charged for the year
-
0
94,802
94,802
Transfers
(116,369)
116,369
-
0
At 31 December 2022
2,802,991
571,626
3,374,617
Carrying amount
At 31 December 2022
-
0
261,487
261,487
At 31 December 2021
352,737
3,552
356,289
The company had no intangible fixed assets at 31 December 2022 or 31 December 2021.

Group

The cost and accumulated amortisation of goodwill as at 31 December 2021 were both overstated by €169,105. These figures have been amended in 2022 and not shown as a prior year adjustment as the balance sheet impact is €Nil.

In the previous year's financial statements, the database cost and accumulated amortisation were classified under the heading of Goodwill within intangible fixed assets. In 2022 the above transfers represent the cost of databases of €469,106 and the accumulated amortisation of €116,369 being re-classified under the heading of Software and databases within intangible fixed assets. The overall impact on intangible fixed assets is €Nil.

SCHLESINGER GROUP UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 27 -
11
Tangible fixed assets
Group
Short-term leasehold property
Fixtures and fittings
Computer equipment
Total
Cost
At 1 January 2022
1,330,472
2,418,040
137,330
3,885,842
Additions
1,614
19,342
13,706
34,662
Disposals
-
0
(151,246)
-
0
(151,246)
Exchange adjustments
(6,654)
(36,304)
(8,398)
(51,356)
At 31 December 2022
1,325,432
2,249,832
142,638
3,717,902
Depreciation and impairment
At 1 January 2022
646,337
1,730,804
79,999
2,457,140
Depreciation charged in the year
183,719
133,089
26,305
343,113
Eliminated in respect of disposals
-
0
(30,813)
-
0
(30,813)
Exchange adjustments
(4,654)
(9,137)
(951)
(14,742)
At 31 December 2022
825,402
1,823,943
105,353
2,754,698
Carrying amount
At 31 December 2022
500,030
425,889
37,285
963,204
At 31 December 2021
684,135
687,236
57,331
1,428,702
Company
Short-term leasehold property
Fixtures and fittings
Computer equipment
Total
Cost
At 1 January 2022
340,788
55,493
133,367
529,648
Additions
-
0
-
0
12,519
12,519
Exchange adjustments
(6,654)
(36,304)
(8,398)
(51,356)
At 31 December 2022
334,134
19,189
137,488
490,811
Depreciation and impairment
At 1 January 2022
85,010
6,816
79,540
171,366
Depreciation charged in the year
80,607
13,404
25,434
119,445
Exchange adjustments
(4,654)
(9,137)
(951)
(14,742)
At 31 December 2022
160,963
11,083
104,023
276,069
Carrying amount
At 31 December 2022
173,171
8,106
33,465
214,742
At 31 December 2021
255,778
48,677
53,827
358,282
SCHLESINGER GROUP UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 28 -
12
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
Investments in subsidiaries
13
-
0
-
0
4,501,936
728,937
Movements in fixed asset investments
Company
Shares in subsidiaries
Cost or valuation
At 1 January 2022
728,937
Additions
3,812,439
Exchange adjustments
(39,440)
At 31 December 2022
4,501,936
Carrying amount
At 31 December 2022
4,501,936
At 31 December 2021
728,937
13
Subsidiaries

Details of the company's subsidiaries at 31 December 2022 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Schlesinger Group Market Research Spain, S.L.U
Spain
Market research
Ordinary shares
100.00
0
Schlesinger Group France, SAS
France
Market research
Ordinary shares
100.00
0
Schlesinger Group Germany, GmbH
Germany
Market research
Ordinary shares
100.00
0
SCHLESINGER GROUP UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 29 -
14
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
Trade debtors
4,160,681
5,048,667
741,069
775,410
Corporation tax recoverable
79,717
76,420
79,717
76,420
Amounts owed by group undertakings
751,651
1,221,006
1,646,613
204,207
Other debtors
295,116
692,355
63,630
67,270
Prepayments and accrued income
1,155,382
739,758
274,091
218,739
6,442,547
7,778,206
2,805,120
1,342,046

The above financial assets are measured at amortised cost.

15
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Trade creditors
1,654,308
1,394,502
357,497
118,744
Amounts owed to group undertakings
7,349,869
6,747,179
6,208,437
1,427,170
Other taxation and social security
779,272
567,469
277,852
107,650
Other creditors
643,638
624,655
140,342
83,664
Accruals and deferred income
2,619,235
2,163,346
522,429
408,850
13,046,322
11,497,151
7,506,557
2,146,078

The above financial liabilities are measured at amortised cost.

16
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Other creditors
61,176
125,137
61,176
125,137

The above financial liabilities are measured at amortised cost.

SCHLESINGER GROUP UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 30 -
17
Deferred taxation
There were no deferred tax movements in the year.

The group has unrecognised deferred tax assets of €1,301,654 (2021 - €706,564) in respect of losses carried forward that can be offset against future profits. The timing of the realisation of the asset is uncertain and consequently the asset has not been recognised.

 

The company has unrecognised deferred tax assets of €146,256 (2021 - €112,552) in respect of losses carried forward that can be offset against future profits. The timing of the realisation of the asset is uncertain and consequently the asset has not been recognised.

18
Retirement benefit schemes
2022
2021
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes
123,909
122,491

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.

19
Share capital
Company
2022
2021
Ordinary share capital
Issued and fully paid
65,176 Ordinary shares of 10p each
7,197
7,197

Each share has full rights in the company with respect to voting, dividends and distributions.

20
Reserves

Other reserves

 

The Group’s other reserves brought forward includes a capital contribution of €280,000, in respect of the company's Spanish subsidiary, that was made by the US parent company of the group. During the current year the liability for that capital contribution has been reclassified as being owed by the UK parent company.

In the company’s statement of financial position in 2022 this is shown as an additional investment in subsidiaries. In the 2022 group’s statement of financial position, the capital contribution and the additional investment in subsidiaries eliminate each other, and the €280,000 is shown as an additional liability to the ultimate parent company.

 

SCHLESINGER GROUP UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 31 -
21
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2022
2021
2022
2021
Within one year
564,339
1,138,061
212,661
224,234
Between two and five years
859,493
1,744,913
549,373
876,380
1,423,832
2,882,974
762,034
1,100,614
22
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2022
2021
Aggregate compensation
952,702
1,292,990
23
Cash (absorbed by)/generated from group operations
2022
2021
Loss for the year after tax
(3,582,934)
(2,430,163)
Adjustments for:
Taxation charged/(credited)
666
(100,929)
Finance costs
3,932
-
0
Loss on disposal of tangible fixed assets
120,433
64,968
Amortisation and impairment of intangible assets
94,802
97,398
Depreciation and impairment of tangible fixed assets
343,113
391,760
Movements in working capital:
Decrease/(increase) in debtors
1,338,956
(1,912,564)
Increase in creditors
1,209,019
3,948,524
Cash (absorbed by)/generated from operations
(472,013)
58,994
SCHLESINGER GROUP UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 32 -
24
Analysis of changes in net funds - group
1 January 2022
Cash flows
Exchange rate movements
31 December 2022
Cash at bank and in hand
766,860
(514,570)
74,943
327,233
25
Events after the reporting date

Since the balance sheet date, as part of the restructuring work undertaken to improve performance of the parent and subsidiary companies, the Board of Directors has approved the closure of the Group’s French and Spanish offices and German and Spanish facilities, due to shifting work patterns (resulting in underutilized office space) and the post-COVID transition to online digital research solutions, which rendered the facilities unprofitable.

The closure process is expected to be completed by Quarter 2 of 2025, with client contracts being either fulfilled or transferred to a strategic partner where required. As a result, the Group expects to incur one-off costs, which include redundancy payments and write-down of related assets such as facility specific equipment that is no longer required. These costs, including redundancy payments and asset write-downs, will be recognized in the financial statements for the years ending 2023 to 2025, as they are incurred.

Because the decision to close these operations was made after the 31 December 2022 reporting date, no adjustments have been made to the financial statements, in accordance with FRS 102. This disclosure provides transparency into the Group’s strategic direction and anticipated financial impact.

The Directors have reviewed the impact of these closures on the Group’s overall business and have concluded that the closures strengthen the Group’s long-term financial position and does not affect the Group’s ability to continue as a going concern. The remaining operations continue to generate revenue, and the Group has sufficient resources to meet its obligations as they fall due.

 

26
Controlling party

The immediate parent company is SS London LLC, a company registered in the United States of America.

 

The ultimate parent company at the year end was Schlesinger Group Holdings, LLC., a company registered in the United States of America.

 

 

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