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Registered number: 11007113













THIS IS GRAVITY LIMITED

DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023


 
THIS IS GRAVITY LIMITED
 

 
COMPANY INFORMATION


Directors
M J Bellamy 
T B Curtis 
H S Frost 
R C Jones 
C R Kirkland 
Lord D M Triesman 




Company secretary
S J Alsop



Registered number
11007113



Registered office
3 Burlington Gardens

London

W1S 3EP




Independent auditors
Warrener Stewart
Chartered Accountants & Statutory Auditors

Harwood House

43 Harwood Road

London

SW6 4QP






 
THIS IS GRAVITY LIMITED
 


CONTENTS



Page
Directors' Report
 
1 - 2
Independent Auditors' Report
 
3 - 5
Income Statement
 
6
Statement of Financial Position
 
7
Statement of Changes in Equity
 
8
Notes to the Financial Statements
 
9 - 20


 
THIS IS GRAVITY LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors

The directors who served during the year were:

M J Bellamy 
T B Curtis 
H S Frost 
R C Jones 
C R Kirkland 
Lord D M Triesman 

Directors' responsibilities statement

The directors are responsible for preparing the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

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


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

make judgments and accounting estimates that are reasonable and prudent;

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

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

Charitable donations

During the year the company made charitable donations of £7,026,286.

Disclosure of information to auditors

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

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Page 1


 
THIS IS GRAVITY LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Auditors

The auditorsWarrener Stewartwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

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





................................................
M J Bellamy
Director

Date: 11 April 2025
Page 2


 
THIS IS GRAVITY LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THIS IS GRAVITY LIMITED

Opinion

We have audited the financial statements of This is Gravity Limited (the 'Company') for the year ended 31 December 2023, which comprise the Income Statement, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 3


 
THIS IS GRAVITY LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THIS IS GRAVITY LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 1, 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 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 Company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 Auditors' 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:

Because of the relatively simple business model, there are comparatively few unexpected fluctuations in the reported results and balances and any unexpected items would be specifically enquired into by us; and
There is a number of individuals which comprise "management" and therefore there is no single individual who is likely to be able to override controls to effect fraud.


 
Page 4


 
THIS IS GRAVITY LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THIS IS GRAVITY LIMITED (CONTINUED)

We designed our audit procedures to respond to identified risks, including non-compliance with laws and regulations (irregularities) that are material to the financial statements.  Some of the specific procedures performed to detect irregularities, including fraud, are detailed below:

The review of control accounts and journal entries for large, unusual or unauthorised entries;
The analytical review of the detailed profit and loss account for unexpected variances or items that fell outside our understanding of the business;
Obtaining and reviewing a list of connected persons and entities and reviewing ledgers for undisclosed related party transactions; and 
Considering independent appraisals of the value of the Company's development site.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more the compliance with a law or regulation is removed from  the events and transactions reflected in the financial statements as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring because of fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' 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.




Colin Edney (Senior Statutory Auditor)
  
for and on behalf of
Warrener Stewart
 
Chartered Accountants & Statutory Auditors
  
Harwood House
43 Harwood Road
London
SW6 4QP

 
Date: 
14 April 2025
Page 5


 
THIS IS GRAVITY LIMITED
 

 
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
  
173,244,770
76,199

Cost of sales
  
(73,990,413)
-

Gross profit
  
99,254,357
76,199

Administrative expenses
  
(9,045,318)
(1,981,220)

Other operating income
  
500
6,970

Operating profit/(loss)
  
90,209,539
(1,898,051)

Interest receivable and similar income
 5 
213,142
-

Interest payable and similar expenses
 6 
(227,283)
(186,102)

Profit/(loss) before tax
  
90,195,398
(2,084,153)

Tax on profit/(loss)
 7 
(4,624,066)
(578,150)

Profit/(loss) for the financial year
  
85,571,332
(2,662,303)

There are no items of other comprehensive income for 2023 or 2022 other than the profit/(loss) for the yearAs a result, no separate Statement of Comprehensive Income has been presented.

The notes on pages 9 to 20 form part of these financial statements.

Page 6


 
THIS IS GRAVITY LIMITED
REGISTERED NUMBER:11007113


STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 8 
15,681
29,805

  
15,681
29,805

Current assets
  

Stocks
  
14,615,438
74,698,153

Debtors
 10 
3,733,922
1,245,210

Cash at bank and in hand
 11 
4,038,832
551,333

  
22,388,192
76,494,696

Creditors: amounts falling due within one year
 12 
(634,843)
(21,345,173)

Net current assets
  
 
 
21,753,349
 
 
55,149,523

Total assets less current liabilities
  
21,769,030
55,179,328

Creditors: amounts falling due after more than one year
  
-
(50,997,352)

Provisions for liabilities
  

Deferred tax
 14 
(1,260,873)
(3,881,138)

Net assets
  
20,508,157
300,838


Capital and reserves
  

Called up share capital 
 15 
100
100

Profit and loss account
  
20,508,057
300,738

  
20,508,157
300,838


The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

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



................................................
M J Bellamy
Director

Date: 11 April 2025

The notes on pages 9 to 20 form part of these financial statements.
Page 7


 
THIS IS GRAVITY LIMITED
 


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022 (as previously stated)
100
53,801,182
53,801,282

Prior year adjustment - change in accounting policy (see note 16)
-
(50,838,141)
(50,838,141)


At 1 January 2022 (as restated)
100
2,963,041
2,963,141


Comprehensive income for the year

Loss for the year
-
(2,662,303)
(2,662,303)



At 31 December 2022 (as restated)
100
19,238,118
19,238,218

Prior year adjustment - change in accounting policy (see note 16)
-
(18,937,380)
(18,937,380)


At 1 January 2023 (as restated)
100
300,738
300,838


Comprehensive income for the year

Profit for the year
-
85,571,332
85,571,332


Contributions by and distributions to owners

Dividends: Equity capital
-
(65,364,013)
(65,364,013)


At 31 December 2023
100
20,508,057
20,508,157


The notes on pages 9 to 20 form part of these financial statements.
Page 8


 
THIS IS GRAVITY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

The Company is a private company limited by shares and incorporated in England and Wales. The principal activity of the company is that of construction and property development. The principal place of business is Woolavington Road, Bridgwater, TA7 8AD and the registered office is 3 Burlington Gardens, London, W1S 3EP.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

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

This information is included in the consolidated financial statements of Salamanca Group Holdings (UK) Limited as at 31 December 2023 and these financial statements may be obtained from 3 Burlington Gardens, London, W1S 3EP.

Page 9


 
THIS IS GRAVITY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Going concern

The company made a significant profit on the partial disposal of its site in October 2023 which enabled all the company’s borrowings to be repaid. Ongoing activities to prepare the balance of land for disposal will be financed by cash reserves and a new financial facility supported by the land value.
The facility is in the final stages before sign-off but in the unlikely event that the facility is not agreed, the company has sufficient cash resource to finance its operating costs for at least the next twelve months while alternative development funding is sought.
In view of the above, the directors consider that the Company will remain in operational existence for the foreseeable future and that the going concern basis is therefore applicable to the preparation of its financial statements.

 
2.4

Revenue

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

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.5

Interest income

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

 
2.6

Finance costs

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

Page 10


 
THIS IS GRAVITY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Pensions

Defined contribution pension plan

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

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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

 
2.9

Tangible fixed assets

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

Page 11


 
THIS IS GRAVITY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.9
Tangible fixed assets (continued)

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

Depreciation is provided on the following basis:

Plant and machinery
-
20%
Motor vehicles
-
20%
Computer equipment
-
20%

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

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

 
2.10

Stock and work in progress

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Borrowing costs directly attributable to acquisition, construction, or production of a site are capitalised as part of the cost of that project in accordance with FRS 102, Section 25 "Borrowing Costs."

 
2.11

Debtors

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

 
2.12

Cash and cash equivalents

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

 
2.13

Creditors

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

Page 12


 
THIS IS GRAVITY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.14

Provisions for liabilities

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

 
2.15

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

 
2.16

Dividends

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


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The key area of judgement is the valuation of sites under construction.  Management makes use of professionally qualified, independent external valuers in order to mitigate against any risk of management bias in arriving at assessing the realisable value of sites relative to the costs of production.

Page 13


 
THIS IS GRAVITY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Employees

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


        2023
        2022
            No.
            No.







Directors
6
6



Employees
3
3

9
9


5.


Interest receivable

2023
2022
£
£


Other interest receivable
213,142
-

213,142
-


6.


Interest payable and similar expenses

2023
2022
£
£


HMRC interest payable
227,283
186,102

227,283
186,102

Page 14


 
THIS IS GRAVITY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Taxation


As restated
2023
2022
£
£

Corporation tax


Current tax on profits for the year
7,344,007
2,442,760

Adjustments in respect of previous periods
(68,819)
-

Total current tax
7,275,188
2,442,760


Deferred tax


Origination and reversal of timing differences
(2,651,122)
(1,864,610)


Taxation on profit on ordinary activities
4,624,066
578,150

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit/(loss) on ordinary activities before tax
90,195,398
(2,084,153)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
21,195,919
(395,989)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
215
358,471

Capital allowances for year in excess of depreciation
-
2,684

Utilisation of tax losses
(4,001,947)
-

Adjustment in respect of land remediation tax credit leading to an increase/(decrease) in the tax charge
-
(818,019)

Effect on tax charge of reclassification of investment property to work in progress
(9,927,694)
2,447,370

Unrelieved tax losses carried forward
-
831,971

Other differences leading to an increase (decrease) in the tax charge
8,695
16,272

Deferred taxation
(2,651,122)
(1,864,610)

Total tax charge for the year
4,624,066
578,150

Page 15


 
THIS IS GRAVITY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
7.Taxation (continued)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


8.


Tangible fixed assets





Plant and machinery
Motor vehicles
Computer equipment
Total

£
£
£
£



Cost or valuation


At 1 January 2023
43,114
24,158
3,352
70,624



At 31 December 2023

43,114
24,158
3,352
70,624



Depreciation


At 1 January 2023
20,319
19,328
1,173
40,820


Charge for the year on owned assets
8,623
4,830
670
14,123



At 31 December 2023

28,942
24,158
1,843
54,943



Net book value



At 31 December 2023
14,172
-
1,509
15,681



At 31 December 2022
22,795
4,831
2,179
29,805


9.


Stocks and work in progress

As restated
2023
2022
£
£

Work in progress (sites under development)
14,615,438
74,698,153

14,615,438
74,698,153


Page 16


 
THIS IS GRAVITY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Debtors


As restated
2023
2022
£
£

Due after more than one year

Prepayments and accrued income
122,249
274,157

122,249
274,157

Due within one year

Trade debtors
1,226,611
-

Amounts owed by group undertakings
27,400
3,400

Other debtors
2,299,126
262,895

Prepayments and accrued income
58,536
704,758

3,733,922
1,245,210



11.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
4,038,832
551,333



12.


Creditors: Amounts falling due within one year

As restated
2023
2022
£
£

Trade creditors
274,190
279,357

Amounts owed to group undertakings
983
956

Corporation tax
-
17,832,133

Other creditors
136,630
3,152,828

Accruals and deferred income
223,040
79,899

634,843
21,345,173


Page 17


 
THIS IS GRAVITY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Other loans
-
50,997,352


The loan facility was repaid in full (£55.7m) in June and October 2023 from proceeds of the partial sale of the development site.


14.


Deferred taxation




2023
As restated 2022


£

£






At beginning of year
3,881,138
5,745,748


Charged to profit or loss
(2,620,265)
(1,864,610)



At end of year
1,260,873
3,881,138

The provision for deferred taxation is made up as follows:

As restated
2023
2022
£
£


Revaluation gains
1,260,873
6,736,775

Tax losses carried forward
-
(2,855,637)

1,260,873
3,881,138


15.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



50 (2022 - 50) Ordinary A shares of £1.00 each
50
50
50 (2022 - 50) Ordinary B shares of £1.00 each
50
50

100

100


Page 18


 
THIS IS GRAVITY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Reserves

Profit and loss account

Retained earnings include net unrealised gains of £3,759,403 arising on historic revaluations of the company's development site.  In accordance with the Companies Act 2006, this amount does not form part of the company's distributable reserves.


17.


Prior year adjustment

Following the disposal of part of the site under development, it was determined that the site should more properly be classified as work in progress rather than an investment property.  This reflects a change in strategy from develop and hold, to develop and sell.  After conducting a detailed review, management concluded that the change in strategy could be considered to be effective from 2021.  Therefore the change of accounting policy is effective from that date.
The effect of the change in policy has been to de-recognise site revaluations from 2021 onwards.  This has also resulted inf reversing much of the previous deferred tax provision, while crystallising a tax provision on the transfer of previously valued amounts to work in progress.
The effects of the prior year adjustment are:

2022
2021
£
£



Closing reserves as originally reported
68,407,331
53,801,182

Reduction in land valuation on transfer to work in progress to 31.12.21
(43,551,525)
(43,551,525)

Reduction in land valuation on transfer to work in progress to 31.12.22
(18,937,380)
-

Tax charge on reclassification of asset in 2021
(15,226,328)
(15,226,328)

Tax charge on reclassification of asset in 2022
(2,628,862)
-

Reduction in deferred tax charge to 31.12.21
7,939,712
7,939,712

Reduction in deferred tax charge to 31.12.22
4,297,790
-

Closing reserves as restated
300,738
2,963,041


18.


Pension commitments

The Company contributes to a defined contribution pension scheme administered through a group company. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company and amounted to £9,289 (2022: £9,308).

Page 19


 
THIS IS GRAVITY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Related party transactions

During the year charitable donations of £7,026,286 were made to the Johnson Foundation, a charity connected through common directorships.
M J Bellamy, a director of this Company, repaid a director's loan balance so the balance as at 31 December 2023 was nil (2022 year £24,000).


20.


Controlling party

Salamanca Group Holdings (UK) Limited is the parent undertaking of the largest and smallest group of undertakings to consolidate these financial statements at 31 December 2023. The consolidated financial statements of Salamanca Group Holdings (UK) Limited can be obtained from 3 Burlington Gardens, London, W1S 3EP.
There is no ultimate controlling party of the Company.
 
Page 20