Company registration number 06586570 (England and Wales)
SMALLER EARTH GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
SMALLER EARTH GROUP LIMITED
COMPANY INFORMATION
Directors
Mr A Fekete
Ms I Gyuricza
Mr J Cunliffe
(Appointed 22 January 2025)
Mr D Maddocks
(Appointed 22 January 2025)
Company number
06586570
Registered office
Avenue Hq
17 Mann Island
Liverpool
L3 1BP
Auditor
MHA
80 Mosley Street
Manchester
M2 3FX
SMALLER EARTH GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9 - 10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 31
SMALLER EARTH GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
Review of the business
The group’s principal activity continues to be the provision of global cultural exchange programmes, supporting international participants and host organisations in delivering enriching work and travel experiences. The business operates through its UK-based holding company and a range of subsidiaries across North America, Europe, Australia, New Zealand, and Latin America.
During the year, the group reported turnover of £18,320,521 (2023: £14,604,327), an increase of 25%, reflecting continued growth in programme demand across North America. Gross profit was £10,189,040 (2023: £7,445,190) and profit before tax was £2,397,878 (2023: £3,311,920), with the year-on-year reduction primarily attributable to an exceptional charge of £825,000, relating to an impairment made in respect of the group's investment in Transforma Travel Group Limited, a non-core investment.
The group's operational focus included expanding its customer base, enhancing its digital infrastructure, investing in its people, and strengthening its partner network globally. The directors believe these strategic investments position the group well for long-term success.
Principal risks and uncertainties
The group’s activities expose it to a variety of risks. Key business risks and uncertainties include:
Geopolitical risk: Cultural exchange programmes are influenced by visa regimes, political changes and international relations. The group monitors such developments carefully.
Foreign exchange: With substantial USD exposure, currency fluctuations are managed proactively.
Market risk: Demand for global mobility programmes is susceptible to macroeconomic factors. The group continues to adapt its offering and pricing accordingly.
Operational delivery: Service reliability and safety are critical to programme quality. Continued investment in systems, people and risk controls supports operational.
Key performance indicators, financial position and performance
The group maintained a robust financial position. Net assets increased to £4,080,342 (2023: £3,737,812), driven by strong cash generation and retained profits. The year-end cash position was £4,797,586 (2023: £4,656,629). Bank debt reduced further through scheduled repayments.
Administrative expenses increased during the year, driven by growth-related costs; the expansion of the team, including strategic senior appointments; enhanced investment in the Group’s technology platform; one-off costs associated with the transition to employee ownership. A dividend of £1,000,000 was paid during the year (2023: £666,666).
SMALLER EARTH GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Future developments
Following the transition to employee ownership, the group will continue to pursue sustainable and inclusive growth. Strategic priorities include:
Deepening market reach in North America;
Providing more opportunities to participants globally;
Expanding digital capabilities and platform scalability;
Enhancing employee engagement and leadership development in line with EOT principles;
Continuing to invest in social impact and sustainability initiatives;
Diversifying into complementary products/services to reduce dependency risks.
The directors believe the group is well-placed to adapt to changing market dynamics and to lead purposefully as an employee-owned organisation.
Section 172 Statement
The directors are mindful of their duty under section 172 of the Companies Act 2006 to act in a way that promotes the success of the company for the benefit of its members as a whole. In doing so, the directors have regard to the interests of employees, relationships with stakeholders, and the long-term impact of decisions.
The transition to employee ownership is a clear reflection of this approach, aligning long-term value creation with shared ownership, and reinforcing the group’s commitment to responsible business practices and positive societal contribution.
Ms I Gyuricza
Director
3 June 2025
SMALLER EARTH GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company was that of managing and administrating its subsidiary undertakings. The principal activity of the group was that of the selling of global cultural experience programmes.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £1,000,000. The directors do not recommend payment of a further dividend.
No preference dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr A Fekete
Ms I Gyuricza
Mr C J Arnold
(Resigned 22 January 2025)
Mr B B Weinberger
(Resigned 22 January 2025)
Mr J Cunliffe
(Appointed 22 January 2025)
Mr D Maddocks
(Appointed 22 January 2025)
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
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.
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.
SMALLER EARTH GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
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
Ms I Gyuricza
Mr J Cunliffe
Director
Director
3 June 2025
SMALLER EARTH GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SMALLER EARTH GROUP LIMITED
- 5 -
Opinion
We have audited the financial statements of Smaller Earth Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of 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 the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 September 2024 and of the group's 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.
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 responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
We have nothing to report in this regard.
SMALLER EARTH GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SMALLER EARTH GROUP LIMITED
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.
Auditor 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:
SMALLER EARTH GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SMALLER EARTH GROUP LIMITED
- 7 -
Enquiries with management about any known or suspected instances of non-compliance with laws and regulations;
Enquires with management about any known or suspected instances of fraud;
Review of legal and professional expenditure to identify any evidence of ongoing litigation or enquiries;
Challenging assumptions and judgements made by management in their significant accounting estimates;
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness;
Audit the risk of the occurrence of revenue by tracing a sample of transactions from sales nominal through to invoices and sales orders;
Reviewed a sample of sales around the year end to ensure they have been appropriately recorded in the period to which the sale relates, and;
Review post year end credit notes for those that relate to the year to ensure accounted for correctly and that sales have not been artificially inflated pre year end.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that 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 due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
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.
Lee Van Houplines FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Manchester, United Kingdom
3 June 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
SMALLER EARTH GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
18,320,531
14,604,327
Cost of sales
(8,131,491)
(7,159,137)
Gross profit
10,189,040
7,445,190
Administrative expenses
(6,978,485)
(4,100,176)
Other operating income
-
306
Exceptional item - impairment of investment
4
(825,000)
Operating profit
5
2,385,555
3,345,320
Share of profits of associates
25,255
-
Interest receivable and similar income
8
32,494
26,978
Interest payable and similar expenses
9
(45,426)
(60,378)
Profit before taxation
2,397,878
3,311,920
Tax on profit
10
(601,797)
(602,067)
Profit for the financial year
1,796,081
2,709,853
Profit for the financial year is attributable to:
- Owners of the parent company
1,797,213
2,699,409
- Non-controlling interests
(1,132)
10,444
1,796,081
2,709,853
Total comprehensive income for the year is attributable to:
- Owners of the parent company
1,797,213
2,699,409
- Non-controlling interests
(1,132)
10,444
1,796,081
2,709,853
SMALLER EARTH GROUP LIMITED
GROUP BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
39,002
43,498
Investments
13
260,466
235,211
299,468
278,709
Current assets
Debtors
16
1,187,108
1,433,416
Cash at bank and in hand
4,797,586
4,656,629
5,984,694
6,090,045
Creditors: amounts falling due within one year
17
(1,916,813)
(2,153,335)
Net current assets
4,067,881
3,936,710
Total assets less current liabilities
4,367,349
4,215,419
Creditors: amounts falling due after more than one year
18
(205,557)
(472,223)
Provisions for liabilities
Deferred tax liability
20
81,450
5,384
(81,450)
(5,384)
Net assets
4,080,342
3,737,812
Capital and reserves
Called up share capital
22
827
827
Capital redemption reserve
126
126
Other reserves
(352,381)
101,170
Profit and loss reserves
4,330,913
3,533,700
Equity attributable to owners of the parent company
3,979,485
3,635,823
Non-controlling interests
100,857
101,989
4,080,342
3,737,812
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
SMALLER EARTH GROUP LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2024
30 September 2024
- 10 -
The financial statements were approved by the board of directors and authorised for issue on 3 June 2025 and are signed on its behalf by:
03 June 2025
Ms I Gyuricza
Mr J Cunliffe
Director
Director
Company registration number 06586570 (England and Wales)
SMALLER EARTH GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
8,124
12,001
Investments
13
314,260
314,260
322,384
326,261
Current assets
Debtors
16
83,003
690,153
Cash at bank and in hand
272,068
254,935
355,071
945,088
Creditors: amounts falling due within one year
17
(803,754)
(948,841)
Net current liabilities
(448,683)
(3,753)
Total assets less current liabilities
(126,299)
322,508
Provisions for liabilities
Deferred tax liability
20
81,450
2,281
(81,450)
(2,281)
Net (liabilities)/assets
(207,749)
320,227
Capital and reserves
Called up share capital
22
827
827
Capital redemption reserve
96
96
Profit and loss reserves
(208,672)
319,304
Total equity
(207,749)
320,227
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £472,024 (2023 - £1,006,931 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 3 June 2025 and are signed on its behalf by:
03 June 2025
Ms I Gyuricza
Mr J Cunliffe
Director
Director
Company registration number 06586570 (England and Wales)
SMALLER EARTH GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
Share capital
Capital redemption reserve
Foreign exchange reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
Balance at 1 October 2022
827
126
266,866
1,500,957
1,768,776
91,545
1,860,321
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
-
2,699,409
2,699,409
10,444
2,709,853
Dividends
11
-
-
-
(666,666)
(666,666)
-
(666,666)
Other movements
-
-
(165,696)
-
(165,696)
-
(165,696)
Balance at 30 September 2023
827
126
101,170
3,533,700
3,635,823
101,989
3,737,812
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
-
1,797,213
1,797,213
(1,132)
1,796,081
Dividends
11
-
-
-
(1,000,000)
(1,000,000)
-
(1,000,000)
Other movements
-
-
(453,551)
-
(453,551)
-
(453,551)
Balance at 30 September 2024
827
126
(352,381)
4,330,913
3,979,485
100,857
4,080,342
SMALLER EARTH GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
827
96
(20,961)
(20,038)
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
-
1,006,931
1,006,931
Dividends
11
-
-
(666,666)
(666,666)
Balance at 30 September 2023
827
96
319,304
320,227
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
472,024
472,024
Dividends
11
-
-
(1,000,000)
(1,000,000)
Balance at 30 September 2024
827
96
(208,672)
(207,749)
SMALLER EARTH GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
3,237,638
3,198,775
Interest paid
(45,426)
(60,378)
Income taxes paid
(1,051,817)
(151,102)
Net cash inflow from operating activities
2,140,395
2,987,295
Investing activities
Purchase of tangible fixed assets
(23,335)
(44,649)
Proceeds from disposal of tangible fixed assets
-
(1,690)
Purchase of investment
(425,000)
-
Purchase of associates
-
(234,511)
Repayment of loans
125,000
(75,000)
Interest received
32,494
26,978
Net cash used in investing activities
(290,841)
(328,872)
Financing activities
Repayment of bank loans
(266,666)
(266,667)
Dividends paid to equity shareholders
(1,000,000)
(666,666)
Net cash used in financing activities
(1,266,666)
(933,333)
Net increase in cash and cash equivalents
582,888
1,725,090
Cash and cash equivalents at beginning of year
4,656,629
3,077,612
Effect of foreign exchange rates
(441,931)
(146,073)
Cash and cash equivalents at end of year
4,797,586
4,656,629
SMALLER EARTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
1
Accounting policies
Company information
Smaller Earth Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Avenue Hq, 17 Mann Island, Liverpool, L3 1BP.
The group consists of Smaller Earth Group Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
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 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination.
SMALLER EARTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Smaller Earth Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover represents the total amount receivable for services provided during the year, net of value added tax, trade discounts, and intra-group transactions.
Revenue is recognised when it is probable that the economic benefits associated with the transaction will flow to the company and the amount of revenue can be measured reliably. Revenue is measured at the fair value of the consideration received or receivable and is recognised as follows:
Participant income: Revenue is recognised over the period in which the services are provided, based on the stage of completion.
Matching fee income: Revenue is recognised at the point when a participant formally accepts a placement offer representing the satisfaction of the relevant performance obligation.
Placement income: Revenue is recognised over the period in which the placement services are provided, based on the stage of completion.
Commission income: Commission is recognised when the related service is performed or when the underlying transaction completes.
Deferred income: Amounts received in advance of the provision of services are recorded as deferred income and recognised in revenue when the services are delivered.
1.6
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.
SMALLER EARTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
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:
Plant and equipment
25% Straight line
Fixtures and fittings
25% Straight line
Computers
25% Straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.7
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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
1.8
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible 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.
SMALLER EARTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.9
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.
1.10
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
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.
SMALLER EARTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 19 -
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.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.11
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.
1.12
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 profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
SMALLER EARTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 20 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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.
1.15
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.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
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.
SMALLER EARTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
2,928,155
1,709,998
Europe
425,402
134,119
North America
14,222,129
12,489,154
Asia
-
4,391
Rest of World
744,845
266,665
18,320,531
14,604,327
2024
2023
£
£
Other revenue
Interest income
32,494
26,978
Grants received
-
306
4
Exceptional item
2024
2023
£
£
Expenditure
Impairment of fixed asset investment
825,000
-
During the year ended 30 September 2023, the company made payments totalling £400,000 to a third party ahead of acquiring shares in Transforma Travel Group Limited, a further £425,000 was invested during the year ended 30 September 2024. Following a strategic review, and in light of the trading results of that entity, management took the decision to fully impair the investment during the year and subsequent to the balance sheet date, the investment was disposed of.
5
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
11,620
19,624
Government grants
-
(306)
Fees payable to the group's auditor for the audit of the group's financial statements
61,000
51,300
Depreciation of owned tangible fixed assets
27,831
12,516
Operating lease charges
64,044
61,742
SMALLER EARTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Office and administration
89
77
17
15
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,295,665
1,949,088
1,009,147
607,869
Social security costs
236,471
161,622
103,821
86,681
Pension costs
38,242
23,507
14,078
9,677
3,570,378
2,134,217
1,127,046
704,227
7
Directors' and key management personnel remuneration
2024
2023
£
£
Remuneration for qualifying services
519,145
315,769
Company pension contributions to defined contribution schemes
4,843
3,523
Sums paid to third parties for directors' services
64,917
63,045
588,905
382,337
The number of directors and key management personnel for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 3).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
125,000
101,663
SMALLER EARTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
32,494
26,978
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
45,426
60,378
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
28,490
Foreign current tax on profits for the current period
522,628
553,076
Total current tax
522,628
581,566
Deferred tax
Origination and reversal of timing differences
79,169
20,501
Total tax charge
601,797
602,067
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
2,397,878
3,311,920
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
599,470
728,622
Tax effect of expenses that are not deductible in determining taxable profit
23,018
2,081
Adjustments in respect of prior years
(48,218)
Effect of change in corporation tax rate
-
(56)
Group relief
(10,934)
Deferred tax adjustments in respect of prior years
(30,430)
15,022
Differences in respect of foreign tax rates
9,739
(84,450)
Taxation charge
601,797
602,067
SMALLER EARTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
1,000,000
666,666
12
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 October 2023
25,537
4,203
84,539
114,279
Additions
2,445
20,890
23,335
At 30 September 2024
25,537
6,648
105,429
137,614
Depreciation and impairment
At 1 October 2023
24,399
2,688
43,694
70,781
Depreciation charged in the year
1,166
26,665
27,831
At 30 September 2024
24,399
3,854
70,359
98,612
Carrying amount
At 30 September 2024
1,138
2,794
35,070
39,002
At 30 September 2023
1,138
1,515
40,845
43,498
Company
Computers
£
Cost
At 1 October 2023
26,348
Additions
6,204
At 30 September 2024
32,552
Depreciation and impairment
At 1 October 2023
14,347
Depreciation charged in the year
10,081
At 30 September 2024
24,428
Carrying amount
At 30 September 2024
8,124
At 30 September 2023
12,001
SMALLER EARTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
700
700
79,749
79,749
Investments in associates
15
259,766
234,511
234,511
234,511
260,466
235,211
314,260
314,260
Movements in fixed asset investments
Group
Shares in subsidiaries and associates
£
Cost or valuation
At 1 October 2023
235,211
Additions
425,000
Transfer from other debtors
400,000
Share of profits in associates
25,255
At 30 September 2024
1,085,466
Impairment
At 1 October 2023
-
Impairment losses
825,000
At 30 September 2024
825,000
Carrying amount
At 30 September 2024
260,466
At 30 September 2023
235,211
During the year ended 30 September 2023, the company made payments totalling £400,000 to a third party ahead of acquiring shares in Transforma Travel Group Limited, a further £425,000 was invested during the year ended 30 September 2024. Following a strategic review, and in light of the trading results of that entity, management took the decision to fully impair the investment during the year and subsequent to the balance sheet date, the investment was disposed of.
SMALLER EARTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
13
Fixed asset investments
(Continued)
- 26 -
Movements in fixed asset investments
Company
Shares in subsidiaries and associates
£
Cost or valuation
At 1 October 2023
314,260
Additions
425,000
Transfer from other debtors
400,000
At 30 September 2024
1,139,260
Impairment
At 1 October 2023
-
Impairment losses
825,000
At 30 September 2024
825,000
Carrying amount
At 30 September 2024
314,260
At 30 September 2023
314,260
14
Subsidiaries
Details of the company's subsidiaries at 30 September 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Smaller Earth Limited
UK
Ordinary
100.00
-
Smaller Earth Inc
U.S.
Ordinary
100.00
-
Smaller Earth Ltd. SA DE RL
Mexico
Ordinary
100.00
-
Smaller Earth Deutschland GmbH
Germany
Ordinary
100.00
-
Smaller Earth Australia PTY ltd
Australia
Ordinary
100.00
-
Smaller Earth New Zealand Limited
New Zealand
Ordinary
100.00
-
Cleversteam Limited
UK
Ordinary
75.00
-
Cleversteam Inc
U.S.
Ordinary
-
75.00
15
Associates
Details of associates at 30 September 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Camp Canada Limited
UK
Ordinary
-
49
Camp Canada Inc
Canada
Ordinary
49
-
SMALLER EARTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 27 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
787,523
570,106
22,128
61,691
Amounts owed by group undertakings
-
-
-
3,323
Other debtors
33,894
597,356
29,341
544,095
Prepayments and accrued income
356,471
263,673
31,534
81,044
1,177,888
1,431,135
83,003
690,153
Amounts falling due after more than one year:
Deferred tax asset (note 20)
9,220
2,281
Total debtors
1,187,108
1,433,416
83,003
690,153
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
19
266,666
266,666
Trade creditors
370,281
156,641
16,795
14,972
Amounts owed to group undertakings
552,563
736,430
Corporation tax payable
128,029
647,176
Other taxation and social security
150,217
52,125
37,054
18,025
Other creditors
603,226
549,884
131,092
33,854
Accruals and deferred income
398,394
480,843
66,250
145,560
1,916,813
2,153,335
803,754
948,841
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
205,557
472,223
SMALLER EARTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 28 -
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
472,223
738,889
Payable within one year
266,666
266,666
Payable after one year
205,557
472,223
The bank loans relate to 2 separate CBILS loans issued and drawn in 2020, which are being repaid over a 6 year period from the date drawn. Interest of 3.19% and 2.19% is being applied respectively to each loan.
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
(1,623)
5,384
9,220
2,281
Tax losses
83,073
-
-
-
81,450
5,384
9,220
2,281
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
(1,623)
2,281
-
-
Tax losses
83,073
-
-
-
81,450
2,281
-
-
SMALLER EARTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
20
Deferred taxation
(Continued)
- 29 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
3,103
2,281
Charge to profit or loss
69,127
79,169
Liability at 30 September 2024
72,230
81,450
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
38,242
23,507
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.
22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
826
826
826
826
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
1
1
1
1
Preference shares classified as equity
1
1
Total equity share capital
827
827
23
Financial commitments, guarantees and contingent liabilities
The company has in the normal course of trade entered into forward currency contracts. No additional liabilities are expected to arise from these transactions other than those provided in the accounts.
SMALLER EARTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 30 -
24
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
2024
2023
2024
2023
£
£
£
£
Within one year
91,952
132,828
81,752
122,628
Between two and five years
3,400
95,352
-
81,752
95,352
228,180
81,752
204,380
25
Events after the reporting date
After the year end, a shareholders meeting was held to explore the potential sale of shares in Smaller Earth Group Limited to an employee ownership trust, which also included the planned divestment of the Group’s interests in both Cleversteam Group and Transforma Group. On 1 October 2024, it was formally agreed amongst the board to sell 90% of the shares in Smaller Earth Group Limited to an employee ownership trust. On 28 October 2024, the Group completed the sale of its 75% shareholding in Cleversteam Limited and its subsidiaries for a consideration of £525,000. On 29 October 2024, 90% of the shares in Smaller Earth Group Limited were sold by the existing shareholders to Smaller Earth EOT Limited, an employee ownership trust, for a total consideration of £16,358,462. As part of this transaction, two distributions to Smaller Earth EOT Limited relating to payments to exiting shareholders were made on 30 October 2024 and 30 January 2025, Each amounting to £1,145,092 and totalling £2,290,184.
26
Directors' transactions
Included within debtors is a directors loan of £Nil (2023: £125,000). The brought forward directors loan balance was fully repaid during the current year.
27
Controlling party
During the year and at the year end the ultimate beneficial owners of the Group was Alexander Fekete, Christopher Arnold and David Robinson by virtue of their individual shareholdings in Smaller Earth Group Limited.
On 29 October 2024, following the sale of the company shares, Smaller Earth EOT Limited became the ultimate controlling party.
SMALLER EARTH GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 31 -
28
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,796,081
2,709,853
Adjustments for:
Share of results of associates and joint ventures
(25,255)
-
Taxation charged
601,797
602,067
Finance costs
45,426
60,378
Investment income
(32,494)
(26,978)
Depreciation and impairment of tangible fixed assets
27,831
12,516
Movements in working capital:
Decrease in debtors
553,247
2,864,434
Increase/(decrease) in creditors
271,005
(3,023,495)
Cash generated from operations
3,237,638
3,198,775
29
Analysis of changes in net funds - group
1 October 2023
Cash flows
Exchange rate movements
30 September 2024
£
£
£
£
Cash at bank and in hand
4,656,629
582,888
(441,931)
4,797,586
Borrowings excluding overdrafts
(738,889)
266,666
-
(472,223)
3,917,740
849,554
(441,931)
4,325,363
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