Caseware UK (AP4) 2024.0.164 2024.0.164 2024-12-31 2024-05-22 2024-05-22 2024-12-31 2024-12-31 false false 2024-01-01 3 3 false false 09907766 2024-01-01 2024-12-31 09907766 2023-01-01 2023-12-31 09907766 2024-12-31 09907766 2023-12-31 09907766 2023-01-01 09907766 c:Director1 2024-01-01 2024-12-31 09907766 c:Director2 2024-01-01 2024-12-31 09907766 c:Director3 2024-01-01 2024-12-31 09907766 c:Director3 2024-12-31 09907766 c:Director4 2024-01-01 2024-12-31 09907766 c:RegisteredOffice 2024-01-01 2024-12-31 09907766 d:FurnitureFittings 2024-01-01 2024-12-31 09907766 d:OfficeEquipment 2024-01-01 2024-12-31 09907766 d:PatentsTrademarksLicencesConcessionsSimilar 2024-01-01 2024-12-31 09907766 d:DevelopmentCostsCapitalisedDevelopmentExpenditure 2024-01-01 2024-12-31 09907766 d:Goodwill 2024-01-01 2024-12-31 09907766 d:CurrentFinancialInstruments 2024-12-31 09907766 d:CurrentFinancialInstruments 2023-12-31 09907766 d:Non-currentFinancialInstruments 2024-12-31 09907766 d:Non-currentFinancialInstruments 2023-12-31 09907766 d:CurrentFinancialInstruments d:WithinOneYear 2024-12-31 09907766 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 09907766 d:ShareCapital 2024-01-01 2024-12-31 09907766 d:ShareCapital 2024-12-31 09907766 d:ShareCapital 2023-01-01 2023-12-31 09907766 d:ShareCapital 2023-12-31 09907766 d:ShareCapital 2023-01-01 09907766 d:SharePremium 2024-01-01 2024-12-31 09907766 d:SharePremium 2024-12-31 09907766 d:SharePremium 2023-01-01 2023-12-31 09907766 d:SharePremium 2023-12-31 09907766 d:SharePremium 2023-01-01 09907766 d:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 09907766 d:RetainedEarningsAccumulatedLosses 2024-12-31 09907766 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 09907766 d:RetainedEarningsAccumulatedLosses 2023-12-31 09907766 d:RetainedEarningsAccumulatedLosses 2023-01-01 09907766 c:OrdinaryShareClass1 2024-01-01 2024-12-31 09907766 c:OrdinaryShareClass1 2024-12-31 09907766 c:OrdinaryShareClass1 2023-12-31 09907766 c:OrdinaryShareClass2 2024-01-01 2024-12-31 09907766 c:OrdinaryShareClass2 2024-12-31 09907766 c:OrdinaryShareClass2 2023-12-31 09907766 c:FRS102 2024-01-01 2024-12-31 09907766 c:Audited 2024-01-01 2024-12-31 09907766 c:FullAccounts 2024-01-01 2024-12-31 09907766 c:PrivateLimitedCompanyLtd 2024-01-01 2024-12-31 09907766 d:Subsidiary1 2024-01-01 2024-12-31 09907766 d:Subsidiary1 1 2024-01-01 2024-12-31 09907766 d:Subsidiary2 2024-01-01 2024-12-31 09907766 d:Subsidiary2 1 2024-01-01 2024-12-31 09907766 c:Consolidated 2024-12-31 09907766 c:ConsolidatedGroupCompanyAccounts 2024-01-01 2024-12-31 09907766 2 2024-01-01 2024-12-31 09907766 6 2024-01-01 2024-12-31 09907766 e:PoundSterling 2024-01-01 2024-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 09907766 SORT GROUP LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
SORT GROUP LIMITED COMPANY INFORMATION
Directors | K Tunnicliffe
| B Thompson
| L Tilley (resigned 22 May 2024)
| K Ahmed
Registered number | 09907766
Registered office | Burdsall House
| Derby Conference Centre
| Derby
| Derbyshire
| DE24 8UX
Independent auditors | PKF Smith Cooper Audit Limited
| 1 Prospect Place
| Millennium Way
| Derby
| DE24 8HG
SORT GROUP LIMITED CONTENTS
| Page
Group strategic report | 1 - 3
Directors' report | 4 - 5
Independent auditors' report | 6 - 9
Consolidated statement of comprehensive income | 10
Consolidated balance sheet | 11
Company balance sheet | 12
Consolidated statement of changes in equity | 13
Company statement of changes in equity | 14
Consolidated statement of cash flows | 15
Consolidated analysis of net debt | 16
Notes to the financial statements | 17 - 33
SORT GROUP LIMITED GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
Business review
The principal activities of the Group are that of a panel manager, law firm and software provider. The Group’s brands (SortRefer and SortLegal) are nationally recognised and are highly respected in the industry for quality, service and cutting-edge technology which has supported the Group’s continued growth year on year. The services are sold through third party financial intermediaries and estate agents located throughout the United Kingdom. The Group seen a 10.65% increase in conveyancing instructions compared to the prior year which further demonstrates our impressive growth trajectory and an increase in our market share. The business model has seen significant change as the Group has ventured into a new market of selling software as a service and has made significant inroads to launching its latest offering, “FastStart”. A key focus for the Group centres around new software development and the continued emphasis on technological development. The Group has committed additional resources to R&D and is well positioned to continue the development and delivery of appropriate software solutions to diversify its offering and to attract additional revenues. As the Groups services are aimed at financial markets, it will continue to be affected by external factors such as political, economic, legal and currency volatility which are all out of its control. However, the Group is well positioned to manage this complexity as it has an experienced and time served management team, strong liquidity, and sufficient reserves to react to market pressures. Group turnover has increased by 16% to the prior year due to an increase in market share brought about by offering an exceptional service to our introducers but also from ancillary income largely from Surveys. Cost controls and diversification measures put in place by management have ensured that the Group increased profit after tax to c.£864k (2023: c.£529k) despite the uncertainties in the financial sector. The Group remains resilient in the current economic climate and has continued to operate profitably at strong margins post year end. The Group continues to invest heavily in staff development, training and competency to ensure its people can take on higher premium work and offer an exceptional legal service on a “less is more basis” as well as opening up new revenue channels via Software as a Service. Page 1
SORT GROUP LIMITED GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Principal risks and uncertainties
The Group's activities expose it to a number of financial risks including interest rate risk, credit risk, cashflow risk and liquidity risk. The use of financial derivatives is governed by the Group’s policies approved by the board of directors, which provide written principles on the use of financial derivatives to manage these risks. The Group does not use derivative financial instruments for speculative purposes. As the Group operates within the financial service sector, it has exposure to many political, economic and sociocultural factors. Any significant increase in the base rate would negatively impact the Group's revenues as the home buyer home mover market would retract. However, management have a robust process in place for managing interest rate risk by offering fixed price and remortgage products to its introducer base. These would serve to mitigate any impact, at least in the short term. Interest rate risk The UK economy is currently experiencing high levels of inflation and increases in interest rates. Where inflation has impacted on the costs the business is incurring, the greater interest rate risk in on turnover. The Group has seen a number of first-time buyers and home movers delay plans. This has seen a rise in remortgage products which bring lower margins. Cashflow risk The Group’s activities expose it primarily to the financial risks of changes in interest rates. A rise in lower margin products can impact the Group's liquidity due to a decrease in EBITDA. Credit risk The Group’s principal financial assets are bank balances and cash, trade and other receivables and investments. The Group’s credit risk is primarily attributable to its intercompany debts, however these are eliminated out in full in the consolidated balance sheet. An allowance for doubtful debtors is made where there is concern over the recoverability of debtors as a result of the age of debts and the financial stability of customers. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-ratings agencies. The Group has no significant concentration of credit risk, with exposure spread over a panel of customers. Liquidity risk In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Group uses a short to medium term cashflow. Further details regarding liquidity risk can be found in the accounting policies in the financial statements. Page 2
SORT GROUP LIMITED GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Financial key performance indicators
The Group’s key performance indicators during the year were as follows:
| 2024 | 2023
| £ | £
KPI |  |
Turnover | 12,600,685 | 10,862,525
Operating profit | 940,241 | 757,581
Net profit | 864,105 | 529,018
The Group continued to manage the business using the same key performance indicators that it had used historically to good effect. These metrics include but are not limited to sales, margin contribution and operation income growth. Management have robust tracking programmes in place across the Group to ensure visibility and empowerment and responsibility are instilled throughout the organisation from the top down. The financial key performance indicators are discussed further in the business review. Strategic plans, financial objectivs and delivery targets continue to be used to good effect. These plans are broken down to individual segments that include both financial and non-financial objectives. The Group will continue to manage these metrics closely to ensure that corporate and operating objectives are aligned.
This report was approved by the board on 14 September 2025 and signed on its behalf.
K Ahmed Director
Page 3
SORT GROUP LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The directors present their report and the financial statements for the year ended 31 December 2024.
Directors' responsibilities statement
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 the Group 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 for the Group'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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Principal activity
The principal activity of the Company is that of a holding Company. The principal activity of the Group is conveyancing referral and legal conveyancing services.
Results and dividends
The profit for the year, after taxation, amounted to £864,105 (2023 - £529,018). Dividends of £NIL (2023 - £NIL) were paid during the year. No further dividends are recommended.
Directors
The directors who served during the year were:
K Tunnicliffe
B Thompson
L Tilley (resigned 22 May 2024)
K Ahmed
Future developments
The Group has continued to trade profitably after the financial year end and there have been no significant post balance sheet events noted, nor any significant changes. Page 4
SORT GROUP LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Research and development activities
A key focus for the Group centres around new software development and the continued emphasis on technological development. The Group has committed additional resources to R&D and is well positioned to continue the development and delivery of appropriate software solutions to diversify its offering and to attract additional revenues.
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 and the Group'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 and the Group's auditors are aware of that information.
Post balance sheet events
There have been no significant events affecting the Group since the year end.
Auditors
Under section 487(2) of the Companies Act 2006, PKF Smith Cooper Audit Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier. This report was approved by the board on 14 September 2025 and signed on its behalf.
K Ahmed Director
Page 5
SORT GROUP LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SORT GROUP LIMITED
Opinion
We have audited the financial statements of Sort Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of 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 of the parent Company's affairs as at 31 December 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.
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 Group 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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. Page 6
SORT GROUP LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SORT GROUP LIMITED (CONTINUED)
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 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.
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 Group 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 Group strategic report and the Directors' report have 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or ∙the parent Company financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of directors' remuneration specified by law are not made; or ∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' responsibilities statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so. Page 7
SORT GROUP LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SORT GROUP LIMITED (CONTINUED)
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 Group 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: Based on our understanding of the Group and industry, we identify the key laws and regulations affecting the Group, including CLC regulations. We identified that the principal risk of fraud or non-compliance with laws and regulations related to: • Management bias in respect of accounting estimates and judgements made; • Management override of control; • Posting of unusual journals or transactions; • Significant cash based transactions. We focused on those areas that could give rise to a material misstatement in the Group financial statements. Our procedures included, but were not limited to: • Enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud. • Reviewing minutes of meetings of those charged with governance where available. • Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud. • Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. • Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. 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 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. Page 8
SORT GROUP LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SORT GROUP LIMITED (CONTINUED)
Use of our report
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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. James Delve (Senior statutory auditor) for and on behalf of PKF Smith Cooper Audit Limited Statutory Auditors 1 Prospect Place Millennium Way Derby DE24 8HG 16 September 2025 Page 9
SORT GROUP LIMITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024
| 2024 | 2023
Note | £ | £
Turnover | 3 | 12,600,685 | 10,862,525
Cost of sales |  | (9,299,135) | (8,151,132)
Gross profit |  | 3,301,550 | 2,711,393
Administrative expenses |  | (2,361,309) | (1,953,812)
Operating profit | 4 | 940,241 | 757,581
Interest receivable and similar income | 8 | 165,978 | 50,023
Interest payable and similar expenses | 9 | - | (20,015)
Profit before tax |  | 1,106,219 | 787,589
Tax on profit | 10 | (242,114) | (258,571)
Profit for the year |  | 864,105 | 529,018
Profit for the year attributable to: |  |  |
Owners of the parent company |  | 864,105 | 529,018
There was no other comprehensive income for 2024 (2023:£NIL).
The notes on pages 17 to 33 form part of these financial statements.
Page 10
SORT GROUP LIMITED REGISTERED NUMBER: 09907766 CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 11 |  | 679,703 |  | 537,098
Tangible assets | 12 |  | 164,301 |  | 120,018
|  |  | 844,004 |  | 657,116
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 14 | 1,088,193 |  | 760,124 |
Cash at bank and in hand | 15 | 2,907,338 |  | 2,294,233 |
|  | 3,995,531 |  | 3,054,357 |
Current liabilities |  |  |  |  |
Creditors: amounts falling due within one year | 16 | (1,138,419) |  | (919,436) |
Net current assets |  |  | 2,857,112 |  | 2,134,921
Total assets less current liabilities |  |  | 3,701,116 |  | 2,792,037
Deferred tax | 17 |  | (193,801) |  | (148,827)
Net assets |  |  | 3,507,315 |  | 2,643,210
Capital and reserves |  |  |  |  |
Called up share capital | 18 |  | 101 |  | 101
Share premium account | 19 |  | 947,516 |  | 947,516
Profit and loss account | 19 |  | 2,559,698 |  | 1,695,593
|  |  | 3,507,315 |  | 2,643,210
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 14 September 2025.
K Ahmed
Director
The notes on pages 17 to 33 form part of these financial statements. Page 11
SORT GROUP LIMITED REGISTERED NUMBER: 09907766 COMPANY BALANCE SHEET AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Investments | 13 |  | 1,116,564 |  | 1,116,564
|  |  | 1,116,564 |  | 1,116,564
Current assets |  |  |  |  |
Debtors: amounts falling due after more than one year | 14 | 905,644 |  | 905,594 |
Cash at bank and in hand | 15 | 999 |  | 1,257 |
|  | 906,643 |  | 906,851 |
Current liabilities |  |  |  |  |
Creditors: amounts falling due within one year | 16 | (784,049) |  | (775,439) |
Net current assets |  |  | 122,594 |  | 131,412
Total assets less current liabilities |  |  | 1,239,158 |  | 1,247,976
Net assets |  |  | 1,239,158 |  | 1,247,976
Capital and reserves |  |  |  |  |
Called up share capital | 18 |  | 101 |  | 101
Share premium account | 19 |  | 947,516 |  | 947,516
Profit and loss account | 19 |  | 291,541 |  | 300,359
|  |  | 1,239,158 |  | 1,247,976
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 14 September 2025.
K Ahmed
Director
The notes on pages 17 to 33 form part of these financial statements. Page 12
SORT GROUP LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
| Called up share capital | Share premium account | Profit and loss account | Total equity
| £ | £ | £ | £
At 1 January 2023 | 101 | 947,516 | 1,166,575 | 2,114,192
Comprehensive income for the year |  |  |  |
Profit for the year | - | - | 529,018 | 529,018
Total comprehensive income for the year | - | - | 529,018 | 529,018
At 1 January 2024 | 101 | 947,516 | 1,695,593 | 2,643,210
Comprehensive income for the year |  |  |  |
Profit for the year | - | - | 864,105 | 864,105
Total comprehensive income for the year | - | - | 864,105 | 864,105
At 31 December 2024 | 101 | 947,516 | 2,559,698 | 3,507,315
| The notes on pages 17 to 33 form part of these financial statements.
Page 13
SORT GROUP LIMITED COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
| Called up share capital | Share premium account | Profit and loss account | Total equity
| £ | £ | £ | £
At 1 January 2023 | 101 | 947,516 | 324,294 | 1,271,911
Comprehensive income for the year |  |  |  |
Loss for the year | - | - | (23,935) | (23,935)
Total comprehensive income for the year | - | - | (23,935) | (23,935)
At 1 January 2024 | 101 | 947,516 | 300,359 | 1,247,976
Comprehensive income for the year |  |  |  |
Loss for the year | - | - | (8,818) | (8,818)
Total comprehensive income for the year | - | - | (8,818) | (8,818)
At 31 December 2024 | 101 | 947,516 | 291,541 | 1,239,158
| The notes on pages 17 to 33 form part of these financial statements.
Page 14
SORT GROUP LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
|  |  | 2024 | 2023
|  |  | £ | £
Cash flows from operating activities |  |
Profit for the financial year | 864,105 | 529,018
Adjustments for: |  |
Amortisation of intangible assets | 75,909 | 68,647
Depreciation of tangible assets | 64,216 | 58,130
Loss on disposal of intangible assets | 4,434 | -
Interest paid | - | 20,015
Interest received | (165,978) | (50,023)
Taxation charge | 242,114 | 258,571
(Increase)/decrease in debtors | (328,069) | 2,542
Increase in creditors | 180,377 | 155,699
Corporation tax (paid) | (158,534) | (98,083)
Net cash generated from operating activities | 778,574 | 944,516
Cash flows from investing activities |  |
Purchase of intangible fixed assets | (222,948) | (108,141)
Purchase of tangible fixed assets | (108,499) | (84,093)
Interest received | 165,978 | 50,023
Net cash from investing activities | (165,469) | (142,211)
Cash flows from financing activities |  |
Repayment of loans | - | (490,000)
Interest paid | - | (20,015)
Net cash used in financing activities | - | (510,015)
Net increase in cash and cash equivalents | 613,105 | 292,290
Cash and cash equivalents at beginning of year | 2,294,233 | 2,001,943
Cash and cash equivalents at the end of year | 2,907,338 | 2,294,233
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 2,907,338 | 2,294,233
The notes on pages 17 to 33 form part of these financial statements.
Page 15
SORT GROUP LIMITED CONSOLIDATED ANALYSIS OF NET DEBT FOR THE YEAR ENDED 31 DECEMBER 2024
|  | At 1 January 2024 | Cash flows | At 31 December 2024
|  | £ | £ | £
Cash at bank and in hand | 2,294,233 | 613,105 | 2,907,338
| 2,294,233 | 613,105 | 2,907,338
The notes on pages 17 to 33 form part of these financial statements.
Page 16
SORT GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
1. | General information
Sort Group Limited is a private Company limited by shares and registered in England. The Company's registration number is 09907766 and the Company's registered office is Burdsall House, Derby Conference Centre, Derby, DE24 8UX. The principal activity of the Company is that of a holding Company. The principal activity of the group is conveyancing referral and legal conveyancing services. 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 Group management to exercise judgment in applying the Group's accounting policies. The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The Group's functional and presentational currency is GBP. The Group has prepared it's financial statements to the nearest £. The following principal accounting policies have been applied:
| 2.2 | Basis of consolidation
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
| 2.3 | Going concern
After reviewing the Group's forecasts and projections, the director has concluded that the Group has adequate resources to continue in operational existence for the foreseeable future and at least 12 months from the date of approval of these financial statements. As such the Group continues to adopt the going concern basis in preparing it's financial statements. Page 17
SORT GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.4 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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: Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: ∙the amount of revenue can be measured reliably; ∙it is probable that the Group will receive the consideration due under the contract; ∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and ∙the costs incurred and the costs to complete the contract can be measured reliably. Revenue generated from conveyancing referrals is recognised once the referred conveyancing work has been completed by the customer, as the contractual terms of referrals set, state that referral revenues are only due once the contract has been completed in full. Revenue generatecd from legal conveyancing services performed are recognised on a % completion basis as legal work is performed on individual cases. Amounts for works completed but not billed by the year end are recognised in amounts recoverable on contracts. Provisions are made for any amounts that are not considered to be recoverable from customers.
| 2.5 | Operating leases: the Group as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
| 2.6 | Research and development
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years. If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
| 2.7 | Interest income
Interest income is recognised in profit or loss using the effective interest method. Page 18
SORT GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.8 | 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.
| 2.9 | Pensions
Defined contribution pension plan The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.
| 2.10 | 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 balance sheet date in the countries where the Company and the Group operate and generate income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet 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 balance sheet date. Page 19
SORT GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.11 | Intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. Amortisation is provided on the following bases:
|  |  |  | Website development | - | 10% | straight line
|  |  |  | Software | - | 33% | straight line
|  |  |  | Goodwill | - | 20% | straight line
Amortisation is only charged on intangible assets when these become available for use. Assets under construction are not amortised until available for use as a result.
| 2.12 | 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. At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following basis. Depreciation is provided on the following basis:
|  |  |  | Fixtures and fittings | - | 33% | Reducing balance
|  |  |  | Office equipment | - | 33% | Straight line
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.
| 2.13 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment. Page 20
SORT GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.14 | 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.
| 2.15 | 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.
| 2.16 | 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.
| 2.17 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Deferred tax liabilities are also presented within provisions but are measured in accordance with the accounting policy on taxation. Increases in provisions are generally charged as an expense to profit or loss.
| 2.18 | Financial instruments
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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, with 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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) 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 Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Impairment of financial assets Page 21
SORT GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.18 | Financial instruments (continued)
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. 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 the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Derecognition of financial instruments Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained. Derecognition of financial liabilities Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled. Page 22
SORT GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
3. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Conveyancing referral income | 8,675,230 | 7,694,493
| Legal conveyancing services | 3,925,455 | 3,168,032
|  | 12,600,685 | 10,862,525
| All turnover arose within the United Kingdom.
4. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Research & development charged as an expense | 193,678 | -
| Depreciation | 64,216 | 58,130
| Amortisation | 75,909 | 68,647
| Other operating lease rentals | 132,457 | 124,443
5. | Auditors' remuneration
| During the year, the Group obtained the following services from the Company's auditors:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements | 20,000 | 20,000
Page 23
SORT GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
6. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Wages and salaries | 3,801,865 | 3,007,022
| Social security costs | 390,245 | 304,554
| Cost of defined contribution scheme | 136,470 | 103,683
|  | 4,328,580 | 3,415,259
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | Group | Group | Company | Company
|  |  | 2024 | 2023 | 2024 | 2023
|  |  | No. | No. | No. | No.
|  | Employees | 100 | 87 | 3 | 3
7. | Directors' remuneration
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Directors' emoluments | 290,200 | 127,650
| Group contributions to defined contribution pension schemes | 19,600 | 7,113
| Amounts paid to third parties in respect of directors' services | - | 117,050
|  | 309,800 | 251,813
| During the year retirement benefits were accruing to 2 directors (2023 - 1) in respect of defined contribution pension schemes.
| The highest paid director received remuneration of £155,400 (2023 - £127,650).
| The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £10,500 (2023 - £7,113).
8. | Interest receivable
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Other interest receivable | 165,978 | 50,023
Page 24
SORT GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
9. | Interest payable and similar expenses
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Shareholder loan interest payable | - | 20,015
10. | Taxation
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 216,076 | 186,344
| Adjustments in respect of previous periods | (18,936) | -
| Total current tax | 197,140 | 186,344
| Deferred tax |  |
| Origination and reversal of timing differences | 44,859 | 72,227
| Adjustments in respect of previous periods | 115 | -
| Total deferred tax | 44,974 | 72,227
| Tax on profit | 242,114 | 258,571
Page 25
SORT GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 10.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.52%). The differences are explained below:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 1,106,219 | 787,589
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%) | 276,555 | 185,241
| Effects of: |  |
| Fixed asset differences | 190 | 219
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 26,814 | 13,737
| Additional deduction for R&D expenditure | (41,641) | -
| Remeasurement of deferred tax for changes in tax rates | - | 1,092
| Movement in deferred tax not recognised | (983) | 58,282
| Adjustments in respect of previous periods | (18,821) | -
| Total tax charge for the year | 242,114 | 258,571
Page 26
SORT GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 10.Taxation (continued)
| Factors that may affect future tax charges
There were no factors that may affect future tax charges.
11. | Intangible assets
| Group
|  | Asset under construction | Website development | Computer software | Goodwill | Total
|  | £ | £ | £ | £ | £
| Cost |  |  |  |  |
| At 1 January 2024 | 46,438 | 647,595 | 29,550 | 1,187,940 | 1,911,523
| Additions | 220,918 | - | 2,030 | - | 222,948
| Disposals | - | (8,722) | - | - | (8,722)
| Transfer between categories | (73,856) | 73,856 | - | - | -
| At 31 December 2024 | 193,500 | 712,729 | 31,580 | 1,187,940 | 2,125,749
| Amortisation |  |  |  |  |
| At 1 January 2024 | - | 172,646 | 13,839 | 1,187,940 | 1,374,425
| Charge for the year on owned assets | - | 65,990 | 9,919 | - | 75,909
| On disposals | - | (4,288) | - | - | (4,288)
| At 31 December 2024 | - | 234,348 | 23,758 | 1,187,940 | 1,446,046
| Net book value |  |  |  |  |
| At 31 December 2024 | 193,500 | 478,381 | 7,822 | - | 679,703
| At 31 December 2023 | 46,438 | 474,949 | 15,711 | - | 537,098
Page 27
SORT GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
12. | Tangible fixed assets
| Group
|  | Fixtures and fittings | Office equipment | Total
|  | £ | £ | £
| Cost |  |  |
| At 1 January 2024 | 163,318 | 81,602 | 244,920
| Additions | 77,679 | 30,820 | 108,499
| At 31 December 2024 | 240,997 | 112,422 | 353,419
| Depreciation |  |  |
| At 1 January 2024 | 64,349 | 60,553 | 124,902
| Charge for the year on owned assets | 45,932 | 18,284 | 64,216
| At 31 December 2024 | 110,281 | 78,837 | 189,118
| Net book value |  |  |
| At 31 December 2024 | 130,716 | 33,585 | 164,301
| At 31 December 2023 | 98,969 | 21,049 | 120,018
13. | Fixed asset investments
| Company
|  | Investments in subsidiary companies
|  | £
| Cost or valuation |
| At 1 January 2024 | 1,116,564
| At 31 December 2024 | 1,116,564
Page 28
SORT GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
| Subsidiary undertakings
| The following were subsidiary undertakings of the Company:
| Name | Registered office | Class of shares | Holding
| Sort Limited | Burdsall House, Derby Conference Centre, Derby, Derbyshire, DE24 8UX | Ordinary | 100%
| Sort Legal Limited | Burdsall House, Derby Conference Centre, Derby, Derbyshire, DE24 8UX | Ordinary | 100%
14. | Debtors
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Non-current |  |  |  |
| Amounts owed by group undertakings | - | - | 905,644 | 905,594
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Current |  |
| Trade debtors | 352,622 | 243,341
| Other debtors | 44,045 | 22,650
| Prepayments and accrued income | 241,528 | 182,352
| Amounts recoverable on long-term contracts | 449,998 | 311,781
|  | 1,088,193 | 760,124
| Amounts owed by group undertakings are unsecured, interest free and repayable on demand. Where amounts owed from fellow group undertakings are not anticipated to be repaid within 12 months and so these are shown as due after more than one year to reflect the actual substance of the debtor. Trade debtors are stated after bad debt provisions of £329 (2023: £4,796).
15. | Cash and cash equivalents
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Cash at bank and in hand | 2,907,338 | 2,294,233 | 999 | 1,257
Page 29
SORT GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
16. | Creditors: Amounts falling due within one year
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Trade creditors | 59,506 | 252,072 | - | -
| Amounts owed to group undertakings | - | - | 778,289 | 772,289
| Corporation tax | 100,155 | 61,549 | - | -
| Other taxation and social security | 542,469 | 329,172 | - | -
| Other creditors | 23,396 | 17,781 | - | -
| Accruals and deferred income | 412,893 | 258,862 | 5,760 | 3,150
|  | 1,138,419 | 919,436 | 784,049 | 775,439
| Amounts owed to group undertakings are interest free and repayable on demand.
Page 30
SORT GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
17. | Deferred taxation
| Group
|  | 2024
|  | £
| At beginning of year | (148,827)
| Charged to profit or loss | (44,974)
| At end of year | (193,801)
| Company
|  | 2024
| At beginning of year | -
| At end of year | -
| The provision for deferred taxation is made up as follows:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Fixed asset timing differences | (195,979) | (150,364)
| Short term timing differences | 2,178 | 1,537
|  | (193,801) | (148,827)
| The expected reversal of deferred tax is not anticipated to be material.
18. | Share capital
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 10,000 (2023 - 10,000) Ordinary shares of £0.01 each | 100 | 100
|  | 120 (2023 - 120) Exit shares of £0.01 each | 1 | 1
|  |  | 101 | 101
| The ordinary shares have full voting rights, rights to dividends, distributions and return on capital. The exit shares have no voting rights, no rights to dividends and only a right to return on capital subsequent to ordinary shares being paid in full.
Page 31
SORT GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
19. | Reserves
Share premium account Represents a non-distributable reserve which is the difference between consideration received and the nominal value of issued shares, less any related issue costs incurred. Profit and loss account Represents distributable accumulated retained profits and losses.
20. | Pension commitments
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £136,470 (2023 - £103,683). Contributions totalling £23,396 (2023 - £17,781) were payable to the fund at the balance sheet date and are included in creditors.
21. | Commitments under operating leases
| At 31 December 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Not later than 1 year | 120,120 | 77,981
| Later than 1 year and not later than 5 years | 146,393 | -
|  | 266,513 | 77,981
| The parent company had no commitments under non-cancellable operating leases at the balance sheet date.
22. | Related party transactions
| The Group paid £55,343 (2023: £48,793) of remuneration to close family members of the Directors during the course of the year. The Group paid £NIL (2023: £117,050) to a Company with Directors in common, for Director services provided during the year. The Group is owed £20,000 (2023: £20,000) from K Tunnicliffe (Director and majority shareholder), recognised in other debtors. No additional amounts were advanced or repaid by the director in the current or prior year. The amounts owed are unsecured, interest free and repayable on demand. The Group has loaned £11,589 to a Company with directors in common, recognised in other debtors. The amounts owed are interest free and repayable on demand.
Page 32
SORT GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
23. | Controlling party
Kevin Tunnicliffe is the ultimate owner of the Company by virtue of his majority shareholding.
Page 33