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Registered number: 08235569
Social Communications Group Limited
Unaudited
Directors' Report and Financial Statements
For the Year Ended 31 October 2021
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Social Communications Group Limited
Company Information
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C Cross (appointed 1 November 2020)
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Hurst Accountants Limited
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Social Communications Group Limited
Contents
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Statement of Comprehensive Income
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Statement of Changes in Equity
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Notes to the Financial Statements
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Social Communications Group Limited
Directors' Report
For the Year Ended 31 October 2021
The directors present their report and the financial statements for the year ended 31 October 2021.
The principal activity of the company during the year under review was that of public relations and communications consultancy.
The year to 31 October 2021 marked another year of significant growth for the company, composed of both organic growth of the pre-existing business and the encouraging performance of four new divisions established during the year.
Turnover grew over 32% in comparison to the year to 31 October 2020, exceeding £3.4m, and this was achieved at a similar level of pre-tax profitability at 5%.
The company is pleased to record this level of performance in another year impacted by a level of disruption, risk and uncertainty associated with the COVID-19 pandemic. The company recognises with gratitude the Government support of £2,989 received during the period.
The company also reflects with appreciation on the resilience and flexibility of the whole Social team who have worked tirelessly not only to safeguard the business in the face of the challenges of this period but moreover to seize proactively the opportunities to grow our existing teams and increase our client portfolio. The total number of colleagues employed increased by 7 over the period, from 42 to 49.
Particularly noteworthy is the establishment and early-stage growth of four new divisions: three specialist communications practices (Social Invest, Social Net Zero and Social Tech Communications) and a new regional office serving Merseyside, Lancashire, and Cumbria. Each has performed well in relation to our expectations, and we are optimistic for the continued growth of each during the year ahead, as we are for the transition of our in-house creative team to a dedicated client-facing creative consultancy under its own, new brand.
Consistent with these growth ambitions the company has again opted not to pay any dividends during the period and to retain earnings to underpin the investments made.
The company is equally proud that the commercial performance above goes hand in hand with further important achievements aimed at delivering positive social and environmental impact in line with the company’s objects as updated in October 2020: to promote the success of the company for the benefit of its members as a whole and, through its business and operations, to have a material positive impact on society and the environment, taken as a whole.
The detail of our continued significant progress in these regards is set out in our second annual Impact Report to be published in parallel to this report and accessible via the company website. We are also optimistic about achieving in the months to come our aspiration of accreditation as a certified B Corporation. Our application to B Corp was submitted in December 2020 and given huge demand among organisations for accreditation, as of 31 October 2021 we were still waiting to undergo the verification process.
Finally, the company remains strongly committed to its ambitious three-year plan for the period from November 2020 – October 2023. This foresees continued strong organic growth and sets out a determination to deliver growth through acquisition and the realisation of a vision of a purpose-driven communications group made up of an integrated family of specialist communications consultancies.
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Social Communications Group Limited
Directors' Report (continued)
For the Year Ended 31 October 2021
The directors who served during the year were:
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C Cross (appointed 1 November 2020)
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In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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J P Quinton-Barber
Director
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Social Communications Group Limited
Chartered Accountants' Report to the Board of Directors on the preparation of the Unaudited Statutory Financial Statements of Social Communications Group Limited for the Year Ended 31 October 2021
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Social Communications Group Limited for the year ended 31 October 2021 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes from the Company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made solely to the Board of Directors of Social Communications Group Limited , as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of Social Communications Group Limited and state those matters that we have agreed to state to the Board of Directors of Social Communications Group Limited , as a body, in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Social Communications Group Limited and its Board of Directors, as a body, for our work or for this report.
It is your duty to ensure that Social Communications Group Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Social Communications Group Limited. You consider that Social Communications Group Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or review of the financial statements of Social Communications Group Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Hurst Accountants Limited
Chartered Accountants
Lancashire Gate
21 Tiviot Dale
Stockport
SK1 1TD
18 February 2022
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Social Communications Group Limited
Statement of Comprehensive Income
For the Year Ended 31 October 2021
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial year
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There were no recognised gains and losses for 2021 or 2020 other than those included in the statement of comprehensive income.
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There was no other comprehensive income for 2021 (2020:£NIL).
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The notes on pages 8 to 15 form part of these financial statements.
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Social Communications Group Limited
Registered number: 08235569
Balance Sheet
As at 31 October 2021
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
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Social Communications Group Limited
Registered number: 08235569
Balance Sheet (continued)
As at 31 October 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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J P Quinton-Barber
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The notes on pages 8 to 15 form part of these financial statements.
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Social Communications Group Limited
Statement of Changes in Equity
For the Year Ended 31 October 2021
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Comprehensive income for the year
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Total comprehensive income for the year
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Shares issued during the year
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Total transactions with owners
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Comprehensive income for the year
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Total comprehensive income for the year
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Shares issued during the year
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Total transactions with owners
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The notes on pages 8 to 15 form part of these financial statements.
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Social Communications Group Limited
Notes to the Financial Statements
For the Year Ended 31 October 2021
Social Communications Group Limited is a private company, limited by shares and incorporated in England & Wales. The address of the registered office is 21 Tiviot Dale, Stockport, SK1 1TD.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
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 Company 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.
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Operating leases: the Company as lessee
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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.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
Interest income is recognised in profit or loss using the effective interest method.
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.
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Social Communications Group Limited
Notes to the Financial Statements
For the Year Ended 31 October 2021
2.Accounting policies (continued)
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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Current and deferred taxation
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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 operates and generates 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.
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.
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:
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Social Communications Group Limited
Notes to the Financial Statements
For the Year Ended 31 October 2021
2.Accounting policies (continued)
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.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
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Fixtures, fittings and equipment
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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.
Investments in subsidiaries are measured at cost less accumulated impairment.
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.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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.
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Social Communications Group Limited
Notes to the Financial Statements
For the Year Ended 31 October 2021
2.Accounting policies (continued)
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
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The average monthly number of employees, including directors, during the year was 49 (2020 - 40).
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Social Communications Group Limited
Notes to the Financial Statements
For the Year Ended 31 October 2021
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Shares in group undertakings and participating interests
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Social Communications Group Limited
Notes to the Financial Statements
For the Year Ended 31 October 2021
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Prepayments and accrued income
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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A bank loan is secured by a fixed & floating charge over the assets of the company.
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Creditors: Amounts falling due after more than one year
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A bank loan is secured by a fixed & floating charge over the assets of the company.
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Social Communications Group Limited
Notes to the Financial Statements
For the Year Ended 31 October 2021
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £41,830 (2020: £53,251). Contributions totalling £7,891 (2020: £nil) were payable to the fund at the balance sheet date.
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Social Communications Group Limited
Notes to the Financial Statements
For the Year Ended 31 October 2021
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Commitments under operating leases
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At 31 October 2021 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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