Cumming Management Group UK Ltd - Limited company accounts 20.1

REGISTERED NUMBER: 07652159 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements For The Period 1 June 2020 to 31 December 2020

for

Cumming Management Group UK Ltd

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

14

DIRECTORS:

D Hutchison

A A Jajeh

F McLay

REGISTERED OFFICE:

4 St. Paul's Churchyard

London

EC4M 8AY

REGISTERED NUMBER:

07652159 (England and Wales)

INDEPENDENT AUDITORS:

Robb Ferguson

Chartered Accountants & Statutory Auditors

Regent Court

70 West Regent Street

Glasgow

G2 2QZ

The directors present their strategic report for the period 1 June 2020 to 31 December 2020.

Business review

The Company changed its year-end accounting date to align with the other Cumming Management Group companies. Given the onset of the COVID-19 global pandemic and the impact of the lockdowns on the UK Economy, the Directors are pleased with the Company's performance and the with the results reported for the period. The lockdowns had an impact on revenues, however careful management of costs has resulted in the percentage rate of net profit margin being maintained at the 2019/2020 levels.

The Company is a wholly owned subsidiary of Cumming Europe Limited which in turn is a wholly owned subsidiary of the Cumming Management Group - an international project and cost management firm operating out of the US. With a Group headcount of 950 across 35 offices, and with clients of all sizes in most sectors, the Company is able to tap into a wealth of expertise and resource. Together with the other UK subsidiaries, Cumming Management Group UK Limited is already seeing the benefits of being part of the Cumming Group and is able to continue to provide a solutions-oriented suite of services to new and existing clients.

Principal risks and uncertainties

The process of risk acceptance and risk management is addressed through internal controls and policies discussed and adopted through Board approval and ongoing review by management. The Board is responsible for satisfying itself that adequate internal controls are in place to manage financial risks and that controls operate effectively. The Board identify the risks that each business activity, and the Company as a whole, is exposed to and their impact on business performance. This Board decision making process takes places through formal meetings and is risk based, focusing on ensuring we have the financial strength and capital adequacy to support the growth of the business.

Primarily the business is exposed to the following risks and uncertainties:

Economic Conditions

Revenue is highly sensitive to the economic conditions of the property sector and due to the wide nature of sectors in which our clients operate, our financial success is directly relatable to the general economic climate.

People

One of the principal risks to our business arises from people management. We operate in a sector that has a highly competitive and financially motivated workforce. We look to incentivise the team through competitive financial packages and motivational structures, offering experience opportunities as well as financial reward on apar if not better than competition. There is a constant and continued effort to manage employment costs and issues in order to reduce the impact of an adverse effect on business performance.

Brand and reputation

Our brand and reputation in the market presents opportunity for the business. Erosion of the brand, through either a single event, or series of events, may adversely impact our relationship and influence with clients and ultimately affect our future revenue and profitability. The management team regularly monitors client satisfaction by engaging with clients on project progress in order to mitigate the risk.

Market and competition

The market in which we operate is highly competitive. We face direct competition from businesses of a similar size as well as larger players in the market. Some competitors have differing cost structures which offers a variant pricing strategy that we need to be mindful of. We continue to address this risk by reviewing fee structures on an ongoing basis.

Covid-19

As the COVID-19 lockdown measures came into force, we transitioned our team members to remote working and continued supporting our clients with their projects. Through closely working with our clients on making tasks and meetings online or virtual, we have been able to maintain high levels of productivity through these challenging times.

The company continues to monitor the impact of the global pandemic both in the UK and across the world and it continues to take appropriate measures to ensure the cost base is aligned to expected levels of turnover.

Financial key performance indicators

The Board monitors the activities and performance of the Company on a regular basis. The Board uses both financial and non-financial indicators based on a rolling forecast, budget versus actual and prior years to assess the performance of the Company. The financial indicators set out below were used during the period ended 31 December 2020 and will continue to be used by the Board to assess performance over the year to 31 December 2021.

With reduced activity due to the global pandemic, on an annualised basis, profitability is down by approximately 16% on the monthly run rate achieved in the year to 31 May 2020. This position mirrors a similar reduction in the monthly run rate of turnover when comparing the current accounting period against the 12 months to 31 May 2020. Careful control of the cost base has however delivered a small uplift in operating margins (29.4% for the period versus 28.9% for the year ended 31 May 2020).

The Company's cash position continues to be strong. Cashflow and the components of working capital are continuously monitored by the Company. Debtors are monitored continually and debtor days, annualised at the balance sheet date stand at 60, up 10 days on the 31 May 2020 position. Notwithstanding the increase, the average debtor days figure at the balance sheet date confirms that the Company is effective in its management of cash flow.

ON BEHALF OF THE BOARD:

A A Jajeh - Director

29 September 2021

The directors present their report with the financial statements of the company for the period 1 June 2020 to 31 December 2020.

DIVIDENDS

No dividends will be distributed for the period ended 31 December 2020.

EVENTS SINCE THE END OF THE PERIOD

Information relating to events since the end of the period is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 June 2020 to the date of this report.

D Hutchison

A A Jajeh

Other changes in directors holding office are as follows:

F McLay was appointed as a director after 31 December 2020 but prior to the date of this report.

W J H Smith ceased to be a director after 31 December 2020 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Robb Ferguson, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A A Jajeh - Director

29 September 2021

Opinion

We have audited the financial statements of Cumming Management Group UK Ltd (the 'company') for the period ended 31 December 2020 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, 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 company's affairs as at 31 December 2020 and of its profit for the period then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Opinions 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the group or parent company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. The group auditor remains solely responsible for our audit opinion.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Janice Alexander (Senior Statutory Auditor)

for and on behalf of Robb Ferguson

Chartered Accountants & Statutory Auditors

Regent Court

70 West Regent Street

Glasgow

G2 2QZ

29 September 2021

TURNOVER

3

6,792,806

13,927,661

Cost of sales

371,230

1,524,855

GROSS PROFIT

6,421,576

12,402,806

Administrative expenses

4,510,281

8,413,137

1,911,295

3,989,669

Other operating income

87,052

47,754

OPERATING PROFIT

5

1,998,347

4,037,423

Interest receivable and similar income

15

1,665

1,998,362

4,039,088

Interest payable and similar expenses

6

-

9,363

PROFIT BEFORE TAXATION

1,998,362

4,029,725

Tax on profit

7

374,698

889,750

PROFIT FOR THE FINANCIAL PERIOD

1,623,664

3,139,975

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

1,623,664

3,139,975

FIXED ASSETS

Intangible assets

8

15,426

23,737

Tangible assets

9

350,517

473,980

365,943

497,717

CURRENT ASSETS

Debtors

10

6,816,173

4,721,535

Cash at bank

1,118,461

991,906

7,934,634

5,713,441

CREDITORS

Amounts falling due within one year

11

2,803,169

2,337,414

NET CURRENT ASSETS

5,131,465

3,376,027

TOTAL ASSETS LESS CURRENT LIABILITIES

5,497,408

3,873,744

CAPITAL AND RESERVES

Called up share capital

13

1,005

1,005

Share premium

14

146,467

146,467

Retained earnings

14

5,349,936

3,726,272

SHAREHOLDERS' FUNDS

5,497,408

3,873,744

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2021 and were signed on its behalf by:

A A Jajeh - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 June 2019

993

586,297

115,303

702,593

Changes in equity

Issue of share capital

12

-

31,164

31,176

Total comprehensive income

-

3,139,975

-

3,139,975

Balance at 31 May 2020

1,005

3,726,272

146,467

3,873,744

Changes in equity

Total comprehensive income

-

1,623,664

-

1,623,664

Balance at 31 December 2020

1,005

5,349,936

146,467

5,497,408

Cash flows from operating activities

Cash generated from operations

1

466,796

(547,397

)

Interest paid

-

(9,363

)

Tax paid

(309,291

)

(778,821

)

Net cash from operating activities

157,505

(1,335,581

)

Cash flows from investing activities

Purchase of intangible fixed assets

-

(12,582

)

Purchase of tangible fixed assets

(30,965

)

(34,440

)

Sale of tangible fixed assets

-

39,295

Interest received

15

1,665

Net cash from investing activities

(30,950

)

(6,062

)

Cash flows from financing activities

Share issue

-

31,177

Net cash from financing activities

-

31,177

Increase/(decrease) in cash and cash equivalents

126,555

(1,310,466

)

Cash and cash equivalents at beginning of period

2

991,906

2,302,372

Cash and cash equivalents at end of period

2

1,118,461

991,906

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

1.6.20

to

Year Ended

31.12.20

31.5.20

£

£

Profit before taxation

1,998,362

4,029,725

Depreciation charges

162,721

277,360

Finance costs

-

9,363

Finance income

(15

)

(1,665

)

2,161,068

4,314,783

Increase in trade and other debtors

(2,094,637

)

(2,412,888

)

Increase/(decrease) in trade and other creditors

400,365

(2,449,292

)

Cash generated from operations

466,796

(547,397

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Period ended 31 December 2020

31.12.20

1.6.20

£

£

Cash and cash equivalents

1,118,461

991,906

Year ended 31 May 2020

31.5.20

1.6.19

£

£

Cash and cash equivalents

991,906

2,302,372

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.6.20

Cash flow

At 31.12.20

£

£

£

Net cash

Cash at bank

991,906

126,555

1,118,461

991,906

126,555

1,118,461

Total

991,906

126,555

1,118,461

1.	STATUTORY INFORMATION

Cumming Management Group UK Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The Company has sufficient cash resources at the date of signing the financial statements to continue trading for the foreseeable future.

Management acknowledge that the adverse economic impacts of COVID-19 may bring the Company some uncertainty over the next 12 months. However, management assess the Company to be a going concern due to the Company having taken the necessary actions to manage these risks.

On the basis of the Directors' assessment of the Company's financial position including considerations regarding the potential impact of the COVID-19 virus, the Directors' have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Revenue

Revenue is recognised to the extent that is probable that the economic benefits will flow to the Company and the revenue can 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 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 received 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.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

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.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Leasehold improvements

-

20% on cost

Office equipment

-

20% on cost

Fixtures and fittings

-

20% on cost

Computer equipment

-

33.33% on cost and 20% on cost

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 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.

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

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.

Financial instruments

The Company has chosen to adopt Section 11 of FRS 102 in respect of financial instruments. The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as trade and other accounts receivable and payable and amounts owed to related parties.

i) Financial assets

Basic financial assets, represented by trade debtors, cash and bank balances and other debtors, are initially recognised at transaction price and 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

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 derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

ii) Financial liabilities

Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price, unless the arrangement constitutes a financial transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year. 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.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Defined contribution pension plan

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

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

Cash

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty or notice.

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

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

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

Dividends

Dividends to the Company's shareholders are recognised as a liability in the financial statements in the period in which the dividends are approved by the Company's shareholders. These amounts are recognised in the statement of changes in equity.

Share based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each Statement of Financial Position date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).

Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.

Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

Operating leases: the company 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.

Government grants

Grants are accounted under the accruals model as permitted by FRS 102.

Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

Employee benefits

The Company provides a range of benefits to employees, including annual bonus arrangements and paid holiday arrangements.

Short term benefits including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

Interest income

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

Provision for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Statement of comprehensive income in the year that the Company becomes aware of the obligation, and are measured al the best estimate at the date Statement of Financial Position of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

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.

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.

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Statement of Financial Position date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Statement of Financial Position date.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

Period

1.6.20

to

Year Ended

31.12.20

31.5.20

£

£

Consulting income

6,616,082

13,714,349

Rechargeable expenses

176,724

213,312

6,792,806

13,927,661

4.	EMPLOYEES AND DIRECTORS

Period

1.6.20

to

Year Ended

31.12.20

31.5.20

£

£

Wages and salaries

3,011,861

5,030,373

Social security costs

330,245

606,320

Other pension costs

99,983

164,319

3,442,089

5,801,012

The average number of employees during the period was as follows:

Period

1.6.20

to

Year Ended

31.12.20

31.5.20

Directors

3

3

Professional

65

62

Support

8

8

76

73

Period

1.6.20

to

Year Ended

31.12.20

31.5.20

£

£

Directors' remuneration

-

295,318

The highest paid director in the period to 31 December 2020 received remuneration of £nil (31 May 2020): £84,579).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director in the period to 31 December 2020 amounted to £nil (31 May 2020: £3,383).

Key management personnel compensation in the period to 31 December 2020 totalled £461,500 ( 31 May 2020: £295,318).

5.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1.6.20

to

Year Ended

31.12.20

31.5.20

£

£

Depreciation - owned assets

154,428

281,802

Computer software amortisation

8,311

13,962

Auditors' remuneration

16,800

16,800

Foreign exchange differences

2,783

598

Impairment of loan

-

25,000

Other operating lease rentals

344,329

641,166

Defined contribution pension cost

99,988

161,948

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1.6.20

to

Year Ended

31.12.20

31.5.20

£

£

Bank loan interest

-

9,363

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the period was as follows:

Period

1.6.20

to

Year Ended

31.12.20

31.5.20

£

£

Current tax:

UK corporation tax

374,698

889,750

Tax on profit

374,698

889,750

UK corporation tax has been charged at 19% (2020 - 19%).