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Registered number: 08235569
Social Communications Group Limited
Unaudited
Directors' Report and Financial Statements
For the Year Ended 31 October 2022
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Social Communications Group Limited
Company Information
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C Cross (resigned 28 February 2022)
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R H V Luke (resigned 19 May 2023)
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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 2022
The directors present their report and the financial statements for the year ended 31 October 2022.
The principal activity of the company during the year under review was that of public relations and communications consultancy.
The year to 31 October 2022 financial year can overall be judged as successful.
The ongoing effects of the Covid 19 pandemic were absorbed and the company turnover held constant year on year while successfully increasing gross profit margins. We achieved this in conjunction with increased overheads, as we proactively developed and invested in new income streams for the year 2023.
The company took a strong view of maintaining liquidity with net current assets which remained constant year on year, and which confirm the strength and stability of the company's operations, together coupled with strong cash balances.
The company continues to look at not only commercial opportunities, but also fiscal and structural opportunities, to strengthen our operating base, which is driven towards efficiency and profitability. Such efforts coincide with undoubted inflationary pressures that exist within the economy. Within this financial year, we accepted an offer for our Bristol division which is included in these accounts.
We are proud to announce that in May, PR Week recognised the company as one of the best B2B agencies in the UK and the 20th best agency outside of the UK. The company was also announced as one of the leading ESG practices in the UK.
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 inflationary pressures that exist within the economy, but to also help it to continue to grow. Their dedication and commitment have been vital to our overall success.
The company is equally proud that the commercial performance 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 third annual Impact Report to be published in parallel to this report and accessible via the company website.
We were delighted to receive B Corp accreditation in September 2022 which further reinforces our focus and commitment to have a material positive impact on society and the environment.
We also secured Great Place to Work certification in November 2021 and were ranked 16th in its list of Best UK Workplaces 2022 in the small business category (April 2022). In July 2022 we were placed 20th in its list of best UK Workplaces for Women (small business category).
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 2022
The directors who served during the year were:
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C Cross (resigned 28 February 2022)
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R H V Luke (resigned 19 May 2023)
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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
Statement of Comprehensive Income
For the Year Ended 31 October 2022
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Interest receivable and similar income
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Interest payable and similar expenses
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(Loss)/profit for the financial year
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Other comprehensive income for the year
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Total comprehensive income for the year
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The notes on pages 7 to 14 form part of these financial statements.
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Social Communications Group Limited
Registered number: 08235569
Balance Sheet
As at 31 October 2022
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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 2022
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 7 to 14 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 2022
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Comprehensive income for the year
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Other comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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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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Other comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Shares cancelled during the year
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Total transactions with owners
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The notes on pages 7 to 14 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 2022
Social Communications Group Limited is a private company, limited by shares and incorporated in England & Wales. The address of the registered office is Lancashire Gate, 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.
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.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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Social Communications Group Limited
Notes to the Financial Statements
For the Year Ended 31 October 2022
2.Accounting policies (continued)
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 2022
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 2022
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 52 (2021 - 49).
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Social Communications Group Limited
Notes to the Financial Statements
For the Year Ended 31 October 2022
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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 2022
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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 2022
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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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Social Communications Group Limited
Notes to the Financial Statements
For the Year Ended 31 October 2022
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On 31 May 2022 operations of Social Communications (Bristol) Limited were discontinued, all attributable turnover and costs have been allocated directly to this activity. The bases of allocation are consistent with the way in which such underlying costs have been allocated within internal accounting purposes.
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Profit on disposal before tax
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The net inflow of cash in respect of the sale of Social Communications (Bristol) Limited is as follows:
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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 £61,640 (2021: £41,830). Contributions totalling £7,917 (2021: £7,891) were payable to the fund at the balance sheet date.
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Commitments under operating leases
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At 31 October 2022 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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