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Sounds like a fair bit of work there. As a comparison, my last service there was about £400, but didn't have the chain/sprocket, brake pads or belt change (just the parts for those are nearly £300+VAT). Not cheap, but I don't bemoan skilled people who are good at what they do making a living. They may be a "small operation" but still have the costs of premises and other operating costs (insurance, etc) in London, and no sales/accessories side to prop it up.
Parts prices seem a little expensive compared to a quick search online but I doubt they spend their time sourcing bits from random shops on the web and getting them posted - it'll be whoever can deliver promptly so they can get the job done. From what I've heard they're happy for you to supply you own bits if you want.
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