REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2022 |
FOR |
FORETWO GROUP LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2022 |
FOR |
FORETWO GROUP LIMITED |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 30th June 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Profit and Loss Account | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Financial Statements | 14 |
FORETWO GROUP LIMITED |
COMPANY INFORMATION |
for the Year Ended 30th June 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
1 City Road East |
Manchester |
M15 4PN |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
STRATEGIC REPORT |
for the Year Ended 30th June 2022 |
The directors present their strategic report for the year ended 30th June 2022. |
REVIEW OF BUSINESS |
The Company has continued its principal activities of outsourced employment, payroll and accountancy services to the temporary labour and contractor market. With continued growth, the turnover has increased from £59,243,322 in 2021 to £86,477,082. This is due to a larger base of contractors using the Company's services. As in the prior year, the Company has diligently increased head count in the Sales team to drive further growth and incrementally increased head count in all other areas of the business to ensure excellent delivery, as well as the introduction of a new Customer Success team. |
The Company has generated trading profits which exceeded the forecast for the reporting period and the directors expect this growth to continue. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors have assessed the principal risks to the business and in their assessment these risks are legislative changes in the temporary labour market and changes in tax legislation. The Company ensures it monitors any proposed and impending updates and is agile in its response to make good all changes that may be required. |
The company takes a proactive, moral and ethical approach to how its treats its clients and contractors to ensure there is no material exposure to reputational or financial risk associated with how some companies in the market operate. |
The company, as a member of the sectors most highly respected trade association, is tested and held to account annually on adherence to a strict code of conduct for both UK tax legislation and UK employment law. |
The directors believe that with a proactive approach to tackling changes in legislation, these risks and uncertainties can present opportunities in the market to further grow the business. |
RESULTS & KEY PERFORMANCE INDICATORS |
2022 | 2021 |
000's | 000's |
Turnover | £86,477 | £59,243 |
Cost of Sales | £85,386 | £58,839 |
Gross Profit | £1,091 | £404 |
Cash at Bank | £6,213 | £4,363 |
Gross profits have increased in the year by £686,562 with gross profit margin remaining around the same at the 0.5% mark. Company has maintained operating costs at a similar level to the prior reporting period despite its operating activities having increased due to increased volumes of contractors using the Company's services |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
STRATEGIC REPORT |
for the Year Ended 30th June 2022 |
FUTURE DEVELOPMENTS & COMPANY STRATEGY |
The Company is committed to delivering against its core values of providing excellent service levels to all commercial stakeholders, upholding strict compliance standards whilst increasing its portfolio of new clients and further developing business from existing clients. In conjunction with investing in employee training, development, and engagement, it is through this combined approach with accurate annual budgets and forecasts that the directors believe the coming year will yield strong, continued profitable growth. |
ON BEHALF OF THE BOARD: |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
REPORT OF THE DIRECTORS |
for the Year Ended 30th June 2022 |
The directors present their report with the financial statements of the company for the year ended 30th June 2022. |
DIVIDENDS |
No dividends will be distributed for the year ended 30th June 2022. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st July 2021 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), 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 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. |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
REPORT OF THE DIRECTORS |
for the Year Ended 30th June 2022 |
AUDITORS |
Xeinadin Audit Limited acquired the audit practice of Kay Johnson Gee Limited and has been appointed as auditor in succession. In accordance with section 485 of the Companies Act 2006, Xeinadin Audit Limited will be proposed for reappointment. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FORETWO GROUP LIMITED |
Opinion |
We have audited the financial statements of Foretwo Group Limited (the 'company') for the year ended 30th June 2022 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and 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 30th June 2022 and of its 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FORETWO GROUP LIMITED |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FORETWO GROUP LIMITED |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following: |
- | The nature of the industry and sector, control environment and business performance including the company's remuneration policies, key drivers for directors remuneration, bonus levels and performance targets; |
- | Results of the enquiries of management about their own identification and assessment of the risks of irregularities; |
- | Any matters we have identified having obtained and reviewed the company's documentation of their policies and procedures relating to: |
- | identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; |
- | detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- | the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- | the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of income, and going concern. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, environmental laws, employment law, health and safety, pensions legislation and tax legislation. |
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. |
Audit response to risks identified |
Our procedures to respond to risks identified included the following: |
- | reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- | enquiring of management concerning actual and potential litigation and claims; |
- | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- | reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and |
- | in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FORETWO GROUP LIMITED |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). |
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. |
for and on behalf of |
1 City Road East |
Manchester |
M15 4PN |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
PROFIT AND LOSS ACCOUNT |
for the Year Ended 30th June 2022 |
Period |
1/2/20 |
Year ended | to |
30/6/22 | 30/6/21 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
111,899 | (500,762 | ) |
Other operating income |
OPERATING PROFIT/(LOSS) and |
PROFIT/(LOSS) BEFORE TAXATION | ( |
) |
Tax on profit/(loss) | 7 | ( |
) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR | ( |
) |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
BALANCE SHEET |
30th June 2022 |
2022 | 2021 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
CURRENT ASSETS |
Debtors | 10 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 11 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 13 |
Retained earnings | 14 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
The financial statements were approved by the Board of Directors and authorised for issue on |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 30th June 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st February 2020 | ( |
) | ( |
) |
Deficit for the period | - | (10,181 | ) | (10,181 | ) |
Total comprehensive loss | - | ( |
) | ( |
) |
Balance at 30th June 2021 | ( |
) | ( |
) |
Profit for the year | - | 169,483 | 169,483 |
Total comprehensive income | - |
Balance at 30th June 2022 | ( |
) | ( |
) |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
CASH FLOW STATEMENT |
for the Year Ended 30th June 2022 |
Period |
1/2/20 |
Year ended | to |
30/6/22 | 30/6/21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 16 |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Amount withdrawn by directors | (6,267 | ) | - |
Net cash from financing activities | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
17 |
692,934 |
Cash and cash equivalents at end of year | 17 | 6,213,161 | 4,363,177 |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 30th June 2022 |
1. | STATUTORY INFORMATION |
Foretwo Group Limited is a private company limited by share capital, incorporated in England and Wales, registration number 10867179. The address of the registered office and principal place of business is Suite 3 St James Business Centre, Wilderspool Causeway, Warrington, United Kingdom, WA4 6PS. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going Concern |
During the year the company made an operating profit of £167,950 (2021 Loss - £10,859), and has a deficit on shareholders' funds of £359,670 (2021 Deficit - £527,620). |
Notwithstanding the above the directors consider that is is appropriate to prepare the financial statements on a going concern basis taking into account the following matters: |
- The company originally had to fund the set up fixed costs to start the business, which while in its infancy had relatively few agencies signed up, therefore, initially costs far outweighed the income which resulted in losses. |
- The company has then since engaged with numerous more agencies as it continues its organic growth since its incorporation in 2017. This has not resulted in any further significant fixed costs and has made a profit in this financial year for the first time, in line with the previous years budget.. |
- Now that the company is established in the market and can obtain economies of scale with numerous new agencies due to FCSA accreditation, the company is expecting to continue to make operating profits and increase shareholders' funds over the next 12 months. |
Based on the above the Directors consider that the company can continue to operate and return to a solvent balance sheet, therefore, the financial statements do not include any adjustments that would result form the basis of preparation being inappropriate. |
Turnover |
Turnover represents amounts recognised by the company in respect of goods and services supplied, exclusive of Value Added Tax and trade discounts. Turnover principally consists of the provision of umbrella payroll services which are recognised at the point of which the services are provided. |
Intangible assets |
Intangible assets are represented by Development expenditure which is capitalised where there is a clearly defined project, related expenditure is separately identifiable and it has been assessed for technical and commercial viability. |
Amortisation is calculated to write off the cost of the intangible assets over their useful life as follows: |
Development costs | - | 50% straight line |
The carrying amounts of the company's assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of the fixed asset may not be recoverable. If any such indication exists, the asset's recoverable amount is estimated and an impairment provision made if appropriate. |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30th June 2022 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. |
Depreciation on tangible fixed assets is charged to the profit and loss so as to write off their value, over their estimated useful lives, using the following methods: |
Computer equipment | 25% straight line |
Office equipment | 25% straight line |
Tangible fixed assets are depreciated from the date they are utilised in generating income. |
At each balance sheet date, the Company reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that any items of property, plant and equipment have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, 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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 year 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. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
The obligations for contributions to defined contribution scheme are recognised as an expense as incurred. The assets of the scheme are held separately from those of the Company in an independent administered fund. |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30th June 2022 |
2. | ACCOUNTING POLICIES - continued |
Trade and other debtors |
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the trade debtors and other debtors are stated at cost less impairment losses for bad and doubtful debts. |
Trade and other creditors |
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and in hand. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the Company's accounting policies above, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period. |
4. | TURNOVER |
The turnover and profit (2021 - loss) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
Period |
1/2/20 |
Year ended | to |
30/6/22 | 30/6/21 |
£ | £ |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30th June 2022 |
5. | EMPLOYEES AND DIRECTORS |
Period |
1/2/20 |
Year ended | to |
30/6/22 | 30/6/21 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
Period |
1/2/20 |
Year ended | to |
30/6/22 | 30/6/21 |
Management | 1 | 1 |
Sales | 6 | 3 |
Support services | 7 | 6 |
Umbrella contractors | 985 | 525 |
Period |
1/2/20 |
Year ended | to |
30/6/22 | 30/6/21 |
£ | £ |
Directors' remuneration |
6. | OPERATING PROFIT/(LOSS) |
The operating profit (2021 - operating loss) is stated after charging: |
Period |
1/2/20 |
Year ended | to |
30/6/22 | 30/6/21 |
£ | £ |
Depreciation - owned assets |
Development costs amortisation |
Auditors' remuneration |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30th June 2022 |
7. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
Period |
1/2/20 |
Year ended | to |
30/6/22 | 30/6/21 |
£ | £ |
Deferred tax | ( |
) |
Tax on profit/(loss) | ( |
) |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1/2/20 |
Year ended | to |
30/6/22 | 30/6/21 |
£ | £ |
Profit/(loss) before tax | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Utilisation of tax losses | ( |
) | ( |
) |
Movement in deferred tax | 41,468 | (678 | ) |
Total tax charge/(credit) | 41,468 | (678 | ) |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30th June 2022 |
8. | INTANGIBLE FIXED ASSETS |
Developmen |
costs |
£ |
COST |
Additions |
At 30th June 2022 |
AMORTISATION |
Amortisation for year |
At 30th June 2022 |
NET BOOK VALUE |
At 30th June 2022 |
9. | TANGIBLE FIXED ASSETS |
Office | Computer |
equipment | equipment | Totals |
£ | £ | £ |
COST |
At 1st July 2021 |
Additions |
At 30th June 2022 |
DEPRECIATION |
At 1st July 2021 |
Charge for year |
At 30th June 2022 |
NET BOOK VALUE |
At 30th June 2022 |
At 30th June 2021 |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade debtors |
Other debtors |
Directors' current accounts | 10,053 | 3,623 |
Deferred tax asset |
Prepayments and accrued income |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30th June 2022 |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade creditors |
Social security and other taxes |
VAT | 4,024,003 | 4,014,299 |
Other creditors |
Directors' current accounts | 163 | - |
Accrued expenses |
12. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2022 | 2021 |
£ | £ |
Within one year |
Between one and five years |
13. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1.00 | 1,000 | 1,000 |
Class A Redeemable Preference | £1.00 | 100,000 | 100,000 |
101,000 | 101,000 |
Ordinary shares held have full rights regarding voting, payment of dividends and distributions. |
Class A Redeemable Preference shares have the rights to: receive notice of and attend at general meetings of the company but no right to vote; a right to a return of capital on liquidation in priority to holders of ordinary shares; a right of redemption at the option of the company; and, a right to receive a dividend and to be considered separately by the directors of the company in deciding wether a dividend should be paid. |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30th June 2022 |
14. | RESERVES |
Retained |
earnings |
£ |
At 1st July 2021 | ( |
) |
Profit for the year |
At 30th June 2022 | ( |
) |
15. | RELATED PARTY DISCLOSURES |
The ultimate controlling party are the shareholders of the business by virtue of their controlling interest in the company. |
16. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1/2/20 |
Year ended | to |
30/6/22 | 30/6/21 |
£ | £ |
Profit/(loss) before taxation | ( |
) |
Depreciation charges |
218,973 | (7,204 | ) |
Decrease/(increase) in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
17. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30th June 2022 |
30/6/22 | 1/7/21 |
£ | £ |
Cash and cash equivalents | 6,213,161 | 4,363,177 |
Period ended 30th June 2021 |
30/6/21 | 1/2/20 |
£ | £ |
Cash and cash equivalents | 4,363,177 | 692,934 |
FORETWO GROUP LIMITED (REGISTERED NUMBER: 10867179) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30th June 2022 |
18. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/7/21 | Cash flow | At 30/6/22 |
£ | £ | £ |
Net cash |
Cash at bank | 4,363,177 | 1,849,984 | 6,213,161 |
4,363,177 | 6,213,161 |
Total | 4,363,177 | 1,849,984 | 6,213,161 |