Company Registration No. 02611749 (England and Wales)
C.K. ASSOCIATES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
C.K. ASSOCIATES LIMITED
COMPANY INFORMATION
Directors
L Crombie
J Hart - Smith
B M J Traies
Talentmark Group BV
(Appointed 15 December 2021)
Company number
02611749
Registered office
Brunswick House
The Bridge Business Centre
Beresford Way
Chesterfield
Derbyshire
S41 9FG
Auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
Bankers
National Westminster Bank plc
PO Box 13, 5 Market Place
Chesterfield
Derbyshire
S40 1TJ
C.K. ASSOCIATES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
C.K. ASSOCIATES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present the strategic report for the year ended 31 December 2021.
Fair review of the business
We consider that our key financial performance indicators are those that communicate the financial performance of the company as a whole, these being turnover, operating profit, profit before taxation and the strength of the balance sheet.
The turnover of the business has increased by 14.4% to £22.5m. Overall profit before taxation was £1,200,003 and, after taxation, £978,574. Total shareholders' funds have increased by 45% to £2,609,007. In spite of the difficulties faced as a result of the Covid 19 pandemic and whilst trading was inevitably impacted, the directors remain positive about the future growth of the business.
There are plenty of opportunities to further enhance the company's growth, by developing our staff and further optimising the relationships we have with our clients particularly within the pharmaceutical and life sciences sectors. The acquisition of CK Associates in December 2021 presents several opportunities for growth and leverage of shared customers with the Xdes Group who operate in similar sectors in Europe. Additionally, CK Associates have identified growth opportunities trading internationally
However, the director's are mindful that the company's growth faces potential obstacles dependent on the global economic climate particularly following Covid-19, leading to inflationary pressures and cost of living increased leading to the potential impact on wages. New ownership presents several opportunities but also comes with some risks as the established workforce adapt to any changes that the new shareholders and board look to introduce over time. Increased competition as well as the potential for increased regulation and red tape are always risks that the business is mindful of managing.
Principal risks and uncertainties
C.K. ASSOCIATES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
J Hart - Smith
Director
7 September 2022
C.K. ASSOCIATES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activity of the company continued to be that of the provision of recruitment services.
Results and dividends
The results for the year are set out on page 8.
Particulars of dividends paid are detailed in note 9 to the financial statements.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
W O'Connell
(Resigned 15 December 2021)
A A Kirk
(Resigned 15 December 2021)
L Crombie
J Hart - Smith
B M J Traies
H Kirk
(Resigned 15 December 2021)
S O'Connell
(Resigned 15 December 2021)
S Hart-Smith
(Resigned 15 December 2021)
Talentmark Group BV
(Appointed 15 December 2021)
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, at meetings, matters likely to affect employees' interests.
Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
Auditor
The company has elected to dispense with the annual appointment of auditors. In the absence of a specific resolution to the contrary BHP LLP will continue in office.
C.K. ASSOCIATES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' Report 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;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- 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 of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
J Hart - Smith
Director
7 September 2022
C.K. ASSOCIATES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF C.K. ASSOCIATES LIMITED
- 5 -
Opinion
We have audited the financial statements of C.K. Associates Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 2021 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.
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 Auditor's 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
C.K. ASSOCIATES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF C.K. ASSOCIATES LIMITED
- 6 -
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 and the directors' report.
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 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 directors' responsibilities statement, 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 is 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.
Auditor's 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 an auditor's report 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of such regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud.
We addressed the risk of management override of internal controls, including testing of journals and review of the nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
We have considered the risk of fraud in revenue and have carried out audit procedures to ensure that revenue is being recognised in accordance with appropriate accounting standards and therefore not materially misstated
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
C.K. ASSOCIATES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF C.K. ASSOCIATES LIMITED
- 7 -
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 an auditor's report 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.
Adrian Staniforth (Senior Statutory Auditor)
For and on behalf of BHP LLP
7 September 2022
Chartered Accountants
Statutory Auditor
2 Rutland Park
Sheffield
S10 2PD
C.K. ASSOCIATES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
2021
2020
Notes
£
£
Turnover
3
22,457,798
19,634,815
Distribution costs
(18,629,508)
(16,721,516)
Administrative expenses
(2,720,819)
(2,320,422)
Other operating income
15,928
120,987
Operating profit
4
1,123,399
713,864
Share of results of associates and joint ventures
67,658
65,082
Interest receivable and similar income
7
8,946
10,530
Profit before taxation
1,200,003
789,476
Tax on profit
8
(221,429)
(140,950)
Profit for the financial year
978,574
648,526
The profit and loss account has been prepared on the basis that all operations are continuing operations.
C.K. ASSOCIATES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 9 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
10
82,348
209,460
Investments
11
144,289
76,631
226,637
286,091
Current assets
Debtors
14
5,715,676
4,655,036
Cash at bank and in hand
149,564
135,147
5,865,240
4,790,183
Creditors: amounts falling due within one year
15
(3,466,870)
(3,139,144)
Net current assets
2,398,370
1,651,039
Total assets less current liabilities
2,625,007
1,937,130
Creditors: amounts falling due after more than one year
16
(74,697)
Provisions for liabilities
(16,000)
(34,000)
Net assets
2,609,007
1,828,433
Capital and reserves
Called up share capital
21
3,300
3,300
Profit and loss reserves
2,605,707
1,825,133
Shareholders funds
2,609,007
1,828,433
The financial statements were approved by the board of directors and authorised for issue on 7 September 2022 and are signed on its behalf by:
J Hart - Smith
Director
Company Registration No. 02611749
C.K. ASSOCIATES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2020
3,300
1,311,607
1,314,907
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
648,526
648,526
Dividends
9
-
(135,000)
(135,000)
Balance at 31 December 2020
3,300
1,825,133
1,828,433
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
978,574
978,574
Dividends
9
-
(198,000)
(198,000)
Balance at 31 December 2021
3,300
2,605,707
2,609,007
C.K. ASSOCIATES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
25
1,005,069
(43,524)
Income taxes paid
(121,925)
(100,947)
Net cash inflow/(outflow) from operating activities
883,144
(144,471)
Investing activities
Purchase of tangible fixed assets
(13,026)
(120,275)
Proceeds on disposal of tangible fixed assets
96,000
Proceeds on disposal of subsidiaries
(89)
Receipts arising from loans made
26,833
3,194
Interest received
8,946
10,530
Net cash generated from/(used in) investing activities
118,753
(106,640)
Financing activities
Proceeds of new bank loans
700,000
Repayment of bank loans
(700,000)
Payment of finance leases obligations
(89,480)
89,480
Dividends paid
(198,000)
(135,000)
Net cash (used in)/generated from financing activities
(987,480)
654,480
Net increase in cash and cash equivalents
14,417
403,369
Cash and cash equivalents at beginning of year
135,147
(268,222)
Cash and cash equivalents at end of year
149,564
135,147
C.K. ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 12 -
1
Accounting policies
Company information
C.K. Associates Limited is a private company limited by shares incorporated in England and Wales. The registered office is Brunswick House, The Bridge Business Centre, Beresford Way, Chesterfield, Derbyshire, S41 9FG.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have considered the potential impact on the activities of the company of the COVID-19 pandemic and do not believe that any impact will be significant. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses. The company has a policy to write off any items costing less than £750 through the profit and loss account.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold Improvements
Written off over 15 years
Fixtures and Equipment
25% cost
Motor vehicles
15% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
C.K. ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 13 -
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
C.K. ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Share capital
Share capital issued by the company is recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.11
Retirement benefits
The company operates two defined contribution pension schemes for the directors and staff.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.13
Government grants
Grants received in relation to the government’s Coronavirus Job Retention Scheme have been recognised within other operating income. The grant is accounted for on the accruals basis once the related payroll return has been submitted.
C.K. ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 15 -
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2021
2020
£
£
Turnover
22,466,331
19,634,815
Analysis per statutory database
22,466,331
19,634,815
Statutory database analysis does not agree to the trial balance by:
8,533
-
Other revenue
Interest income
8,946
10,530
Grants received
15,928
120,987
Turnover analysed by geographical market
2021
2020
£
£
United Kingdom
21,675,080
18,902,347
Europe
360,919
652,626
Rest of World
430,332
79,842
22,466,331
19,634,815
Analysis per statutory database
22,466,331
19,634,815
Statutory database analysis does not agree to the trial balance by:
8,533
-
C.K. ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 16 -
4
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(9,600)
(9,327)
Government grants
(15,928)
(120,987)
Fees payable to the company's auditor for the audit of the company's financial statements
22,720
10,800
Depreciation of owned tangible fixed assets
33,282
34,172
Depreciation of tangible fixed assets held under finance leases
14,778
1,344
Profit on disposal of tangible fixed assets
(3,923)
Operating lease charges
1,591
3,702
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
297
234
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
18,911,724
17,046,096
Social security costs
1,214,649
921,726
Pension costs
309,047
289,181
20,435,420
18,257,003
6
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
573,279
502,174
Company pension contributions to defined contribution schemes
41,775
40,914
615,054
543,088
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2020 - 7).
C.K. ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
6
Directors' remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2021
2020
£
£
Remuneration for qualifying services
124,121
111,855
Company pension contributions to defined contribution schemes
6,750
6,750
7
Interest receivable and similar income
2021
2020
£
£
Interest income
Other interest income
8,946
10,530
8
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
239,429
121,950
Deferred tax
Origination and reversal of timing differences
(18,000)
19,000
Total tax charge
221,429
140,950
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Profit before taxation
1,200,003
789,476
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
228,001
150,000
Tax effect of expenses that are not deductible in determining taxable profit
1,355
462
Tax effect of income not taxable in determining taxable profit
(12,854)
(12,365)
Effect of change in corporation tax rate
3,891
1,672
Depreciation on assets not qualifying for tax allowances
1,285
1,944
Deferred tax not recognised
(249)
(763)
Taxation charge for the year
221,429
140,950
C.K. ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 18 -
9
Dividends
2021
2020
£
£
Dividends paid
198,000
135,000
10
Tangible fixed assets
Leasehold Improvements
Fixtures and Equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2021
92,035
513,603
107,480
713,118
Additions
13,026
13,026
Disposals
(750)
(107,480)
(108,230)
At 31 December 2021
92,035
525,879
617,914
Depreciation
At 1 January 2021
65,049
437,266
1,344
503,659
Depreciation charged in the year
6,111
27,171
14,778
48,060
Eliminated in respect of disposals
(31)
(16,122)
(16,153)
At 31 December 2021
71,160
464,406
535,566
Carrying amount
At 31 December 2021
20,875
61,473
82,348
At 31 December 2020
26,987
76,337
106,136
209,460
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2021
2020
£
£
Motor vehicles
106,136
Depreciation charge for the year in respect of leased assets
14,778
1,344
11
Fixed asset investments
2021
2020
Notes
£
£
Investments in subsidiaries
12
1,989
1,989
Investments in joint ventures
13
142,300
74,642
144,289
76,631
C.K. ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
11
Fixed asset investments
(Continued)
- 19 -
Movements in fixed asset investments
Shares in subsidiaries and joint ventures
£
Cost or valuation
At 1 January 2021
76,631
Share of results
67,658
At 31 December 2021
144,289
Carrying amount
At 31 December 2021
144,289
At 31 December 2020
76,631
12
Subsidiaries
These financial statements are separate company financial statements for C K Associates Limited.
Details of the company's subsidiaries at 31 December 2021 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
CK Aspire Limited
England and Wales
Dormant
Ordinary
100.00
CK Clinical Limited
England and Wales
Dormant
Ordinary
100.00
CK Science Limited
Republic of Ireland
Employment placement agency
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
CK Aspire Limited
100
-
CK Clinical Limited
1,800
-
CK Science Limited
(7,401)
(1,474)
The results of CK Science Limited, CK Clinical Limited and CK Aspire Limited have not been consolidated on the grounds that they are immaterial individually and collectively.
13
Joint ventures
Details of the company's joint ventures at 31 December 2021 are as follows:
C.K. ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
13
Joint ventures
(Continued)
- 20 -
Name of undertaking
Registered office
Nature of business
Interest
% Held
held
Direct
CK QLS AG
Switzerland
Recruitment Services
Ordinary
50.00
14
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
4,742,516
3,549,708
Amounts owed by undertakings in which the company has a participating interest
442,351
407,643
Other debtors
38,245
82,184
Prepayments and accrued income
492,564
615,501
5,715,676
4,655,036
15
Creditors: amounts falling due within one year
2021
2020
Notes
£
£
Bank loans
17
700,000
Obligations under finance leases
18
14,783
Trade creditors
306,762
322,056
Corporation tax
239,429
121,926
Other taxation and social security
1,078,829
1,441,800
Other creditors
1,802,141
480,618
Accruals and deferred income
39,709
57,961
3,466,870
3,139,144
Included within other creditors is is an invoice discounting facility of £1,783,261 (2020 - £352,978 ) which is secured against the company's trade debtors.
16
Creditors: amounts falling due after more than one year
2021
2020
Notes
£
£
Obligations under finance leases
18
74,697
The obligations under finance leases are secured on the fixed assets to which they relate.
C.K. ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 21 -
17
Loans and overdrafts
2021
2020
£
£
Bank loans
700,000
Payable within one year
700,000
The long-term loans are secured by fixed and floating charges over the assets of the company.
18
Finance lease obligations
2021
2020
Future minimum lease payments due under finance leases:
£
£
Within one year
14,783
In two to five years
74,697
89,480
Finance lease payments represent rentals payable by the company for motor vehicles.
19
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2021
2020
Balances:
£
£
Accelerated Capital Allowances
16,000
34,000
2021
Movements in the year:
£
Liability at 1 January 2021
34,000
Credit to profit or loss
(18,000)
Liability at 31 December 2021
16,000
The deferred tax liability set out above relates to accelerated capital allowances.
C.K. ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 22 -
20
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
309,047
289,181
The company operates two defined contribution pension schemes for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Share capital
2021
2020
Ordinary share capital
£
£
Issued and fully paid
3,000 Ordinary shares of £1 each
3,000
3,000
300 Ordinary B shares of £1 each
300
300
3,300
3,300
22
Operating lease commitments
Lessee
Amounts recognised in profit or loss as an expense during the period in respect of operating lease arrangements are £104,460 (2020: £111,804).
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2021
2020
£
£
Within one year
80,191
91,608
Between two and five years
269,068
168,049
In over five years
160,369
199,079
509,628
458,736
23
Directors' transactions
Dividends totalling £198,000 (2020 - £135,000) were paid in the year in respect of shares held by the company's directors and close family members.
Rent of £40,760 (2020: £40,760) was paid to the Pension Fund of which directors are beneficiaries, The C K Associates SSAS.
24
Ultimate controlling party
Talentmark Group BV is the immediate parent company of C. K. Associates Limited and the ultimate holding company.
C.K. ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 23 -
25
Cash generated from/(absorbed by) operations
2021
2020
£
£
Profit for the year after tax
978,574
648,526
Adjustments for:
Share of results of associates and joint ventures
(67,658)
(65,082)
Taxation charged
221,429
140,950
Investment income
(8,946)
(10,530)
Gain on disposal of tangible fixed assets
(3,923)
Depreciation and impairment of tangible fixed assets
48,060
35,516
Movements in working capital:
(Increase)/decrease in debtors
(1,087,473)
576,130
Increase/(decrease) in creditors
925,006
(1,369,034)
Cash generated from/(absorbed by) operations
1,005,069
(43,524)
26
Analysis of changes in net funds/(debt)
1 January 2021
Cash flows
31 December 2021
£
£
£
Cash at bank and in hand
135,147
14,417
149,564
Borrowings excluding overdrafts
(700,000)
700,000
-
Obligations under finance leases
(89,480)
89,480
-
(654,333)
803,897
149,564
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