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Registered number: 06769151









URBAN RECRUITMENT GROUP LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2022

 
URBAN RECRUITMENT GROUP LIMITED
 
 
COMPANY INFORMATION


Directors
R Prince 
P Johnson 




Registered number
06769151



Registered office
111-115 North Street
Romford

Essex

RM1 1ES




Independent auditor
Barnes Roffe LLP
Chartered Accountants
Statutory Auditor

Leytonstone House

Leytonstone

London

E11 1GA





 
URBAN RECRUITMENT GROUP LIMITED
 

CONTENTS



Page
Group strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditor's report
 
5 - 8
Consolidated statement of comprehensive income
 
9
Consolidated balance sheet
 
10
Company balance sheet
 
11 - 12
Consolidated statement of changes in equity
 
13
Company statement of changes in equity
 
14
Consolidated Statement of cash flows
 
15
Notes to the financial statements
 
16 - 37


 
URBAN RECRUITMENT GROUP LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2022

Introduction
 
The director presents the strategic report for the period ended 28 February 2022.

Business review
 
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the period end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.
The group has performed very well during the year, with its GP weekly margin averaging £126k in Q1 rising to £152k in Q4 – a 20.6% growth rate during the year.  The main reason for the growth is due to the NHS catching up on delayed and cancelled procedures which occurred during the pandemic. The Company has seen a significant increase in demand in certain areas that we specialise in (such as imaging and theatres) and with long NHS waiting lists, this high level of demand is expected to continue into the foreseeable future. We are a primary supplier of temporary staff to some major NHS hospitals, as well as private sector organisations, in these areas of speciality helping to support our current growth as a business.
During the Covid-19 pandemic, the Company’s business levels reduced, due to the NHS focusing on controlling the virus.   As a consequence of the downturn in business, the Company carried out an extensive internal review on all expenditure and has been successful in reducing both direct and indirect costs.  Headcount has decreased, as a result of these cost controls, and now the Company is coming out of the pandemic as a much more efficient organisation.
Due to the lower cost base and growing gross profit levels, the Company achieved operating profits of £1.6m (2021: £299k for 18 months).

Principal risks and uncertainties
 
The market is heavily regulated and dependant on effective compliance and auditing is a key condition of the frameworks which we operate on. The group has a Compliance team and is well placed to manage this risk with effective management controls in place. We have established a Governance and Audit team to ensure all policies and procedures are adhered to, and that any legislative changes are reflected in our terms of business and contracts.
Economic risk
The improved business levels for year-ended 28th February 2022 shows that the Company has fully recovered from the negative impact of the pandemic, as Turnover reached £51m (a 21.6% growth from prior period).  Despite a slight drop in GP margin rate to 13.6% (2021: 14.8%), Gross Profit also grew by 11.8%, when pro-rated, to £6.95m (2021: £9.32m for 18 months).  This level of growth has helped to mitigate cashflow pressures and risks. 
The company seeks to manage and minimise financial risk by ensuring that sufficient funding is available at all times to meet foreseeable needs.

Page 1

 
URBAN RECRUITMENT GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022

Financial key performance indicators
 
The group consider the following to be its key performance indicators:
Net Turnover:
The Company achieved net Turnover of £51m, a 21.6% increase pro-rated from prior period (2021: £62.9m for 18 months).  
 
Gross Profit
The Company achieved gross profit of £6.95m, a 11.8% increase pro-rated from prior period (2021: £9.32m for 18 months).
Direct customer and account related KPI’s are completed throughout the business and are monitored monthly by the management accounts team.

Going concern
 
As discussed in the going concern accounting policy, the Directors consider that the group remains a going concern. Financial forecasts have been prepared by management and demonstrate that the group is expected to have sufficient cash to enable it to meet its liabilities as they become due. 
Post period end, the monthly management accounts have continued to show positive results with the gross margin remaining strong throughout this period. As turnover continues to increase, cash-flow restrictions ease.  Cash-flow projections for the 12 months post period-end do not indicate any further support will be needed from the group’s banking partners, or any cash injections from the directors will be required.

Future developments
 
The directors do not believe that the business will change significantly in the foreseeable future. 


This report was approved by the board on 23 August 2022 and signed on its behalf.



R Prince
Director

Page 2

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2022

The directors present their report and the financial statements for the year ended 28 February 2022.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the Company and the Group continued to be that of the recruitment and placement of staff in the medical sector. 

Results and dividends

The profit for the year, after taxation, amounted to £1,124,655 (2021 - £24,777).

Ordinary dividends were declared amounting to £820,000 (2021 - £440,000). The director's do not recommend the payment of a further dividend. 

Directors

R Prince 
P Johnson (appointed 16 August 2021)

Future developments

Future developments are not disclosed within the Director's report as they are instead included within the Strategic Report on page 1 under s414c(11) of the Companies Act 2006. 

Page 3

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Auditor

The auditor, Barnes Roffe LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 23 August 2022 and signed on its behalf.
 





R Prince
Director

Page 4

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF URBAN RECRUITMENT GROUP LIMITED
 

Opinion


We have audited the financial statements of Urban Recruitment Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 28 February 2022, which comprise the Group Statement of comprehensive income, the Group and Company Balance sheets, the Group Statement of cash flows, the Group and Company Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent Company's affairs as at 28 February 2022 and of the Group's 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent 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.


Page 5

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF URBAN RECRUITMENT GROUP LIMITED (CONTINUED)


Other information


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.


Opinion 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 Group 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 Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.


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


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


Page 6

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF URBAN RECRUITMENT GROUP LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, 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 Group's and the parent 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 Group or the parent 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 Group 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:

ensuring that the engagement team collectively had the appropriate competence, capabilities and skills to identify non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the Company through discussions with directors, and from our commercial knowledge and experience of the relevant sector, including Companies Act 2006;
we assessed the extent of the compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
laws and regulations were communicated within the audit team at the planning meeting, and the audit team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the Company's financial statements to material misstatement, including obtaining understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
reviewing the financial statements and testing the disclosures against supporting documentation;
performing analytical procedures to identify any unusual or unexpected trends or anomalies;
inspecting and testing journal entries to identify unusual or unexpected transactions; and
assessing whether judgement and assumptions made in determining significant accounting estimates were indicative of management bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with law or regulation is removed from the events and transactions reflected
Page 7

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF URBAN RECRUITMENT GROUP LIMITED (CONTINUED)


in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditor's report.


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 2006Our 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.





Andrew May (Senior statutory auditor)
for and on behalf of
Barnes Roffe LLP
Chartered Accountants
Statutory Auditor
Leytonstone House
Leytonstone
London
E11 1GA

5 September 2022
Page 8

 
URBAN RECRUITMENT GROUP LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2022

12 months ended
28 February
18 months ended
28 February
2022
2021
Note
£
£

  

Turnover
 4 
50,998,490
62,898,726

Cost of sales
  
(44,047,594)
(53,576,461)

Gross profit
  
6,950,896
9,322,265

Administrative expenses
  
(5,379,923)
(9,215,998)

Other operating income
 5 
28,237
192,841

Operating profit
 6 
1,599,210
299,108

Interest payable and similar expenses
 10 
(208,617)
(306,611)

Profit/(loss) before taxation
  
1,390,593
(7,503)

Tax on profit/loss
 11 
(265,938)
32,280

Profit for the financial year
  
1,124,655
24,777

Profit for the period attributable to:
  

Owners of the parent Company
  
1,124,655
24,777

There was no other comprehensive income for 2022 (2021:£NIL).

The notes on pages 16 to 37 form part of these financial statements.

Page 9

 
URBAN RECRUITMENT GROUP LIMITED
REGISTERED NUMBER: 06769151

CONSOLIDATED BALANCE SHEET
AS AT 28 FEBRUARY 2022

2022
2021
Note
£
£

Fixed assets
  

Intangible assets
 13 
232,579
334,568

Tangible assets
 14 
317,725
395,643

  
550,304
730,211

Current assets
  

Debtors: amounts falling due within one year
 16 
6,619,551
5,343,035

Cash at bank and in hand
  
274,271
28,756

  
6,893,822
5,371,791

Creditors: amounts falling due within one year
 17 
(6,845,215)
(5,700,234)

Net current assets/(liabilities)
  
 
 
48,607
 
 
(328,443)

Total assets less current liabilities
  
598,911
401,768

Creditors: amounts falling due after more than one year
 18 
(139,594)
(219,594)

Deferred taxation
 19 
(38,983)
(66,495)

Net assets
  
420,334
115,679


Capital and reserves
  

Called up share capital 
 20 
100,000
100,000

Profit and loss account
 21 
320,334
15,679

Equity attributable to owners of the parent Company
  
420,334
115,679


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 August 2022.




R Prince
Director


The notes on pages 16 to 37 form part of these financial statements.

Page 10

 
URBAN RECRUITMENT GROUP LIMITED
REGISTERED NUMBER: 06769151

COMPANY BALANCE SHEET
AS AT 28 FEBRUARY 2022

2022
2021
                                                                       Note
£
£

Fixed assets
  

Tangible assets
 14 
24,570
29,437

Investments
 15 
554,405
554,405

  
578,975
583,842

Current assets
  

Debtors: amounts falling due within one year
 16 
583,139
548,376

Cash at bank and in hand
  
5,320
3,389

  
588,459
551,765

Creditors: amounts falling due within one year
 17 
(892,083)
(810,952)

Net current liabilities
  
 
 
(303,624)
 
 
(259,187)

Total assets less current liabilities
  
275,351
324,655

  

Creditors: amounts falling due after more than one year
 18 
(139,594)
(219,594)

Provisions for liabilities
  

Deferred taxation
 19 
(2,151)
(2,836)

Net assets
  
133,606
102,225


Capital and reserves
  

Called up share capital 
 20 
100,000
100,000

Profit and loss account brought forward
  
2,225
4,017

Profit for the year
  
851,381
331,665

Dividends paid during the period
  
(820,000)
(440,000)

Transfer between reserves

  

-
106,543

Profit and loss account carried forward
  
33,606
2,225

  
133,606
102,225


Page 11

 
URBAN RECRUITMENT GROUP LIMITED
REGISTERED NUMBER: 06769151
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 28 FEBRUARY 2022

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 August 2022.


R Prince
Director

The notes on pages 16 to 37 form part of these financial statements.

Page 12

 
URBAN RECRUITMENT GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2022


Called up share capital
Other reserves
Profit and loss account
Total equity

£
£
£
£


At 1 September 2019
100,000
128,296
302,606
530,902



Profit and total comprehensive income for the period
-
-
24,777
24,777

Dividends: Equity capital
-
-
(440,000)
(440,000)

Transfer between reserves
-
(128,296)
128,296
-



At 28 February 2021
100,000
-
15,679
115,679



Profit and total comprehensive income for the year
-
-
1,124,655
1,124,655

Dividends: Equity capital
-
-
(820,000)
(820,000)


At 28 February 2022
100,000
-
320,334
420,334


The notes on pages 16 to 37 form part of these financial statements.

Page 13

 
URBAN RECRUITMENT GROUP LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2022


Called up share capital
Other reserves
Profit and loss account
Total equity

£
£
£
£


At 1 September 2019
100,000
106,543
4,017
210,560



Profit and total comprehensive income for the period
-
-
331,665
331,665

Dividends: Equity capital
-
-
(440,000)
(440,000)

Transfer between reserves
-
(106,543)
106,543
-



At 1 March 2021
100,000
-
2,225
102,225



Profit and total comprehensive income for the year
-
-
851,381
851,381

Dividends: Equity capital
-
-
(820,000)
(820,000)


At 28 February 2022
100,000
-
33,606
133,606


The notes on pages 16 to 37 form part of these financial statements.

Page 14

 
URBAN RECRUITMENT GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2022

2022
2021
£
£

Cash flows from operating activities

Profit for the financial year
1,124,655
24,777

Adjustments for:

Amortisation of intangible assets
101,989
152,984

Depreciation of tangible assets
78,802
167,344

Loss on disposal of tangible assets
-
12,561

Interest paid
208,617
306,611

Taxation charge
265,938
(32,280)

(Increase)/decrease in debtors
(1,429,259)
241,023

(Decrease)/increase in creditors
(295,527)
668,829

Net cash generated from operating activities

55,215
1,541,849


Cash flows from investing activities

Purchase of tangible fixed assets
(884)
(38,792)

Sale of tangible fixed assets
-
300

Net cash from investing activities

(884)
(38,492)

Cash flows from financing activities

Movements on invoice discounting
1,219,801
(820,208)

Dividends paid
(820,000)
(380,000)

Interest paid
(208,617)
(306,611)

Net cash used in financing activities
191,184
(1,506,819)

Net increase/(decrease) in cash and cash equivalents
245,515
(3,462)

Cash and cash equivalents at beginning of year
28,756
32,218

Cash and cash equivalents at the end of year
274,271
28,756


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
274,271
28,756


Page 15

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

1.


General information

Urban Recruitment Group Limited ("the Company") is a private company limited by shares, incorporated in England and Wales. The registered office address is 111-115 North Street, Romford, Essex, RM1 1ES.
The Group consists of Urban Recruitment Group Limited and all of its subsidiaries. 
The Company's and the Group's principal activities and nature of its operations are disclosed in the Strategic Report and Director's Report. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The financial statements are prepared in sterling, which is the functional currency of the Company. Monetary amount in these financial statements are rounded to the nearest £. 

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
All financial statements are made up to 28 February 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 16

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

2.Accounting policies (continued)

  
2.3

Foreign exchange

Transactions in currencies other than the functional currency (foreign currency) are initially recorded at the exchange rate prevailing on the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date.
All translation differences are taken to profit or loss.

  
2.4

Going concern

The financial statements have been prepared on a going concern basis as the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.
In arriving at this conclusion, the Directors have taken into consideration the results for the year 28 February 2022 together with the current results and cashflow forecasts for 12 months from the date of signing of the financial statements.  
Based on the forecasts prepared the directors are satisfied that the Group is in a position to meet its liabilities as they fall due over the next 12 months from the date of signing of these financial statements. 

 
2.5

Revenue

Revenue is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts.
Income relating to temporary staff is recognised in the period to which it relates when billed for each month.
Income relating to placement of permanent candidates is recognised at the point candidates commence their placements.

 
2.6

Operating leases: the Group as lessee

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 leased asset are consumed.

 
2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102.
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.

Page 17

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

2.Accounting policies (continued)

 
2.8

Finance costs

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.

  
2.9

Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

 
2.10

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.

 
2.11

Share based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
The expense in relation to options over the parent company’s shares granted to employees of a subsidiary is recognised by the company as a capital contribution, and presented as an increase in the company’s investment in that subsidiary.

Page 18

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

2.Accounting policies (continued)

 
2.12

Current and deferred taxation

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 and the Group operate and generate 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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.

 
2.13

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.

Other intangible assets

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.

 The estimated useful lives range as follows:

Software
-
5 and a half years

Page 19

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

2.Accounting policies (continued)

 
2.14

Tangible fixed assets

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 the following bases:

Fixtures and fittings
-
20 - 25% straight line
Computers
-
10 - 33% straight line
Leasehold improvements
-
20% straight line

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.

  
2.15

Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the 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 an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

 
2.17

Debtors

Short term debtors are measured at transaction price, less any impairment.

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

Page 20

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

2.Accounting policies (continued)

 
2.19

Creditors

Short term creditors are measured at the transaction price.

 
2.20

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group 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 Group 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.

  
2.21

Invoice discounting

Trade debtors are subject to a financing agreement whereby an advance is received based upon and secured against trade receivables. 
Where the Group has retained significant benefits and risks relating to the factored debts, separate presentation is adopted whereby the gross debts and a corresponding liability in respect of the advance received are shown separately on the balance sheet. The interest element of the factor's charges is recognised as it accrues and is included in the profit and loss account with other interest charges.

 
2.22

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

 
2.23

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 21

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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.
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical judgments in applying the entity's accounting policies
No significant judgments have had to be made by management in preparing these financial statements. 
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows: 
Share based payments
The assumptions underpinning the fair value of the share options and likelihood of share options being exercisable are key sources of estimation uncertainty. In particular, these include the valuation of the Company, vesting period, volatility and risk free rate.
Going concern
In preparing forecasts the directors have worked on the assumption that there will not be any future need for the NHS to substantially reduce the level of procedures in order for it to concentrate on COVID patients.  This is based on comparing current levels of NHS activity compared to historic ones during the period of the pandemic.  

Page 22

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

4.


Turnover

An analysis of turnover by class of business is as follows:


12 months ended
28 February
18 months ended
28 February
2022
2021
£
£

Turnover analysed by class of business

Recruitment and placement of staff
50,998,490
62,898,726


Analysis of turnover by country of destination:

12 months ended
28 February
18 months ended
28 February
2022
2021
£
£

United Kingdom
50,998,490
62,898,726



5.


Other operating income

12 months ended
28 February
18 months ended
28 February
2022
2021
£
£

Government grants receivable
28,237
192,841


Page 23

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

6.


Operating profit

The operating profit is stated after charging:

12 months ended
28 February
18 months ended
28 February
2022
2021
£
£

Depreciation of owned tangible fixed assets
78,802
167,344

Exchange (gain)/losses
-
(75)

Operating lease charges
201,179
441,654

Loss on disposal of tangible fixed assets
-
12,561

Amortisation of intangible assets
101,989
152,984


7.


Auditor's remuneration

12 months ended
28 February
18 months ended
28 February
2022
2021
£
£


Fees payable to the Group's auditor and its associates for the audit of the Group's annual financial statements
31,000
24,000


Fees payable to the Group's auditor and its associates in respect of:


Taxation compliance services
4,500
5,000

All other non-audit services
1,000
1,000

5,500
6,000

Page 24

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
12 months ended
28 February
2022
18 months ended
28 February
2021
12 months ended
28 February
2022
18 months ended
28 February
2021
£
£
£
£


Wages and salaries
3,918,671
6,456,076
-
32,156

Social security costs
378,847
589,385
-
1,857

Cost of defined contribution scheme
73,412
107,616
-
236

4,370,930
7,153,077
-
34,249


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2022
        2021
        2022
        2021
            No.
            No.
            No.
            No.









Management
8
5
2
2



Administration and sales
107
126
-
1



Temporary locums
123
24
-
1

238
155
2
4


9.


Directors' remuneration

12 months ended
28 February
18 months ended
28 February
2022
2021
£
£

Remuneration for qualifying services
190,545
80,797

Group contributions to defined contribution pension schemes
1,320
-

191,865
80,797


The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2021 - £NIL).

Page 25

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

10.


Interest payable and similar expenses

12 months ended
28 February
18 months ended
28 February
2022
2021
£
£


Other interest on financial liabilities
150,000
250,000

Interest on invoice finance arrangements
58,617
56,611

208,617
306,611


11.


Taxation


12 months ended
28 February
18 months ended
28 February
2022
2021
£
£

Corporation tax


Current tax on profits for the year
140,707
-


Deferred tax


Origination and reversal of timing differences
125,231
(32,280)


Taxation on profit/(loss) on ordinary activities
265,938
(32,280)
Page 26

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
 
11.Taxation (continued)


Factors affecting tax charge for the year/period

The tax assessed for the year/period is higher than (2021 - lower than) the standard rate of corporation tax in the UK of19% (2021 - 19%). The differences are explained below:

12 months ended
28 February
18 months ended
28 February
2022
2021
£
£


Profit/(loss) on ordinary activities before tax
1,390,593
(7,503)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
264,213
(1,426)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,558
2,668

Deferred tax
125,231
(32,280)

Other adjustments
(14,600)
(1,242)

Adjustment in research and development tax credit leading to a decrease in the tax charge
(8,091)
-

Utilisation of brought forward losses
(104,373)
-

Total tax charge for the year/period
265,938
(32,280)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Dividends

12 months ended
28 February
2022
18 months ended
28 February
2021
£
£



Dividends paid
820,000
440,000

Post year end and prior to the approval of the accounts, dividends of £760,000 were declared. 

Page 27

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

13.


Intangible assets

Group





Software
Goodwill
Total

£
£
£



Cost


At 1 March 2021
227,947
1,091,684
1,319,631



At 28 February 2022

227,947
1,091,684
1,319,631



Amortisation


At 1 March 2021
146,366
838,697
985,063


Charge for the year on owned assets
20,395
81,594
101,989



At 28 February 2022

166,761
920,291
1,087,052



Net book value



At 28 February 2022
61,186
171,393
232,579



At 28 February 2021
81,581
252,987
334,568



The Company had no intangible fixed assets at either balance sheet date. 

Page 28

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

14.


Tangible fixed assets

Group






Fixtures and fittings
Computers
Leasehold improvements
Total

£
£
£
£



Cost


At 1 March 2021
282,420
680,654
451,988
1,415,062


Additions
-
884
-
884



At 28 February 2022

282,420
681,538
451,988
1,415,946



Depreciation


At 1 March 2021
175,534
668,610
175,275
1,019,419


Charge for the year on owned assets
32,689
12,928
33,185
78,802



At 28 February 2022

208,223
681,538
208,460
1,098,221



Net book value



At 28 February 2022
74,197
-
243,528
317,725



At 28 February 2021
106,886
12,044
276,713
395,643

Page 29

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

           14.Tangible fixed assets (continued)


Company






Computers
Leasehold improvements
Total

£
£
£

Cost


At 1 March 2021
148,875
82,768
231,643



At 28 February 2022

148,875
82,768
231,643



Depreciation


At 1 March 2021
147,285
54,921
202,206


Charge for the year on owned assets
1,590
3,277
4,867



At 28 February 2022

148,875
58,198
207,073



Net book value



At 28 February 2022
-
24,570
24,570



At 28 February 2021
1,590
27,847
29,437






Page 30

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

15.


Fixed asset investments

Company





Shares in group undertakings

£



Cost


At 1 March 2021
554,405



At 28 February 2022

554,405






Net book value



At 28 February 2022
554,405



At 28 February 2021
554,405


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Medicspro Limited
1)
Recruitment and placement of medical staff
Ordinary
100%
Urban Trustees Limited
1)
Dormant
Ordinary
100%
Eshar Limited*
1)
Recruitment and placement of medical staff
Ordinary
100%
Medicspro Healthcare Limited*
1)
Recruitment and placement of medical staff
Ordinary
100%

Registered Office address: 
1) 111-115 North Street, Romford, Essex, RM1 1ES. 
*Indirect subsidiaries of Urban Recruitment Group Limited. 

Page 31

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
Subsidiary undertakings (continued)

The aggregate of the share capital and reserves as at 28 February 2022 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Medicspro Limited
1,125,216
1,482,744

Urban Trustees Limited
(3,991)
-

Eshar Limited*
(8,277)
(14,197)

Medicspro Healthcare Limited*
103,286
306,321


16.


Debtors

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£


Trade debtors
4,965,640
3,841,116
6,156
23,370

Amounts owed by group undertakings
-
-
490,215
418,033

Other debtors
88,304
98,932
3,692
5,333

Prepayments and accrued income
1,506,145
1,190,782
23,614
31,029

Deferred taxation
59,462
212,205
59,462
70,611

6,619,551
5,343,035
583,139
548,376


Trade debtors have been pledged as security against amounts due in respect of financed trade receivables (see note 17).

Page 32

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

17.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Trade creditors
733,053
747,393
15,125
22,265

Amounts owed to group undertakings
-
-
619,036
451,536

Corporation tax
140,709
2
-
-

Other taxation and social security
366,437
991,649
-
1,816

Invoice discounting
3,250,834
2,031,033
(44,113)
(25,758)

Other creditors
320,046
379,267
284,394
343,737

Accruals and deferred income
2,034,136
1,550,890
17,641
17,356

6,845,215
5,700,234
892,083
810,952


Invoice discounting facilities of £3,250,834 (2021 - £2,031,033) are secured by fixed and floating charges over all assets of the group, including trade debtors (see note 16). 


18.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Other creditors
139,594
219,594
139,594
219,594




19.


Deferred taxation


Group



2022
2021


£

£






At beginning of year
145,710
113,430


Charged to profit or loss
(125,231)
32,280



At end of year
20,479
145,710

Page 33

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
 
19.Deferred taxation (continued)

Company


2022
2021


£

£






At beginning of year
67,775
64,487


Charged to profit or loss
(10,464)
3,288



At end of year
57,311
67,775

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Accelerated capital allowances
(38,983)
(66,495)
(2,151)
(2,836)

Tax losses carried forward
59,462
212,205
59,462
70,611

20,479
145,710
57,311
67,775

Comprising:

Deferred tax asset
59,462
212,205
59,462
70,611

Deferred tax liability
(38,983)
(66,495)
(2,151)
(2,836)

20,479
145,710
57,311
67,775



The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.


20.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



10,000,000 (2021 - 10,000,000) Ordinary shares of £0.01 each
100,000
100,000

The Company's ordinary shares, which carry no right to fixed income, each carry the right to one vote at
general meetings of the Company.


Page 34

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

21.


Reserves

Other reserves

Other reserve comprises the cumulative share based payment expense. 

Profit and loss account

Cumulative profit and loss net of distribution to owners. 

22.


Analysis of net debt




At 1 March 2021
Cash flows
At 28 February 2022
£

£

£

Cash at bank and in hand

28,756

245,515

274,271

Debt due within 1 year

(254)

(71)

(325)


28,502
245,444
273,946


23.


Contingent liabilities

At the year end date, the Company has provided a guarantee in respect of the liabilities of a subsidiary. It is impractical to estimate the financial effect of this commitment. 

Page 35

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

24.


Share based payments

    Weighted
     average
     exercise
     price (£)
2022
Number
2022
    Weighted
     average
    exercise
     price (£)
2021
Number
2021

Outstanding at the beginning of the year

0.06

451,634

0.06
 
810,856
 
Granted during the period

-

-

-
 
-
 
Lapsed during the period


0.06

(134,144)

0.06
 
(359,222)
 
Outstanding at the end of the year

0.06

317,490

0.06
 
451,634
 

The options outstanding at 28 February 2022 had an exercise price of £0.0590, and a remaining life of 3 years.
Group
The weighted average fair value of options granted in the year was determined using the Black-Scholes option pricing model. The Black-Scholes model is considered to apply the most appropriate valuation method due to the relatively short contractual lives of the options and the requirement to exercise within a short period after the employee becomes entitled to the shares (the “vesting date”).
The expected life used in the model has been adjusted, based on management’s best estimate, for the effect of non-transferability, exercise restrictions, and behavioural considerations.
Non-vesting conditions and market conditions are taken into account when estimating the fair value of the option at grant date. Service conditions and non-market performance conditions are taken into account by adjusting the number of options expected to vest at each reporting date.
Inputs were as follows:

2022
2021
Weighted average share price (pence)

37

37
 
Weighted average exercise (pence)

6

6
 
Expected volatility

10

10
 
Risk-free interest rate

2

2
 

No expenses have been recognised in the current financial year (2021 - £Nil).
This charge has been allocated based on the number of employees within the scheme in each entity.






Page 36

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022

25.


Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £73,412 (2021 - £107,616).
Group pension contributions outstanding at the balance sheet date amount to £32,033 
(2021 - £26,914) and are included within Other creditors.


26.


Commitments under operating leases

At 28 February 2022 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2022
2021
£
£

Not later than 1 year
179,935
182,356

Later than 1 year and not later than 5 years
705,408
705,408

Later than 5 years
396,792
573,144

1,282,135
1,460,908

The Company had no commitments under non-cancellable operating leases at the balance sheet date.


27.


Related party transactions

Remuneration of key management personnel
The remuneration of key management personnel of the group during the year, including directors, is as follows:

2022
2021
£
£
Aggregate compensation

955,877

727,390
 

The above figure includes employers NI contributions totalling £103,675 (2021 - £75,875).
At the year end, the Group owed an entity under common control £266,787 
(2021 - £266,787) in respect of loans, which are included in other creditors.
At 28 February 2022 the Group owed a director £139,594 
(2021 - £219,594) which is included within creditors due after more than one year. The loan is interest free and the director has agreed that he will not demand repayment of any loan until at least one year after the current year has ended.


28.


Post balance sheet events

Subsequent to the year end, the Group granted 409,800 £0.01 Employee Share Options with exercise price of £0.036 each. 

Page 37

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 Page 38