Registered number
03422709
First Advantage Europe Ltd
Report and Financial Statements
31 December 2021
First Advantage Europe Ltd
Report and accounts
Contents
Page
Company information 1
Director's report 2
Independent auditor's report 3
Income statement 6
Statement of financial position 7
Statement of changes in equity 8
Statement of cash flows 9
Notes to the financial statements 10
First Advantage Europe Ltd
Company Information
Director
Bret T Jardine
Auditors
Taylor Rushby Limited
The Coach House
Headgate
Colchester
Essex
CO3 3BT
Registered office
30th Floor, 40 Bank Street
Canary Wharf
London
E14 5NR
Registered number
03422709
First Advantage Europe Ltd
Registered number: 03422709
Director's Report
The director presents his report and financial statements for the year ended 31 December 2021.
Principal activities
The company's principal activity during the year continued to be the provision of pre-employment screening services.
Directors
The following persons served as directors during the year:
Bret T Jardine
Director's responsibilities
The director is responsible for preparing the report and financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (Financial Reporting Standard 102 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 director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.
Disclosure of information to auditors
The director confirms that:
so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and
he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board on 18 August 2022 and signed on its behalf.
Bret T Jardine
Director
First Advantage Europe Ltd
Independent auditor's report
to the member of First Advantage Europe Ltd
Opinion
We have audited the financial statements of First Advantage Europe Ltd (the 'company') for the year ended 31 December 2021 which comprise the Income Statement, the Statement of Financial Position, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and the 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;
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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The 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 the 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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the 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 identified areas of laws and regulations that might reasonably be expected to have a material effect on the financial statements. We considered the extent of compliance with those laws and regulations as apart of our procedures on the relted financial statement items.
We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
Our audit procedures were designed to respond to the risk of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one caused by error. There are inherent limitations in the audit procedures performed.
A further description of our responsibilities for the audit of the financial statements is available 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 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.
Nicholas Taylor
(Senior Statutory Auditor) The Coach House
for and on behalf of Headgate
Taylor Rushby Limited Colchester
Statutory Auditor Essex
18 August 2022 CO3 3BT
First Advantage Europe Ltd
Income Statement
for the year ended 31 December 2021
Notes 2021 2020
£ £
Turnover 2 27,293,619 5,314,048
Cost of sales ######### (2,013,627)
Gross profit 11,117,991 3,300,421
Administrative expenses (8,681,328) (3,036,113)
Other operating income - 36,516
Operating profit 3 2,436,663 300,824
Interest receivable - 34
Profit on ordinary activities before taxation 2,436,663 300,858
Tax on profit on ordinary activities 5 (85,001) -
Profit for the financial year 2,351,662 300,858
First Advantage Europe Ltd
Statement of Financial Position
as at 31 December 2021
Notes 2021 2020
£ £
Fixed assets
Intangible assets 6 4,377,600 -
Tangible assets 7 299,413 77,226
4,677,013 77,226
Current assets
Debtors 8 6,584,408 1,799,242
Cash at bank and in hand 3,153,666 783,371
9,738,074 2,582,613
Creditors: amounts falling due within one year 9 (5,092,396) (2,938,810)
Net current assets/(liabilities) 4,645,678 (356,197)
Net assets/(liabilities) 9,322,691 (278,971)
Capital and reserves
Called up share capital 10 4,502,752 4,502,751
Share premium 11 7,249,999 -
Profit and loss account 12 (2,430,060) (4,781,722)
Total equity 9,322,691 (278,971)
Bret T Jardine
Director
Approved by the board on 18 August 2022
First Advantage Europe Ltd
Statement of Changes in Equity
for the year ended 31 December 2021
Share Share Profit Total
capital premium and loss
account
£ £ £ £
At 1 January 2020 4,502,751 - (5,082,580) (579,829)
Profit for the financial year - - 300,858 300,858
At 31 December 2020 4,502,751 - (4,781,722) (278,971)
At 1 January 2021 4,502,751 - (4,781,722) (278,971)
Profit for the financial year - - 2,351,662 2,351,662
Share issued 1 7,249,999 - 7,250,000
At 31 December 2021 4,502,752 7,249,999 (2,430,060) 9,322,691
First Advantage Europe Ltd
Statement of Cash Flows
for the year ended 31 December 2021
Notes 2021 2020
£ £
Operating activities
Profit for the financial year 2,351,662 300,858
Adjustments for:
Interest receivable - (34)
Tax on profit on ordinary activities 85,001 -
Depreciation 113,373 38,040
Amortisation of goodwill 943,049 -
(Increase)/decrease in debtors (4,785,166) 839,415
Increase/(decrease) in creditors 2,062,390 (1,152,468)
770,309 25,811
Interest received - 34
Corporation tax paid 6,195 -
Cash generated by operating activities 776,504 25,845
Investing activities
Payments to acquire business (5,320,649) -
Payments to acquire tangible fixed assets (335,560) (45,537)
Cash used in investing activities (5,656,209) (45,537)
Financing activities
Proceeds from the issue of share 7,250,000 -
Cash generated by financing activities 7,250,000 -
Net cash generated/(used)
Cash generated by operating activities 776,504 25,845
Cash used in investing activities (5,656,209) (45,537)
Cash generated by financing activities 7,250,000 -
Net cash generated/(used) 2,370,295 (19,692)
Cash and cash equivalents at 1 January 783,371 803,063
Cash and cash equivalents at 31 December 3,153,666 783,371
Cash and cash equivalents comprise:
Cash at bank 3,153,666 783,371
First Advantage Europe Ltd
Notes to the Accounts
for the year ended 31 December 2021
1 Summary of significant accounting policies
Basis of preparation
The financial statements have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services. Turnover from the rendering of services is recognised by reference to the point at which the Company's performance obligations are completed and its work becomes billable.
Intangible fixed assets
Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Office equipment over four years
Computers over three years
Fixtures, fittings and equipment over seven years
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Foreign currency translation
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction.

At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Analysis of turnover 2021 2020
£ £
Services rendered 27,293,619 5,314,048
By geographical market:
UK 83% 62%
Europe 10% 18%
Rest of the World 7% 20%
100% 100%
3 Operating profit 2021 2020
£ £
This is stated after charging:
Depreciation of owned fixed assets 113,373 38,041
Amortisation of intangible assets 943,049 -
Operating lease rentals - land and buildings 246,682 193,765
Auditors' remuneration for audit services 6,369 6,327
4 Staff costs 2021 2020
£ £
Wages and salaries 4,511,597 1,693,117
Social security costs 498,037 307,692
Other employment taxes and levies 39,645 -
Other pension costs 239,127 131,862
5,288,406 2,132,671
Average number of employees during the year Number Number
Administration 131 87
131 87
5 Taxation 2021 2020
£ £
Analysis of charge in period
Current tax:
UK corporation tax on profits of the period 91,196 -
Deferred tax:
Origination and reversal of timing differences (6,195) -
Tax on profit on ordinary activities 85,001 -
Factors affecting tax charge for period
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows:
2021 2020
£ £
Profit on ordinary activities before tax 2,436,663 300,858
Standard rate of corporation tax in the UK 19% 19%
£ £
Profit on ordinary activities multiplied by the standard rate of corporation tax 462,966 57,163
Effects of:
Expenses not deductible for tax purposes 277,965 8,638
Capital allowances for period in excess of depreciation (50,723) (2,325)
Utilisation of tax losses (599,012) (63,476)
Current tax charge for period 91,196 -
6 Intangible fixed assets £
Acquisition of business
Cost
Additions 5,320,649
At 31 December 2021 5,320,649
Amortisation
Provided during the year 943,049
At 31 December 2021 943,049
Carrying amount
At 31 December 2021 4,377,600
The company acquired a third party business during the year. Goodwill and other assets have been recognised as intangible fixed assets and are being amortised over their estimated useful economic life of between 2 and 6 years.
7 Tangible fixed assets
Fixtures, fittings and equipment
At cost
£
Cost or valuation
At 1 January 2021 250,869
Additions 335,560
At 31 December 2021 586,429
Depreciation
At 1 January 2021 173,643
Charge for the year 113,373
At 31 December 2021 287,016
Carrying amount
At 31 December 2021 299,413
At 31 December 2020 77,226
8 Debtors 2021 2020
£ £
Trade debtors 6,037,749 1,347,022
Amounts owed by group undertakings and undertakings in which the company has a participating interest 340,648 418,353
Other debtors 206,011 33,867
6,584,408 1,799,242
9 Creditors: amounts falling due within one year 2021 2020
£ £
Trade creditors 1,867,441 102,010
Amounts owed to group undertakings and undertakings in which the company has a participating interest 1,603,057 1,772,185
Corporation tax 91,196 -
Other taxes and social security costs 252,425 434,335
Other creditors 1,278,277 630,280
5,092,396 2,938,810
10 Share capital Nominal 2021 2021 2020
value Number £ £
Allotted, called up and fully paid:
Ordinary shares £1 each 11,752,751 4,502,752 4,502,751
Nominal Number Amount
value £
Shares issued during the period:
Ordinary shares £1 each 1 1
11 Share premium 2021 2020
£ £
Shares issued 7,249,999 -
At 31 December 7,249,999 -
12 Profit and loss account 2021 2020
£ £
At 1 January (4,781,722) (5,082,580)
Profit for the financial year 2,351,662 300,858
At 31 December (2,430,060) (4,781,722)
13 Other financial commitments
Total future minimum lease payments under non-cancellable operating leases:
Land and buildings Land and buildings Other Other
2021 2020 2021 2020
£ £ £ £
Falling due:
within one year 3,258 - - -
within two to five years 324,322 251,682 - -
in over five years 870,274 - - -
1,197,854 251,682 - -
14 Related party transactions
The company has taken advantage of the exemption in Financial Reporting Standard 102, paragraph 33.1A, from disclosing transactions with other group companies.
15 Controlling party
The company is wholly owned by FADV B.V., a corporation registered in The Netherlands.

The ultimate controlling party is First Advantage Corporation, a United States corporation.
16 Presentation currency
The financial statements are presented in Sterling.
17 Legal form of entity and country of incorporation
First Advantage Europe Ltd is a private company limited by shares and incorporated in England and Wales.
18 Principal place of business
The address of the company's principal place of business is:
2 St John's Street
Colchester
Essex
CO2 7AA
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