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Registration number: SC214658

Aberdeen Appointments Agency Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2021

Brebners
Chartered Accountants & Statutory Auditor
130 Shaftesbury Avenue
London
W1D 5AR

 

Aberdeen Appointments Agency Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Statement of Income and Retained Earnings

9

Statement of Financial Position

10

Notes to the Financial Statements

11 to 20

 

Aberdeen Appointments Agency Limited

Company Information

Directors

J D Innes

D Bruce

P Norgate

Registered office

Johnstone House
52-54 Rose Street
Aberdeen
AB10 1UD

Auditor

Brebners
Chartered Accountants & Statutory Auditor
130 Shaftesbury Avenue
London
W1D 5AR


 

 

Aberdeen Appointments Agency Limited

Strategic Report for the Year Ended 31 December 2021

The directors present their strategic report for the year ended 31 December 2021.

Fair review of the business

The directors are satisfied with the performance of the company for the year which is in line with management's expectations. The group's performance is affected by the general health of the Energy vertical market which will be driven by the oil price, worldwide markets and demand.

An increase of the oil price in FY2021 due to geopolitical events has had a positive impact which has resulted in increased growth of both existing business as well as new clients. Similarly, changes in HMRC regulations relating to IR35 has resulted in increased demand from our clients for us to operate PAYE contractor payrolls which has created additional opportunities and growth.

The underlying business to date has remained robust and we have seen continued growth, our pipeline of opportunities is healthy, and we have generated profits during the year.

Management expects the improved performance to continue moving forwards.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2021

2020

Turnover

£

21,419,760

14,086,817

Gross margin

%

4

5

Profit/(loss) before tax

£

73,429

85,864

Cash at bank

£

1,366

752

Net assets

£

3,402,712

3,377,137

Principal risks and uncertainties

The group trades principally within the Energy vertical market with its subsidiary specialising as an employment agency.

The subsidiary faces business risks associated with the local demand for employment in Aberdeenshire, this could be either as a result of technological changes reducing the local employment requirements or economic factors such as a long-term reduction in oil price leading to a reduction in investment and reduced demand for a local workforce. Management monitors these risks to ensure continuity of trade and reactivity to local market conditions.

Financial instruments

Objectives and policies

The company uses basic financial instruments, other than derivatives, comprising bank balances, and various other items such as trade debtors, trade debt factoring and trade creditors. The main purpose of these instruments is to raise funds for and finance the company's operations.

It is, and has been throughout the year under review, the company’s policy that no trade in non-basic financial instruments shall be undertaken.

The company does not enter into any formal hedging arrangements.

 

Aberdeen Appointments Agency Limited

Strategic Report for the Year Ended 31 December 2021

Price risk, credit risk, liquidity risk and cash flow risk

Liquidity, credit, price and cash flow risks are managed by the directors on a constant basis to ensure the company maintains adequate cash flows to serve its working capital requirements.

The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are largely conducted in sterling.

Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Company policies are aimed at minimising such losses by authorisation of credit terms to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures.

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The company aims to mitigate liquidity risk by managing cash generation by its operations and ensuring regular monitoring of amounts outstanding for both time and credit limits in trade debtors.

Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability such as future interest payments on a variable rate debt. The company manages this risk, where significant, and does not maintain any derivatives or complex financial instruments as explained above.

Future developments

The principal activity and performance of the company and group is expected to remain consistent for the foreseeable future.

Approved by the Board on 14 September 2022 and signed on its behalf by:

.........................................
P Norgate
Director

 

Aberdeen Appointments Agency Limited

Directors' Report for the Year Ended 31 December 2021

The directors present their report and the financial statements for the year ended 31 December 2021.

Director of the company

The directors who held office during the year were as follows:

J D Innes

D Bruce

P Norgate

Principal activity

The principal activity of the company is that of an employment agency.

Disclosure of information in the Strategic Report

The company has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the company's Strategic Report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the Directors' Report. It has done so in respect of future developments and financial instruments.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the director on 14 September 2022 and signed by:



 

.........................................
P Norgate
Director

 

Aberdeen Appointments Agency Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual 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 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; and

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.

 

Aberdeen Appointments Agency Limited

Independent Auditor's Report to the Members of Aberdeen Appointments Agency Limited
for the Year Ended 31 December 2021

Opinion

We have audited the financial statements of Aberdeen Appointments Agency Limited (the 'company') for the year ended 31 December 2021, which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 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.

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 director's 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 original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Aberdeen Appointments Agency Limited

Independent Auditor's Report to the Members of Aberdeen Appointments Agency Limited
for the Year Ended 31 December 2021

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and 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 our 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 directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities (set out on page 5), 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.

 

Aberdeen Appointments Agency Limited

Independent Auditor's Report to the Members of Aberdeen Appointments Agency Limited
for the Year Ended 31 December 2021

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:

Based on our understanding of the company and the industry in which it operates, we determined that the principle risks of non-compliance with laws and regulations related to the reporting framework (FRS 102 and the Companies Act 2006), UK corporate taxation laws, health and safety legislation and data protection legislation. These risks were communicated to our audit team and we remained alert to any indications of non-compliance throughout our audit.

We understood how the company is complying with relevant legislation by making enquiries of management. We also considered the results of our audit procedures and to what extent these corroborate this understanding and assessed the susceptibility of the company's financial statements to material misstatement. This included consideration of how fraud might occur and evaluation of management's incentives and opportunities for fraudulent manipulation of the financial statements.

We designed our audit procedures to identify any non-compliance with laws and regulations. Such procedures included, but were not limited to, inspection of any regulatory or legal correspondence; challenging assumptions and judgements made by management; identifying and testing journal entries with a focus on large or unusual transactions as determined based on our understanding of the business; and identifying and assessing the effectiveness of controls in place to prevent and detect fraud.

Owing to the inherent limitations of an audit, there remains a risk that a material misstatement may not have been detected, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance with laws and regulations and cannot be expected to detect all instances of non-compliance.

A further description of our responsibilities 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.

......................................
Darren Bond (Senior Statutory Auditor)
For and on behalf of

Brebners, Statutory Auditor
130 Shaftesbury Avenue
London
W1D 5AR

 

14 September 2022

 

Aberdeen Appointments Agency Limited

Statement of Income and Retained Earnings for the Year Ended 31 December 2021

Note

2021
£

2020
£

Turnover

3

21,419,760

14,086,817

Cost of sales

 

(20,498,752)

(13,413,987)

Gross profit

 

921,008

672,830

Administrative expenses

 

(924,229)

(733,050)

Other operating income

2,528

85,570

Operating (loss)/profit

4

(693)

25,350

Other interest receivable and similar income

5

74,122

73,678

Interest payable and similar charges

6

-

(13,164)

 

74,122

60,514

Profit before tax

 

73,429

85,864

Taxation

9

(47,854)

5,279

Profit for the financial year

 

25,575

91,143

Retained earnings brought forward

 

3,339,637

3,248,494

Retained earnings carried forward

 

3,365,212

3,339,637

 

Aberdeen Appointments Agency Limited

Statement of Financial Position as at 31 December 2021

Note

2021
£

2020
£

Fixed assets

 

Tangible assets

10

10,152

5,882

Current assets

 

Debtors

11

7,323,152

7,086,270

Cash at bank and in hand

 

1,366

752

 

7,324,518

7,087,022

Creditors: Amounts falling due within one year

13

(3,467,655)

(3,220,839)

Net current assets

 

3,856,863

3,866,183

Total assets less current liabilities

 

3,867,015

3,872,065

Provisions for liabilities

14

(464,303)

(494,928)

Net assets

 

3,402,712

3,377,137

Capital and reserves

 

Called up share capital

37,500

37,500

Profit and loss account

3,365,212

3,339,637

Shareholders' funds

 

3,402,712

3,377,137

Company registration number: SC214658

Approved and authorised by the Board on 14 September 2022 and signed on its behalf by:

 

......................................................................

P Norgate

Director

 

Aberdeen Appointments Agency Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Johnstone House
52-54 Rose Street
Aberdeen
AB10 1UD
Scotland

The principal activity of the company is that of an employment agency.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.

Summary of disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Sword Group SE, which can be obtained from sword-group.com/en/investors. As such advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:

(a) No cash flow statement has been presented for the company.
(b) Disclosures in respect of financial instruments have not been presented.
(c) No disclosure has been given for the aggregate remuneration of key management personnel.

 

Aberdeen Appointments Agency Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

Going concern

The company made a profit after tax for the year ended 31 December 2021 and had net assets of £3,402,712 at that date.

The organisation has performed strongly and generated high levels of growth during FY2021, there is currently a strong pipeline of future opportunities as a result of both the taxation changes implemented by the Inland Revenue relating to the status of Limited Company contractors and IR35 and the current high price of oil due to geopolitical uncertainty.

Following the directors' assessment of the potential business risks associated with the pandemic at the outset, the company has continued to demonstrate its commitment to managing resources effectively in order to meet current and future obligations.

The company's and group's cash flow forecasts show that with the measures outlined above they have sufficient working capital.

As such, having made enquiries, the directors have a reasonable expectation that the company has adequate resources to continue operating for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual income. Key assumptions and other estimation uncertainty may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Judgements and estimates that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

Onerous lease contract provision
The onerous lease provision is calculated based on management's estimates of future lease payment, business rates, occupancy, subject to future events and are reviewed annually.

Deferred tax
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. The company exercises judgement to estimate such recoverability.

 

Aberdeen Appointments Agency Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

Revenue recognition

The revenue shown in the profit and loss account represents amounts receivable for temporary and permanent placements during the period, exclusive of Value Added Tax.

The company recognises revenue when the amount can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria has been met for each of the company's activities.

Revenue from temporary placements is recognised as the services are provided and represents amounts billed for the services of temporary staff, which includes the salary costs for these staff.

Revenue from permanent placements is based on a percentage of the candidate's remuneration package. It is company policy to defer revenue from permanent placements and recognise it over the three month probation period following the candidate's start date.

Government grants

Government grants have been recognised when there is reasonable assurance that the entity will comply with the conditions attaching to them and that the grants will be received. The grants have been recognised based on the accrual model as a grant relating to revenue, which has been recognised in other operating income in the period in which it becomes receivable.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.

Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

 

Aberdeen Appointments Agency Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over
the useful economic life of that asset as follows:

Asset class

Depreciation method and rate

Land and buildings

20% straight line

Furniture, fittings and equipment

20% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities.

Trade debtors

Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts.

Trade creditors

Trade and other creditors are initially recognised at the transaction price and are thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

Borrowings

Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable, using the effective interest method.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Aberdeen Appointments Agency Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due.

3

Revenue

The analysis of the company's revenue for the year from continuing operations is as follows:

2021
 £

2020
 £

Rendering of services, UK

21,419,760

14,086,817

4

Operating (loss)/profit

Arrived at after charging

2021
 £

2020
 £

Depreciation expense

2,172

1,803

Foreign exchange losses/(gains)

295

(471)

5

Other interest receivable and similar income

2021
 £

2020
 £

Other interest receivable

74,122

73,678

6

Interest payable and similar expenses

2021
 £

2020
 £

Interest expense on other finance liabilities

-

13,164

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2021
 £

2020
 £

Wages and salaries

17,805,154

10,542,832

Social security costs

2,244,154

1,195,996

Pension costs, defined contribution scheme

176,832

105,505

Other employee expense

730

805

20,226,870

11,845,138

 

Aberdeen Appointments Agency Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

The average number of persons employed by the company during the year, analysed by category was as follows:

2021
No.

2020
No.

Administration and support

9

11

Contractors

238

166

247

177

8

Auditors' remuneration

2021
 £

2020
 £

Audit of the financial statements

17,750

17,500


 

Non-audit services

11,500

11,200

9

Taxation

Tax charged/(credited) in the income statement

2021
£

2020
£

Current taxation

UK corporation tax

48,364

16,314

UK corporation tax - subvention payment (receipt)

-

343

UK corporation tax adjustment to prior periods

(2,315)

1,064

46,049

17,721

Deferred taxation

Arising from origination and reversal of timing differences

1,805

(23,000)

Tax expense/(receipt) in the income statement

47,854

(5,279)

 

Aberdeen Appointments Agency Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2020 - the same as the standard rate of corporation tax in the UK) of 19% (2020 - 19%).

The differences are reconciled below:

2021
£

2020
£

Profit before tax

73,429

85,864

Corporation tax at standard rate

48,364

16,314

Subvention payment

13,999

343

(Decrease)/increase in UK and foreign current tax from unrecognised temporary difference from a prior period

(2,315)

1,064

Deferred tax expense/(credit) from unrecognised temporary difference from a prior period

1,805

(23,000)

Tax decrease arising from group relief

(13,999)

(343)

Other tax effects for reconciliation between accounting profit and tax expense (income)

-

343

Total tax charge/(credit)

47,854

(5,279)

Deferred tax

Deferred tax assets

2021

Asset
£

Accelerated capital allowances

2,905

Pension accrual

3,099

Losses carried forward

206,500

 

212,504

2020

Asset
£

Accelerated capital allowances

3,265

Pension accrual

2,165

Losses carried forward

208,879

 

214,309

 

Aberdeen Appointments Agency Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

10

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 January 2021

218,320

200,257

418,577

Additions

-

6,441

6,441

Disposals

-

(11,490)

(11,490)

At 31 December 2021

218,320

195,208

413,528

Depreciation

At 1 January 2021

218,320

194,375

412,695

Charge for the year

-

2,172

2,172

Eliminated on disposal

-

(11,491)

(11,491)

At 31 December 2021

218,320

185,056

403,376

Carrying amount

At 31 December 2021

-

10,152

10,152

At 31 December 2020

-

5,882

5,882

11

Debtors

Note

2021
 £

2020
 £

Trade debtors

 

1,547,625

1,438,634

Amounts owed by group undertakings

5,073,049

4,960,684

Prepayments and accrued income

 

489,974

472,643

Deferred tax asset

9

212,504

214,309

Total current trade and other debtors

 

7,323,152

7,086,270

12

Cash and cash equivalents

2021
 £

2020
 £

Cash at bank and on hand

1,366

752

 

Aberdeen Appointments Agency Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

13

Creditors

Note

2021
 £

2020
 £

Due within one year

 

Loans and borrowings

17

207,880

198,979

Trade creditors

 

4,417

8,615

Amounts due to group undertakings

234,765

454,342

Social security and other taxes

 

1,411,395

1,432,292

Other payables

 

42,026

33,061

Accruals and deferred income

 

1,518,808

1,077,236

Corporation tax liability

9

48,364

16,314

 

3,467,655

3,220,839

14

Provisions for liabilities

Dilapidation
£

Onerous contracts
£

Total
£

At 1 January 2021

22,957

471,971

494,928

Increase (decrease) in existing provisions

158,163

(188,788)

(30,625)

At 31 December 2021

181,120

283,183

464,303

This provision relates to an onerous lease contract on the company's main premises. This lease has 2 years remaining and lease payments are expected to be made throughout the lease term. A discounting rate of 2% has been used to reflect the time value of money, and is re-assessed against current levels of inflation each year. There is some uncertainty over the amount of payments relating to future business rates. The rates predicted by the provision are compared to the actual rates charged each year to ensure no adjustments to the provision are required. No reimbursements are expected.

The dilapidations provision is measured as the best estimate of the costs required to reinstate the premises leased to the standard required by the Landlord by the termination date of June 2023. This has been estimated at £20 per square foot for 9,056 square feet. A property manager has been consulted to confirm the cost used is reasonable.

15

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £176,832 (2020 - £105,505).

 

Aberdeen Appointments Agency Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

16

Share capital

Allotted, called up and fully paid shares

 

2021

2020

 

No.

£

No.

£

Ordinary shares of £1 each

37,500

37,500

37,500

37,500

         

17

Loans and borrowings

2021
£

2020
£

Current loans and borrowings

Other borrowings

207,880

198,979

Other borrowings

Other borrowings of £207,880 (2020 - £198,979) comprise a factoring facility. This facility is secured by a bond and floating charge over all property and assets present and future of the company, including uncalled capital.

18

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2021
£

2020
£

Not later than one year

202,750

139,117

Later than one year and not later than five years

101,375

304,125

304,125

443,242

The amount of non-cancellable operating lease payments recognised as an expense during the year was £118,844 (2020 - £141,982).

19

Parent and ultimate parent undertaking

The company's immediate parent is AAA Group Limited, incorporated in Scotland.

 The ultimate parent is Sword Group SE, incorporated in Luxembourg.

 The most senior parent entity producing publicly available financial statements is Sword Group SE.

Sword Group SE, whose registered office is located at Route d'Arlon 2-4, L-8399 Windhof, Luxembourg, is the parent of the smallest and largest group preparing consolidated financial statements incorporating the results of the company.