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Res-Q Outsourcing Solutions Limited

Registered number: 09361590
Annual report and
 consolidated financial statements
For the year ended 31 December 2022

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
COMPANY INFORMATION


Directors
N L Marshall 
G C Marchbank 
I Maxwell-Scott 




Registered number
09361590



Registered office
1st Floor
1 Paragon Square

Hull

East Yorkshire

HU1 3JZ




Independent auditor
Mazars LLP
Chartered Accountants & Statutory Auditor

5th Floor

3 Wellington Place

Leeds

LS1 4AP




Bankers
Santander UK plc
6-8 King Edward Street

Hull

HU1 3SS





 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 4
Directors' Report
 
5 - 8
Independent Auditor's Report
 
9 - 12
Consolidated Statement of Comprehensive Income
 
13
Consolidated Statement of Financial Position
 
14
Company Statement of Financial Position
 
15
Consolidated Statement of Changes in Equity
 
16
Company Statement of Changes in Equity
 
17
Consolidated Statement of Cash Flows
 
18 - 19
Notes to the Financial Statements
 
20 - 39


 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

Introduction
 
The Directors present their Strategic Report and the financial statements for the year ended 31 December 2022.

Business review
 
The principal activity of the Group is the provision of outsourced, contact centre services for market leading companies, operating in the UK.
The financial statements have been submitted on the basis that the business is a going concern.  
Our evaluation is based on a comprehensive review of the Group's financial statements, management's representations, discussions with key personnel, and an assessment of market conditions.
The business delivered record beating financial performance for the first quarter of 2022. The achievement was in line with the budget. The events on the world stage disrupted the energy markets and impacted the rest of the year. 
The fallout caused by the interruption to the energy market in 2022 was far reaching. ResQ was not immune to this, and the impact was felt from the second quarter of 2022. The effect on revenue was £21m over the year of contracted business that could not be delivered due to the market being immobilised. ResQ’s clients were powerless and as such services and tariffs were withdrawn from the market in quick succession.
Market experts anticipated the energy market returning in the second half of 2022, although this was predicated on the energy cap as determined by Ofgem. The energy market recovery did not return during 2022. That said, the energy market is building momentum and the expectation is that the market will open with new tariffs during Q3 2023. The Group is already delivering more business on behalf of energy companies than it did in 2023.  Furthermore, there are several opportunities being negotiated which would see a significant revenue uplift in 2023.
Outside of the energy customers, the tenacity of ResQ once again came to the fore and saw a concerted effort to replace lost revenues through organic growth in other sectors from within the portfolio. This approach was successful, and under pinned the business delivering a positive EBITDA result for the period  .
The Group embellished the people strategy to ensure ResQ continued to be an employer of choice within the regions, whilst the wider market struggled to fulfil their job vacancies in the year. This was regularly evidenced at round table events and industry workshops.  ResQ navigated the employment market conditions with aplomb delivering on recruitment targets across the year.
The “Return to office” has been a resounding success and has supported the team in their overall wellbeing and development. Whilst the option to work remotely is there, more than 80% choose to work from the contact centres. 
ResQ’s technology development continues to deliver groundbreaking solutions to improve efficiencies, productivity and overall profitability within the contact centre operation. The technology road map presented new opportunities and has elevated the Group’s standing within the industry. This has been recognised by clients and prospects alike. 

- 1 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Principal risks and uncertainties
 
Risk identification and management is of key concern for senior management of the Group. Regular reviews are undertaken by the Board of Directors of the Group's risk register to ensure that all potential risks are identified, categorised and the necessary actions taken to minimise the financial and/or reputational impact.
The strength of consumer confidence, driven by the tightening of household budgets, is going to be a key factor in delivering the Group's strategy. However, the Group's diverse portfolio of customers and service offerings, means that the Group is not overly exposed to one sector of the UK economy.
The Responsible Debt Management initiative ResQ developed on behalf of several clients is well placed. This customer focused approach is unique to managing customers’ debt, and has been well received.

Financial key performance indicators
 
The key financial performance indicators are:


2022
2021
Change
Change

£'000
£'000
£'000
%
Turnover
48,537
51,191
(2,654)
(5)
Gross profit
14,661
16,486
(1,825)
(11)
EBITDA*
627
3,936
(3,309)
(84)
 
*EBITDA is calculated as operating profit adjusted for depreciation and amortisation
- 2 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Directors' statement of compliance with duty to promote the success of the Group
 
Directors Duties
The directors of the company, as with all UK companies, must act in the way he/she considers, in good faith, would be most likely to promote the success of the Group for the benefit of its members, and in doing so have regard (amongst other matters) to:
a.      The likely consequences of any decision in the long term.
b.      The interests of the company's employees.
c.      The need to foster the company's business relationships with suppliers, customers, and others.
d.      The impact of the company's operations on the community and the environment.
e.      The desirability of the company maintaining a reputation for high standards of business conduct; and
f.       The need to act fairly between members of the company.
The following paragraphs summarise how the Directors fulfil their duty to promote the success of the Group:
Our people and values
Our People are fundamental to the growth and success of the business. Our vision has been to create opportunities and careers for people. Our environment, where we support, care for and empower our people, allows our people to flourish and develop. This in turn gives them skills for life, provides career opportunities and means that they do the right things.
We treat everyone as individuals and trust them implicitly, this in turn builds respect,  resulting in people going the extra mile to achieve our objectives. We believe that everyone has potential, we hire on attitude not background or current skill set  so we can give everyone an opportunity to be the best they can be. This results in exceptional business performance and delighted customers and clients. Our Values of Collaborative, Innovative, Honest, Competitive and Enjoy are part of the cultural DNA and has seen us as award winners for our culture and engagement nationally.
The true testament to this is our very low employee attrition levels which are significantly better than any other business in the outsourcing industry. We provide everyone with opportunities and reward their success. We have built a very successful leadership team that buys into and lives and breathes our DNA meaning that as we grow the great culture is sustainable and fit for growth. 
We have many initiatives that contribute to this ethos. For example, we have clear succession plans through our Leadership Development Programmes. We are investing heavily in Leadership Development through an inhouse programme.  Significant financial investment is provided to run ongoing engagement activities. We regularly look at how we improve our environment from annual employees surveys to ongoing 4 and 8 week reviews with our people.
We attribute the success of our business is down to the success of our people.
 
- 3 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Business Relationships
The directors are committed to seek value in mutually beneficial partnerships, providing prosperity for all involved.
The strategy of the Group is to target organic growth, driven by cross-selling and up-selling products to existing customers, alongside the development of new customers and market territories.
To do this, we have a dedicated sales team who focus on developing and maintaining strong customer relationships, investing time in developing existing products or developing new products to meet the customer needs.
We value all our suppliers, many of whom we have been in partnership with for over 10 years and commit to engaging responsibly and fairly.  It is the policy of the Group to pay suppliers promptly to agreed terms.
Community and Environment
The Group recognise their responsibility to act sustainably and to play their part in protecting and enhancing the global environment.
The Group participates in waste reduction with local recycling schemes.  Wherever possible it seeks to target improvements in energy efficiency and reduction of the businesses’ carbon footprint.
Shareholders
The strategy and objectives of the Group are deployed through the Company via the annual budget setting process and mid-term plan, which seek to align the goals of the Company to those of the Group to ultimately promote the long-term growth and success of the business.


Future developments

2022 was heralded as a good outcome in light of the interruption to revenue from the Energy market.  The swift implementation to right size the overhead allowed for a positive EBITDA to be recorded.  The benefits from the right sizing will be taken forward in to 2023 and 2024. 
The business continues to attract some of the UK’s biggest brands. There is a high degree of confidence in the ability to convert these opportunities into long term, strategic accounts. Public sector interest has been stimulated by the ability to deploy cloud-based technology, via ResQ, to measure productive and compliance.
An additional 33,000 sq ft of contact space will come online in Q4 2023.  The centre will accommodate existing and new clients in a state of the art, 600 FTE centre focused on wellbeing and underpinning the ResQ culture.
Accordingly, the directors are delighted with the outlook for the Group for the coming year.

This report was approved by the board on 3 October 2023 and signed on its behalf.





N L Marshall
Director

- 4 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

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

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 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.

Results and dividends

The loss for the year, after taxation, amounted to £1,525,306 (2021 - profit £1,520,819).

No dividends were declared or paid in the period (2021 - £Nil).

Directors

The directors who served during the year were:

N L Marshall 
G C Marchbank 
I Maxwell-Scott 

- 5 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Going concern

Despite the headwinds of 2022, the group was able to flex its overhead and resources to reduce the losses. The actions taken coupled with the resurgence of the energy markets has reinforced the confidence for the business to return to a normal operating rhythm and profitability. The streamlining of costs has been carried through to 2023 to underpin margins and EBITDA and return the group to profitability.
Further comfort can be taken from the level of engagement with clients and prospects alike who are looking to ResQ to assist them with transformation projects and repatriation of existing services. The Group is engaged at senior level with a number of UK prospects.
In addition to a well-established invoice discounting facility partnership that continues to grow with the business, a second line of facilities have been secured. The strong covenants from our client contracts have allowed ResQ to avail of supplier financing facilities which are commercially competitive and further underpin the cash flow of the Company and the Group.
Based on client engagement, cash flow and actual results for the period ending 31 August 2023, the current cash position and knowledge of the business the directors believe that that based on the forecast they have prepared the business is well placed to manage its risks successfully and meet its obligations as they fall due for at least 12 months from the date of signing these financial statements.
The directors have a reasonable expectation that the Group and the Company has adequate resources to continue in operation for the foreseeable future, thus they continue to adopt the going concern basis of accounting in preparing the Group and the Company financial statements. 

Engagement with employees

Employees are kept well-informed about the progress and position of the Group by means of regular departmental meetings.
Disabled employees received appropriate training to promote their career development within the Group.

Qualifying third party indemnity provisions

The company maintains insurance policies on behalf of the directors against liability arising from negligence, breach of duty and breach of trust in relation to the company.

- 6 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Greenhouse gas emissions, energy consumption and energy efficiency action

The Group's greenhouse gas emissions and energy consumption for the year ae summarised below:


2022 UK Consumption


(kWh)

Utility and scope


Grid electricity (Scope 2)
1,246,079

Natural gas (Scope 1)
7,674

Refunded mileage (Scope 3)
81,310

Total
1,335,064





2022 UK Consumption


(tCo2e)

Utility and scope


Grid electricity (Scope 2)
240.97

Natural gas (Scope 1)
1.55

Refunded mileage (Scope 3)
20.06

Total
626.58





2022

Reporting ratio


Tonnes of Co2e per hundreds of FTE
18.40



Reporting methodology
The UK government issued “Greenhouse gas reporting: conversion factors 2022” conversion figures for CO2e were used along with the fuel property figures to determine the kWh content for Fleet. 
Res-Q Outsourcing are reporting upon all the required fuel sources as per SECR requirements. Consumption for Electricity and Natural gas was calculated from the cost. Estimations for Vehicle Fleet cost were provided, and UK government fuel properties used to convert to kWh and tCO2e.
Intensity measurement
The chosen intensity measurement ratio is Hundreds of full time equivalent employees (average).
Measures taken to improve energy efficiency
Res-Q Outsourcing continue to strive for energy and carbon reduction arising from their activities. During this reporting period the Group have: 
• Set timers and limits to Air Conditioning (AC)
• Installed Lights on motion control.
• Installed LED lighting.

Matters covered in the Group Strategic Report

Certain information not shown in the Directors' Report is shown in the Strategic Report on pages 1 to 4 instead in accordance with Section 414C(11) of the Companies Act 2006. This includes a business review, principal risks and uncertainties, and future developments.

- 7 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 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, Mazars LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 3 October 2023 and signed on its behalf.
 





N L Marshall
Director

- 8 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RES-Q OUTSOURCING SOLUTIONS LIMITED
 

Opinion

We have audited the financial statements of Res-Q Outsourcing Solutions Limited (the ‘Parent Company’) and its subsidiaries (the ‘Group’) for the year ended 31 December 2022 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Statement of Financial Position, the Consolidated and Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows 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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the Group's and of the Parent Company’s affairs as at 31 December 2022 and of the Group's loss 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 and Parent 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.
- 9 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RES-Q OUTSOURCING SOLUTIONS LIMITED
 

Other information (continued)
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 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 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.

- 10 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RES-Q OUTSOURCING SOLUTIONS LIMITED
 

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement 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 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 intend either 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 the financial statements. 

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

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. 

Based on our understanding of the group and the parent company and their industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.  

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006. 
- 11 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RES-Q OUTSOURCING SOLUTIONS LIMITED
 

In addition, we evaluated the directors' and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls, and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition (which we pinpointed to the cut-off assertion), impairment of investments, impairment of intangible and tangible fixed assets, and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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 the audit 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.




Shaun Mullins (Senior Statutory Auditor)

  
for and on behalf of

Mazars LLP
Chartered Accountants and Statutory Auditor 
5th Floor
3 Wellington Place
Leeds
LS1 4AP

5 October 2023
- 12 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
Note
 £
£

  

Turnover
 4 
48,536,700
51,190,872

Cost of sales
  
(33,875,612)
(34,704,886)

Gross profit
  
14,661,088
16,485,986

Administrative expenses
  
(15,675,663)
(14,219,698)

Other operating income
 5 
-
218,921

Operating (loss)/profit
 6 
(1,014,575)
2,485,209

Interest payable and similar expenses
 10 
(857,757)
(616,754)

(Loss)/profit before taxation
  
(1,872,332)
1,868,455

Tax on (loss)/profit
 11 
347,026
(347,636)

(Loss)/profit for the financial year
  
(1,525,306)
1,520,819

  

There were no recognised gains and losses for 2022 or 2021 other than those included in the consolidated statement of comprehensive income.

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

The notes on pages 20 to 39 form part of these financial statements.

- 13 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
REGISTERED NUMBER: 09361590

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Intangible assets
 12 
1,907,980
2,337,694

Tangible assets
 13 
2,008,778
2,677,695

  
3,916,758
5,015,389

Current assets
  

Debtors
 15 
10,135,805
9,659,758

Cash at bank and in hand
 16 
167,439
222,669

  
10,303,244
9,882,427

Creditors: amounts falling due within one year
 17 
(12,656,299)
(11,337,922)

Net current liabilities
  
 
 
(2,353,055)
 
 
(1,455,495)

Total assets less current liabilities
  
1,563,703
3,559,894

Creditors: amounts falling due after more than one year
 18 
(569,411)
(740,421)

Provisions for liabilities
  

Deferred taxation
 21 
(408,649)
(707,744)

Net assets
  
585,643
2,111,729


Capital and reserves
  

Called up share capital 
 22 
1,669
1,672

Share premium account
 23 
2,083,227
2,084,007

Capital redemption reserve
 23 
3
-

Other reserves
 23 
1,498,800
1,498,800

Profit and loss account
 23 
(2,998,056)
(1,472,750)

  
585,643
2,111,729


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 3 October 2023.





N L Marshall
Director

The notes on pages 20 to 39 form part of these financial statements.

- 14 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
REGISTERED NUMBER: 09361590

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Investments
 14 
6,602,200
6,602,200

  
6,602,200
6,602,200

Current assets
  

Debtors
 15 
29,259
30,039

  
29,259
30,039

Creditors: amounts falling due within one year
 17 
(594,463)
-

Net current (liabilities)/assets
  
 
 
(565,204)
 
 
30,039

Total assets less current liabilities
  
6,036,996
6,632,239

  

Creditors: amounts falling due after more than one year
 18 
(8,844,450)
(8,684,713)

  

Net liabilities
  
(2,807,454)
(2,052,474)


Capital and reserves
  

Called up share capital 
 22 
1,669
1,672

Share premium account
 23 
2,083,227
2,084,007

Capital redemption reserve
 23 
3
-

Profit and loss account
 23 
(4,892,353)
(4,138,153)

  
(2,807,454)
(2,052,474)


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 loss after tax of the Company for the year was £754,200 (2021 - £880,606).
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 3 October 2023.





N L Marshall
Director

- 15 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss account
Total equity

£
£
£
£
£
£


At 1 January 2021
1,572
2,054,107
-
1,498,800
(2,993,569)
560,910


Comprehensive income for the year

Profit for the year
-
-
-
-
1,520,819
1,520,819
Total comprehensive income for the year
-
-
-
-
1,520,819
1,520,819


Contributions by and distributions to owners

Shares issued during the year
100
29,900
-
-
-
30,000


Total transactions with owners
100
29,900
-
-
-
30,000



At 1 January 2022
1,672
2,084,007
-
1,498,800
(1,472,750)
2,111,729


Comprehensive income for the year

Loss for the year
-
-
-
-
(1,525,306)
(1,525,306)
Total comprehensive income for the year
-
-
-
-
(1,525,306)
(1,525,306)


Contributions by and distributions to owners

Purchase of own shares
(3)
(780)
3
-
-
(780)


Total transactions with owners
(3)
(780)
3
-
-
(780)


At 31 December 2022
1,669
2,083,227
3
1,498,800
(2,998,056)
585,643


The notes on pages 20 to 39 form part of these financial statements.

- 16 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£
£

At 1 January 2021
1,572
2,054,107
-
(3,257,547)
(1,201,868)


Comprehensive income for the year

Loss for the year
-
-
-
(880,606)
(880,606)
Total comprehensive income for the year
-
-
-
(880,606)
(880,606)


Contributions by and distributions to owners

Shares issued during the year
100
29,900
-
-
30,000


Total transactions with owners
100
29,900
-
-
30,000


At 1 January 2022
1,672
2,084,007
-
(4,138,153)
(2,052,474)


Comprehensive income for the year

Loss for the year
-
-
-
(754,200)
(754,200)
Total comprehensive income for the year
-
-
-
(754,200)
(754,200)


Contributions by and distributions to owners

Shares issued in the year
(3)
(780)
3
-
(780)


Total transactions with owners
(3)
(780)
3
-
(780)


At 31 December 2022
1,669
2,083,227
3
(4,892,353)
(2,807,454)


The notes on pages 20 to 39 form part of these financial statements.

- 17 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(1,525,306)
1,520,819

Adjustments for:

Amortisation of intangible assets
779,237
707,729

Depreciation of tangible assets
862,069
742,581

Profit on disposal of tangible assets
(29,556)
-

Government grants credited to the profit and loss
-
(218,921)

Interest paid
857,757
616,754

Taxation charge
(347,026)
347,636

Increase in debtors
(473,791)
(2,120,139)

Increase/(decrease) in creditors
1,288,958
(493,371)

Corporation tax received
90,724
122,385

Government grants received
-
218,921

Net cash generated from operating activities

1,503,066
1,444,394


Cash flows from investing activities

Purchase of intangible fixed assets
(349,523)
(561,934)

Purchase of tangible fixed assets
(270,539)
(1,257,830)

Sale of tangible fixed assets
106,943
-

HP interest paid
(15,540)
2,104

Net cash from investing activities

(528,659)
(1,817,660)
- 18 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022


2022
2021

£
£



Cash flows from financing activities

Purchase of ordinary shares
(780)
-

Other new loans
-
758,378

Repayment of other loans
(200,371)
(5,833)

Repayment of/ new finance leases
13,731
(116,881)

Interest paid
(842,217)
(618,858)

Net cash (used in)/generated by financing activities
(1,029,637)
16,806

Net decrease in cash and cash equivalents
(55,230)
(356,460)

Cash and cash equivalents at beginning of year
222,669
579,129

Cash and cash equivalents at the end of year
167,439
222,669


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
167,439
222,669

167,439
222,669


The notes on pages 20 to 39 form part of these financial statements.

- 19 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

Res-Q Outsourcing Solutions Limited is a private company, limited by shares, registered in England and Wales, registration number 09361590. The registered office is 1st Floor, 1 Paragon Square, Hull, East Yorkshire, England, HU1 3JZ.
The principal activity of the Company is that of holding company of a trading group.
The prinicpal activity of the Group is the provision of outsourced services for leading companies operating in the UK.

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.

These financial statements have been presented in pound sterling which is the functional currency of the Company, and 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.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, 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.

- 20 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

  
2.3

Financial reporting standard 102 - reduced disclosure exemptions

The Parent Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
  the requirements of Section 7 Statement of Cash Flows;
  the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
  the requirements of Section 33 Related Party Disclosures paragraph 33.7.

 
2.4

Going concern

Despite the headwinds of 2022, the group was able to flex its overhead and resources to reduce the losses. The actions taken coupled with the resurgence of the energy markets has reinforced the confidence for the business to return to a normal operating rhythm and profitability. The streamlining of costs has been carried through to 2023 to underpin margins and EBITDA and return the group to profitability.
Further comfort can be taken from the level of engagement with clients and prospects alike who are looking to ResQ to assist them with transformation projects and repatriation of existing services. The Group is engaged at senior level with a number of UK prospects.
In addition to a well-established invoice discounting facility partnership that continues to grow with the business, a second line of facilities have been secured. The strong covenants from our client contracts have allowed ResQ to avail of supplier financing facilities which are commercially competitive and further underpin the cash flow of the Company and the Group.
Based on client engagement, cash flow and actual results for the period ending 31 August 2023, the current cash position and knowledge of the business the directors believe that that based on the forecast they have prepared the business is well placed to manage its risks successfully and meet its obligations as they fall due for at least 12 months from the date of signing these financial statements.
The directors have a reasonable expectation that the Group and the Company has adequate resources to continue in operation for the foreseeable future, thus they continue to adopt the going concern basis of accounting in preparing the Group and the Company financial statements. 

- 21 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Research and development

Research and development expenditure is expensed as incurred.

 
2.8

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.

 
2.9

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.

- 22 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.11

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 Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

 
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 reporting 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 reporting 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 reporting date.

- 23 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.13

Intangible assets

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 profit and loss account over its useful economic life, deemed to be 10 years.
Software 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 profit and loss account over its useful economic life, deemed to be 10 years. 
Customer lists and trade names represent separately identifiable assets as a result of a business combination.  Subsequent to initial recognition, these assets are measured at cost less accumulated amortisation and accumulated impairment losses. Amortisation is charged on a straight line basis to the profit and loss account over the useful economic life, deemed to be 10 years. 

 
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.

The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements
-
10%
Motor vehicles
-
20-33%
Fixtures & fittings
-
10%
Office equipment
-
25%

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

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

- 24 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.16

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.17

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. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. 
In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdraft that are repayable on demand and form an integral part of the Group's cash management. 

 
2.18

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.19

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 reporting 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 Statement of Financial Position.

 
2.20

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. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

- 25 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)


2.20
Financial instruments (continued)

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The critical judgments that the directors have made in the process of applying the Group’s accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.
(i) Assessing indicators of impairment 
In assessing whether there have been any indicators of impairment assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability and where applicable, the ability of the asset to be operated as planned. 
Key sources of estimation uncertainty 
We consider there to be no other key sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.


4.


Turnover

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


2022
2021
£
£

Outsourced services
48,536,700
51,190,872


All turnover arose within the United Kingdom.

- 26 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

5.


Other operating income

2022
2021
£
£

Government grants receivable
-
218,921



6.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2022
2021
£
£

Depreciation of tangible fixed assets
862,069
742,581

Amortisation of intangible assets, including goodwill
779,237
707,729

Other operating lease rentals
756,252
655,131

Defined contribution pension cost
627,244
607,900


7.


Auditor's remuneration

During the year, the Group obtained the following services from the Company's auditor:


2022
2021
£
£

Fees payable to the Company's auditor for the audit of the consolidated and parent Company's financial statements

75,000
55,000

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

Taxation compliance services
18,500
11,000

All other services
15,000
13,700

- 27 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

8.


Employees

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


Group
Group
2022
2021
£
£


Wages and salaries
40,392,724
39,110,468

Social security costs
3,108,271
2,784,127

Cost of defined contribution scheme
627,244
607,900

44,128,239
42,502,495


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


        2022
        2021
            No.
            No.







Direct
166
142



Support
204
173



Agent
1,464
1,622

1,834
1,937

The average number of full-time equivalent employees during the year was 1,487 (2021 – 1,610).


9.


Directors' remuneration

2022
2021
£
£

Directors' emoluments
499,710
460,643


During the year retirement benefits were accruing to no directors (2021 - NIL) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £256,545 (2021 - £253,843).

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).

- 28 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

10.


Interest payable and similar expenses

2022
2021
£
£


Other loan interest payable
416,901
254,425

Finance leases and hire purchase contracts
15,540
(2,104)

Other interest payable
425,316
364,433

857,757
616,754


11.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
18,824
71,722

Adjustments in respect of previous periods
(66,755)
-


Total current tax
(47,931)
71,722

Deferred tax


Origination and reversal of timing differences
(237,879)
275,914

Adjustments in respect of prior periods
(61,216)
-

Total deferred tax
(299,095)
275,914


Taxation on (loss)/profit on ordinary activities
(347,026)
347,636
- 29 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
 
11.Taxation (continued)


Factors affecting tax charge for the year

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

2022
2021
£
£


(Loss)/profit on ordinary activities before tax
(1,872,332)
1,868,455


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
(355,743)
355,006

Effects of:


Fixed asset differences
29,919
17,114

Expenses not deductible for tax purposes
112,532
112,407

Research and development expenditure credits
12,394
11,927

Adjustments to tax charge in respect of previous periods
(66,755)
-

Adjustments to tax charge in respect of previous periods - deferred tax
(61,216)
-

Remeasurement of deferred tax for changes in tax rates
(18,157)
112,977

Movement in deferred tax not recognised
-
(259,853)

Other timing differences leading to an increase (decrease) in taxation
-
(1,942)

Total tax charge for the year
(347,026)
347,636


Factors that may affect future tax charges

The UK Government announced in the 2021 budget that from 1 April 2023, the rate of corporation tax in the United Kingdom will increase from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19%, which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate will apply but with a marginal relief applying as profits increase.

- 30 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

12.


Intangible assets

Group





Software
Customer lists and trade names
Goodwill
Total

£
£
£
£



Cost


At 1 January 2022
1,648,674
2,608,000
1,897,571
6,154,245


Additions
349,523
-
-
349,523



At 31 December 2022

1,998,197
2,608,000
1,897,571
6,503,768



Amortisation


At 1 January 2022
682,780
1,825,600
1,308,171
3,816,551


Charge for the year
328,680
260,800
189,757
779,237



At 31 December 2022

1,011,460
2,086,400
1,497,928
4,595,788



Net book value



At 31 December 2022
986,737
521,600
399,643
1,907,980



At 31 December 2021
965,894
782,400
589,400
2,337,694



All intangible assets noted above either arise on consolidation or exist in the financial statements of the subsidiary companies. The Parent Company has no intangible assets. 

- 31 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

13.


Tangible fixed assets

Group






Leasehold improvements
Motor vehicles
Fixtures & fittings
Office equipment
Total

£
£
£
£
£



Cost


At 1 January 2022
2,447,240
177,749
597,566
1,701,309
4,923,864


Additions
-
146,591
31,835
92,113
270,539


Disposals
-
(177,749)
-
(220,430)
(398,179)



At 31 December 2022

2,447,240
146,591
629,401
1,572,992
4,796,224



Depreciation


At 1 January 2022
924,877
80,574
306,231
934,487
2,246,169


Charge for the year on owned assets
320,742
-
74,390
299,058
694,190


Charge for the year on financed assets
88,086
45,877
15,944
17,972
167,879


Disposals
-
(100,362)
-
(220,430)
(320,792)



At 31 December 2022

1,333,705
26,089
396,565
1,031,087
2,787,446



Net book value



At 31 December 2022
1,113,535
120,502
232,836
541,905
2,008,778



At 31 December 2021
1,522,363
97,175
291,335
766,822
2,677,695

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2022
2021
£
£



Leasehold improvements
29,362
123,698

Office equipment
-
17,972

Motor vehicles
120,502
97,175

Fixtures & fittings
5,315
21,258

155,179
260,103

- 32 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

14.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2022
6,602,200



At 31 December 2022
6,602,200





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

ResQ Limited
1st Floor, 1 Paragon Square, Hull, East Yorkshire, HU1 3JZ
Ordinary
100%
Res-Q (Seaham) Limited
As above
Ordinary
100%
Keystone Business Intelligence Limited
As above
Ordinary
100%


15.


Debtors

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



Trade debtors
1,794,173
2,793,313
-
-

Other debtors
3,457,459
2,647,462
29,259
30,039

Prepayments and accrued income
4,881,917
4,218,983
-
-

Tax recoverable
2,256
-
-
-

10,135,805
9,659,758
29,259
30,039


- 33 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

16.


Cash and cash equivalents

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

Cash at bank and in hand
167,439
222,669
-
-



17.


Creditors: Amounts falling due within one year

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

Other loans
420,808
462,890
-
-

Trade creditors
1,190,933
660,350
594,463
-

Corporation tax
428,659
383,610
-
-

Other taxation and social security
2,882,784
3,424,916
-
-

Obligations under finance lease and hire purchase contracts
31,566
58,442
-
-

Other creditors
4,398,094
3,339,029
-
-

Accruals and deferred income
3,303,455
3,008,685
-
-

12,656,299
11,337,922
594,463
-


Secured Loans
An amount of £4,134,612 (2021: £3,097,207) on an invoice discounting facility, included within other creditors, is secured on the Group's trade debtors, and a fixed and floating charge over the assets of the Group.
Loans due in less than one year of £160,345 (2021: £160,345) are secured by personal guarantees provided by Mr N Marshall.
Loans totalling £150,527 (2021: £150,000) due in less than one year included in other loans have been secured by a floating charge against the leasehold property assets at Paragon Street.
Obligations under finance lease are hire purchase contracts that are secured upon the assets to which they relate.
An amount of £100,000 (2021: £100,000) included within other loans has been guaranteed by certain directors of the Group.

- 34 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

18.


Creditors: Amounts falling due after more than one year

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

Other loans
441,711
600,000
-
-

Net obligations under finance leases and hire purchase contracts
105,464
64,857
-
-

Amounts owed to group undertakings
-
-
8,844,450
8,684,713

Other creditors
22,236
75,564
-
-

569,411
740,421
8,844,450
8,684,713


Loans totalling £441,711 (2021: £600,000) due after more than one year included in other loans have been secured by a floating charge against the leasehold property assets at Paragon Street.
Obligations under finance leases and hire purchases contracts are secured against the related assets.
Intercompany balances are not subject to interest and are repayable on demand, however the fellow group company has confirmed that the balance will not be recalled in a period of less than 12 months from the date of these financial statements.


19.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2022
2021
£
£

Amounts falling due within one year

Other loans
420,808
462,890

Amounts falling due 1-2 years

Other loans
160,463
150,000

Amounts falling due 2-5 years

Other loans
281,248
450,000


862,519
1,062,890


See note 17 and 18 for details of any security given against the loans.

- 35 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2022
2021
£
£

Within one year
31,566
58,442

Between 1-5 years
105,464
64,857

137,030
123,299

Obligations under finance leases and hire purchases contracts are secured against the related assets.


21.


Deferred taxation


Group



2022
2021


£

£






At beginning of year
(707,744)
(431,830)


Charged to profit or loss
299,095
(275,914)



At end of year
(408,649)
(707,744)

The provision for deferred taxation is made up as follows:

Group
Group
2022
2021
£
£

Fixed asset timing differences
(427,841)
(721,910)

Short term timing differences
19,192
14,166

(408,649)
(707,744)

- 36 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

22.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



157,227 (2021 - 157,227) Ordinary shares of £0.01 each
1,572.27
1,572.27
9,740 (2021 - 10,000) A Ordinary shares of £0.01 each
97.40
100.00

1,669.67

1,672.27


The Ordinary shares carry standard rights in respect of voting, distributions and repayment of capital.
The A Ordinary shares do not entitle the holder to vote, or to distributions and are not redeemable.
On 19 April 2022 the Company purchased 260 of its own Ordinary A shares with a nominal value of £2.60, for a total consideration of £780.



23.


Reserves

Share premium account

Includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

Capital redemption reserve

The capital redemption reserve represents the nominal value of shares which have been repurchased by the Parent Company.

Other reserves

Other reserves represent the application of acquisition accounting.

Profit & loss account

The profit and loss account reserve represents cumulative profits and losses, less dividends paid.

- 37 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
24.


Analysis of net debt







At 1 January 2022
Cash flows
Non-cash movements
Repayment of finance leases
Repayment of loans
At 31 December 2022
£

£

£

£

£

£

Cash at bank and in hand

222,669

(55,230)

-

-

-

167,439

Debt due after 1 year

(600,000)

-

158,289

-

-

(441,711)

Debt due within 1 year

(462,890)

-

(158,289)

-

200,371

(420,808)

Finance leases

(123,299)

-

(131,824)

118,093

-

(137,030)

Invoice discounting facility

(3,097,207)

(1,037,405)

-

-

-

(4,134,612)


(4,060,727)
(1,092,635)
(131,824)
118,093
200,371
(4,966,722)


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 £627,244 (2021: £607,900). Contributions totalling £131,642 (2021: £129,009) were payable to the fund at the Statement of Financial Position date and are included in other creditors.


26.


Commitments under operating leases

At 31 December 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
590,017
729,998

Later than 1 year and not later than 5 years
1,161,272
1,650,522

1,751,289
2,380,520

Lease payments recognised as an expense during the year totalled £756,252 (2021: £655,131).

- 38 -

 
RES-Q OUTSOURCING SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

27.


Transactions with the Directors

At 31 December 2022, the Directors owed the Group £2,278,530 (2021: £1,693,224) in respect of an interest free loan. Further advances during the year were made totalling £585,306 (2021: £685,948).


28.


Related party transactions

The Group has taken advantage of the exemption in Section 33 of FRS 102 ''The Financial Reporting Standard applicable in the UK and Republic of Ireland'' to not disclose transactions with Group companies.
Consultancy fees of £37,000 (2021: £77,500) were received from a other related party.


29.


Controlling party

The directors do not consider there to be an ultimate controlling party.

- 39 -