Company registration number 10630030 (England and Wales)
PSR GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
PSR GROUP LIMITED
COMPANY INFORMATION
Directors
Mr J S Sanders
Mr G Beeston
(Appointed 1 August 2023)
Mr D N Berks
(Appointed 14 August 2023)
Mr C J Cowan
(Appointed 1 August 2023)
Secretary
Mr J S Sanders
Company number
10630030
Registered office
Prospect House
Stafford Road
Penkridge
Stafford
England
ST18 9AB
Auditor
BK Plus Audit Limited
Azzurri House
Walsall Road
Aldridge
Walsall
WS9 0RB
PSR GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9 - 10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 34
PSR GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 1 -

The directors present the strategic report for the year ended 31 March 2022.

Fair review of the business

 

The principal activity of the company during the year under review was the supply of permanent and temporary recruitment services to the construction and healthcare industries.

 

The group’s financials reflect an overall positive 12 months despite the market challenges; our groups annual turnover increasing by 55.6% and Gross Profit by 66.8%.

 

Our 170 strong group workforce continue to be at the forefront of our strategy. Employee retention remains strong across the business. Recognition and reward coupled with our investment in our biggest asset our staff, resulted in PSR Group being award Platinum status in the globally recognised Investors in People accreditation.

 

Social Responsibility

 

We specialise in hiring specific industry talent and support employers across the UK with Section 106 Agreements, delivery of skills, employment, and Corporate Social Responsibility KPIs through:

Refugee Displaced Talent

Domestic Violence Survivors

Release On Temporary Licence (ROTL)

Ex-Offenders (male & female)

Service Leavers

Care Leavers

Early Careers

Homeless

 

Principal risks and uncertainties

The core construction business is heavily reliant on UK and global economic factors. The stronger the industry the more requirement for recruitment services.

 

Rising material and labour costs combined with repayment of covid loans and deferred tax obligations are putting a huge strain on the cash flow of many businesses. The risk of customers defaulting on debt is a concern, along with the availability of credit insurance which has been tightened significantly.

 

Due to investment into cloud based and new technology to compete at the highest level coupled with the ongoing investment into training and office infrastructure our resulted EBITDA for the year was supressed but necessary for the future of the business.

 

We also continue to insure our debt against default whilst making provision for potential bad debt within the balance sheet.

 

 

On behalf of the board

Mr J S Sanders
Director
3 October 2023
PSR GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -

The directors present their annual report and financial statements for the year ended 31 March 2022.

Principal activities

The principal activity of the company and group continued to be that of a holding company and recruitment consultancy.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mrs G Sanders
(Resigned 2 August 2023)
Mr J S Sanders
Mr G Beeston
(Appointed 1 August 2023)
Mr D N Berks
(Appointed 14 August 2023)
Mr John Berks
(Appointed 2 August 2023 and resigned 14 August 2023)
Mr C J Cowan
(Appointed 1 August 2023)
Post reporting date events

On 1st August 2023 the main trading company of the group, PSR Contract Solutions Limited went into administration. As a result of this the group restructured becoming part of a larger group headed by ISS Labour Group (Holdings) Limited. Further details are included in note 27.

Auditor

In accordance with the company's articles, a resolution proposing that BK Plus Audit Limited be reappointed as auditor of the group will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr J S Sanders
Director
3 October 2023
PSR GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2022
- 3 -

The directors are responsible 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PSR GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PSR GROUP LIMITED
- 4 -
Opinion

We have audited the financial statements of PSR Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2022 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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.

Emphasis of matter

We draw attention to note 27 of the financial statements, which outlines that on 1st August 2023, PSR Contract Solutions Limited was placed into administration. Due to a subsequent restructure of the business, we raise no concerns surrounding the group's ability to continue as a going concern. Our opinion is not modified in this respect.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

PSR GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PSR GROUP LIMITED
- 5 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

PSR GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PSR GROUP LIMITED
- 6 -

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.

 

From the preliminary stages of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.

 

In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

Christopher Hession C.A. (Senior Statutory Auditor)
For and on behalf of BK Plus Audit Limited
3 October 2023
Statutory Auditor
Azzurri House
Walsall Road
Aldridge
Walsall
WS9 0RB
PSR GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2022
- 7 -
2022
2021
as restated
Notes
£
£
Turnover
3
60,643,827
38,971,367
Cost of sales
(51,263,637)
(33,348,419)
Gross profit
9,380,190
5,622,948
Administrative expenses
(10,762,463)
(6,635,029)
Other operating income
20,972
1,043,377
Operating (loss)/profit
4
(1,361,301)
31,296
Interest receivable and similar income
8
27,315
-
0
Interest payable and similar expenses
9
(213,035)
(110,799)
Amounts written off investments
10
3,626
(108,025)
Loss before taxation
(1,543,395)
(187,528)
Tax on loss
11
(68,650)
20,179
Loss for the financial year
24
(1,612,045)
(167,349)
Loss for the financial year is attributable to:
- Owners of the parent company
(1,603,179)
(167,349)
- Non-controlling interests
(8,866)
-
(1,612,045)
(167,349)
PSR GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2022
- 8 -
2022
2021
as restated
£
£
Loss for the year
(1,612,045)
(167,349)
Other comprehensive income
-
-
Total comprehensive income for the year
(1,612,045)
(167,349)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(1,603,179)
(167,349)
- Non-controlling interests
(8,866)
-
(1,612,045)
(167,349)
PSR GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2022
31 March 2022
- 9 -
2022
2021
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
13
1,774,375
3,800,467
Other intangible assets
13
29,864
-
0
Total intangible assets
1,804,239
3,800,467
Tangible assets
14
753,722
620,709
2,557,961
4,421,176
Current assets
Debtors
17
12,353,467
8,715,915
Cash at bank and in hand
1,817,666
1,367,744
14,171,133
10,083,659
Creditors: amounts falling due within one year
18
(14,906,164)
(10,734,267)
Net current liabilities
(735,031)
(650,608)
Total assets less current liabilities
1,822,930
3,770,568
Creditors: amounts falling due after more than one year
19
(192,790)
(531,202)
Provisions for liabilities
Deferred tax liability
21
19,704
16,910
(19,704)
(16,910)
Net assets
1,610,436
3,222,456
Capital and reserves
Called up share capital
23
1,070
1,070
Share premium account
24
2,359,000
2,359,000
Profit and loss reserves
24
(740,793)
862,386
Equity attributable to owners of the parent company
1,619,277
3,222,456
Non-controlling interests
(8,841)
-
1,610,436
3,222,456
PSR GROUP LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2022
31 March 2022
- 10 -
The financial statements were approved by the board of directors and authorised for issue on 3 October 2023 and are signed on its behalf by:
03 October 2023
Mr J S Sanders
Director
Company registration number 10630030 (England and Wales)
PSR GROUP LIMITED
COMPANY BALANCE SHEET
AS AT
31 MARCH 2022
31 March 2022
- 11 -
2022
2021
as restated
Notes
£
£
£
£
Fixed assets
Investments
15
2,417,254
5,808,179
Current assets
Debtors
17
99,925
5,000
Cash at bank and in hand
20,617
7,089
120,542
12,089
Creditors: amounts falling due within one year
18
(524,744)
(550,247)
Net current liabilities
(404,202)
(538,158)
Total assets less current liabilities
2,013,052
5,270,021
Creditors: amounts falling due after more than one year
19
(144,731)
(440,000)
Net assets
1,868,321
4,830,021
Capital and reserves
Called up share capital
23
1,070
1,070
Share premium account
24
2,359,000
2,359,000
Profit and loss reserves
24
(491,749)
2,469,951
Total equity
1,868,321
4,830,021

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £2,961,700 (2021 - £813,011 profit).

The financial statements were approved by the board of directors and authorised for issue on 3 October 2023 and are signed on its behalf by:
03 October 2023
Mr J S Sanders
Director
Company registration number 10630030 (England and Wales)
PSR GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
£
As restated for the period ended 31 March 2021:
Balance at 1 April 2020
1,070
2,359,000
1,185,518
3,545,588
-
3,545,588
Prior year adjustment
-
-
(155,783)
(155,783)
-
(155,783)
As restated
1,070
2,359,000
1,029,735
3,389,805
-
3,389,805
Year ended 31 March 2021:
Loss and total comprehensive income for the year
-
-
(167,349)
(167,349)
-
(167,349)
Balance at 31 March 2021
1,070
2,359,000
862,386
3,222,456
-
0
3,222,456
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
-
(1,603,179)
(1,603,179)
(8,866)
(1,612,045)
Acquisition of subsidiary
-
-
-
-
25
25
Balance at 31 March 2022
1,070
2,359,000
(740,793)
1,619,277
(8,841)
1,610,436
PSR GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
As restated for the period ended 31 March 2021:
Balance at 1 April 2020
1,070
2,359,000
1,656,941
4,017,011
Year ended 31 March 2021:
Profit and total comprehensive income for the year
-
-
813,010
813,010
Balance at 31 March 2021
1,070
2,359,000
2,469,951
4,830,021
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
-
(2,961,700)
(2,961,700)
Balance at 31 March 2022
1,070
2,359,000
(491,749)
1,868,321
PSR GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
- 14 -
2022
2021
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
1,188,022
2,038,814
Interest paid
(213,035)
(110,799)
Income taxes paid
(116,847)
(26,062)
Net cash inflow from operating activities
858,140
1,901,953
Investing activities
Purchase of business
-
(492,319)
Purchase of intangible assets
(29,864)
-
Purchase of tangible fixed assets
(330,883)
(10,807)
Proceeds from disposal of tangible fixed assets
4,195
-
Loans made to other entities
(70,838)
-
Interest received
27,315
-
0
Net cash used in investing activities
(400,075)
(503,126)
Financing activities
Repayment of bank loans
-
(139,697)
Payment of finance leases obligations
(8,143)
(8,143)
Net cash used in financing activities
(8,143)
(147,840)
Net increase in cash and cash equivalents
449,922
1,250,987
Cash and cash equivalents at beginning of year
1,367,744
116,757
Cash and cash equivalents at end of year
1,817,666
1,367,744
PSR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 15 -
1
Accounting policies
Company information

PSR Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Prospect House, Stafford Road, Penkridge, Stafford, England, ST18 9AB.

 

The group consists of PSR Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

PSR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company PSR Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover represents amounts chargeable to clients for subcontract labour services provided during the year and is recognised when a right to consideration has been obtained through performance under each contract for the supply of those services.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years generally, but 10 years in relation to SYK Recruitment Specialists Limited.

 

1.8
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Development costs
4 years
Website development
20% on cost
PSR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 17 -
1.9
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
10% on cost
Fixtures and fittings
15% on reducing balance
Computers
33% on reducing balance
Motor vehicles
25% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

PSR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 18 -
1.10
Fixed asset investments

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

1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset

in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand.

1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

PSR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

PSR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 20 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

PSR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 21 -
1.19
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

It is the view of the directors that there are no material estimates or judgements.

3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Recruitment consultant
60,643,827
38,971,367
2022
2021
£
£
Other revenue
Interest income
27,315
-
Grants received
14,972
1,041,701

Turnover was wholly undertaken in the United Kingdom

During the year the group received £23,722 (2021: £1,041,701) in Government support as a result of the Covid-19 pandemic.

PSR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 22 -
4
Operating (loss)/profit
2022
2021
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Government grants
(14,972)
(1,041,701)
Depreciation of owned tangible fixed assets
175,332
127,861
Depreciation of tangible fixed assets held under finance leases
11,148
14,864
Loss on disposal of tangible fixed assets
7,195
374
Amortisation of intangible assets
264,731
180,426
Impairment of intangible assets
1,761,361
-
0
Operating lease charges
15,244
21,383
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,000
8,000
Audit of the financial statements of the company's subsidiaries
22,000
12,000
27,000
20,000
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Directors
3
3
2
2
Staff
137
117
-
-
Total
140
120
2
2

Their aggregate remuneration comprised:

Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
5,919,624
3,938,324
-
0
-
0
Social security costs
617,868
420,429
-
-
Pension costs
181,901
160,766
-
0
-
0
6,719,393
4,519,519
-
0
-
0
PSR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 23 -
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
132,502
90,000
Company pension contributions to defined contribution schemes
2,700
32,700
135,202
122,700
8
Interest receivable and similar income
2022
2021
£
£
Interest income
Other interest income
27,315
-
9
Interest payable and similar expenses
2022
2021
£
£
Interest on bank overdrafts and loans
-
1,543
Interest on invoice finance arrangements
209,075
98,913
Other interest on financial liabilities
-
7,300
Interest on finance leases and hire purchase contracts
3,043
3,043
Other interest
917
-
Total finance costs
213,035
110,799
10
Amounts written off investments
2022
2021
£
£
Other gains and losses
3,626
(108,025)
11
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
122,864
39,602
Adjustments in respect of prior periods
(57,008)
(62,200)
Total current tax
65,856
(22,598)
PSR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
11
Taxation
2022
2021
£
£
(Continued)
- 24 -
Deferred tax
Origination and reversal of timing differences
(1,608)
2,419
Changes in tax rates
4,402
-
0
Total deferred tax
2,794
2,419
Total tax charge/(credit)
68,650
(20,179)

The actual charge/(credit) for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Loss before taxation
(1,543,395)
(187,528)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(293,245)
(35,630)
Tax effect of expenses that are not deductible in determining taxable profit
11,098
20,608
Adjustments in respect of prior years
(14,749)
312
Effect of change in corporation tax rate
3,369
-
Permanent capital allowances in excess of depreciation
(1,735)
-
Depreciation on assets not qualifying for tax allowances
18,036
18,036
Amortisation on assets not qualifying for tax allowances
50,300
34,280
Other permanent differences
95
-
0
Under/(over) provided in prior years
(42,259)
(62,512)
Deferred tax adjustments in respect of prior years
3,082
5,745
Impairment
334,658
-
0
Other differences
-
0
(1,018)
Taxation charge/(credit)
68,650
(20,179)
PSR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 25 -
12
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2022
2021
Notes
£
£
In respect of:
Goodwill
13
1,761,361
-
Investments in subsidiaries
15
-
108,025
Recognised in:
Administrative expenses
1,761,361
-
Amounts written off investments
-
108,025

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

13
Intangible fixed assets
Group
Goodwill
Development costs
Website development
Total
£
£
£
£
Cost
At 1 April 2021
4,504,383
-
0
31,200
4,535,583
Additions
-
0
9,443
20,421
29,864
At 31 March 2022
4,504,383
9,443
51,621
4,565,447
Amortisation and impairment
At 1 April 2021
703,916
-
0
31,200
735,116
Amortisation charged for the year
264,731
-
0
-
0
264,731
Impairment losses
1,761,361
-
0
-
0
1,761,361
At 31 March 2022
2,730,008
-
0
31,200
2,761,208
Carrying amount
At 31 March 2022
1,774,375
9,443
20,421
1,804,239
At 31 March 2021
3,800,467
-
0
-
0
3,800,467
The company had no intangible fixed assets at 31 March 2022 or 31 March 2021.

More information on impairment movements in the year is given in note 12.

PSR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 26 -
14
Tangible fixed assets
Group
Leasehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2021
949,263
159,072
323,313
111,274
1,542,922
Additions
-
0
4,907
7,250
318,726
330,883
Disposals
-
0
-
0
(53,092)
-
0
(53,092)
At 31 March 2022
949,263
163,979
277,471
430,000
1,820,713
Depreciation and impairment
At 1 April 2021
502,772
102,535
253,682
63,224
922,213
Depreciation charged in the year
94,926
9,282
18,121
64,151
186,480
Eliminated in respect of disposals
-
0
-
0
(41,702)
-
0
(41,702)
At 31 March 2022
597,698
111,817
230,101
127,375
1,066,991
Carrying amount
At 31 March 2022
351,565
52,162
47,370
302,625
753,722
At 31 March 2021
446,491
56,537
69,631
48,050
620,709
The company had no tangible fixed assets at 31 March 2022 or 31 March 2021.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2022
2021
2022
2021
£
£
£
£
Motor vehicles
33,444
44,592
-
0
-
0
15
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
2,417,254
5,808,179
PSR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
15
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2021
5,808,179
Additions
75
At 31 March 2022
5,808,254
Impairment
At 1 April 2021
-
Impairment losses
3,391,000
At 31 March 2022
3,391,000
Carrying amount
At 31 March 2022
2,417,254
At 31 March 2021
5,808,179
16
Subsidiaries

Details of the company's subsidiaries at 31 March 2022 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
PSR Contract Solutions Limited
Prospect House, Stafford Road, Dunston, Stafford. ST18 9AB
Ordinary
100.00
PSR Solutions Limited
Prospect House, Stafford Road, Dunston, Stafford. ST18 9AB
Ordinary
100.00
SYK Recruitment Specialists Limited
Prospect House, Stafford Road, Dunston, Stafford. ST18 9AB
Ordinary
100.00
Novello Healthcare Limited
Prospect House, Stafford Road, Dunston, Stafford. ST18 9AB
Ordinary
75.00

Novello Healthcare Limited (company number 13793724) is exempt from the requirements of the Companies Act 2006 relating to the audit of individual accounts by virtue of S479A.

PSR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 28 -
17
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
11,968,318
8,132,590
-
0
5,000
Amounts owed by group undertakings
-
-
99,925
-
Other debtors
169,801
182,961
-
0
-
0
Prepayments and accrued income
215,348
400,364
-
0
-
0
12,353,467
8,715,915
99,925
5,000
18
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Obligations under finance leases
20
8,143
8,143
-
0
-
0
Invoice financing
9,805,428
6,345,952
-
0
-
0
Trade creditors
2,708,922
1,080,388
-
0
120
Amounts owed to group undertakings
-
0
-
0
212,378
202,078
Corporation tax payable
125,788
176,779
-
0
-
0
Other taxation and social security
1,373,744
1,899,663
-
(52)
Other creditors
365,777
621,461
312,366
348,101
Accruals and deferred income
518,362
601,881
-
0
-
0
14,906,164
10,734,267
524,744
550,247

The invoice discounting is secured by a fixed charge over purchased debts and a floating charge over all assets, held with HSBC Invoice Finance UK Limited, dated 14/08/2017.

19
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Obligations under finance leases
20
48,059
56,202
-
0
-
0
Other creditors
144,731
475,000
144,731
440,000
192,790
531,202
144,731
440,000
PSR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 29 -
20
Finance lease obligations
Group
Company
2022
2021
2022
2021
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
11,186
11,186
-
0
-
0
In two to five years
48,830
60,016
-
0
-
0
60,016
71,202
-
-
Less: future finance charges
(3,814)
(6,857)
-
0
-
0
56,202
64,345
-
0
-
0

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2022
2021
Group
£
£
Accelerated capital allowances
28,952
16,910
Retirement benefit obligations
(9,248)
-
19,704
16,910
The company has no deferred tax assets or liabilities.
Group
Company
2022
2022
Movements in the year:
£
£
Liability at 1 April 2021
16,910
-
Credit to profit or loss
(1,608)
-
Effect of change in tax rate - profit or loss
4,402
-
Liability at 31 March 2022
19,704
-

 

PSR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 30 -
22
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
181,901
160,766

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of 10p each
5,000
5,000
500
500
B Ordinary shares of 10p each
5,000
5,000
500
500
C Ordinary shares of 10p each
700
700
70
70
10,700
10,700
1,070
1,070

All shares have the rights to dividends, the Ordinary A and Ordinary B shares have first priority to their return of capital with the Ordinary C shares having secondary priority.

 

The Ordinary A shares have full voting rights whereas the Ordinary B shares, although voting shares, are restricted and Ordinary C shares hold no voting rights.

24
Reserves
Share premium

The share premium reserve contains the premium arising on issue of equity shares, net of issue expenses.

Profit and loss reserves

Includes all current and prior period distributable retained profits and losses.

25
Acquisition of a business

On 13 November 2021 the group acquired 75 percent of the issued capital of Novello Healthcare Ltd.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Cash and cash equivalents
-
75
75
Goodwill
-
Total consideration
75
PSR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
25
Acquisition of a business
(Continued)
- 31 -
The consideration was satisfied by:
£
Cash
75
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
86,118
Loss after tax
(35,462)

The goodwill arising on the acquisition of the business is attributable to the anticipated profitability of the contracts acquired. The directors consider that the goodwill has a useful economic life of 20 years and will be amortised on a straight line basis over 20 years from date of acquisition.

26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
224,127
224,127
-
-
Between two and five years
172,916
384,873
-
-
397,043
609,000
-
-
27
Events after the reporting date

On 1st August 2023 the main subsidiary trading company of the group, PSR Contract Solutions Limited went into administration. As a result of this the group restructured becoming part of a larger group headed by ISS Labour Group (Holdings) Limited.

 

PSR Staffing Limited was incorporated to acquire the trade and assets of PSR Contract Solutions Limited in Administration, which was purchased for £850,000.

 

The impact on the 31st March 2022 accounts is that the goodwill held in the group attributable to PSR Contract Solutions Limited has been impaired to a nil value with £1,761,361 being written off to the profit and loss in the current year.

PSR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 32 -
28
Controlling party

At the year end the company and group is controlled by J Sanders and G Sanders by virtue of their holding 100% of the voting rights attached to the issued share capital of PSR Group Limited.

On 1st August 2023 the group restructured following which the groups parent company became Conduit Staffing Limited with the ultimate parent company being ISS Labour Group (Holdings) Limited.

 

29
Cash generated from group operations
2022
2021
£
£
Loss for the year after tax
(1,612,045)
(167,349)
Adjustments for:
Taxation charged/(credited)
68,650
(20,179)
Finance costs
213,035
110,799
Investment income
(27,315)
-
0
Loss on disposal of tangible fixed assets
7,195
374
Amortisation and impairment of intangible assets
2,026,092
180,426
Depreciation and impairment of tangible fixed assets
186,480
142,725
Other gains and losses
(3,626)
108,025
Decrease in provisions
-
(308,101)
Movements in working capital:
(Increase)/decrease in debtors
(3,571,689)
932,283
Increase in creditors
3,901,245
1,059,811
Cash generated from operations
1,188,022
2,038,814
30
Analysis of changes in net funds - group
1 April 2021
Cash flows
31 March 2022
£
£
£
Cash at bank and in hand
1,367,744
449,922
1,817,666
Obligations under finance leases
(64,345)
8,143
(56,202)
1,303,399
458,065
1,761,464

 

 

 

 

 

 

 

 

 

 

PSR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 33 -
31
Prior period adjustment
Reconciliation of changes in equity - group
1 April
31 March
2020
2021
£
£
Adjustments to prior year
Amend cost of investment in subidiary
1
-
-
Amend impairment of investments in subsidiaries
1
-
(70,000)
Prior year expenditure omitted from accounts
2
(155,783)
(155,783)
Total adjustments
(155,783)
(225,783)
Equity as previously reported
3,545,588
3,448,239
Equity as adjusted
3,389,805
3,222,456
Analysis of the effect upon equity
Profit and loss reserves
(155,783)
(225,783)
Reconciliation of changes in loss for the previous financial period
2021
£
Adjustments to prior year
Amend cost of investment in subidiary
1
-
Amend impairment of investments in subsidiaries
1
(70,000)
Prior year expenditure omitted from accounts
2
-
Loss as previously reported
(97,349)
Loss as adjusted
(167,349)
Notes to reconciliation
1) Amendment to cost of subsidiary acquired

In 2021 the group acquired 100% shares in a subsidiary company, Purple Clarity Limited, with the initial payment of £35,000 included as the companys cost. This did not account for £70,000 of deferred consideration payable by the company as at 31/03/2021 therefore the accounts have now been adjusted to reflect the increase in cost and deferred consideration for this acquisition. However as Purple Clarity limited had no value and was dissolved in June 2021 the investment has also been subsequently impaired at the year end resulting in a further £70,000 impairment included in the groups profit and loss.

2) Inclusion of prior year expenditure omitted

£155,783 of costs have been identified within the balance sheet that should have been released in periods prior to the start of the comparative period, these costs have therefore been adjusted via retained profits brought forward as at 1 April 2020 to show the correct impact had they been included in the correct period.

PSR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
31
Prior period adjustment
(Continued)
- 34 -
Reconciliation of changes in equity - company
1 April
31 March
2020
2021
Notes
£
£
Adjustments to prior year
Reclassification of inter company dividends
1
-
(225,000)
Equity as previously reported
4,017,011
5,055,021
Equity as adjusted
4,017,011
4,830,021
Analysis of the effect upon equity
Profit and loss reserves
-
(225,000)
Reconciliation of changes in profit for the previous financial period
2021
Notes
£
Adjustments to prior year
Reclassification of inter company dividends
1
(225,000)
Profit as previously reported
1,038,010
Profit as adjusted
813,010
Notes to reconciliation
1) Reclassification of inter company dividends

Due to a prior year adjustment reflected in the accounts of one of the company's subsidiaries the directors have made the decision to reclassify inter company dividends paid in the prior year due to the subsidiary not being in the position to be able to declare all dividends and also to keep the balance sheet of the trading company at the same level as the originally submitted 31 March 2021 accounts.

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