Company registration number 07277291 (England and Wales)
360 RECRUITMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
360 RECRUITMENT LIMITED
COMPANY INFORMATION
Directors
G Tyler
L Osborne
M Osborne
Company number
07277291
Registered office
First Floor, The Lookout
Bull Close Road
Nottingham
NG7 2UL
Auditor
UHY Hacker Young
14 Park Row
Nottingham
NG1 6GR
Bankers
Barclays Bank PLC
Basildon 9
Leicester
LE87 2BB
360 RECRUITMENT LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of income and retained earnings
9
Balance sheet
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
360 RECRUITMENT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2023
- 1 -
The directors present the strategic report for the year ended 31 January 2023.
Review of the business
Revenue for the year was up 19% to £17.7m compared with 2022 at £14.9m. A concerted drive improving the blend of skilled v’s unskilled workers attracted higher margins. A low turnover of existing internal sales staff, repeat business, new clients and successful new hires resulted in a higher turnover (£17.7m) and a gross margin of 18.2% compared with 15.0% in 2022.
Administrative expenses increased in 2023 in value terms and stood at 11.0% of turnover compared with the 2022 ratio of 8.9%. The increase in the administrative expenses is due to greater investment in sales staff, rewarding good billing performances and bringing new staff members into the team. The end of the Covid pandemic has enabled the company to invest in travel and entertaining. The company also invested in its I.T infrastructure during the year implementing new CRM and payroll systems. In this year and future years, a higher ratio than the 2022 figure is expected.
This investment in the business infrastructure and client relationships has contributed to the delivery of a significant level of profitability as well as enabled the company to explore new revenue avenues. Brexit provided additional opportunities, including a new office in the Philippines and a recruitment licence to supply the UK and other parts of the world. The investment in sales staff has meant the company has made the most of the continuing upturn in the construction and food industry now that all Covid restrictions have been lifted.
As the effects of Brexit and Covid combined to create huge shortages of placeable candidates, the Directors focused on growing construction and food processing markets, whilst ‘shoring up’ their provision of skilled butchers with the addition of supply from non-EU countries, working on Skilled Worker Visa’s. This trend will continue in the coming years as the labour market tightens and rising inflation pushes wage rise demands up. This will push up fee revenue and margins across the board.
The company reported a pre-tax profit of £1.3m compared with a profit before tax of £967k in 2022. The key explanatory factors are recorded above.
360 RECRUITMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 2 -
Principal risks and uncertainties
Year End Position
The net assets position has improved during 2023 due to the company’s continuation profitable trading with net assets valued at £2,206,850 at 31 January 2023 (2022: £1,419,114). The Directors have evaluated the situation carefully and draw attention to the following factors:
The directors will continue to monitor the situation surrounding COVID-19 and Brexit related issues;
The directors are also concerned surrounding restrictions entering the country from red listed areas.
Service and Operational Performance
The Directors place considerable importance on supplying the correct worker for the position in which they are recruiting for. The directors have ensured that they will always place importance on this in order to maintain and grow strong customer relations with the intention of repeat business which has been demonstrated clearly. They plan to recruit additional sales staff to continue growth within the construction and food industry.
Principal Risks and Uncertainties
The principal risks and uncertainties faced by the business can be summarised as follows:
market competition and market pricing pressure;
Brexit related regulations;
economic activity in the UK market;
recovery of debts;
new regulations for handling personal data confidentially;
reputation;
extraordinary events such as infectious disease outbreaks;
the continuing impact from the Covid-19 pandemic and the wider economic uncertainty that it has created.
The company has a well developed risk management framework that is designed to identify, assess, monitor, manage and mitigate all of the above risks and the Directors expect that this approach will continue to manage these risks effectively along with any other risk factors that exist or may emerge in the future.
L Osborne
Director
13 October 2023
360 RECRUITMENT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 January 2023.
Principal activities
The principal activity of the company continued to be that of labour recruitment and the provision of temporary site based labour.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £234,580. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
G Tyler
L Osborne
M Osborne
Auditor
In accordance with the company's articles, a resolution proposing that UHY Hacker Young be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
360 RECRUITMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 4 -
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 company’s auditor 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 company’s auditor is aware of that information.
On behalf of the board
L Osborne
Director
13 October 2023
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF 360 RECRUITMENT LIMITED
- 5 -
Opinion
We have audited the financial statements of 360 Recruitment Limited (the 'company') for the year ended 31 January 2023 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 January 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF 360 RECRUITMENT LIMITED
- 6 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF 360 RECRUITMENT LIMITED
- 7 -
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the company, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated 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 inflated revenue and profit.
Audit procedures performed included, but were not limited to:
evaluating whether journals posted gave indications of bias by the Directors, that represented a risk of material misstatement due to fraud;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
making enquiries of management on whether they had knowledge of any actual, suspected or alleged fraud; and
gaining an understanding of the internal controls in place through performing walkthrough procedures.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF 360 RECRUITMENT LIMITED
- 8 -
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.
James Simmonds
Senior Statutory Auditor
For and on behalf of UHY Hacker Young
13 October 2023
Chartered Accountants
Statutory Auditor
360 RECRUITMENT LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JANUARY 2023
- 9 -
2023
2022
Notes
£
£
Turnover
17,737,670
14,899,792
Cost of sales
(14,502,329)
(12,664,407)
Gross profit
3,235,341
2,235,385
Administrative expenses
(1,955,015)
(1,323,546)
Other operating income
54,800
Operating profit
3
1,280,326
966,639
Interest receivable and similar income
223
197
Profit before taxation
1,280,549
966,836
Tax on profit
6
(258,233)
(184,100)
Profit for the financial year
1,022,316
782,736
Retained earnings brought forward
1,419,094
870,679
Dividends
7
(234,580)
(234,321)
Retained earnings carried forward
2,206,830
1,419,094
The profit and loss account has been prepared on the basis that all operations are continuing operations.
360 RECRUITMENT LIMITED
BALANCE SHEET
AS AT 31 JANUARY 2023
31 January 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
8
48,029
50,309
Investments
9
100
100
48,129
50,409
Current assets
Debtors
11
2,982,534
2,013,699
Cash at bank and in hand
1,040,931
1,325,579
4,023,465
3,339,278
Creditors: amounts falling due within one year
12
(1,708,260)
(1,721,286)
Net current assets
2,315,205
1,617,992
Total assets less current liabilities
2,363,334
1,668,401
Creditors: amounts falling due after more than one year
13
(156,484)
(249,287)
Net assets
2,206,850
1,419,114
Capital and reserves
Called up share capital
17
20
20
Profit and loss reserves
2,206,830
1,419,094
Total equity
2,206,850
1,419,114
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved by the board of directors and authorised for issue on 13 October 2023 and are signed on its behalf by:
L Osborne
Director
Company registration number 07277291 (England and Wales)
360 RECRUITMENT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
628,242
1,906,363
Income taxes paid
(201,424)
(168,401)
Net cash inflow from operating activities
426,818
1,737,962
Investing activities
Purchase of tangible fixed assets
(9,149)
(5,250)
Proceeds from disposal of tangible fixed assets
190
Increase in directors loan
(385,000)
(149,959)
Interest received
223
197
Net cash used in investing activities
(393,926)
(154,822)
Financing activities
Repayment of borrowings
(1,231)
(5,371)
Repayment of bank loans
(81,729)
(76,826)
Dividends paid
(234,580)
(234,321)
Net cash used in financing activities
(317,540)
(316,518)
Net (decrease)/increase in cash and cash equivalents
(284,648)
1,266,622
Cash and cash equivalents at beginning of year
1,325,579
58,957
Cash and cash equivalents at end of year
1,040,931
1,325,579
360 RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
- 12 -
1
Accounting policies
Company information
360 Recruitment Limited is a private company limited by shares incorporated in England and Wales. The registered office is First Floor, The Lookout, Bull Close Road, Nottingham, NG7 2UL.
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.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for recruitment services provided in the normal course of business, and is shown net of VAT. Sales are recognised at the point at which the company has fulfilled its contractual obligations to the customer.
Revenue from recruitment income is recognised on completion of the agreed hours provided.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost, net of depreciation.
Depreciation is recognised so as to write off the cost of assets less over their useful lives on the following basis:
Leasehold improvements
10% straight line
Fixtures, fittings & equipment
25% reducing balance
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
360 RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
1
Accounting policies
(Continued)
- 13 -
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
1.8
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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 measured at transaction price including transaction costs. Finanical assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, are recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
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.
1.9
Equity instruments
Equity instruments issued by the company 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 company.
360 RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
1
Accounting policies
(Continued)
- 14 -
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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 company’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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases are charged to income on a straight line basis over the term of the relevant lease.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
360 RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
There are no estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.
3
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(113)
Fees payable to the company's auditor for the audit of the company's financial statements
15,400
11,000
Depreciation of owned tangible fixed assets
11,429
10,434
Operating lease charges
84,470
41,081
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
106
132
360 RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
4
Employees
(Continued)
- 16 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,764,234
3,699,134
Social security costs
278,729
320,522
Pension costs
36,162
62,019
3,079,125
4,081,675
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
35,487
28,381
6
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
251,740
194,400
Adjustments in respect of prior periods
7,037
Total current tax
258,777
194,400
Deferred tax
Origination and reversal of timing differences
(544)
(10,300)
Total tax charge
258,233
184,100
360 RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
6
Taxation
(Continued)
- 17 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
1,280,549
966,836
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
243,304
183,699
Tax effect of expenses that are not deductible in determining taxable profit
15,138
13,724
Adjustments in respect of prior years
7,037
(4,566)
Effect of change in corporation tax rate
(1,366)
Depreciation on assets not qualifying for tax allowances
(522)
(299)
Other permanent differences
(83)
Other items
(6,724)
(7,009)
Taxation charge for the year
258,233
184,100
7
Dividends
2023
2022
£
£
Interim paid
234,580
234,321
360 RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 18 -
8
Tangible fixed assets
Leasehold improvements
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 February 2022
64,572
46,902
111,474
Additions
9,149
9,149
At 31 January 2023
64,572
56,051
120,623
Depreciation and impairment
At 1 February 2022
28,782
32,383
61,165
Depreciation charged in the year
6,458
4,971
11,429
At 31 January 2023
35,240
37,354
72,594
Carrying amount
At 31 January 2023
29,332
18,697
48,029
At 31 January 2022
35,790
14,519
50,309
9
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
10
100
100
360 RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 19 -
10
Subsidiaries
Details of the company's subsidiaries at 31 January 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
360 Recruitment (Construction) Limited
UK
Ordinary
100.00
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,793,106
1,244,438
Corporation tax recoverable
2,965
Other debtors
1,055,454
702,132
Prepayments
127,713
58,447
2,976,273
2,007,982
Deferred tax asset (note 15)
6,261
5,717
2,982,534
2,013,699
12
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
14
71,193
60,119
Other borrowings
14
1,231
Trade creditors
535,832
412,448
Corporation tax
248,788
194,400
Other taxation and social security
498,625
580,923
Other creditors
323,681
253,024
Accruals and deferred income
30,141
219,141
1,708,260
1,721,286
Included within bank loans and overdrafts is £71,193 (2022: £60,119) which is secured by way of a fixed and floating charge against the company's assets.
360 RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 20 -
13
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
14
156,484
249,287
Included within bank loans and overdrafts is £156,484 (2022: £249,387) which is secured by way of a fixed and floating charge against the company's assets.
14
Loans and overdrafts
2023
2022
£
£
Bank loans
227,677
309,406
Other loans
1,231
227,677
310,637
Payable within one year
71,193
61,350
Payable after one year
156,484
249,287
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
6,261
5,717
2023
Movements in the year:
£
Asset at 1 February 2022
(5,717)
Credit to profit or loss
(544)
Asset at 31 January 2023
(6,261)
360 RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 21 -
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
36,162
62,019
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
4
4
4
4
Ordinary B shares of £1 each
4
4
4
4
Ordinary C shares of £1 each
12
12
12
12
20
20
20
20
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
44,491
27,746
360 RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 22 -
19
Directors' transactions
Dividends totalling £234,580 (2022 - £234,321) were paid in the year in respect of shares held by the company's directors.
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
L Osborne Loan
-
75,000
192,500
267,500
M Osborne Loan
-
75,000
192,500
267,500
150,000
385,000
535,000
20
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Code Red Associates Limited
56,126
63,733
121,386
63,576
Included within other debtors are amounts owing from related parties of £9,628 (2022: £25,424) and within other creditors are amounts owed to related parties of £42,068 (2022: £17,117).
360 RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 23 -
21
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,022,316
782,736
Adjustments for:
Taxation charged
258,233
184,100
Investment income
(223)
(197)
Depreciation and impairment of tangible fixed assets
11,429
10,434
Movements in working capital:
(Increase)/decrease in debtors
(586,256)
1,042,363
Decrease in creditors
(77,257)
(113,073)
Cash generated from operations
628,242
1,906,363
22
Analysis of changes in net funds
1 February 2022
Cash flows
31 January 2023
£
£
£
Cash at bank and in hand
1,325,579
(284,648)
1,040,931
Borrowings excluding overdrafts
(310,637)
82,960
(227,677)
1,014,942
(201,688)
813,254
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