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Registered number: 03472296










BERKELEY SCOTT LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

 
BERKELEY SCOTT LIMITED
 
 
COMPANY INFORMATION


Directors
M. D. Kumar (appointed 1 May 2022)
R. R. Ward (appointed 25 November 2022)




Company secretary
M. D. Kumar



Registered number
03472296



Registered office
4th Floor
19-21 Great Tower Street

London

EC3R 5AR




Independent auditors
Langtons Professional Services Limited
Chartered Accountants & Statutory Auditors

The Plaza

100 Old Hall Street

Liverpool

L3 9QJ





 
BERKELEY SCOTT LIMITED
 

CONTENTS



Page
Strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 7
Statement of comprehensive income
8
Statement of financial position
9 - 10
Statement of changes in equity
11
Notes to the financial statements
12 - 27


 
BERKELEY SCOTT LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

Introduction
 
The director presents his report and the financial statements for the year ended 31 December 2022.

Business review
 
Sales have increased by 77.4% from £12.43 million in 2021 to £22.05 million in 2022, NFI has increased by 78.7% from £3.43 million in 2021 to £6.13 million in 2022, while administrative expenses have increased by 90.7% from £2.70 million in 2021 to £5.15 million in 2022. Year-on-year earnings before tax increased from a profit of £0.81 million in 2021 to a profit of £0.96 million in 2022. 
The Temporary Division increased NFI by 82.3% from £2.66 million in 2021 to £4.85 million in 2022. In June 2022 the Company opened a new office in Glasgow which go growing steadily.
The Permanent Division increased NFI by 66.2% from £0.77 million in 2021 to £1.28 million in 2022. 
In July 2022, the Company repaid the remaining £333,333 CBIL loan which was due for repayment in monthly instalments up to April 2023. 
Efforts made during and after the pandemic to ensure we could meet our stakeholders’ needs has helped deliver continued growth in 2022 compared to 2021. The increases in the interest rates has impacted consumers and therefore so too our hospitality clients in 2023. This event undoubtably has made trading more challenging, particularly since April. However, more recently, the holding of interest rates in September has seen a marked increase in bookings, and we anticipate the business will see this continue for the rest of 2023.
I would like to thank our loyal customers, suppliers, staff and all our shareholders for their invaluable support.

Principal risks and uncertainties
 
Competition risk
The actions of the Company's competitors may adversely affect the Company's performance however the director believes that the Company is well positioned in the market place and it will seek to continue to improve its competitive position.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Ongoing credit evaluation is performed on customers based on payment history and third party credit references.

Financial key performance indicators
 
Given the straightforward nature of the business, the company director is of the opinion that analysis using KPIs is not necessary for an understanding of the development, performance or position of the business.


This report was approved by the board on 19 October 2023 and signed on its behalf.





R. R. Ward
Director

Page 1

 
BERKELEY SCOTT LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

Berkeley Scott Ltd is a market-leading provider of resourcing solutions to the hospitality and leisure sectors. Berkeley Scott Ltd is a wholly owned subsidiary of The Kellan Group Limited.

Results and dividends

The profit for the year, after taxation, amounted to £625,951 (2021 - £819,504).

The director has not recommended a dividend.

Directors

The directors who served during the year were:

R. Kirpalani (resigned 25 November 2022)
M. D. Kumar (appointed 1 May 2022)
R. R. Ward (appointed 25 November 2022)

Future developments

Please refer to the Business Review in the Strategic Report for a review of future developments.

Page 2

 
BERKELEY SCOTT LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Engagement with employees

The Company has a policy of involving employees in its affairs where possible and creating the opportunity for senior members to explain to employees matters which affect the Company’s performance. The Company practices equality of employment opportunities irrespective of gender, race, creed or colour and recruits, trains and promotes on merit accordingly. Throughout the Group where practicable, opportunities are taken to employ disabled people and to ensure that they take part in training and career development.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsLangtons Professional Services Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 19 October 2023 and signed on its behalf.
 







R. R. Ward
Director

Page 3

 
BERKELEY SCOTT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BERKELEY SCOTT LIMITED
 

Opinion

We have audited the financial statements of Berkeley Scott Limited (the 'Company') for the year ended 31 December 2022, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the Company's affairs as at 31 December 2022 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.

Page 4

 
BERKELEY SCOTT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BERKELEY SCOTT LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006

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

the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 2, 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.

Page 5

 
BERKELEY SCOTT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BERKELEY SCOTT LIMITED (CONTINUED)


Auditors' 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 Auditors' 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:

The objectives of our audit, in respect to fraud, are:
• to identify and assess the risks of material misstatement of the financial statements due to fraud;
• to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and
• to respond appropriately to fraud or suspected fraud identified during the audit.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
Our approach was as follows:
• We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006), the relevant tax compliance regulations in the UK and the EU General Data Protection Regulation (GDPR).
• We understood how the Company is complying with those frameworks by making enquiries of management. Through consideration of the results of our audit procedures we were able to either corroborate or provide contrary evidence which was then followed up.
• Based on our understanding we designed our audit procedures to identify non-compliance with laws and regulations. Our procedures involved:
enquiries of management; and
journal entry testing, with a focus on journals indicating large or unusual transactions based on our understanding of the business.
• We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by meeting with management to understand where it considered there was susceptibility to fraud. We also considered performance targets and their propensity to influence efforts made by management to manage revenue and earnings. Where the risk was considered to be higher, including areas impacting key performance indicators or management remuneration, we performed audit procedures to address each identified fraud risk or other risk of material misstatement. These procedures included those on revenue recognition detailed above, the assessment of items identified by management as non-recurring and testing manual journals and were designed to provide reasonable assurance that the financial statements were free from material fraud or error.
 
Page 6

 
BERKELEY SCOTT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BERKELEY SCOTT LIMITED (CONTINUED)



A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 2006Our 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 Auditors' 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.






Simon Whalley (Senior statutory auditor)
  
for and on behalf of
Langtons Professional Services Limited
 
Chartered Accountants
Statutory Auditors
  
The Plaza
100 Old Hall Street
Liverpool
L3 9QJ

19 October 2023
Page 7

 
BERKELEY SCOTT LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
Note
£
£

  

Turnover
 4 
22,048,214
12,426,811

Cost of sales
  
(15,917,521)
(8,996,021)

Gross profit
  
6,130,693
3,430,790

Administrative expenses
  
(5,154,133)
(2,704,557)

Other operating income
 5 
-
104,263

Operating profit
  
976,560
830,496

Interest receivable and similar income
 8 
11,883
-

Interest payable and similar expenses
 9 
(25,981)
(20,241)

Profit before tax
  
962,462
810,255

Tax on profit
 10 
(336,511)
9,249

Profit for the financial year
  
625,951
819,504

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

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

The notes on pages 12 to 27 form part of these financial statements.

Page 8

 
BERKELEY SCOTT LIMITED
REGISTERED NUMBER: 03472296

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Intangible assets
 11 
1,185,854
1,259,971

Tangible assets
 12 
6,522
2,613

  
1,192,376
1,262,584

Current assets
  

Debtors: amounts falling due within one year
 13 
5,480,970
4,491,763

Cash at bank and in hand
 14 
1,265,775
1,054,922

  
6,746,745
5,546,685

Creditors: amounts falling due within one year
 15 
(4,680,608)
(4,093,374)

Net current assets
  
 
 
2,066,137
 
 
1,453,311

Total assets less current liabilities
  
3,258,513
2,715,895

Creditors: amounts falling due after more than one year
 16 
-
(83,333)

  

Net assets
  
3,258,513
2,632,562


Capital and reserves
  

Called up share capital 
 20 
1,860,000
1,860,000

Capital contribution
 21 
269,210
269,210

Profit and loss account
 21 
1,129,303
503,352

  
3,258,513
2,632,562


Page 9

 
BERKELEY SCOTT LIMITED
REGISTERED NUMBER: 03472296
    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2022

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 October 2023.






R. R. Ward
Director

The notes on pages 12 to 27 form part of these financial statements.

Page 10

 
BERKELEY SCOTT LIMITED
 

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


Called up share capital
Capital contribution
Profit and loss account
Total equity

£
£
£
£


At 1 January 2021
1,860,000
269,210
(316,152)
1,813,058


Comprehensive income for the year

Profit for the year
-
-
819,504
819,504


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
-
819,504
819,504


Total transactions with owners
-
-
-
-



At 1 January 2022
1,860,000
269,210
503,352
2,632,562


Comprehensive income for the year

Profit for the year
-
-
625,951
625,951


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
-
625,951
625,951


Total transactions with owners
-
-
-
-


At 31 December 2022
1,860,000
269,210
1,129,303
3,258,513


The notes on pages 12 to 27 form part of these financial statements.

Page 11

 
BERKELEY SCOTT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

Berkeley Scott Limited is a private company, limited by shares, registered in England and Wales, registration number 03472296, registration address 4th Floor, 19-21 Great Tower Street, London, EC3R 5AR.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The company depends on its existing bank facilities to meet its day to day working capital requirements. Current forecasts indicate that the company expects to be able to operate within these facilities for whole of the foreseeable future. These facilities are renewed annually and are not guaranteed for the period covered by the going concern review. The Directors are not aware, however, of any circumstances that may adversely affect the renewal of these facilities. Accordingly, the directors believe it is appropriate to prepare the financial statements on the going concern basis.

  
2.3

Revenue

Revenue, which excludes value added tax (“VAT”), constitutes the value of services undertaken by the Group as its principal activities, which are recruitment consultancy and other ancillary services. These consist of:
• Revenue from temporary placements, which represents amounts billed for the services of temporary staff including the salary cost of these staff. This is recognised when the service has been provided, and the timesheet has been approved by the client;
• Revenue for permanent placements, which is based on a percentage of a candidate’s remuneration package, is recognised from the date candidate commences employment. Retained permanent placements may recognise the staged invoicing earlier, provided the terms agreed with the client mean the Group is contractually entitled to the revenue.

 
2.4

Operating leases: the Company as lessee

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

Page 12

 
BERKELEY SCOTT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.5

Government grants

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

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

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

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

 
BERKELEY SCOTT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.11

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 14

 
BERKELEY SCOTT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

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

Depreciation is provided on the following basis:

Office equipment
-
10% to 33%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Debtors

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

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.15

Creditors

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

 
2.16

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date.

 
2.17

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Statement of financial position when the Company becomes party to the contractual provisions of the instrument.

Page 15

 
BERKELEY SCOTT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)


2.17
Financial instruments (continued)

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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Page 16

 
BERKELEY SCOTT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)


2.17
Financial instruments (continued)

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

Page 17

 
BERKELEY SCOTT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements in conformity management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included below:
(a) Impairment of intangibles
The Company is required to test, on an annual basis, whether goodwill has suffered any impairment and other assets where there has been an indication of impairment. The recoverable amount is determined based on value in use calculations. The use of this method requires the estimation of future cash flows and the choice of a discount rate in order to calculate the present value of the cash flows. Actual outcomes may vary particularly in light of the current volatility of the recruitment sector to changes in the wider macro-economic environment.
(b) Useful lives of intangible assets and property, plant and equipment
Intangible assets excluding goodwill and property, plant and equipment are amortised or depreciated over their useful lives. Useful lives are based on the management’s estimates of the period that the assets will generate revenue, which are periodically reviewed for continued appropriateness. Changes to estimates can result in significant variations in the carrying value and amounts charged to the consolidated income statement in specific periods. 


4.


Turnover

The whole of the turnover is attributable to the Company's.principal activity.

All turnover arose within the United Kingdom.


5.


Other operating income

2022
2021
£
£

Government grants receivable
-
104,263

-
104,263



6.


Auditors' remuneration

All services provided by the Company's auditor are paid for by the parent company and all fees are disclosed in the group accounts of the parent company.




Page 18

 
BERKELEY SCOTT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

7.


Employees

Staff costs were as follows:


2022
2021
£
£

Wages and salaries
15,493,653
8,282,746

Social security costs
1,285,011
569,726

Cost of defined contribution scheme
169,737
71,433

16,948,401
8,923,905


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


        2022
        2021
            No.
            No.







Temporary workers
804
518



Administration
39
30

843
548


8.


Interest receivable

2022
2021
£
£


Other interest receivable
11,883
-

11,883
-


9.


Interest payable and similar expenses

2022
2021
£
£


Bank interest payable
25,981
20,241

25,981
20,241

Page 19

 
BERKELEY SCOTT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

10.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
276,814
-

Adjustments in respect of previous periods
-
37,505


276,814
37,505


Group taxation relief
54,336
1,466


331,150
38,971


Total current tax
331,150
38,971

Deferred tax


Origination and reversal of timing differences
5,361
(48,220)

Total deferred tax
5,361
(48,220)


Taxation on profit/(loss) on ordinary activities
336,511
(9,249)
Page 20

 
BERKELEY SCOTT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
 
10.Taxation (continued)


Factors affecting tax charge for the year

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

2022
2021
£
£


Profit on ordinary activities before tax
962,462
810,255


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
182,868
153,948

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
138,697
358

Fixed asset differences
13,659
14,026

Adjustments to tax charge in respect of prior periods
-
37,505

Remeasurement of deferred tax for changes in tax rates
1,287
(11,573)

Movement in deferred tax not recognised
-
(203,513)

Total tax charge for the year
336,511
(9,249)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 21

 
BERKELEY SCOTT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

11.


Intangible assets




Goodwill

£



Cost


At 1 January 2022
1,482,318



At 31 December 2022

1,482,318



Amortisation


At 1 January 2022
222,348


Charge for the year on owned assets
74,116



At 31 December 2022

296,464



Net book value



At 31 December 2022
1,185,854



At 31 December 2021
1,259,971



Page 22

 
BERKELEY SCOTT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

12.


Tangible fixed assets





Office equipment

£



Cost or valuation


At 1 January 2022
8,059


Additions
5,883



At 31 December 2022

13,942



Depreciation


At 1 January 2022
5,447


Charge for the year on owned assets
1,973



At 31 December 2022

7,420



Net book value



At 31 December 2022
6,522



At 31 December 2021
2,613


13.


Debtors

2022
2021
£
£


Trade debtors
4,440,692
3,383,368

Amounts owed by group undertakings
905,085
1,058,473

Other debtors
6,594
63

Prepayments and accrued income
85,740
1,639

Deferred taxation
42,859
48,220

5,480,970
4,491,763


Page 23

 
BERKELEY SCOTT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

14.


Cash and cash equivalents

2022
2021
£
£

Cash at bank and in hand
1,265,775
1,054,922

Less: bank overdrafts
(2,470,799)
(2,353,036)

(1,205,024)
(1,298,114)



15.


Creditors: Amounts falling due within one year

2022
2021
£
£

Bank overdrafts
2,470,799
2,353,036

Bank loans
-
250,000

Trade creditors
197,689
21,761

Amounts owed to group undertakings
54,336
1,466

Corporation tax
276,814
-

Other taxation and social security
473,704
352,517

Other creditors
1,050,770
994,684

Accruals and deferred income
156,496
119,910

4,680,608
4,093,374


Bank overdrafts are secured on the book debts of the company.


16.


Creditors: Amounts falling due after more than one year

2022
2021
£
£

Bank loans
-
83,333

-
83,333


Page 24

 
BERKELEY SCOTT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

17.


Loans


Analysis of the maturity of loans is given below:


2022
2021
£
£

Amounts falling due within one year

Bank loans
-
250,000


-
250,000

Amounts falling due 1-2 years

Bank loans
-
83,333


-
83,333



-
333,333



18.


Financial instruments

2022
2021
£
£

Financial assets


Financial assets measured at fair value through profit or loss
1,265,775
1,054,922




Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.
Page 25

 
BERKELEY SCOTT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

19.


Deferred taxation




2022


£






At beginning of year
48,220


Charged to profit or loss
(5,361)



At end of year
42,859

The deferred tax asset is made up as follows:

2022
2021
£
£


Accelerated capital allowances
28,179
35,699

Short term timing differences
14,680
12,521

42,859
48,220


20.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



1,860,000 (2021 - 1,860,000) Ordinary shares of £1.00 each
1,860,000
1,860,000



21.


Reserves

Capital contribution

The capital contribution reserve represents contributions from shareholders.

Profit and loss account

Includes all current and prior period retained profits and losses.


22.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund. Contributions totalling £56,650 (2021 - £36,279) were payable to the fund at the reporting date and are included in creditors.

Page 26

 
BERKELEY SCOTT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

23.


Related party transactions

The group has taken advantage of the exemption under paragraph 33.1A of FRS 102 and has not disclosed transactions with other wholly owned group companies.


24.


Controlling party

The Company is a 100% subsidiary of Kellan Group Limited which is the ultimate parent company incorporated in England and Wales. The ultimate controlling party is P. A. Bell. The consolidated accounts of the ultimate parent company can be obtained from its registered office at 4th Floor, 19-21 Great Tower Street, London, EC3R 5AR.
 
Page 27