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Worldwide Recruitment Solutions Limited

Registered number: 04265209
Annual report and
 financial statements
For the year ended 31 December 2022

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
COMPANY INFORMATION


Directors
M Brown 
L Brown 
F Dunleavy 
J Walker 
P Glendining (appointed 1 August 2023)




Company secretary
L Brown



Registered number
04265209



Registered office
KB House
4 Scott Drive

Altrincham

Cheshire

WA15 8AB




Independent auditor
Mazars LLP
Chartered Accountants & Statutory Auditor

One St. Peter's Square

Manchester

M2 3DE




Bankers
HSBC
2-4 St Anns Square

Manchester

M2 7EF





 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 3
Directors' Report
 
4 - 5
Independent Auditor's Report
 
6 - 9
Consolidated Statement of Comprehensive Income
 
10
Consolidated Statement of Financial Position
 
11
Company Statement of Financial Position
 
12
Consolidated Statement of Changes in Equity
 
13
Company Statement of Changes in Equity
 
14
Consolidated Statement of Cash Flows
 
15 - 16
Notes to the Financial Statements
 
17 - 39


 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

Introduction
 
The directors present their strategic report for the year ended 31 December 2022. 

Business review
 
Worldwide Recruitment Solutions Limited (WRS) and its subsidiary undertaking ("the Group") provide recruitment and workforce solutions to onshore and offshore Energy industries worldwide.
The Income Statement shows turnover for the year of £69m, an increase of 21% on 2021 (£57m), gross profit of £6m, up 7.6% on 2021 (£5.6m) and operating profit before exceptional items of £1,304k (2021: £1,581k).
2022 was a year of growth for the Group, with turnover increasing by 21%. Strong results (versus budgets) in its core contractor markets of offshore and oil & gas contributed to the Group’s overall growth seeing combined growth in contractor headcount & its client base. 2022 was the first full year post Covid which impacted 2021 results (particularly Oil & Gas).
The Group is continuing to build critical mass across its core sectors of offshore, Oil & Gas and Renewable Energy. 
The decrease in operating profit is due to the business continuing to invest in its infrastructure, technology and associated workforce services to enhance its capability and better support clients and candidates in our core markets and geographies. In 2022 WRS incorporated a subsidiary in the USA. 
The Directors recognise that their personnel are its key asset, and the business will continue to commit significant investment in the development of the skills base of all its employees. Debtor days for the Group decreased from 49 days in 2021 to 47 days in 2022. Target debtor days were set at 55 days and there is a continued focus on liquidity management within the business. Liquidity of the business remains sufficient for current levels of trading, with positive levels of headroom underpinned by the continued provision of an invoice discounting facility from its bankers, HSBC. The directors continue to explore additional funding options, to ensure that the business has sufficient liquidity to facilitate increased trading activity, particularly in new geographical regions.

Page 1

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 

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

Principal risks and uncertainties
 
Cyclicality of the oil and gas industry
The business continues to remain heavily reliant upon commodity price driven industries. Steps have been taken to reduce the exposure to commodity price fluctuations. The Directors view the business to now be far more sustainable to any sector price shocks, due to a global push to cleaner, more sustainable energy sources and the longer-term nature of client projects and contracts that the group are servicing. There is a continued shortage of talent in the energy market; the global pandemic and, continued investment in greenfield Renewable Energy projects is resulting in unprecedented levels of demand for skilled labour in this sector which the business feels it is well-positioned to capitalise on. 
Competition
The markets in which the Group operates in continue to remain highly competitive. Notwithstanding this, as a result of the dynamics in the Energy sector, and the businesses ongoing commitment to developing its service proposition, investing in technology and investing in its employees the directors are confident that the business will continue to exceed client service level expectations and capitalise on the growth opportunities that the Energy sector will present.
Global economic factors
Ultimately, the business is still driven to an extent by global macro-economic conditions. The business is now benefiting form a period of increased activity in the energy sector, however the directors are aware that the business is not immune from economic events.
Geographical risk
The Group has a presence in the Kurdistan region of Iraq. The directors are aware of the political instability in the region and are monitoring the situation. A geographical development plan is in place to reduce the concentration risk and the Group continues to operate on a global basis with further plans to expand its presence into new geographies.  
Legislative risk
The Group has worked hard to ensure compliance with legislative changes, in particular the IR35 changes that became effective as of April 2021.
The directors are in continual discussion with industry peers and focus groups to ensure the Group is aware of any legislative changes that may affect it.

Economic impact of global events

UK businesses are currently facing many uncertainties such as the consequences of Brexit, Covid 19, environmental sustainability and geopolitical events such as the Russian invasion of Ukraine. These uncertainties have contributed to an environment where there exists a range of issues and risks, including inflation, rising interest rates, labour shortages, disrupted supply chains and new ways of working. 
The Directors have carried out an assessment of the potential impact of these uncertainties on the business, including the impact of mitigation measures, and have concluded that these are non-adjusting events with the greatest impact on the business expected to be from the economic ripple effect on the global economy. The Directors have taken account of these potential impacts in their going concern assessment.
Worldwide Recruitment Solutions Limited continues to work with its partners to minimise any impacts of these events and maximise the realisation of any opportunities they may provide to the business.

Page 2

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 

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

The position of the Group at the year end
 
The Consolidated Statement of Financial Position on page 11 of the financial statements shows that the Group’s financial position at the year end, in terms of its net assets position, has improved during the year as the Group has continued to trade profitably.
Future events
The intention for 2023 and beyond is to continue to build critical mass in core sectors across the Group whilst expanding our geographical footprint aligned to our clients strategic locations.


This report was approved by the board on 9 October 2023 and signed on its behalf.



M Brown
Director

Page 3

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

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

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £986,793 (2021 - £1,261,216).

During the year dividends of £203,082 (2021: £177,600) have been declared.

Directors

The directors who served during the year were:

M Brown 
L Brown 
F Dunleavy 
J Walker 

Subsequent to year end, on 1 August 2023, P Glendining was appointed as a director. 

Page 4

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Going concern

These financial statements have been prepared on a going concern basis. The current economic conditions present risks for all businesses. In response to such conditions, the directors have carefully considered these risks, including an assessment of uncertainty on future trading projection for a period of at least 12 months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis.
The company continues to take every precaution possible to mitigate any potential impact to our staff, and stakeholders.
2022 financial results were very positive, and the company achieved substantial revenue growth. Further revenue growth is expected in 2023.
Based on this assessment, the directors consider that the Company and Group maintains an appropriate level of liquidity sufficient to meet the demands of the business.
In addition, the Company's and Group's assets are assessed for recoverability on a regular basis, the directors consider that the Company and Group are not exposed to losses on these assets which would affect their decision to adopt the going concern basis.
The directors have a reasonable expectation that the Company and Group have adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties that lead to significant doubt upon the Company's and Group's ability to continue as a going concern. Thus the directors have continued to adopt the going concern basis of accounting in preparing these financial statements.

Disclosure of information to auditor

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

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

Auditor

The auditor, Mazars LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 9 October 2023 and signed on its behalf.
 





M Brown
Director

Page 5

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 

Opinion

We have audited the financial statements of Worldwide Recruitment Solutions Limited (the ‘Parent Company’) and its subsidiaries (the 'Group') for the year ended 31 December 2022 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Statement of Financial Positions, the Consolidated and Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. 
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the "Auditor’s responsibilities for the audit of the financial statements" section of our report. We are independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or 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.
Page 6

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 

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 there gives rise to a material misstatement in the financial statements themselves. If based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:
 
the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the Group and 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:

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

Page 7

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Group's and Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors intend either to liquidate the Group and 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.
 
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
 
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. 

Based on our understanding of the Group and the Parent Company and their industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
Inquiring of management and, where appropriate, those charged with governance, as to whether the Group and the Parent Company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the Group and the Parent Company which were contrary to applicable laws and regulations, including fraud.  
Page 8

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice), tax legislation, pension legislation, the Companies Act 2006. 

In addition, we evaluated the directors' and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition (which we pinpointed to the cut off assertion), and significant one-off or unusual transactions.
 
Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of the audit report

This report is made solely to the Company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body for our audit work, for this report, or for the opinions we have formed.




Neil Barton (Senior Statutory Auditor)

  

for and on behalf of
Mazars LLP
Chartered Accountants and Statutory Auditor 
One St. Peter's Square
Manchester
M2 3DE
9 October 2023
Page 9

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
Note
£
£

  

Turnover
 4 
68,515,451
56,640,557

Cost of sales
  
(62,469,741)
(51,022,511)

Gross profit
  
6,045,710
5,618,046

Administrative expenses
  
(4,829,282)
(4,045,725)

Other operating income
 5 
87,110
8,912

Operating profit
 6 
1,303,538
1,581,233

Profit / (loss) from investment in associate
  
11,460
(3,965)

Interest payable and expenses
 10 
(131,393)
(85,000)

Profit before taxation
  
1,183,605
1,492,268

Tax on profit
 11 
(196,812)
(231,052)

Profit for the financial year
  
986,793
1,261,216

  

Currency translation differences
  
(91,534)
(1,994)

Other comprehensive income for the year
  
(91,534)
(1,994)

Total comprehensive income for the year
  
895,259
1,259,222

  

  

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

The notes on pages 17 to 39 form part of these financial statements.

Page 10

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
REGISTERED NUMBER: 04265209

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Intangible assets
 12 
48,387
62,750

Tangible assets
 13 
42,034
17,815

Investments
 14 
29,431
17,971

  
119,852
98,536

Current assets
  

Debtors: amounts falling due within one year
 15 
11,117,936
8,457,951

Cash and cash equivalents
 16 
934,568
862,427

  
12,052,504
9,320,378

Creditors: amounts falling due within one year
 17 
(9,162,116)
(7,100,851)

Net current assets
  
 
 
2,890,388
 
 
2,219,527

Total assets less current liabilities
  
3,010,240
2,318,063

Net assets
  
3,010,240
2,318,063


Capital and reserves
  

Called up share capital 
 19 
128
128

Foreign exchange reserve
 20 
(350,508)
(258,974)

Profit and loss account
 20 
3,360,620
2,576,909

  
3,010,240
2,318,063


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 9 October 2023.




M Brown
Director

The notes on pages 17 to 39 form part of these financial statements.

Page 11

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
REGISTERED NUMBER: 04265209

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Intangible assets
 12 
46,540
62,750

Tangible assets
 13 
23,500
15,770

Investments
 14 
21,984
21,984

  
92,024
100,504

Current assets
  

Debtors: amounts falling due within one year
 15 
6,875,088
7,007,650

Cash and cash equivalents
 16 
461,307
561,718

  
7,336,395
7,569,368

Creditors: amounts falling due within one year
 17 
(6,166,947)
(5,473,224)

Net current assets
  
 
 
1,169,448
 
 
2,096,144

  

  

Net assets
  
1,261,472
2,196,648


Capital and reserves
  

Called up share capital 
 19 
128
128

Profit and loss account
 20 
1,261,344
2,196,520

  
1,261,472
2,196,648


The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The loss after tax of the Parent Company for the year was £732,094 (2021: £435,733 profit).
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 9 October 2023.

M Brown
Director

The notes on pages 17 to 39 form part of these financial statements.

Page 12

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 

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


Called up share capital
Foreign exchange reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2021
128
(256,980)
1,493,293
1,236,441


Comprehensive income for the year

Profit for the year
-
-
1,261,216
1,261,216

Foreign exchange movement
-
(1,994)
-
(1,994)
Total comprehensive income for the year
-
(1,994)
1,261,216
1,259,222


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(177,600)
(177,600)


Total transactions with owners
-
-
(177,600)
(177,600)



At 1 January 2022
128
(258,974)
2,576,909
2,318,063


Comprehensive income for the year

Profit for the year
-
-
986,793
986,793

Foreign exchange movement
-
(91,534)
-
(91,534)
Total comprehensive income for the year
-
(91,534)
986,793
895,259


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(203,082)
(203,082)


Total transactions with owners
-
-
(203,082)
(203,082)


At 31 December 2022
128
(350,508)
3,360,620
3,010,240


The notes on pages 17 to 39 form part of these financial statements.

Page 13

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2021
128
1,938,387
1,938,515


Comprehensive income for the year

Profit for the year
-
435,733
435,733
Total comprehensive income for the year
-
435,733
435,733


Contributions by and distributions to owners

Dividends: Equity capital
-
(177,600)
(177,600)


Total transactions with owners
-
(177,600)
(177,600)



At 1 January 2022
128
2,196,520
2,196,648


Comprehensive income for the year

Loss for the year
-
(732,094)
(732,094)
Total comprehensive income for the year
-
(732,094)
(732,094)


Contributions by and distributions to owners

Dividends: Equity capital
-
(203,082)
(203,082)


Total transactions with owners
-
(203,082)
(203,082)


At 31 December 2022
128
1,261,344
1,261,472


The notes on pages 17 to 39 form part of these financial statements.

Page 14

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 

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

2022
2021
£
£

Cash flows from operating activities

Profit for the financial year
986,793
1,261,216

Adjustments for:

Amortisation of intangible assets
24,159
16,639

Depreciation of tangible assets
10,910
12,747

Loss on disposal of tangible assets
(708)
-

Interest paid
131,393
85,000

Taxation charge
196,812
231,052

Increase in debtors
(2,723,846)
(1,449,517)

Increase in creditors
1,475,980
447,025

Share of (profit) / loss in associate
(11,460)
3,965

Corporation tax (paid)
(86,152)
(43,768)

Net cash generated from operating activities

3,881
564,359


Cash flows from investing activities

Purchase of intangible fixed assets
(9,796)
(68,058)

Purchase of tangible fixed assets
(33,888)
(5,554)

Sale of tangible fixed assets
1,280
-

Purchase of share in associates
-
(21,936)

HP interest paid
-
(1,047)

Net cash from investing activities

(42,404)
(96,595)
Page 15

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 

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


2022
2021

£
£



Cash flows from financing activities

Repayment of/new finance leases
-
(11,735)

Movements on invoice discounting
786,439
(25,328)

Dividends paid
(203,082)
(177,600)

Interest paid
(131,393)
(83,953)

Net cash used in financing activities
451,964
(298,616)

Net increase in cash and cash equivalents
413,441
169,148

Cash and cash equivalents at beginning of year
493,944
320,649

Foreign exchange gains and losses
(93,347)
4,147

Cash and cash equivalents at the end of year
814,038
493,944


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
934,568
862,427

Bank overdrafts
(120,530)
(368,483)

814,038
493,944


Page 16

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

Worldwide Recruitment Solutions Limited is a limited liability company incorporated in England. The registered office is KB House, Juniper Court Business Park, 4 Scott Drive, Altrincham, Cheshire, WA15 8AB. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 17

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.3

Going concern

These financial statements have been prepared on a going concern basis. The current economic conditions present risks for all businesses. In response to such conditions, the directors have carefully considered these risks, including an assessment of uncertainty on future trading projection for a period of at least 12 months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis.
The company continues to take every precaution possible to mitigate any potential impact to our staff, and stakeholders.
2022 financial results were very positive, and the company achieved substantial revenue growth. Further revenue growth is expected in 2023.
Based on this assessment, the directors consider that the Company and Group maintains an appropriate level of liquidity sufficient to meet the demands of the business.
In addition, the Company's and Group's assets are assessed for recoverability on a regular basis, the directors consider that the Company and Group are not exposed to losses on these assets which would affect their decision to adopt the going concern basis.
The directors have a reasonable expectation that the Company and Group have adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties that lead to significant doubt upon the Company's and Group's ability to continue as a going concern. Thus the directors have continued to adopt the going concern basis of accounting in preparing these financial statements.

Page 18

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
R
endering of Services
Turnover from the rendering of services is recognised by reference to the nature and status of a placement. Turnover arising from the placement of permanent candidates is recognised at the time the candidate commences full time employment. Turnover from contract placements is recognised over the period the placement is provided in accordance with the contractual agreement. 

Page 19

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.6

Operating leases: the Group as lessee

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

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

 
2.7

Government grants

The UK government has offered a range of financial support packages to help companies, including government backed financing arrangements, furlough schemes, deferment of VAT payments and, for some sectors, business rates holidays, Of the offered schemes, the company used the furlough scheme. The income from the furlough scheme has been recognised within 'Other operating income'. They are recognised when the entity has reasonable assurance that they will comply with the conditions attaching the grant, and that the grant will be received. The accrued element of grants is included in debtors as accrued income.

 
2.8

Interest income

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

 
2.9

Finance costs

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

 
2.10

Pensions

Defined contribution pension plan

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

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

Page 20

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

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

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

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

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

 
2.12

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.

 The estimated useful lives range as follows:

Computer software
-
33% straight line

 
2.13

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 21

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)


2.13
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:

Fixtures & fittings
-
10%
Office equipment
-
20%

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.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.15

Associates and joint ventures

An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control.

An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Statement of Financial Position, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition.
Any premium on acquisition is dealt with in accordance with the goodwill policy.

 
2.16

Debtors

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

Page 22

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.17

Cash and cash equivalents

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

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.18

Creditors

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

 
2.19

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

 
2.20

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

During the year dividends of £203,082 (2021: £177,600) have been declared. 

Page 23

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In applying the Company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.
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, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future period.
Critical judgements in applying the Company's accounting policies
The critical judgements that the directors have made in the process of applying the Company's  accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.
(i) Assessing indicators of impairment
In assessing whether there have been any indicators of impaired assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairments identified during the current financial year.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are discussed below.
(i) Recoverability of Debtors
The Company establishes a provision for debtors that are estimated not to be recoverable. When assessing recoverability the directors consider the ageing of the debtors, past experience of recoverability, the credit profile of the client plus any known contractual problems. Provision is made for all debtors in dispute with clients, plus all retentions exceeding three years in age.


4.


Turnover

Analysis of turnover by country of destination:

2022
2021
£
£

United Kingdom
6,184,052
5,688,631

Rest of Europe
23,470,006
7,467,874

Rest of the world
38,861,393
43,484,052

68,515,451
56,640,557


Page 24

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

5.


Other operating income

2022
2021
£
£

Other operating income
87,110
780

Government grants income
-
8,132

87,110
8,912



6.


Operating profit

The operating profit is stated after charging:

2022
2021
£
£

Depreciation of tangible assets
10,910
12,747

Other operating lease rentals
213,895
217,159

Amortisation of intangible assets
24,159
16,639


7.


Auditor's remuneration

2022
2021
£
£

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

42,500
35,953

Page 25

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

8.


Employees





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


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


Wages and salaries
2,426,824
2,233,952
1,898,010
1,709,946

Social security costs
224,615
199,415
192,984
165,698

Cost of defined contribution scheme
32,321
24,754
32,321
24,754

2,683,760
2,458,121
2,123,315
1,900,398


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


        2022
        2021
            No.
            No.







Sales
34
38



Administrative
23
11



Management
2
2

59
51


9.


Directors' remuneration

2022
2021
£
£

Directors' emoluments
96,437
136,964

Company contributions to defined contribution pension schemes
-
111

96,437
137,075


During the year retirement benefits were accruing to nil directors (2021 - 1) in respect of defined contribution pension schemes.
The highest paid director received remuneration of £49,141
 (2021 - £91,724).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2021 - £NIL).

Page 26

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

10.


Interest payable and similar expenses

2022
2021
£
£


Bank interest payable
15,640
23,224

Other loan interest payable
115,753
60,729

Finance leases and hire purchase contracts
-
1,047

131,393
85,000


11.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
153,546
244,451

Adjustments in respect of previous periods
(45,394)
10,549


108,152
255,000


Double taxation relief
-
(38,530)


108,152
216,470

Foreign tax


Foreign tax on income for the year
24,799
38,931

Total current tax
132,951
255,401

Deferred tax


Origination and reversal of timing differences
(10,111)
(11,848)

Adjustments in respect of prior periods
73,972
(18)

Effect of tax rate change on opening balance
-
(12,483)

Total deferred tax
63,861
(24,349)


Taxation on profit on ordinary activities
196,812
231,052
Page 27

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
 
11.Taxation (continued)


Factors affecting tax charge for the year

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

2022
2021
£
£


Profit on ordinary activities before tax
1,183,605
1,492,268


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
224,885
283,531

Effects of:


Fixed asset differences
(878)
(3,266)

Expenses not deductible for tax purposes
5,260
1,211

Overseas tax differences
-
401

Adjustments to tax charge in respect of prior periods- deferred tax
73,972
(18)

Remeasurement of deferred tax for changes in tax rates
(2,427)
(15,326)

Adjustments to tax charge in respect of prior periods
(45,394)
10,549

Additional deduction for R&D expenditure
-
(28,078)

Other differences leading to a decrease in the tax charge
(58,606)
(17,952)

Total tax charge for the year
196,812
231,052


Factors that may affect future tax charges

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

Page 28

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

12.


Intangible assets

Group





Computer software

£



Cost


At 1 January 2022
151,785


Additions
9,796



At 31 December 2022

161,581



Amortisation


At 1 January 2022
89,035


Charge for the year on owned assets
24,159



At 31 December 2022

113,194



Net book value



At 31 December 2022
48,387



At 31 December 2021
62,750



Page 29

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
 
           12.Intangible assets (continued)

Company




Computer software

£



Cost


At 1 January 2022
151,785


Additions
7,718



At 31 December 2022

159,503



Amortisation


At 1 January 2022
89,035


Charge for the year
23,928



At 31 December 2022

112,963



Net book value



At 31 December 2022
46,540



At 31 December 2021
62,750

Page 30

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

13.


Tangible fixed assets

Group






Fixtures & fittings
Office equipment
Total

£
£
£



Cost


At 1 January 2022
46,728
341,061
387,789


Additions
17,520
16,368
33,888


Disposals
-
(12,712)
(12,712)


Exchange adjustments
-
997
997



At 31 December 2022

64,248
345,714
409,962



Depreciation


At 1 January 2022
36,963
333,011
369,974


Charge for the year on owned assets
4,374
6,536
10,910


Disposals
-
(12,140)
(12,140)


Exchange adjustments
-
(816)
(816)



At 31 December 2022

41,337
326,591
367,928



Net book value



At 31 December 2022
22,911
19,123
42,034



At 31 December 2021
9,765
8,050
17,815

Page 31

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

           13.Tangible fixed assets (continued)


Company






Fixtures & fittings
Office equipment
Total

£
£
£

Cost


At 1 January 2022
46,728
307,740
354,468


Additions
-
16,368
16,368



At 31 December 2022

46,728
324,108
370,836



Depreciation


At 1 January 2022
36,963
301,735
338,698


Charge for the year on owned assets
4,374
4,264
8,638



At 31 December 2022

41,337
305,999
347,336



Net book value



At 31 December 2022
5,391
18,109
23,500



At 31 December 2021
9,765
6,005
15,770






Page 32

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

14.


Fixed asset investments

Group





Investments in associates

£



Cost 


At 1 January 2022
17,971


Share of profit/(loss)
11,460



At 31 December 2022
29,431




Company





Investments in subsidiary companies
Investments in associates
Total

£
£
£



Cost


At 1 January 2022
48
21,936
21,984



At 31 December 2022
48
21,936
21,984




Page 33

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Worldwide Recruitment Solutions (Singapore) PTE
26A Circular Road, Singapore, 049382
Ordinary
100%
WRS Worldwide Recruitment Solutions Limited
Finnabair Industrial Estate, CEC Building 1 Dundalk, Dundalk, Louth
Ordinary
100%
Worldwide Recruitment and Outsourcing LLC
Mudhaffar Bin Mohamed Al Amri Building, 2nd Floor Office 202, Al Salam Street, Abu Dhabi
Ordinary
89%
Worldwide Recruitment Solutions Inc.
251 Little Falls Drive Wilmington, DE 19808, New Castle County, USA
Ordinary
100%


Associate


The following was an associate of the Company:


Name

Registered office

Class of shares

Holding

WQS Recruitment Services Limited
Plot 15, Martyrs Way, Ntinda, P.O. Box 12883, Kampala, Uganda
Class A
49%

Page 34

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

15.


Debtors

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

Debtors: amounts falling due within one year

Trade debtors
8,095,166
5,004,110
3,788,757
2,449,372

Amounts owed by group undertakings
-
-
92,104
1,211,957

Other debtors
1,341,968
493,481
1,326,137
493,481

Prepayments and accrued income
1,680,802
2,896,499
1,668,090
2,788,979

Deferred taxation
-
63,861
-
63,861

11,117,936
8,457,951
6,875,088
7,007,650


Amounts due from other group entities are interest free and payable on demand. 


16.


Cash and cash equivalents

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

Cash at bank and in hand
934,568
862,427
461,307
561,718

Less: bank overdrafts
(120,530)
(368,483)
(108,307)
(358,720)

814,038
493,944
353,000
202,998


Page 35

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

17.


Creditors: Amounts falling due within one year

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

Bank overdrafts
120,530
368,483
108,307
358,720

Trade creditors
3,325,538
1,517,336
1,372,954
479,940

Amounts owed to group undertakings
-
-
65,151
-

Corporation tax
301,151
254,352
301,151
254,352

Other taxation and social security
37,778
31,541
19,497
-

Invoice discounting facility
2,594,241
1,807,802
1,597,448
1,435,261

Other creditors
1,288,932
844,793
1,247,131
773,353

Accruals and deferred income
1,493,946
2,276,544
1,455,308
2,171,598

9,162,116
7,100,851
6,166,947
5,473,224


The Company has an invoice discounting arrangement with HSBC PLC. This is secured by a fixed and floating charge over the assets of the Company dated 26 January 2015. At 31 December 2022, the value of the facility secured was £1,597,448 (2021: £1,435,261). 

Page 36

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

18.


Deferred taxation


Group



2022
2021


£

£






At beginning of year
63,861
39,512


Charged to profit or loss
(63,861)
24,349



At end of year
-
63,861

Company


2022
2021


£

£






At beginning of year
63,861
39,512


Charged to profit or loss
(63,861)
24,349



At end of year
-
63,861
The deferred tax asset is made up as follows:

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

Fixed asset differences
(16,022)
(17,804)
(16,022)
(17,804)

Short term timing differences
16,011
81,655
16,011
81,655

Losses and other deductions
11
10
11
10

-
63,861
-
63,861

Page 37

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

19.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



200 (2021 - 200) Ordinary shares of £0.01 each
2
2
5,000 (2021 - 5,000) Ordinary B shares of £0.01 each
50
50
2,323 (2021 - 2,323) Ordinary C shares of £0.01 each
23
23
2,550 (2021 - 2,550) Ordinary D shares of £0.01 each
26
26
2,677 (2021 - 2,677) Ordinary E shares of £0.01 each
27
27

128

128


All classes of shares have equal voting rights and rank equally with all other shares for dividends and on a return of capital. Except where the aggregate issued Ordinary, Ordinary B, Ordinary C shares fall below 59% whereupon the first 59% of dividends or return of capital shall be distributed equally amongst the Ordinary, Ordinary B and Ordinary C shares (as if they were one class) and shall have 59% of the votes. 



20.


Reserves

Foreign exchange reserve

Comprises translation differences arising from the translation of financial statements of the Group's foreign entities into Sterling.

Profit & loss account

Includes all current and prior period retained profits and losses.

21.


Analysis of net debt




At 1 January 2022
Cash flows
At 31 December 2022
£

£

£

Cash at bank and in hand

862,427

72,141

934,568

Bank overdrafts

(368,483)

247,953

(120,530)

Invoice discounting facility

(1,807,802)

(786,439)

(2,594,241)


(1,313,858)
(466,345)
(1,780,203)

Page 38

 
WORLDWIDE RECRUITMENT SOLUTIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

22.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group  to the fund and amounted to £32,321 (2021: £24,754). Payments outstanding at the year end were £Nil.  (2021 - £Nil).


23.


Commitments under operating leases

At 31 December 2022 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2022
2021
£
£

Not later than 1 year
130,518
130,559

Later than 1 year and not later than 5 years
135,083
234,143

265,601
364,702

24.


Related party transactions

During the year the Company entered transactions with key management personnel in the year was £246,742 (2021: £200,437). Dividends were paid to the directors of £196,558 (2021: £177,600).
The following balances were (owed to)/owed by related parties: 


2022
2021
£
£

M Brown
171,215
124,977
L Brown
6,089
21,089
F Dunleavy
(139,813)
(154,880)
J Brown
(300,000)
(300,000)
(262,509)
(308,814)

Amounts owed to related parties are secured by fixed and floating charge over the assets of the Company.


25.


Controlling party

There is not viewed as being one single controlling party. 

 
Page 39