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Registration number: 04973771

Prepared for the registrar

Brightsparks Recruitment Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 28 February 2023

 

Brightsparks Recruitment Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 8

 

Brightsparks Recruitment Limited

Company Information

Directors

Matthew Simon Eames

Amir Foroutani Yazdi

Abdollah Foroutani Yazdi

James Douglas Herbert

Caroline Mary Louise Reeve

Registered office

Staverton Court
Staverton
Cheltenham
Gloucestershire
GL51 0UX

Accountants

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
Gloucestershire
GL51 0UX

 

Brightsparks Recruitment Limited

(Registration number: 04973771)
Balance Sheet as at 28 February 2023

Note

2023
 £

2022
 £

Fixed assets

 

Tangible assets

4

19,835

20,027

Current assets

 

Debtors

5

302,000

244,577

Cash at bank and in hand

 

239,085

197,848

 

541,085

442,425

Creditors: Amounts falling due within one year

6

(786,548)

(899,894)

Net current liabilities

 

(245,463)

(457,469)

Total assets less current liabilities

 

(225,628)

(437,442)

Creditors: Amounts falling due after more than one year

6

(23,274)

(33,206)

Net liabilities

 

(248,902)

(470,648)

Capital and reserves

 

Called up share capital

8

167

167

Share premium reserve

397,181

397,181

Other reserves

40,730

40,730

Profit and loss account

(686,980)

(908,726)

Total equity

 

(248,902)

(470,648)

For the financial year ending 28 February 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 24 October 2023 and signed on its behalf by:
 


James Douglas Herbert
Director

 

Brightsparks Recruitment Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Staverton Court
Staverton
Cheltenham
Gloucestershire
GL51 0UX

The principal place of business is:
Kings House
174 Hammersmith Road
London
W6 7JP

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

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

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised 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 periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

 

Brightsparks Recruitment Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Tax

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

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Office equipment

25% on reducing balance

Computer equipment

25% on reducing balance

Trade debtors

Trade debtors are amounts due from customers for goods sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

 

Brightsparks Recruitment Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Brightsparks Recruitment Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was as follows:

 

Brightsparks Recruitment Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

 

6

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

7

409,931

514,023

Trade creditors

 

9,572

2,074

Social security and other taxes

 

76,223

80,893

Outstanding defined contribution pension costs

 

1,342

1,125

Other creditors

 

35,598

73,344

Accrued expenses

 

253,882

228,435

 

786,548

899,894

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

7

23,274

33,206

 

7

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

9,931

9,687

Invoice financing

-

104,336

Other borrowings

400,000

400,000

409,931

514,023

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

23,274

33,206



Other borrowings
Included in other borrowings is £400,000 (2022 - £400,000) in respect of convertible loan notes with directors of the company. Interest is accrued on this loan at 7.5% per annum and the loan notes are unsecured. These loans have been classified as current liabilities as at 28 February 2023.

Invoice financing
Invoice financing liabilities are secured by fixed and floating charges over all the current and future assets of the company.

 

Brightsparks Recruitment Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

 

8

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £0.01 each

16,670

166.70

16,670

166.70

         


Share options

Options have been granted between October 2015 and June 2021 under an approved option scheme over the company's ordinary shares of £0.01 each. Their movements are as follows:-
 

Date of event

Exercise price

Issued

Exercised

Lapsed

Remaining

1 October 2015

£0.01

1,214

-

-

1,214

20 November 2015

£0.01

-

(204)

-

1,010

28 June 2016

£0.01

1,898

-

-

2,908

24 March 2017

£0.01

-

-

(100)

2,808

6 April 2017

£0.01

-

-

(910)

1,898

27 April 2017

£0.01

-

-

(210)

1,688

25 July 2018

£0.01

-

-

(1,588)

100

1 April 2019

£0.01

1,400

-

-

1,500

31 July 2020

£0.01

-

-

(100)

1,400

12 August 2020

£0.01

-

-

(650)

750

30 September 2020

£0.01

-

-

(100)

650

26 June 2021

£0.01

-

-

(650)

-

26 June 2021

£0.01

1,500

-

-

1,500


Share based payment

Although aware of the requirements, the directors have made no share based payment adjustment to the financial statements in respect of the share options granted during the year ended 28 February 2023 since they are unable to provide a reliable value.

 

9

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £6,533 (2022 - £Nil), of which £6,533 (2022 - £Nil) is due within 1 year and £Nil (2022 - £Nil) is due in more than 1 year.