GPR Technical Recruitment Limited
Annual Report and Financial Statements
For the year ended 31 March 2023
Company Registration No. 10138341 (England and Wales)
GPR Technical Recruitment Limited
Company Information
Directors
G Jones
R Parker
P Webb
R Blood
(Appointed 13 October 2022)
Company number
10138341
Registered office
4 The Old Yard
Rectory Lane
Brasted
Westerham
Kent
TN16 1JP
Auditors
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
GPR Technical Recruitment Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 29
GPR Technical Recruitment Limited
Strategic Report
For the year ended 31 March 2023
Page 1

The directors present the strategic report for the year ended 31 March 2023.

Review of the Business

The company is an investment holding company and the principal activity of its subsidiary, Alexander Associates Technical Recruitment Ltd, continued to be the provision of technical recruitment consultancy services to the construction and water industries.

Results and Performance

The results of the group for the year, as set out on page 9, show a loss on ordinary activities before tax of £62,644 (2022: Profit of £37,721).

Business Environment

The Group’s experience, diversification and strong reputation in the technical recruitment sector has enabled us to develop our services and business with long-standing clients of all sizes and enter into contracts with many new clients. Coupled, with our strong liquidity position, we have been able to take advantage of opportunities in a challenging economic climate.

 

Our successful recruitment initiative has allowed us to develop new divisions and support our clients to secure the best staff for them. We have recruited new trainees and also experienced consultants and our staff retention is excellent. We continue to provide a happy, healthy and challenging environment for our workforce.

 

In the last 2 years, we have invested in new systems to streamline processes and keep costs neutral, despite an increase in volume of transactions. This investment continues in the front and back office. We work closely with the software suppliers to develop system modifications and improvements that meet our specific requirements.

 

Over the last 12 months, we have seen these factors result in a continued improvement in turnover and net margin.

 

We anticipate that the above factors and investment will continue to increase our turnover and net margin.

Principal Risks and Uncertainties

Alexander Associates’ trade debtors continue to be managed closely by our internal credit control and we have a policy to regularly review our debt provisioning policy.

GPR Technical Recruitment Limited
Strategic Report (Continued)
For the year ended 31 March 2023
Page 2
Key Performance Indicators

The group’s KPIs for the last 3 years have been as follows:

 

2022-2023

2021-2022

2020-2021

Gross Profit Margin

(Gross profit %)

£3,201,210

(10%)

£2,945,338

(11%)

£2,322,487

(9%)

Administrative Costs

(% of Gross Margin)

£3,011,595

(94%)

£2,795,523

(95%)

£2,293,534

(99%)

EBITDA

£925,327

£888,104

£844,422

The increase in administrative costs reflect the initial investment in the new divisions that we have invested in

 

On behalf of the board

G Jones
Director
19 October 2023
GPR Technical Recruitment Limited
Directors' Report
For the year ended 31 March 2023
Page 3

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The company is set up as a holding company. The principal activity of the company's wholly owned subsidiary, Alexander Associates Technical Recruitment Ltd, continued to be the provision of technical recruitment consulting services to the construction and water industries.

 

Directors

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

J Gutteridge
(Resigned 13 October 2022)
G Jones
R Parker
P Webb
R Blood
(Appointed 13 October 2022)
Results and dividends

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

Auditor

The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

GPR Technical Recruitment Limited
Directors' Report (Continued)
For the year ended 31 March 2023
Page 4
Statement of disclosure to auditor

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

On behalf of the board
G Jones
Director
19 October 2023
GPR Technical Recruitment Limited
Independent Auditor's Report
To the Members of GPR Technical Recruitment Limited
Page 5
Opinion

We have audited the financial statements of GPR Technical Recruitment Limited (the 'parent company') and its subsidiary (the 'group') for the year ended 31 March 2023 which comprise the Group Statement of Comprehensive Income, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group Statement of Cash Flows and notes to the financial statements, including 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:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

GPR Technical Recruitment Limited
Independent Auditor's Report (Continued)
To the Members of GPR Technical Recruitment Limited
Page 6

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

 

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

 

Responsibilities of directors

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

 

In preparing the financial statements, the directors are responsible for assessing the 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 either intend to liquidate the group or parent company or to cease operations, or have no realistic alternative but to do so.

GPR Technical Recruitment Limited
Independent Auditor's Report (Continued)
To the Members of GPR Technical Recruitment Limited
Page 7
Auditor's responsibilities for the audit of the financial statements

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

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

GPR Technical Recruitment Limited
Independent Auditor's Report (Continued)
To the Members of GPR Technical Recruitment Limited
Page 8

Explanation as to what extent the audit was considered capable of detecting irregularities, including

fraud

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 of 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 to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

 

Our approach was as follows:

Ÿ

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken for no purpose other than to draw to the attention of the company’s members those matters we are required to include in an auditor's report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party 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.

Matthew Meadows (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
2 November 2023
Chartered Accountants
Statutory Auditor
6th Floor
9 Appold Street
London
EC2A 2AP
GPR Technical Recruitment Limited
Group Statement of Comprehensive Income
For the year ended 31 March 2023
Page 9
2023
2022
Notes
£
£
Turnover
3
32,450,773
27,592,504
Cost of sales
(29,249,563)
(24,647,166)
Gross profit
3,201,210
2,945,338
Administrative expenses
(3,011,595)
(2,795,523)
Other operating income
5,679
8,378
Operating profit
4
195,294
158,193
Interest receivable and similar income
8
13
-
0
Interest payable and similar expenses
9
(257,951)
(120,472)
(Loss)/profit before taxation
(62,644)
37,721
Tax on (loss)/profit
10
(151,721)
(141,831)
Loss for the financial year
(214,365)
(104,110)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

GPR Technical Recruitment Limited
Group Balance Sheet
As at 31 March 2023
Page 10
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
1,733,776
2,506,649
Tangible assets
13
47,452
48,962
1,781,228
2,555,611
Current assets
Debtors
15
4,773,747
4,113,085
Cash at bank and in hand
171,568
108,234
4,945,315
4,221,319
Creditors: amounts falling due within one year
16
(6,176,505)
(5,765,068)
Net current liabilities
(1,231,190)
(1,543,749)
Total assets less current liabilities
550,038
1,011,862
Creditors: amounts falling due after more than one year
17
(549,988)
(799,988)
Provisions for liabilities
Provisions
19
(22,500)
(22,500)
Deferred tax liability
20
(11,600)
(9,059)
(34,100)
(31,559)
Net (liabilities)/assets
(34,050)
180,315
Capital and reserves
Called up share capital
22
1,000
1,000
Share premium account
464,460
464,460
Other reserves
-
0
464,209
Profit and loss reserves
(499,510)
(749,354)
Total equity
(34,050)
180,315
The financial statements were approved by the board of directors and authorised for issue on 19 October 2023 and are signed on its behalf by:
19 October 2023
G Jones
Director
GPR Technical Recruitment Limited
Company Balance Sheet
As at 31 March 2023
2023-03-31
Page 11
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
7,932,274
7,998,011
Current assets
Debtors
15
32,846
1,000
Cash at bank and in hand
6,620
6,800
39,466
7,800
Creditors: amounts falling due within one year
16
(6,661,294)
(6,553,248)
Net current liabilities
(6,621,828)
(6,545,448)
Net assets
1,310,446
1,452,563
Capital and reserves
Called up share capital
22
1,000
1,000
Share premium account
464,460
464,460
Other reserves
-
0
464,209
Profit and loss reserves
844,986
522,894
Total equity
1,310,446
1,452,563

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £142,117 (2022: £71,934 loss).

The financial statements were approved by the board of directors and authorised for issue on 19 October 2023 and are signed on its behalf by:
19 October 2023
G Jones
Director
Company Registration No. 10138341 (England and Wales)
GPR Technical Recruitment Limited
Group Statement of Changes in Equity
For the year ended 31 March 2023
Page 12
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2021
1,000
464,460
464,209
(628,402)
301,267
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
-
-
(104,110)
(104,110)
Dividends
11
-
-
-
(16,842)
(16,842)
Balance at 31 March 2022
1,000
464,460
464,209
(749,354)
180,315
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
-
(214,365)
(214,365)
Reserves transfer
-
-
(464,209)
464,209
-
Balance at 31 March 2023
1,000
464,460
-
(499,510)
(34,050)
GPR Technical Recruitment Limited
Company Statement of Changes in Equity
For the year ended 31 March 2023
Page 13
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2021
1,000
464,460
464,209
611,670
1,541,339
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
-
-
(71,934)
(71,934)
Dividends
11
-
-
-
(16,842)
(16,842)
Balance at 31 March 2022
1,000
464,460
464,209
522,894
1,452,563
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
-
(142,117)
(142,117)
Reserves transfer
-
-
(464,209)
464,209
-
Balance at 31 March 2023
1,000
464,460
-
844,986
1,310,446
GPR Technical Recruitment Limited
Group Statement of Cash Flows
For the year ended 31 March 2023
Page 14
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
465,749
423,104
Interest paid
(238,608)
(43,104)
Income taxes paid
(92,000)
(198,877)
Net cash inflow from operating activities
135,141
181,123
Investing activities
Purchase of tangible fixed assets
(21,387)
(40,010)
Interest received
13
-
0
Net cash used in investing activities
(21,374)
(40,010)
Financing activities
Proceeds of new bank loans
1,306,860
1,000,000
Repayment of other loans
(1,107,293)
-
Repayment of bank loans
(250,000)
(1,168,807)
Dividends paid to equity shareholders
-
0
(16,842)
Net cash used in financing activities
(50,433)
(185,649)
Net increase/(decrease) in cash and cash equivalents
63,334
(44,536)
Cash and cash equivalents at beginning of year
108,234
152,770
Cash and cash equivalents at end of year
171,568
108,234
GPR Technical Recruitment Limited
Notes to the Financial Statements
For the year ended 31 March 2023
Page 15
1
Accounting policies
Company information

GPR Technical Recruitment Limited (“the Company”) is a limited company domiciled and incorporated in England and Wales. The registered office is 4 The Old Yard, Rectory Lane, Brasted, Westerham, Kent, TN16 1JP.

 

The Group consists of GPR Technical Recruitment Limited and its subsidiary Alexander Associates Technical Consultants Limited.

1.1
Accounting convention

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

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

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

1.2
Business combinations

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

 

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

1.3
Basis of consolidation

The consolidated financial statements incorporate those of GPR Technical Recruitment Limited and its subsidiary Alexander Associates Technical Recruitment Limited (i.e. the entity that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

GPR Technical Recruitment Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
1
Accounting policies
(Continued)
Page 16
1.4
Going concern

The group recorded a loss for the year of £214,365 (2022: £104,110) after goodwill amortisation of £707,136 (2002: £707,136) and tax. At the balance sheet date the group had net current liabilities of £1,231,190 (2022: £1,543,749), and net liabilities of £34,050 (2022: net assets of £180,315). The directors have prepared future cashflow forecasts, which include monthly repayments of bank and non-bank debt. The amounts comprising the debt are covered by long-term agreements, which provides certainty to the group when preparing future cashflow forecasts. The group also uses an invoice factoring facility provided to it by its bankers. The cashflow forecasts show that the group will have sufficient cash resources to meet its liabilities as they fall due for at least 12 months from the date of approval of these financial statements. On this basis the directors consider that it is appropriate to prepare the financial statements on a going concern basis.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for recruitment services provided in the normal course of business, and is shown net of VAT and other sales related taxes based on work carried out according to timesheets. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

1.6
Intangible fixed assets - goodwill

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

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Tangible fixed assets

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

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

Leasehold land and buildings
Over the length of the lease
Fixtures and fittings
25% reducing balance
Computers
33.3% straight line

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

1.8
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

GPR Technical Recruitment Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
1
Accounting policies
(Continued)
Page 17

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

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

Basic financial instruments are measured at amortised cost. The company has no other financial instruments or basic financial instruments measured at fair value.

1.12
Equity instruments

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

1.13
Taxation

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

GPR Technical Recruitment Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
1
Accounting policies
(Continued)
Page 18
Current tax

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

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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

1.14
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.15
Employee benefits

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

 

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

 

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

1.16
Retirement benefits

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

GPR Technical Recruitment Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
1
Accounting policies
(Continued)
Page 19
1.17
Leases

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

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

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

 

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

 

The accounting policy for the amortisation of the goodwill is a significant estimate.

 

The discount rate used for the redeemable Ordinary B shares is a significant estimate.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Recruitment services
32,450,773
27,592,504
2023
2022
£
£
Turnover analysed by geographical market
UK
32,450,773
27,592,504
2023
2022
£
£
Other revenue
Interest income
13
-
GPR Technical Recruitment Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 20
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(2)
-
Depreciation of owned tangible fixed assets
22,897
22,775
Amortisation of intangible assets
707,136
707,136
Operating lease charges
99,157
89,378
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,065
3,988
Audit of the financial statements of the company's subsidiaries
15,715
13,898
20,780
17,886
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Contract staff
-
9
-
-
Recruitment consultants
18
12
-
-
Administration
10
10
-
-
Directors
4
4
-
-
Total
32
35
-
0
-
0
GPR Technical Recruitment Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
6
Employees
(Continued)
Page 21

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,392,752
1,717,564
-
0
-
0
Social security costs
163,523
207,905
-
-
Pension costs
45,375
38,027
-
0
-
0
1,601,650
1,963,496
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
305,820
288,945
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
117,734
101,014
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
13
-
0
Other income from investments
Dividends received
-
0
(16,842)
Total income excluding fixed asset investments
13
(16,842)
Income from fixed asset investments
Income from shares in group undertakings
-
0
16,842
Total income
13
-
0
GPR Technical Recruitment Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 22
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
137,464
43,090
Other finance costs:
Other interest
120,487
77,382
Total finance costs
257,951
120,472
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
149,180
138,502
Deferred tax
Origination and reversal of timing differences
2,541
3,329
Total tax charge
151,721
141,831

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

2023
2022
£
£
(Loss)/profit before taxation
(62,644)
37,721
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(11,902)
7,167
Tax effect of expenses that are not deductible in determining taxable profit
161,437
134,664
Effect of change in corporation tax rate
2,186
-
Taxation charge
151,721
141,831
GPR Technical Recruitment Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 23
11
Dividends
2023
2022
£
£
Final paid
-
16,842
-
16,842
The 2022 dividends were paid at a rate of £0.16842 per ordinary share.
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2022
7,071,355
Revaluation
(65,737)
At 31 March 2023
7,005,618
Amortisation and impairment
At 1 April 2022
4,564,706
Amortisation charged for the year
707,136
At 31 March 2023
5,271,842
Carrying amount
At 31 March 2023
1,733,776
At 31 March 2022
2,506,649
The company had no intangible fixed assets at 31 March 2023 or 31 March 2022.
GPR Technical Recruitment Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 24
13
Tangible fixed assets
Group
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 April 2022
26,201
83,198
138,561
247,960
Additions
9,817
1,069
10,501
21,387
At 31 March 2023
36,018
84,267
149,062
269,347
Depreciation and impairment
At 1 April 2022
9,920
71,283
117,795
198,998
Depreciation charged in the year
3,601
3,246
16,050
22,897
At 31 March 2023
13,521
74,529
133,845
221,895
Carrying amount
At 31 March 2023
22,497
9,738
15,217
47,452
At 31 March 2022
16,281
11,915
20,766
48,962
The company had no tangible fixed assets at 31 March 2023 or 31 March 2022.
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
24
-
0
-
0
7,932,274
7,998,011

 

GPR Technical Recruitment Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
14
Fixed asset investments
(Continued)
Page 25
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022
7,998,011
Valuation changes
(65,737)
At 31 March 2023
7,932,274
Carrying amount
At 31 March 2023
7,932,274
At 31 March 2022
7,998,011
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,861,130
3,472,624
-
0
-
0
Gross amounts owed by contract customers
715,015
428,498
-
0
-
0
Other debtors
71,207
59,250
32,846
1,000
Prepayments and accrued income
126,395
152,713
-
0
-
0
4,773,747
4,113,085
32,846
1,000
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
18
1,800,893
494,033
-
0
-
0
Other borrowings
18
2,000,000
3,087,950
2,000,000
3,087,950
Trade creditors
864,972
853,314
3,329
-
0
Amounts owed to group undertakings
-
0
-
0
4,348,058
2,961,298
Corporation tax payable
77,682
20,502
-
0
-
0
Other taxation and social security
304,904
221,261
-
-
Other creditors
264,445
568,104
204,263
500,000
Accruals and deferred income
863,609
519,904
105,644
4,000
6,176,505
5,765,068
6,661,294
6,553,248
GPR Technical Recruitment Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 26
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
549,988
799,988
-
0
-
0
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
2,350,881
1,294,021
-
0
-
0
Preference shares
2,000,000
1,980,657
2,000,000
1,980,657
Other loans
-
0
1,107,293
-
0
1,107,293
4,350,881
4,381,971
2,000,000
3,087,950
Payable within one year
3,800,893
3,581,983
2,000,000
3,087,950
Payable after one year
549,988
799,988
-
0
-
0

The bank loans are secured by a fixed charge in favour of HSBC Bank plc dated 1 July 2016 over all present freehold and leasehold property, a first fixed charge over book and other debts, chattels and goodwill and a first floating charge over all present and future assets.

The redeemable Ordinary B shares figure represents 25,000 Ordinary B shares, which were redeemable on 30 June 2022. The subscription price was £2m and the present value at the time of subscription was £1,535,791. The difference of £464,209, which represented the discount, was credited to other reserves. The discount was charged to the profit and loss account over the period to 30 June 2022 at which point the discount was fully unwound. The shares have not, yet, been redeemed. The shares have full rights to dividends and rank higher than the Ordinary shares in a return of capital.

19
Provisions for liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
22,500
22,500
-
-
Deferred tax liabilities
20
11,600
9,059
-
0
-
0
34,100
31,559
-
0
-
0
GPR Technical Recruitment Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 27
20
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
Advanced capital allowances
11,600
9,059
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 April 2022
9,059
-
Charge to profit or loss
2,541
-
Liability at 31 March 2023
11,600
-
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
45,375
38,027

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

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
200,000
100,000
1,000
1,000
GPR Technical Recruitment Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 28
23
Operating lease commitments
Lessee

The operating lease commitments represent the amount of rent payable on non-cancellable leases on the companies office premises.

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
44,000
86,660
-
-
Between two and five years
124,667
168,667
-
-
168,667
255,327
-
-
24
Subsidiaries

Details of the company's subsidiary at 31 March 2023 are as follows:

Name of undertaking and country of
Nature of business
Class of
% Held
incorporation or residency
shareholding
Direct
Indirect
Alexander Associates Technical Recruitment Ltd
England & Wales
Recruitment services
Ordinary
100
0
25
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
305,820
288,945
Other information

GPR Technical Recruitment Limited owes J Gutteridge £nil (2022: £1,107,293) in respect of loan notes and £204,263 (2022: £500,000) in respect of deferred consideration, both of which arose as part of the management buy out.

 

G Jones, a director of the company, was owed £15,484 (2022: £17,835) by Alexander Associates Technical Recruitment Ltd at the year end.

 

P Webb, a director of the company, was owed £1,219 (2022: £4,239) by Alexander Associates Technical Recruitment Ltd at the year end.

GPR Technical Recruitment Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 29
26
Cash generated from group operations
2023
2022
£
£
Loss for the year after tax
(214,365)
(104,110)
Adjustments for:
Taxation charged
151,721
141,831
Finance costs
257,951
120,472
Investment income
(13)
-
0
Amortisation and impairment of intangible assets
772,873
707,136
Depreciation and impairment of tangible fixed assets
22,897
22,775
Movements in working capital:
Increase in debtors
(660,662)
(533,363)
Increase in creditors
135,347
88,363
Cash generated from operations
465,749
443,104
27
Analysis of changes in net debt - group
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
108,234
63,334
171,568
Borrowings excluding overdrafts
(4,381,971)
31,090
(4,350,881)
(4,273,737)
94,424
(4,179,313)
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