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Registered number: 06769151









URBAN RECRUITMENT GROUP LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2023

 
URBAN RECRUITMENT GROUP LIMITED
 
 
COMPANY INFORMATION


Directors
R Prince 
P Johnson 




Registered number
06769151



Registered office
111-115 North Street
Romford

Essex

RM1 1ES




Independent auditor
Barnes Roffe LLP
Chartered Accountants 
Statutory Auditor

Leytonstone House

Leytonstone

London

E11 1GA





 
URBAN RECRUITMENT GROUP LIMITED
 

CONTENTS



Page
Group strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditor's report
 
5 - 8
Consolidated statement of comprehensive income
 
9
Consolidated balance sheet
 
10
Company balance sheet
 
11 - 12
Consolidated statement of changes in equity
 
13
Company statement of changes in equity
 
14
Consolidated statement of cash flows
 
15
Notes to the financial statements
 
16 - 36


 
URBAN RECRUITMENT GROUP LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023

Introduction
 
The director presents the strategic report for the period ended 28 February 2023.

Business review
 
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the period end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.
The group has performed very well during the year, with its GP weekly margin averaging £162k compared to £134k in the prior year – a 20.9% growth rate during the year. The main reason for the growth is due to our Nursing Division expanding our client base and becoming one of the main framework suppliers in multiple trusts.
Additionally, the NHS is still trying to reduce the backlog of delayed and cancelled procedures which occurred during the pandemic, and the following few years.  This has resulted in an increase in patient operations which we have supported with various medical staff and practitioners.
The company has seen a significant rise in demand in certain areas that we specialise in, such as imaging and theatres, which has increased our business activity. We are a primary framework supplier of temporary staff to some major NHS trusts and hospitals, as well as private sector organisations, in these areas of speciality aiding our current growth as a business.
During the year the Group achieved Gross profits of £8.41m 
(2022: £6.95m) and Operating profits of £2.3m (2022: £1.6m).

Principal risks and uncertainties
 
The market is heavily regulated and dependant on effective compliance and auditing is a key condition of the frameworks which we operate on. The Group has a Compliance team and is well placed to manage this risk with effective management controls in place. We have established a Governance and Audit team to ensure all policies and procedures are adhered to, and that any legislative changes are reflected in our terms of business and contracts.
Economic risk
The improved business levels for year-ended 28th February 2023 shows that the company is well placed within the market and has built up a strong reputation and brand within the healthcare recruitment industry.  Despite a slight drop-in GP margin rate to 13% (2022: 13.6%), Gross Profit grew by 20.9% for the year.  This level of growth has helped to mitigate cashflow pressures and risks. 
The company seeks to manage and minimise financial risk by ensuring that sufficient funding is available at all times to meet foreseeable needs.

Page 1

 
URBAN RECRUITMENT GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023

Financial key performance indicators
 
The group consider the following to be its key performance indicators:
Net Turnover:
The Company achieved net Turnover of £64.3m, a 26.2% increase from prior period (2022: £51m).  
 
Gross Profit
The Company achieved gross profit of £8.41m, a 20.9% increase from prior period (2022: £6.95m).
Direct customer and account related KPI’s are completed throughout the business and are monitored monthly by the management accounts team.

Going concern
 
As discussed in the going concern accounting policy, the Directors consider that the Group remains a going concern. Financial forecasts have been prepared by management and demonstrate that the group is expected to have sufficient cash to enable it to meet its liabilities as they become due. 
Post period end, the monthly management accounts have continued to show positive results with the gross margin remaining strong throughout this period. As turnover continues to increase, cash-flow restrictions ease.  Cash-flow projections for the 12 months post period-end do not indicate any further support will be needed from the group’s banking partners, or any cash injections from the directors will be required.

Future developments
 
The directors do not believe that the business will change significantly in the foreseeable future. 


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



R Prince
Director

Page 2

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023

The directors present their report and the financial statements for the year ended 28 February 2023.

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.

Principal activity

The principal activity of the Company and the Group continued to be that of the recruitment and placement of staff in the medical sector. 

Results and dividends

The profit for the year, after taxation, amounted to £1,574,622 (2022 - £1,124,655).

Ordinary dividends were declared amounting to £1,320,000 (2022 - £820,000). The director's do not recommend the payment of a further dividend. 

Directors

R Prince 
P Johnson 

Future developments

Future developments are not disclosed within the Director's report as they are instead included within the Strategic Report on page 1 under s414c(11) of the Companies Act 2006. 

Page 3

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023

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, Barnes Roffe LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





R Prince
Director

Page 4

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF URBAN RECRUITMENT GROUP LIMITED
 

Opinion


We have audited the financial statements of Urban Recruitment Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 28 February 2023, which comprise the Group Statement of comprehensive income, the Group and Company Balance sheets, the Group Statement of cash flows, the Group and Company Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 28 February 2023 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 in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the 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.


Page 5

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF URBAN RECRUITMENT GROUP LIMITED (CONTINUED)


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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group 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 Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 6

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF URBAN RECRUITMENT GROUP LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, 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 the 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 the 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

ensuring that the engagement team collectively had the appropriate competence, capabilities and skills to identify non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the Company through discussions with directors, and from our commercial knowledge and experience of the relevant sector, including Companies Act 2006;
we assessed the extent of the compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
laws and regulations were communicated within the audit team at the planning meeting, and the audit team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the Company's financial statements to material misstatement, including obtaining understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
reviewing the financial statements and testing the disclosures against supporting documentation;
performing analytical procedures to identify any unusual or unexpected trends or anomalies;
inspecting and testing journal entries to identify unusual or unexpected transactions; and
assessing whether judgement and assumptions made in determining significant accounting estimates were indicative of management bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with law or regulation is removed from the events and transactions reflected
Page 7

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF URBAN RECRUITMENT GROUP LIMITED (CONTINUED)


in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.





Andrew May (Senior statutory auditor)
for and on behalf of
Barnes Roffe LLP
Chartered Accountants
Statutory Auditor
Leytonstone House
Leytonstone
London
E11 1GA

16 November 2023
Page 8

 
URBAN RECRUITMENT GROUP LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023

2023
2022
Note
£
£

  

Turnover
 4 
64,338,429
50,998,490

Cost of sales
  
(55,931,683)
(44,047,594)

Gross profit
  
8,406,746
6,950,896

Administrative expenses
  
(6,121,061)
(5,379,923)

Other operating income
 5 
-
28,237

Operating profit
 6 
2,285,685
1,599,210

Interest payable and similar expenses
 10 
(316,536)
(208,617)

Profit before taxation
  
1,969,149
1,390,593

Tax on profit
 11 
(394,527)
(265,938)

Profit for the financial year
  
1,574,622
1,124,655

Profit for the year attributable to:
  

Owners of the parent Company
  
1,574,622
1,124,655

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 16 to 36 form part of these financial statements.

Page 9

 
URBAN RECRUITMENT GROUP LIMITED
REGISTERED NUMBER: 06769151

CONSOLIDATED BALANCE SHEET
AS AT 28 FEBRUARY 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
130,529
232,579

Tangible assets
 14 
264,443
317,725

  
394,972
550,304

Current assets
  

Debtors: amounts falling due within one year
 16 
7,512,655
6,619,551

Cash at bank and in hand
  
37,828
274,271

  
7,550,483
6,893,822

Creditors: amounts falling due within one year
 17 
(7,058,250)
(6,845,215)

Net current assets
  
 
 
492,233
 
 
48,607

Total assets less current liabilities
  
887,205
598,911

Creditors: amounts falling due after more than one year
 18 
(139,594)
(139,594)

Deferred taxation
 19 
(41,638)
(38,983)

Net assets
  
705,973
420,334


Capital and reserves
  

Called up share capital 
 20 
100,000
100,000

Profit and loss account
 21 
605,973
320,334

Equity attributable to owners of the parent Company
  
705,973
420,334


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




R Prince
Director


The notes on pages 16 to 36 form part of these financial statements.

Page 10

 
URBAN RECRUITMENT GROUP LIMITED
REGISTERED NUMBER: 06769151

COMPANY BALANCE SHEET
AS AT 28 FEBRUARY 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 14 
21,293
24,570

Investments
 15 
585,422
554,405

  
606,715
578,975

Current assets
  

Debtors: amounts falling due within one year
 16 
807,979
583,139

Cash at bank and in hand
  
2,118
5,320

  
810,097
588,459

Creditors: amounts falling due within one year
 17 
(1,080,798)
(892,083)

Net current liabilities
  
 
 
(270,701)
 
 
(303,624)

Total assets less current liabilities
  
336,014
275,351

  

Creditors: amounts falling due after more than one year
 18 
(139,594)
(139,594)

Provisions for liabilities
  

Deferred taxation
 19 
(2,329)
(2,151)

Net assets
  
194,091
133,606


Capital and reserves
  

Called up share capital 
 20 
100,000
100,000

Profit and loss account brought forward
  
33,606
2,225

Profit for the year
  
1,349,468
851,381

Share based payment
  
31,017
-

Dividends declared

  

(1,320,000)
(820,000)

Profit and loss account carried forward
  
94,091
33,606

  
194,091
133,606


Page 11

 
URBAN RECRUITMENT GROUP LIMITED
REGISTERED NUMBER: 06769151
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 28 FEBRUARY 2023

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


R Prince
Director

The notes on pages 16 to 36 form part of these financial statements.

Page 12

 
URBAN RECRUITMENT GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 March 2021
100,000
15,679
115,679


Comprehensive income for the year

Profit and total comprehensive income for the period
-
1,124,655
1,124,655


Contributions by and distributions to owners

Dividends: Equity capital
-
(820,000)
(820,000)



At 28 February 2022
100,000
320,334
420,334


Comprehensive income for the year

Profit and total comprehensive income for the year
-
1,574,622
1,574,622


Contributions by and distributions to owners

Dividends: Equity capital
-
(1,320,000)
(1,320,000)

Share based payment
-
31,017
31,017


At 28 February 2023
100,000
605,973
705,973


The notes on pages 16 to 36 form part of these financial statements.

Page 13

 
URBAN RECRUITMENT GROUP LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 March 2021
100,000
2,225
102,225


Comprehensive income for the year

Profit and total comprehensive income for the period
-
851,381
851,381


Contributions by and distributions to owners

Dividends: Equity capital
-
(820,000)
(820,000)



At 1 March 2022
100,000
33,606
133,606


Comprehensive income for the year

Profit and total comprehensive income for the year
-
1,349,468
1,349,468

Share based payment
-
31,017
31,017


Contributions by and distributions to owners

Dividends: Equity capital
-
(1,320,000)
(1,320,000)


At 28 February 2023
100,000
94,091
194,091


The notes on pages 16 to 36 form part of these financial statements.

Page 14

 
URBAN RECRUITMENT GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
1,574,622
1,124,655

Adjustments for:

Amortisation of intangible assets
81,594
101,989

Depreciation of tangible assets
93,150
78,802

Loss on disposal of tangible assets
(524)
-

Interest charge
316,536
208,617

Taxation charge
394,527
265,938

(Increase) in debtors
(879,039)
(1,429,259)

Increase/(decrease) in creditors
294,497
(295,527)

Share based payment charge
31,017
-

Corporation tax paid
(140,294)
-

Net cash generated from operating activities

1,766,086
55,215


Cash flows from investing activities

Purchase of tangible fixed assets
(19,412)
(884)

Sale of tangible fixed assets
524
-

Net cash from investing activities

(18,888)
(884)

Cash flows from financing activities

Movement on invoice discounting
(347,105)
1,219,801

Dividends paid
(1,320,000)
(820,000)

Interest paid
(316,536)
(208,617)

Net cash used in financing activities
(1,983,641)
191,184

Net (decrease)/increase in cash and cash equivalents
(236,443)
245,515

Cash and cash equivalents at beginning of year
274,271
28,756

Cash and cash equivalents at the end of year
37,828
274,271


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
37,828
274,271


Page 15

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

1.


General information

Urban Recruitment Group Limited ("the Company") is a private company limited by shares, incorporated in England and Wales. The registered office address is 111-115 North Street, Romford, Essex, RM1 1ES.
The Group consists of Urban Recruitment Group Limited and all of its subsidiaries. 
The Company's and the Group's principal activities and nature of its operations are disclosed in the Strategic Report and Director's Report. 

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

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.
All financial statements are made up to 28 February 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.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, 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 16

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2.Accounting policies (continued)

  
2.3

Foreign exchange

Transactions in currencies other than the functional currency (foreign currency) are initially recorded at the exchange rate prevailing on the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date.
All translation differences are taken to profit or loss.

  
2.4

Going concern

The financial statements have been prepared on a going concern basis as the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.
In arriving at this conclusion, the Directors have taken into consideration the results for the year 28 February 2023 together with the current results and cashflow forecasts for 12 months from the date of signing of the financial statements.  
Based on the forecasts prepared the directors are satisfied that the Group is in a position to meet its liabilities as they fall due over the next 12 months from the date of signing of these financial statements. 

 
2.5

Revenue

Revenue is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts.
Income relating to temporary staff is recognised in the period to which it relates when billed for each month.
Income relating to placement of permanent candidates is recognised at the point candidates commence their placements.

 
2.6

Operating leases: the Group as lessee

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.

 
2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102.
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.

Page 17

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2.Accounting policies (continued)

 
2.8

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.

  
2.9

Employee benefits

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.

 
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 Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.11

Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
The expense in relation to options over the parent company’s shares granted to employees of a subsidiary is recognised by the company as a capital contribution, and presented as an increase in the company’s investment in that subsidiary.

Page 18

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2.Accounting policies (continued)

 
2.12

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 balance sheet 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 balance sheet 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 balance sheet date.

 
2.13

Intangible assets

Goodwill

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

Other intangible assets

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

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

 The estimated useful lives range as follows:

Software
-
5 and a half years

Page 19

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2.Accounting policies (continued)

 
2.14

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives on the following bases:

Fixtures and fittings
-
20 - 25% straight line
Computers
-
10 - 33% straight line
Leasehold improvements
-
10% straight line

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.

  
2.15

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.

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

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.

 
2.17

Debtors

Short term debtors are measured at transaction price, less any impairment.

 
2.18

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.
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.

Page 20

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2.Accounting policies (continued)

 
2.19

Creditors

Short term creditors are measured at the transaction price.

 
2.20

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 balance sheet 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 Balance sheet.

  
2.21

Invoice discounting

Trade debtors are subject to a financing agreement whereby an advance is received based upon and secured against trade receivables. 
Where the Group has retained significant benefits and risks relating to the factored debts, separate presentation is adopted whereby the gross debts and a corresponding liability in respect of the advance received are shown separately on the balance sheet. The interest element of the factor's charges is recognised as it accrues and is included in the profit and loss account with other interest charges.

 
2.22

Financial instruments

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

Financial instruments are recognised in the Group's Balance sheet when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Page 21

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2.Accounting policies (continued)


2.22
Financial instruments (continued)

Impairment of financial assets

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

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

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

Financial liabilities

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

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

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

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

 
2.23

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.

Page 22

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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.
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical judgments in applying the entity's accounting policies
No significant judgments have had to be made by management in preparing these financial statements. 
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows: 
Share based payments
The assumptions underpinning the fair value of the share options and likelihood of share options being exercisable are key sources of estimation uncertainty. In particular, these include the valuation of the Company, vesting period, volatility and risk free rate.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Turnover analysed by class of business

Recruitment and placement of staff
64,338,429
50,998,490


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
64,338,429
50,998,490



5.


Other operating income

2023
2022
£
£

Government grants receivable
-
28,237

Page 23

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

5.Other operating income (continued)



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of owned tangible fixed assets
72,694
78,802

Operating lease charges
201,179
201,179

Profit on disposal of tangible fixed assets
(524)
-

Amortisation of intangible assets
102,050
101,989


7.


Auditor's remuneration

During the year, the Group obtained the following services from the Company's auditor:


2023
2022
£
£

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

33,000
31,000

Fees payable to the Company's auditor in respect of:

Taxation compliance services
4,950
4,500

All other non-audit services
1,000
1,000

Page 24

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

8.


Employees

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


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
4,471,963
3,918,671
-
-

Social security costs
467,931
378,847
-
-

Cost of defined contribution scheme
82,876
73,412
-
-

5,022,770
4,370,930
-
-


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



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Management
8
8
2
2



Administration and sales
112
107
-
-



Temporary locums
126
123
-
-

246
238
2
2


9.


Directors' remuneration

2023
2022
£
£

Remuneration for qualifying services
194,223
190,545

Group contributions to defined contribution pension schemes
1,321
1,320

195,544
191,865



10.


Interest payable and similar expenses

2023
2022
£
£


Other interest
180,000
150,000

Interest on invoice finance arrangements
136,536
58,617

316,536
208,617

Page 25

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
405,937
140,707


Deferred tax


Origination and reversal of timing differences
(11,410)
125,231


Taxation on profit on ordinary activities
394,527
265,938

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,969,149
1,390,593


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
374,138
264,213

Effects of:


Non-tax deductible amortisation of goodwill and impairment
15,503
-

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
10,073
3,558

Deferred tax
(11,410)
125,231

Other adjustments leading to a difference in tax charge
9,832
(14,600)

Adjustment in research and development tax credit leading to a decrease in the tax charge
-
(8,091)

Utilisation of brought forward losses
(3,609)
(104,373)

Total tax charge for the year
394,527
265,938


Factors that may affect future tax charges

At the Budget 2021 on 3 March 2021, the Government announced that the corporation tax rate will increase to 25% for companies with profits above £250,000 with effect from 1 April 2023. These changes were substantively enacted at the balance sheet date and hence have been reflected in the measurement of deferred tax balances at the period end.

Page 26

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

12.


Dividends

2023
2022
£
£


Dividends paid
1,320,000
820,000

Post year end and prior to the approval of the accounts, dividends of £865,000 were declared. 


13.


Intangible assets

Group





Software
Goodwill
Total

£
£
£



Cost


At 1 March 2022
227,947
1,091,684
1,319,631



At 28 February 2023

227,947
1,091,684
1,319,631



Amortisation


At 1 March 2022
166,761
920,291
1,087,052


Charge for the year on owned assets
20,456
81,594
102,050



At 28 February 2023

187,217
1,001,885
1,189,102



Net book value



At 28 February 2023
40,730
89,799
130,529



At 28 February 2022
61,186
171,393
232,579



The Company had no intangible fixed assets at either balance sheet date. 

Page 27

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

14.


Tangible fixed assets

Group






Fixtures and fittings
Computers
Leasehold improvements
Total

£
£
£
£



Cost


At 1 March 2022
282,420
681,538
451,988
1,415,946


Additions
3,188
16,224
-
19,412


Disposals
-
(4,433)
-
(4,433)



At 28 February 2023

285,608
693,329
451,988
1,430,925



Depreciation


At 1 March 2022
208,223
681,538
208,460
1,098,221


Charge for the year on owned assets
31,390
8,118
33,186
72,694


Disposals
-
(4,433)
-
(4,433)



At 28 February 2023

239,613
685,223
241,646
1,166,482



Net book value



At 28 February 2023
45,995
8,106
210,342
264,443



At 28 February 2022
74,197
-
243,528
317,725

Page 28

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

           14.Tangible fixed assets (continued)


Company






Computers
Leasehold improvements
Total

£
£
£

Cost


At 1 March 2022
148,875
82,768
231,643



At 28 February 2023

148,875
82,768
231,643



Depreciation


At 1 March 2022
148,875
58,198
207,073


Charge for the year on owned assets
-
3,277
3,277



At 28 February 2023

148,875
61,475
210,350



Net book value



At 28 February 2023
-
21,293
21,293



At 28 February 2022
-
24,570
24,570






Page 29

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

15.


Fixed asset investments

Company





Shares in group undertakings

£



Cost


At 1 March 2022
554,405


Additions
31,017



At 28 February 2023

585,422






Net book value



At 28 February 2023
585,422



At 28 February 2022
554,405


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Medicspro Limited
1)
Recruitment and placement of medical staff
Ordinary
100%
Urban Trustees Limited
1)
Dormant
Ordinary
100%
Eshar Limited*
1)
Recruitment and placement of medical staff
Ordinary
100%
Medicspro Healthcare Limited*
1)
Recruitment and placement of medical staff
Ordinary
100%

Registered Office address: 
1) 111-115 North Street, Romford, Essex, RM1 1ES. 
*Indirect subsidiaries of Urban Recruitment Group Limited. 

Page 30

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
Subsidiary undertakings (continued)

The aggregate of the share capital and reserves as at 28 February 2023 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Medicspro Limited
1,438,988
1,602,755

Urban Trustees Limited
(3,991)
-

Eshar Limited*
43,558
51,835

Medicspro Healthcare Limited*
75,444
372,158


16.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
5,500,252
4,965,640
3,213
6,156

Amounts owed by group undertakings
-
-
684,044
490,215

Other debtors
91,507
88,304
2,000
3,692

Prepayments and accrued income
1,847,369
1,506,145
45,195
23,614

Deferred taxation
73,527
59,462
73,527
59,462

7,512,655
6,619,551
807,979
583,139


Trade debtors have been pledged as security against amounts due in respect of financed trade receivables (see note 17).

Page 31

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

17.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
586,680
733,053
4,852
15,125

Amounts owed to group undertakings
-
-
824,036
619,036

Corporation tax
406,352
140,709
-
-

Other taxation and social security
508,792
366,437
-
-

Invoice discounting
2,903,729
3,250,834
(46,581)
(44,113)

Other creditors
304,471
320,046
284,326
284,394

Accruals and deferred income
2,348,226
2,034,136
14,165
17,641

7,058,250
6,845,215
1,080,798
892,083


Invoice discounting facilities of £2,930,729 (2022 - £3,250,834) are secured by fixed and floating charges over all assets of the group, including trade debtors (see note 16). 


18.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Other creditors
139,594
139,594
139,594
139,594




19.


Deferred taxation


Group



2023
2022


£

£






At beginning of year
20,479
145,710


Charged to profit or loss
11,410
(125,231)



At end of year
31,889
20,479

Page 32

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
 
19.Deferred taxation (continued)

Company


2023
2022


£

£






At beginning of year
57,311
67,775


Charged to profit or loss
13,887
(10,464)



At end of year
71,198
57,311

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(41,368)
(38,983)
(2,059)
(2,151)

Tax losses carried forward
73,257
59,462
73,257
59,462

31,889
20,479
71,198
57,311

Comprising:

Deferred tax asset
73,527
59,462
73,527
59,462

Deferred tax liability
(41,638)
(38,983)
(2,329)
(2,151)

31,889
20,479
71,198
57,311



The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.


20.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



10,000,000 (2022 - 10,000,000) Ordinary shares of £0.01 each
100,000
100,000

The Company's ordinary shares, which carry no right to fixed income, each carry the right to one vote at
general meetings of the Company.



21.


Reserves

Profit and loss account

Cumulative profit and loss net of distribution to owners. 

Page 33

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
22.


Analysis of net debt




At 1 March 2022
Cash flows
At 28 February 2023
£

£

£

Cash at bank and in hand

274,271

(236,443)

37,828

Debt due within 1 year

(325)

(58)

(383)


273,946
(236,501)
37,445


23.


Contingent liabilities

At the year end date, the Company has provided a guarantee in respect of the liabilities of a subsidiary. It is impractical to estimate the financial effect of this commitment. 

Page 34

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

24.


Share-based payments

Weighted average exercise price (pence)
2023
Number
2023
Weighted average exercise price
(pence)
2022
Number
2022

Outstanding at the beginning of the year

0.059

317,490

0.06
 
451,634
 
Granted during the period

0.036

409,800

-
 
-
 
Lapsed during the period


0.036

(7,500)

0.06
 
(134,144)
 
Outstanding at the end of the year

0.046

719,790

0.06
 
317,490
 

At the year end, there were 317,490 options with exercise price of £0.059 outstanding with the remaining term ranging between 2 to 6 years. In addition, 402,300 options with exercise price of £0.036 were outstanding and had a remaining term of 10 years. 
Group
The weighted average fair value of options granted in the year was determined using the Black-Scholes option pricing model. The Black-Scholes model is considered to apply the most appropriate valuation method due to the relatively short contractual lives of the options and the requirement to exercise within a short period after the employee becomes entitled to the shares (the “vesting date”).
The expected life used in the model has been adjusted, based on management’s best estimate, for the effect of non-transferability, exercise restrictions, and behavioural considerations.
Non-vesting conditions and market conditions are taken into account when estimating the fair value of the option at grant date. Service conditions and non-market performance conditions are taken into account by adjusting the number of options expected to vest at each reporting date.
Inputs were as follows:

2023
2022

Weighted average share price (pence)

27

37
 
Weighted average exercise (pence)

4

6
 
Expected volatility

10

10
 
Risk-free interest rate

5

2
 

2023
£
2022
£


Share based payment charge
31,017
-

Page 35

 
URBAN RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

25.


Pension commitments

The Group operates a defined contribution 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 £82,876 (2022 - £73,412).
Group pension contributions outstanding at the balance sheet date amount to £18,803 
(2022 - £32,033) and are included within Other creditors.


26.


Commitments under operating leases

At 28 February 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
176,352
179,935

Later than 1 year and not later than 5 years
705,408
705,408

Later than 5 years
220,440
396,792

1,102,200
1,282,135
The Company had no commitments under non-cancellable operating leases at the balance sheet date.


27.


Related party transactions

Remuneration of key management personnel
The remuneration of key management personnel of the group during the year, including directors, is as follows:

2023
2022
£
£
Aggregate compensation

1,036,659

955,877
 

The above figure includes employers NI contributions totalling £120,953 (2022 - £103,675).
At 28 February 2023 the Group owed a director £139,594 
(2022 - £139,594) which is included within creditors due after more than one year. The loan is interest free and the director has agreed that he will not demand repayment of any loan until at least one year after the current year has ended.

 
Page 36