Company registration number 06938386 (England and Wales)
PARIO GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022
PARIO GROUP LIMITED
COMPANY INFORMATION
Directors
S Kyriakides
J Dumont
Company number
06938386
Registered office
3 Coldbath Square
London
EC1R 5HL
Auditor
Kingswood LLP
3 Coldbath Square
London
EC1R 5HL
Business address
The Business and Technology Centre
Bessemer Driver
Stevenage
Hertfordshire
SG1 2DX
PARIO GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 24
PARIO GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 1 -

The directors present the strategic report for the year ended 30 November 2022.

Fair review of the business

Throughout the year ending on 30 November 2021, the group navigated the challenges posed by the COVID-19 pandemic. The unprecedented downturn in demand, stemming from the cancellation of services by the NHS and other healthcare providers, significantly impacted the group's operations. However, the business has successfully returned to pre-pandemic levels.

 

Although the trading environment has rebounded, it remains competitive. The group, equipped with resilient strategies, is poised to achieve its objectives. This involves maintaining robust relationships with clients and continuously reviewing strategies and opportunities for a competitive advantage, all geared towards delivering substantial returns to its shareholders.

 

As a supplier to both public and private sectors, the group upholds stringent quality standards through its certified ISO9001:2015 internal quality management system. Additionally, as a full member of the Recruitment and Employment Confederation, the group strictly adheres to the REC Code of Recruitment Practice.

Principal risks and uncertainties

There is a comprehensive framework of internal policies, procedures and controls that are in place to identify and assess the principal risks facing the group. All policies are subject to board approval and ongoing review by the directors and by senior management.

The directors consider the following as the principal risks facing the group:

 

Credit risk

 

The main financial assets of the group are trade debtors and the recoverability of trade debtor balances represents a substantial risk facing the business. In order to manage credit risk to an acceptable level, credit checks and additional monitoring procedures are in place to help detect and deter fraudulent transactions. Close working relationships exist with all key customers. Debtors are monitored closely by senior management and by the directors, all of whom are closely involved with the business on a day-to-day-basis.

 

Liquidity and cash flow risk

 

The group manages liquidity and cash flow risk by maintaining sufficient working capital finance facilities. Currently, sufficient facilities are in place to enable the group to meet foreseeable requirements.

PARIO GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 2 -
Key performance indicators

The group closely monitors its gross profit margin on a monthly basis. The directors evaluate the individual performance and contributions of all employees to assess the effectiveness of current strategies.

 

Turnover

 

Turnover for the year was £25,049,289 compared to £16,171,620 in 2021.

 

Gross profit

 

For the year under review, gross profit of £3,871,125 was achieved compared to £2,715,093 for the previous year. Gross margin decreased to 15.45% from 16.79% in 2021 as a result of the sales mix between public and private clients during the year.

 

Operating profit

 

For the year under review operating profit was £438,277 compared to operating profit £49,053 for the previous year.

 

Shareholders’ funds

 

Shareholders’ funds have increased to £1,241,882 from £1,026,010 in the previous year. The directors believe the company's position to be satisfactory.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

The Board and management confidently look forward to a successful future for the benefit of all stakeholders.

On behalf of the board

J Dumont
Director
22 November 2023
PARIO GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 3 -

The directors present their annual report and financial statements for the year ended 30 November 2022.

Principal activities

The principal activity of the group continued to be that of medical staff recruitment agency.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £70,000 (2021: £70,000). The directors do not recommend payment of a further dividend.

Directors

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

S Kyriakides
J Dumont
Financial instruments

The group has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are conducted in sterling. The group does not enter into any formal hedging arrangements.

Future developments

The directors continue to explore new opportunities for growth and these together with existing historic business developments provide the directors with confidence for the future.

Auditor

The auditor, Kingswood LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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.

PARIO GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 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
J Dumont
Director
22 November 2023
PARIO GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PARIO GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of Pario Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2022 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 significant accounting policies. The 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:

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.

Opinions on other matters prescribed by the Companies Act 2006

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

PARIO GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PARIO GROUP LIMITED
- 6 -
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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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:

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

PARIO GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PARIO GROUP LIMITED
- 7 -

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non‑compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non‑compliance. Auditing standards also limit the audit procedures required to identify non‑compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Behan FCA (Senior Statutory Auditor)
For and on behalf of Kingswood LLP
22 November 2023
Chartered Accountants
Statutory Auditor
3 Coldbath Square
London
EC1R 5HL
PARIO GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 8 -
2022
2021
Notes
£
£
Turnover
3
25,049,289
16,171,620
Cost of sales
(21,178,164)
(13,456,527)
Gross profit
3,871,125
2,715,093
Administrative expenses
(3,432,848)
(2,667,707)
Other operating income
-
1,667
Operating profit
4
438,277
49,053
Interest payable and similar expenses
8
(84,187)
(33,204)
Profit before taxation
354,090
15,849
Tax on profit
9
(68,218)
(3,954)
Profit for the financial year
285,872
11,895
There was no other comprehensive income during the year.
Total comprehensive income for the year is all attributable to the owners of the parent company,

The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.

The notes on pages 14 - 24 form part of these financial statements
PARIO GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 NOVEMBER 2022
30 November 2022
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
11
5,121
6,025
Current assets
Debtors
14
4,076,867
3,370,744
Cash at bank and in hand
832,525
599,478
4,909,392
3,970,222
Creditors: amounts falling due within one year
15
(3,672,631)
(2,950,237)
Net current assets
1,236,761
1,019,985
Net assets
1,241,882
1,026,010
Capital and reserves
Called up share capital
18
40,460
40,460
Share premium account
131,014
131,014
Capital redemption reserve
9,640
9,640
Profit and loss reserves
1,060,768
844,896
Total equity
1,241,882
1,026,010
The financial statements were approved by the board of directors and authorised for issue on 22 November 2023 and are signed on its behalf by:
J Dumont
Director
Company Registration No. 06938386
The notes on pages 14 - 24 form part of these financial statements
PARIO GROUP LIMITED
COMPANY BALANCE SHEET
AS AT
30 NOVEMBER 2022
30 November 2022
- 10 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investments
12
212,288
212,288
Current assets
Debtors
14
32,000
32,000
Cash at bank and in hand
520,256
525,598
552,256
557,598
Creditors: amounts falling due within one year
15
(552,137)
(557,479)
Net current assets
119
119
Total assets less current liabilities
212,407
212,407
Capital and reserves
Called up share capital
18
40,460
40,460
Share premium account
131,014
131,014
Capital redemption reserve
9,640
9,640
Profit and loss reserves
31,293
31,293
Total equity
212,407
212,407

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £70,000 (2021 - £70,000 profit).

The financial statements were approved by the board of directors and authorised for issue on 22 November 2023 and are signed on its behalf by:
J Dumont
Director
Company Registration No. 06938386
The notes on pages 14 - 24 form part of these financial statements
PARIO GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 11 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 December 2020
40,460
131,014
9,640
903,001
1,084,115
Year ended 30 November 2021:
Profit and total comprehensive income for the year
-
-
-
11,895
11,895
Dividends
10
-
-
-
(70,000)
(70,000)
Balance at 30 November 2021
40,460
131,014
9,640
844,896
1,026,010
Year ended 30 November 2022:
Profit and total comprehensive income for the year
-
-
-
285,872
285,872
Dividends
10
-
-
-
(70,000)
(70,000)
Balance at 30 November 2022
40,460
131,014
9,640
1,060,768
1,241,882
The notes on pages 14 - 24 form part of these financial statements
PARIO GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 12 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 December 2020
40,460
131,014
9,640
31,293
212,407
Year ended 30 November 2021:
Profit and total comprehensive income for the year
-
-
-
70,000
70,000
Dividends
10
-
-
-
(70,000)
(70,000)
Balance at 30 November 2021
40,460
131,014
9,640
31,293
212,407
Year ended 30 November 2022:
Profit and total comprehensive income for the year
-
-
-
70,000
70,000
Dividends
10
-
-
-
(70,000)
(70,000)
Balance at 30 November 2022
40,460
131,014
9,640
31,293
212,407
The notes on pages 14 - 24 form part of these financial statements
PARIO GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 13 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
21
(144,043)
(891,688)
Interest paid
(84,187)
(33,204)
Net cash outflow from operating activities
(228,230)
(924,892)
Financing activities
Net drawdown of other finance
531,277
683,191
Dividends paid to equity shareholders
(70,000)
(70,000)
Net cash generated from financing activities
461,277
613,191
Net increase/(decrease) in cash and cash equivalents
233,047
(311,701)
Cash and cash equivalents at beginning of year
599,478
911,179
Cash and cash equivalents at end of year
832,525
599,478
The notes on pages 14 - 24 form part of these financial statements
PARIO GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 14 -
1
Accounting policies
Company information

Pario Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 3 Coldbath Square, London, EC1R 5HL. The principal place of business is The Business and Technology Centre, Bessemer Driver, Stevenage, Hertfordshire, SG1 2DX. The principal activity of the group continued to be that of medical staff recruitment agency.

 

The group consists of Pario Group Limited and all of its subsidiaries.

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

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

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £70,000 (2021 - £70,000 profit).

1.2
Basis of consolidation

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 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. No adjustment was necessary to the fair values recognised for business combinations in previous periods for final fair values determined in the 12 months following the acquisition date. Iinvestments in subsidiaries are accounted for at cost less impairment.

The consolidated financial statements incorporate those of Pario Group Limited and all of its subsidiaries (i.e. entities 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 30 November 2022. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation.

 

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

PARIO GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
1
Accounting policies
(Continued)
- 15 -
1.4
Turnover

Turnover arising from permanent placement is recognised when the candidate commences employment. Where a permanent candidate commences employment but does not continue working for a specified contractual period, a provision is made in respect of the required credit note due to the client. The revenue recognised from permanent placement is typically based on a percent of the candidate’s remuneration package.

 

Turnover arising from temporary placements is recognised on time basis of services provided by the temporary candidates. Revenue recognition associated with temporary placements is typically based on the hourly rate of the candidate.

1.5
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:

Fixtures, fittings & equipment
15% reducing balance

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.

1.6
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible 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.

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 or .

1.7
Cash at bank and in hand

Cash and cash equivalents include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
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 and 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.

Trade and other debtors

Trade and other debtors are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

PARIO GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date. If an asset is impaired, the impairment loss is recognised in or . The impairment reversal is recognised in or .

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Trade and other creditors

Trade and other creditors including bank loans and loans from fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

Derecognition of financial liabilities

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

1.9
Equity instruments

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

1.10
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the the year. The company’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 is recognised on all timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

 

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

PARIO GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
1
Accounting policies
(Continued)
- 17 -
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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.

1.12
Retirement benefits

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

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Revenue recognition

Revenue is recognised for the placement of permanent candidates on the day candidates start work and temporary placement revenue over the duration of the placement; and

 

Recognition of revenue from the temporary contractual arrangement on a gross basis as principal. The factors considered by the management to conclude that the company is acting as principal are as follows:

 

 

PARIO GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 18 -
3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by geographical market
United Kingdom
25,038,853
16,145,326
Overseas
10,436
26,294
25,049,289
16,171,620
4
Operating profit
2022
2021
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(1,667)
Depreciation of owned tangible fixed assets
904
1,063
Operating lease charges
69,209
92,904
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor:
£
£
For audit services
Audit of the group, company and its subsidiaries
12,500
12,500
For other services
All other non-audit services
34,600
34,600
6
Employees

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

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Management
7
7
-
-
Finance
8
8
-
-
Operation
17
26
-
-
Total
32
41
-
0
-
0
PARIO GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
6
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
2,327,984
1,752,986
-
0
-
0
Social security costs
276,360
208,374
-
-
Pension costs
97,430
53,702
-
0
-
0
2,701,774
2,015,062
-
0
-
0
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
592,428
385,582
Company pension contributions to defined contribution schemes
60,400
18,300
652,828
403,882
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2022
2021
£
£
Remuneration for qualifying services
301,339
196,582
Company pension contributions to defined contribution schemes
30,200
9,150

The directors are considered as the key management personnel of the company.

8
Interest payable and similar expenses
2022
2021
£
£
Interest on finance facilities
84,187
33,204
PARIO GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 20 -
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
68,218
3,954

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

2022
2021
£
£
Profit before taxation
354,090
15,849
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
67,277
3,011
Tax effect of expenses that are not deductible in determining taxable profit
941
943
Taxation charge
68,218
3,954
10
Dividends
2022
2021
Recognised as distributions to equity holders:
£
£
Interim paid
70,000
70,000
11
Tangible fixed assets
Group
Fixtures, fittings & equipment
£
Cost
At 1 December 2021 and 30 November 2022
26,725
Depreciation and impairment
At 1 December 2021
20,700
Depreciation charged in the year
904
At 30 November 2022
21,604
Carrying amount
At 30 November 2022
5,121
At 30 November 2021
6,025
The company had no tangible fixed assets at 30 November 2022 or 30 November 2021.
PARIO GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 21 -
12
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
212,288
212,288
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 December 2021 and 30 November 2022
212,288
Carrying amount
At 30 November 2022
212,288
At 30 November 2021
212,288
13
Subsidiaries

Details of the company's subsidiaries at 30 November 2022 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Sensible Staffing Limited
England
Ordinary
100.00
Staffmed Ltd
England
Ordinary
100.00
14
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,946,304
3,221,845
-
0
-
0
Corporation tax recoverable
-
0
11,657
-
0
-
0
Other debtors
130,563
130,300
32,000
32,000
Prepayments and accrued income
-
0
6,942
-
0
-
0
4,076,867
3,370,744
32,000
32,000
PARIO GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 22 -
15
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Other loans
16
2,590,332
2,059,055
-
0
-
0
Trade creditors
468,524
504,091
-
0
-
0
Amounts due to group undertakings
-
0
-
0
551,565
557,479
Corporation tax payable
56,561
-
0
-
0
-
0
Other taxation and social security
295,901
243,189
-
-
Other creditors
61,868
72,763
572
-
0
Accruals and deferred income
199,445
71,139
-
0
-
0
3,672,631
2,950,237
552,137
557,479

Other loans represents an invoice finance facility and is secured by a fixed and floating charges over the assets of the group.

16
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Other loans
2,590,332
2,059,055
-
0
-
0
Payable within one year
2,590,332
2,059,055
-
0
-
0
17
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
97,430
53,702

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. At the year ended 30 November 2022, total amounts payable to the scheme included in other creditors amounted to £19,079 (2021: £16,928).

 

PARIO GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 23 -
18
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
23,800
23,800
23,800
23,800
Ordinary B shares of £1 each
14,160
14,160
14,160
14,160
Ordinary C shares of £1 each
2,500
2,500
2,500
2,500
40,460
40,460
40,460
40,460

The holders of all classes of ordinary shares are entitled to one vote per share and are entitled to receive dividends as and when declared. Dividends can be declared or paid as interim dividends on one or several classes of shares to the exclusion of any other class or classes of shares.

All ordinary shares rank equally with regard to the company’s residual assets.

19
Operating lease commitments
Lessee

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
2022
2021
2022
2021
£
£
£
£
Within one year
30,998
18,693
-
-
Between two and five years
41,730
8,316
-
-
72,728
27,009
-
-
20
Controlling party

No one party has overall control of the company.

PARIO GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 24 -
21
Cash absorbed by group operations
2022
2021
£
£
Profit for the year after tax
285,872
11,895
Adjustments for:
Taxation charged
68,218
3,954
Finance costs
84,187
33,204
Depreciation and impairment of tangible fixed assets
904
1,063
Movements in working capital:
Increase in debtors
(717,780)
(1,052,825)
Increase in creditors
134,556
111,021
Cash absorbed by operations
(144,043)
(891,688)
22
Analysis of changes in net debt - group
1 December 2021
Cash flows
30 November 2022
£
£
£
Cash at bank and in hand
599,478
233,047
832,525
Borrowings excluding overdrafts
(2,059,055)
(531,277)
(2,590,332)
(1,459,577)
(298,230)
(1,757,807)
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