Company registration number 04733972 (England and Wales)
NEXT PHASE RECRUITMENT LTD
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
NEXT PHASE RECRUITMENT LTD
CONTENTS
Page
Directors' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 9
NEXT PHASE RECRUITMENT LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
page 1
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the company continued to be that of the provision of both permanent and contract professionals to the Life Science sector.
Trading Results Summary
The company has experienced a satisfactory year servicing customers in its Pharmaceutical, Cell & Gene Therapy, Biotechnology, Rare Diseases, Advanced Therapy (ATMP), MedTech and range of other Life Science sectors. The company continued to provide customers with highly skilled and experienced permanent, contract and temporary placements into a buoyant sector with strong growth characteristics. For the financial period ended 31 March 2023, sales were up from £2.96 million in FY 22 to £3.30 million due largely to a higher volume of contractors sold. Cost of sales have also increased this year, however, margins with net fee income have remained similar to that of FY 22 at £662k, therefore yielding a net fee margin of 20% compared to 22% in FY22. With good cost control, the company produced an operating profit of £98k.
The balance sheet continues to strengthen with net assets increased to £250k at 31 March 2023 (2022: £222k). Closing cash was £141k at 31 March 2023 (FY 22: £175k).
Future Trading In the Year Ahead
The Life Science sector is more resilient and buoyant compared to other UK sectors. The company sees no shortage of opportunity and is accelerating its hiring of new sales talent to meet new customer demand. We remain confident that the year ahead will see further positive progress.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
S Twinley
(Resigned 30 September 2023)
M Hunt
S Lawton
J Thomas
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
S Lawton
Director
22 November 2023
NEXT PHASE RECRUITMENT LTD
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
page 2
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
24,181
33,016
Current assets
Debtors
6
745,609
717,355
Cash at bank and in hand
141,217
175,149
886,826
892,504
Creditors: amounts falling due within one year
7
(622,518)
(580,443)
Net current assets
264,308
312,061
Total assets less current liabilities
288,489
345,077
Creditors: amounts falling due after more than one year
8
(33,333)
(117,455)
Provisions for liabilities
(5,692)
(5,945)
Net assets
249,464
221,677
Capital and reserves
Called up share capital
9
32,250
32,250
Profit and loss reserves
217,214
189,427
Total equity
249,464
221,677
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
NEXT PHASE RECRUITMENT LTD
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2023
31 March 2023
page 3
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:
S Lawton
Director
Company registration number 04733972 (England and Wales)
NEXT PHASE RECRUITMENT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
page 4
1
Accounting policies
Company information
Next Phase Recruitment Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 2nd Floor, 7-8 Sterling Buildings, Carfax, Horsham, West Sussex, RH12 1DR.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
The company's turnover is derived from the provision of permanent and contract professionals to the Life Science sector. Turnover is recognised once the terms specified in each agreement for the provision of services have been satisfied. Turnover is net of VAT.
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
5 years straight-line method
Plant and machinery
3 years straight-line method
Fixtures, fittings & equipment
3 years straight line method
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 credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company 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.
NEXT PHASE RECRUITMENT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
page 5
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company 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 debtors and cash and bank balances, 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.
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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, 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 payments 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.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
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 year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
NEXT PHASE RECRUITMENT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
page 6
Deferred tax
Deferred taxation is provided in full on timing differences which result in an obligation at the balance sheet date to pay more tax, or a right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in financial statements.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.11
Retirement benefits
The company operates a defined contribution scheme for the benefit of the employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
15
18
NEXT PHASE RECRUITMENT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
page 7
4
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2022 and 31 March 2023
4,072
Amortisation and impairment
At 1 April 2022 and 31 March 2023
4,072
Carrying amount
At 31 March 2023
At 31 March 2022
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2022
12,619
64,696
77,315
Additions
4,390
4,390
At 31 March 2023
12,619
69,086
81,705
Depreciation and impairment
At 1 April 2022
3,509
40,790
44,299
Depreciation charged in the year
2,733
10,492
13,225
At 31 March 2023
6,242
51,282
57,524
Carrying amount
At 31 March 2023
6,377
17,804
24,181
At 31 March 2022
9,110
23,906
33,016
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
670,393
579,576
Amounts owed by group undertakings
40,000
40,000
Other debtors
35,216
97,779
745,609
717,355
At the balance sheet date the full trade debtors balance was subject to the confidential Invoice Discount facility that is in place.
NEXT PHASE RECRUITMENT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
page 8
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
66,667
37,091
Trade creditors
245,738
135,410
Corporation tax
18,806
19,911
Other taxation and social security
34,819
57,067
Invoice discounting facility
126,688
(6,065)
Other creditors
204,276
208,984
696,994
452,398
Amounts advanced under the new Invoice Discounting facility arrangement were secured by a fixed and floating charge over the assets of the company.
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
33,333
117,455
This loan is an unsecured loan from Benula Capital Limited at a rate of 6% interest.
9
Called up share capital
2023
2022
Ordinary share capital
£
£
Issued and fully paid
27,750 A ordinary shares of £1 each
27,750
27,750
4,500 B ordinary shares of £1 each
4,500
4,500
32,250
32,250
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
69,238
90,982
NEXT PHASE RECRUITMENT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
page 9
11
Parent company
The company is a wholly owned subsidiary of Next Phase Recruitment Holdings Limited, a company incorporated in England and Wales.
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