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REGISTERED NUMBER: 07406242 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

KEYSTREAM GROUP LIMITED

KEYSTREAM GROUP LIMITED (REGISTERED NUMBER: 07406242)






CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2022




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Income and Retained Earnings 10

Balance Sheet 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


KEYSTREAM GROUP LIMITED

COMPANY INFORMATION
for the Year Ended 31 December 2022







DIRECTORS: Mr A G Jukes
Mr J A H Stein





REGISTERED OFFICE: 4-14 Tabernacle Street
London
EC2A 4LU





REGISTERED NUMBER: 07406242 (England and Wales)





AUDITORS: Kings CAP Ltd
Statutory Auditor
4 Grovelands
Boundary Way
Hemel Hempstead
Hertfordshire
HP2 7TE

KEYSTREAM GROUP LIMITED (REGISTERED NUMBER: 07406242)

STRATEGIC REPORT
for the Year Ended 31 December 2022

The directors present their strategic report for the year ended 31 December 2022.

REVIEW OF BUSINESS
The company's principal activity is that of recruitment and consultancy services, providing professionals into the healthcare sector. The company operates from two locations which are London & Newcastle.

Turnover for the year was £51,289,481 (2021: £37,599,837), with operating profit of £2,229,354 (2021: £1,639,843) exceeding expectations.

The increase continues to be due to continued support following the COVID-19 pandemic to the healthcare industry, who requires emergency technology support.

Our emphasis remains on delivering outstanding quality and service to our customers and suppliers; to meet our values and missions.

PRINCIPAL RISKS AND UNCERTAINTIES
External Environment
Government policy and public sector funding may be reduced to recover the overspend that occurred during the COVID-19 pandemic. Investment in digitalisation and technology may be reduced with government policy to support the recovery of the overspend.

Operational Risk
Due to the nature of the company, the directors have implemented numerous self-audits to reduce risk of process risk and system risk.

Cashflow Risk
Cashflow is fundamental to the company, which could affect the brands reputation. Cashflow is monitored daily.

Credit Risk
To manage credit risk, the credit controller reviews overdue balances on a daily, weekly and monthly basis with the directors, account managers and customers.

Liquidity Risk
The directors consider liquidity risk to be minimal.

DEVELOPMENT AND PERFORMANCE
External
The directors continue to build on existing teams and review new opportunities to broaden the customer base. Additional skilled management have been introduced to solely focus on the new industries as well as supporting the tendering process.

Internal
The company is promoting employees and implementing a senior team of associate directors. As the company continues to grow, we are promoting our quality, diversity and inclusion initiative as well as our sustainability policy. The company has planted trees for every placement made.

The training and development of employees is being reviewed to ensure they have ongoing training and are providing a high-level service in line with the company's values. In order to attract & retain employees, hybrid working policy, competitive remuneration & benefits packages have introduced in the organisation. The directors are continuously investing time into operational efficiencies by reviewing systems & processes.


KEYSTREAM GROUP LIMITED (REGISTERED NUMBER: 07406242)

STRATEGIC REPORT
for the Year Ended 31 December 2022

KEY PERFORMANCE INDICATORS
The gross profit margin achieved by the company for the 31 December 2022 year end was 12.4% and operating profit of 35.17%. The current ratio is 1.71.

The directors monitor the gross margin weekly to ensure it does not exceed framework agreements and requirements.

Debtor days are reviewed to monitor working capital requirements.

Staff turnover is monitored on a quantitative and qualitive basis by the directors.

ON BEHALF OF THE BOARD:





Mr A G Jukes - Director


23 November 2023

KEYSTREAM GROUP LIMITED (REGISTERED NUMBER: 07406242)

REPORT OF THE DIRECTORS
for the Year Ended 31 December 2022

The directors present their report with the financial statements of the company for the year ended 31 December 2022.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of providing contract and permanent Health Informatics and IT Professionals into the NHS and private healthcare organisations.

DIVIDENDS
An interim dividend of 80.81 per share was paid on . The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2022 will be £ 888,155 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

Mr A G Jukes
Mr J A H Stein

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements 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 company 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

KEYSTREAM GROUP LIMITED (REGISTERED NUMBER: 07406242)

REPORT OF THE DIRECTORS
for the Year Ended 31 December 2022


AUDITORS
The auditors, Kings CAP Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr A G Jukes - Director


23 November 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
KEYSTREAM GROUP LIMITED

Opinion
We have audited the financial statements of Keystream Group Limited (the 'company') for the year ended 31 December 2022 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 company's affairs as at 31 December 2022 and of its 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
KEYSTREAM GROUP LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the 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.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 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 company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
KEYSTREAM GROUP LIMITED


Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations was to ensure the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity by way of discussions with the directors and from our commercial knowledge and experience in the recruitment sector. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, ISO Standards, employment and health and safety legislation.

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence and identified laws and regulations were communicated within the audit team regularly and the 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 an 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; and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls we performed analytical procedures to identify any unusual or unexpected relationships; tested journal entries to identify unusual transactions assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and investigated the rationale behind significant or unusual transactions.

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

- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors.

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 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 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 Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
KEYSTREAM GROUP LIMITED


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 a Report of the Auditors 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.




Sara Brown (Senior Statutory Auditor)
for and on behalf of Kings CAP Ltd
Statutory Auditor
4 Grovelands
Boundary Way
Hemel Hempstead
Hertfordshire
HP2 7TE

28 November 2023

KEYSTREAM GROUP LIMITED (REGISTERED NUMBER: 07406242)

STATEMENT OF INCOME AND
RETAINED EARNINGS
for the Year Ended 31 December 2022

31.12.22 31.12.21
Notes £    £    £    £   

TURNOVER 3 51,289,481 37,599,837

Cost of sales 44,951,005 33,077,208
GROSS PROFIT 6,338,476 4,522,629

Administrative expenses 4,112,122 2,885,786
2,226,354 1,636,843

Other operating income 3,000 3,000
OPERATING PROFIT 5 2,229,354 1,639,843

Income from fixed asset investments - 22,500
Interest receivable and similar income 1,604 162
1,604 22,662
2,230,958 1,662,505
Amounts written off investments 6 45,225 -
PROFIT BEFORE TAXATION 2,185,733 1,662,505

Tax on profit 7 438,514 314,790
PROFIT FOR THE FINANCIAL YEAR 1,747,219 1,347,715

Retained earnings at beginning of year 3,487,474 3,002,914

Dividends 8 (888,155 ) (863,155 )

RETAINED EARNINGS AT END OF
YEAR

4,346,538

3,487,474

KEYSTREAM GROUP LIMITED (REGISTERED NUMBER: 07406242)

BALANCE SHEET
31 December 2022

31.12.22 31.12.21
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 61,468 55,063
Investments 10 - 45,225
61,468 100,288

CURRENT ASSETS
Debtors 11 10,117,586 8,343,972
Cash at bank and in hand 159,817 48,868
10,277,403 8,392,840
CREDITORS
Amounts falling due within one year 12 5,980,544 4,995,082
NET CURRENT ASSETS 4,296,859 3,397,758
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,358,327

3,498,046

PROVISIONS FOR LIABILITIES 16 11,679 10,462
NET ASSETS 4,346,648 3,487,584

CAPITAL AND RESERVES
Called up share capital 17 110 110
Retained earnings 18 4,346,538 3,487,474
SHAREHOLDERS' FUNDS 4,346,648 3,487,584

The financial statements were approved by the Board of Directors and authorised for issue on 23 November 2023 and were signed on its behalf by:





Mr A G Jukes - Director


KEYSTREAM GROUP LIMITED (REGISTERED NUMBER: 07406242)

CASH FLOW STATEMENT
for the Year Ended 31 December 2022

31.12.22 31.12.21
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 3,068,197 (1,433,853 )
Tax paid (518,627 ) (256,441 )
Net cash from operating activities 2,549,570 (1,690,294 )

Cash flows from investing activities
Purchase of tangible fixed assets (35,706 ) (7,560 )
Sale of tangible fixed assets 389 -
Disposal of investment 45,225 -
Interest received 1,604 162
Dividends received - 22,500
Net cash from investing activities 11,512 15,102

Cash flows from financing activities
Invoice finance provided in year - 1,556,730
Invoice finance repaid in year (1,556,730 ) -
Amount introduced by directors - 3,083
Amount withdrawn by directors (5,248 ) (2,168 )
Equity dividends paid (888,155 ) (863,155 )
Net cash from financing activities (2,450,133 ) 694,490

Increase/(decrease) in cash and cash equivalents 110,949 (980,702 )
Cash and cash equivalents at beginning of
year

2

48,868

1,029,570

Cash and cash equivalents at end of year 2 159,817 48,868

KEYSTREAM GROUP LIMITED (REGISTERED NUMBER: 07406242)

NOTES TO THE CASH FLOW STATEMENT
for the Year Ended 31 December 2022

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31.12.22 31.12.21
£    £   
Profit before taxation 2,185,733 1,662,505
Depreciation charges 27,458 25,114
Loss on disposal of fixed assets 1,454 2,374
Finance income (1,604 ) (22,662 )
2,213,041 1,667,331
Increase in trade and other debtors (1,773,614 ) (4,422,639 )
Increase in trade and other creditors 2,628,770 1,321,455
Cash generated from operations 3,068,197 (1,433,853 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 159,817 48,868
Year ended 31 December 2021
31.12.21 1.1.21
£    £   
Cash and cash equivalents 48,868 1,029,570


3. ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1.1.22 Cash flow At 31.12.22
£    £    £   
Net cash
Cash at bank and in hand 48,868 110,949 159,817
48,868 110,949 159,817
Debt
Debts falling due within 1 year (1,556,730 ) 1,556,730 -
(1,556,730 ) 1,556,730 -
Total (1,507,862 ) 1,667,679 159,817

KEYSTREAM GROUP LIMITED (REGISTERED NUMBER: 07406242)

NOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2022

1. STATUTORY INFORMATION

Keystream Group Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The accounts have been prepared on a going concern basis which assumes the company will continue to trade. The Directors consider the company to be a going concern on the basis of continuing to be awarded frameworks and contracts and meeting the delivery expectations on these. The three year development plan includes growth by opening up new markets and expanding to Europe.

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

These 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.

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:

Impairment of Trade Debtors
All customers are offered credit accounts based on a credit review and historical trading information when
available. The debtors ledger is reviewed frequently and provision made where necessary. When assessing the impairment of trade debtors management considers factors including the current credit rating of the debtor, the ageing profile of debts and historical experience.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - Straight line over period of lease
Plant and machinery - Straight line over 5 years
Office equipment - 25% on reducing balance
Computer equipment - 25% on reducing balance

At each reporting end date, the company reviews the carrying amount of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss.

KEYSTREAM GROUP LIMITED (REGISTERED NUMBER: 07406242)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2022

2. ACCOUNTING POLICIES - continued

Investments in associates
Investments in associate undertakings are recognised at cost less impairment.

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,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, 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


KEYSTREAM GROUP LIMITED (REGISTERED NUMBER: 07406242)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2022

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.12.22 31.12.21
£    £   
Recruitment 51,289,481 37,599,837
51,289,481 37,599,837

An analysis of turnover by geographical market is given below:

31.12.22 31.12.21
£    £   
United Kingdom 51,289,481 37,599,837
51,289,481 37,599,837

4. EMPLOYEES AND DIRECTORS
31.12.22 31.12.21
£    £   
Wages and salaries 2,572,978 1,802,072
Social security costs 371,608 204,332
Other pension costs 41,943 158,336
2,986,529 2,164,740

The average number of employees during the year was as follows:
31.12.22 31.12.21

Directors 2 2
Staff 40 35
42 37

KEYSTREAM GROUP LIMITED (REGISTERED NUMBER: 07406242)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2022

4. EMPLOYEES AND DIRECTORS - continued

31.12.22 31.12.21
£    £   
Directors' remuneration 18,060 17,640
Directors' pension contributions to money purchase schemes - 120,012

5. OPERATING PROFIT

The operating profit is stated after charging:

31.12.22 31.12.21
£    £   
Depreciation - owned assets 27,458 25,115
Loss on disposal of fixed assets 1,454 2,374
Auditors' remuneration 8,000 10,000
Foreign exchange differences 38 -

6. AMOUNTS WRITTEN OFF INVESTMENTS
31.12.22 31.12.21
£    £   
Amounts w/o invs 45,225 -

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.22 31.12.21
£    £   
Current tax:
UK corporation tax 437,297 318,576

Deferred tax 1,217 (3,786 )
Tax on profit 438,514 314,790

UK corporation tax has been charged at 19% .

KEYSTREAM GROUP LIMITED (REGISTERED NUMBER: 07406242)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2022

7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.22 31.12.21
£    £   
Profit before tax 2,185,733 1,662,505
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2021 - 19%)

415,289

315,876

Effects of:
Expenses not deductible for tax purposes 17,018 3,189
Capital allowances in excess of depreciation (3,602 ) -
Franked investment income - (4,275 )
Investment written off 8,592 -
Provision of deferred tax 1,217 -
Total tax charge 438,514 314,790

8. DIVIDENDS
31.12.22 31.12.21
£    £   
Ordinary shares of £0.01 each
Interim 888,155 863,155

9. TANGIBLE FIXED ASSETS
Short Plant and Office Computer
leasehold machinery equipment equipment Totals
£    £    £    £    £   
COST
At 1 January 2022 66,282 16,841 25,484 29,022 137,629
Additions - - 3,529 32,177 35,706
Disposals - (675 ) - (4,500 ) (5,175 )
At 31 December 2022 66,282 16,166 29,013 56,699 168,160
DEPRECIATION
At 1 January 2022 43,083 11,052 15,519 12,912 82,566
Charge for year 13,256 3,268 3,045 7,889 27,458
Eliminated on disposal - (484 ) - (2,848 ) (3,332 )
At 31 December 2022 56,339 13,836 18,564 17,953 106,692
NET BOOK VALUE
At 31 December 2022 9,943 2,330 10,449 38,746 61,468
At 31 December 2021 23,199 5,789 9,965 16,110 55,063

KEYSTREAM GROUP LIMITED (REGISTERED NUMBER: 07406242)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2022

10. FIXED ASSET INVESTMENTS
Interest
in
associate
£   
COST
At 1 January 2022 45,225
Impairments (45,225 )
At 31 December 2022 -
NET BOOK VALUE
At 31 December 2022 -
At 31 December 2021 45,225

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.22 31.12.21
£    £   
Trade debtors 7,985,885 7,664,711
Other debtors 113,214 50,597
Invoice finance 1,650,001 -
Accrued income 249,111 526,117
Prepayments 119,375 102,547
10,117,586 8,343,972

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.22 31.12.21
£    £   
Other loans (see note 13) - 1,556,730
Trade creditors 1,148,536 256,833
Taxation 237,246 318,576
Social security and other taxes 116,556 89,564
Value added tax 434,907 458,931
Other creditors 238,790 -
Directors' current accounts 108 5,356
Deferred income 3,246,723 1,520,388
Accruals 557,678 788,704
5,980,544 4,995,082

13. LOANS

An analysis of the maturity of loans is given below:

31.12.22 31.12.21
£    £   
Amounts falling due within one year or on demand:
Invoice finance - 1,556,730

KEYSTREAM GROUP LIMITED (REGISTERED NUMBER: 07406242)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2022

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.22 31.12.21
£    £   
Within one year 95,552 151,058
Between one and five years - 113,293
95,552 264,351

15. SECURED DEBTS

The following secured debts are included within creditors:

31.12.22 31.12.21
£    £   
Invoice finance - 1,556,730

16. PROVISIONS FOR LIABILITIES
31.12.22 31.12.21
£    £   
Deferred tax
Accelerated capital allowances 11,679 10,462

Deferred
tax
£   
Balance at 1 January 2022 10,462
Charge to Income Statement during year 1,217
Balance at 31 December 2022 11,679

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.22 31.12.21
value: £    £   
10,990 Ordinary £0.01 110 110

The Ordinary £0.01 shares have full voting rights, full dividend rights and full rights on a capital distribution.

18. RESERVES
Retained
earnings
£   

At 1 January 2022 3,487,474
Profit for the year 1,747,219
Dividends (888,155 )
At 31 December 2022 4,346,538

KEYSTREAM GROUP LIMITED (REGISTERED NUMBER: 07406242)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2022

19. RELATED PARTY DISCLOSURES

During the year, total dividends of £390,000 were paid to the directors.

During the year the company traded with Keystream Analytics Limited, a company under common control. Sales to the company amounted to £219,354 (2021: £37,536), and purchases from the company amounted to £nil (2021: £49,639). All transactions were conducted under normal market conditions. The balance owed by Keystream Analytics Limited as at 31 December 2022 amounted to £154,382 (2021: £9,420).

During the year the company also traded with Keystream Consulting Limited, an associate undertaking. Sales in the year amounted to £5,867 (2021: £78,051), and purchases from the company amounted to £68,521 (2021:£219,126). All transactions were conducted under normal market conditions. The balance owed to Keystream Consulting Limited as at 31 December 2022 amounted to £7,040 (2021: £Nil).

During the year, a total of key management personnel compensation of £143,028 was paid.

20. ULTIMATE CONTROLLING PARTY

The company has been controlled throughout the year by Mr A Jukes and Mr J Stein until 23 November 2022 when the company was acquired by Keystream Holdings Limited a company registered in England & Wales.