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REGISTERED NUMBER: 02615736 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 May 2023

for

FIRST PEOPLE RECRUITMENT LIMITED

FIRST PEOPLE RECRUITMENT LIMITED (Registered number: 02615736)






Contents of the Financial Statements
for the Year Ended 31 May 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Statement of Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 15


FIRST PEOPLE RECRUITMENT LIMITED

Company Information
for the Year Ended 31 May 2023







DIRECTORS: M Foster
P G Simpson
Mrs A L Walker



REGISTERED OFFICE: 4th Floor
132 Queens Road
Brighton
BN1 3WB



REGISTERED NUMBER: 02615736 (England and Wales)



SENIOR STATUTORY AUDITOR: Martin Joseph FCA



AUDITORS: WHITTINGTONS
Chartered Accountants
Statutory Auditors
1 High Street
Guildford
Surrey
GU2 4HP

FIRST PEOPLE RECRUITMENT LIMITED (Registered number: 02615736)

Strategic Report
for the Year Ended 31 May 2023

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

REVIEW OF BUSINESS
The principal activity of the company during the year continued to be the provision of temporary and permanent staff to companies through-out the UK. Company turnover increased to £18,732,870.

An increase in demand for permanent and temporary recruitment services throughout the company's specialist divisions resulted in increased company turnover. The company further developed it's improved client retention and business development strategy which assisted in creating stronger client relationships across the business. The company moved the Payroll & Head Office function into modernised offices in Brighton.

The directors were pleased with the profit achieved on ordinary activities.


FIRST PEOPLE RECRUITMENT LIMITED (Registered number: 02615736)

Strategic Report
for the Year Ended 31 May 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The directors have identified below a summary of the main risks which could potentially impact the business's operating and financial performance.

People
The success of the business relies upon the commitment and expertise of its staff. The company has a robust recruitment procedure to help ensure we recruit the correct talent into the business. The business benefits from high levels of staff retention. Training programmes have been established which ensure staff are trained and developed in the relevant areas. Career development is a key focus area and annual appraisals, and regular review meetings are carried out with all employees.

Macro-economic environment
The post covid environment, which lead to a spike in demand for products and service across the world, created an increase in demand for both skilled and unskilled staff compared with the previous 12 months. The skill shortage within the UK also lead to an increase in demand for permanent recruitment services. The end of the free movement of labour from the European Union continues to effect specific sectors within in the UK, including Food Production, Hospitality and Health & Social Care.

The recruitment industry operates within a very competitive environment and can be susceptible to changes in economic conditions. This risk is managed by implementing a robust sales strategy and client retention strategy to achieve revenues from temporary and permanent services. Excellent financial management also serves to reduce the impact of changes in economic conditions.

The Directors are continually reviewing strategies to increase productivity and maintaining an efficient operating platform.

Business Plan.
The Directors and FPR Group Leadership team have started work on a new company wide business plan. This will re-set the direction of the company, clarify the company objectives and be a road map to the future growth and development of the business.

Micro-economic environment
The business has a very strong financial platform. The company continues to manage and maintain a strong credit control process. The company benefits from a large spread of clients, not being over reliant on any one customer.

Technology
Each year technology is reviewed and implemented where appropriate. A new Central Server has been established and the network of offices are all being connected to the new server. New technology has been introduced across the company to facilitate flexible working practices and to ensure the company can offer services to its customers and service users. Strong relationships have been established with IT providers and back-up solutions are in place. A disaster recovery programme is in place to ensure the secure and continued running of the business in the event of severe disruption.

Regulatory Environment
The recruitment industry is governed by increasing levels of regulation, these bring in opportunities and risks. In addition to this, clients now require more complex levels of compliance. The Directors and management team of FPR Group is committed to meeting all its regulatory responsibilities. Memberships of professional bodies and specialist advisors ensure up to date information on regulatory changes.

Financial Instruments
All clients are based within the UK and the company's Invoice Discounting facility is a central component of its financial structure. Credit Control and Cash Flow is good. An excellent relationship exists between the company and its bank.

Research and development and future developments
The company is committed to expanding the number of clients it works with across its core specialist divisions. Within our client retention model, we work hard to understand the ever changing requirements of our customers, we use this information to update our client service offering. The continued investment in Technology coupled with training and development of our recruitment teams will be central to future growth.

ON BEHALF OF THE BOARD:




M Foster - Director



FIRST PEOPLE RECRUITMENT LIMITED (Registered number: 02615736)

Strategic Report
for the Year Ended 31 May 2023

20 February 2024

FIRST PEOPLE RECRUITMENT LIMITED (Registered number: 02615736)

Report of the Directors
for the Year Ended 31 May 2023

The directors present their report with the financial statements of the company for the year ended 31 May 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of Temporary and Permanent recruitment.

DIVIDENDS
Interim dividends per share were paid as follows:
8.95 - 1 June 2022
8.95 - 1 July 2022
8.95 - 1 August 2022
8.95 - 1 September 2022
8.95 - 1 October 2022
8.95 - 1 November 2022
53.72 - 1 December 2022
8.95 - 1 January 2023
38.79 - 1 February 2023
8.95 - 1 March 2023
22.38 - 1 April 2023
111.91 - 1 May 2023
298.42

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 May 2023 will be £ 333,332 .

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

M Foster
P G Simpson
Mrs A L Walker

POLITICAL DONATIONS AND EXPENDITURE
There were no political donations in the year.

DISCLOSURE IN THE STRATEGIC REPORT
The company has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of financial instruments and future developments.

DIRECTORS' RESPONSIBILITIES STATEMENT
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.

FIRST PEOPLE RECRUITMENT LIMITED (Registered number: 02615736)

Report of the Directors
for the Year Ended 31 May 2023


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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, WHITTINGTONS, will be deemed to continue in office under S487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:





M Foster - Director


20 February 2024

Report of the Independent Auditors to the Members of
FIRST PEOPLE RECRUITMENT LIMITED

Opinion
We have audited the financial statements of FIRST PEOPLE RECRUITMENT LIMITED (the 'company') for the year ended 31 May 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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 May 2023 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.

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.

Report of the Independent Auditors to the Members of
FIRST PEOPLE RECRUITMENT LIMITED


Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page five, 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.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our
opinion.

We obtained an understanding of the legal and regulatory frameworks within which the group and the parent company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the parent company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the parent company and the group for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), taxation legislation, and employment legislation.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors’ and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within judgement and estimates, and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Council about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases,
and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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
FIRST PEOPLE RECRUITMENT 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.




Martin Joseph FCA (Senior Statutory Auditor)
for and on behalf of WHITTINGTONS
Chartered Accountants
Statutory Auditors
1 High Street
Guildford
Surrey
GU2 4HP

20 February 2024

FIRST PEOPLE RECRUITMENT LIMITED (Registered number: 02615736)

Statement of Comprehensive
Income
for the Year Ended 31 May 2023

31.5.23 31.5.22
Notes £    £   

TURNOVER 3 18,782,129 14,638,500

Cost of sales 15,534,630 12,217,966
GROSS PROFIT 3,247,499 2,420,534

Administrative expenses 2,432,547 2,067,576
814,952 352,958

Other operating income 1,500 1,500
OPERATING PROFIT 5 816,452 354,458

Interest receivable and similar income 2,428 108
818,880 354,566

Interest payable and similar expenses 6 16,926 18,675
PROFIT BEFORE TAXATION 801,954 335,891

Tax on profit 7 167,147 65,377
PROFIT FOR THE FINANCIAL YEAR 634,807 270,514

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

634,807

270,514

FIRST PEOPLE RECRUITMENT LIMITED (Registered number: 02615736)

Balance Sheet
31 May 2023

31.5.23 31.5.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 238,200 100,278

CURRENT ASSETS
Debtors 10 3,201,543 2,347,715
Cash at bank and in hand 4,054 299,815
3,205,597 2,647,530
CREDITORS
Amounts falling due within one year 11 2,141,121 1,754,499
NET CURRENT ASSETS 1,064,476 893,031
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,302,676

993,309

PROVISIONS FOR LIABILITIES 16 19,261 11,369
NET ASSETS 1,283,415 981,940

CAPITAL AND RESERVES
Called up share capital 17 1,117 1,117
Retained earnings 18 1,282,298 980,823
SHAREHOLDERS' FUNDS 1,283,415 981,940

The financial statements were approved by the Board of Directors and authorised for issue on 20 February 2024 and were signed on its behalf by:





M Foster - Director


FIRST PEOPLE RECRUITMENT LIMITED (Registered number: 02615736)

Statement of Changes in Equity
for the Year Ended 31 May 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 June 2021 1,117 910,411 911,528

Changes in equity
Dividends - (200,102 ) (200,102 )
Total comprehensive income - 270,514 270,514
Balance at 31 May 2022 1,117 980,823 981,940

Changes in equity
Dividends - (333,332 ) (333,332 )
Total comprehensive income - 634,807 634,807
Balance at 31 May 2023 1,117 1,282,298 1,283,415

FIRST PEOPLE RECRUITMENT LIMITED (Registered number: 02615736)

Cash Flow Statement
for the Year Ended 31 May 2023

31.5.23 31.5.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 279,077 65,233
Interest paid (16,926 ) (18,675 )
Tax paid (72,384 ) (35,887 )
Net cash from operating activities 189,767 10,671

Cash flows from investing activities
Purchase of tangible fixed assets (210,329 ) (6,593 )
Sale of tangible fixed assets 14,691 -
Interest received 2,428 108
Net cash from investing activities (193,210 ) (6,485 )

Cash flows from financing activities
Capital repayments in year - (3,899 )
Amount withdrawn by directors - (49 )
Equity dividends paid (333,332 ) (200,102 )
Net cash from financing activities (333,332 ) (204,050 )

Decrease in cash and cash equivalents (336,775 ) (199,864 )
Cash and cash equivalents at beginning
of year

2

299,815

499,679

Cash and cash equivalents at end of year 2 (36,960 ) 299,815

FIRST PEOPLE RECRUITMENT LIMITED (Registered number: 02615736)

Notes to the Cash Flow Statement
for the Year Ended 31 May 2023

1. RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS
31.5.23 31.5.22
£    £   
Profit for the financial year 634,807 270,514
Depreciation charges 58,029 45,804
(Profit)/loss on disposal of fixed assets (315 ) 175
Finance costs 16,926 18,675
Finance income (2,428 ) (108 )
Taxation 167,147 65,377
874,166 400,437
Increase in trade and other debtors (853,826 ) (452,078 )
Increase in trade and other creditors 258,737 116,874
Cash generated from operations 279,077 65,233

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 May 2023
31.5.23 1.6.22
£    £   
Cash and cash equivalents 4,054 299,815
Bank overdrafts (41,014 ) -
(36,960 ) 299,815
Year ended 31 May 2022
31.5.22 1.6.21
£    £   
Cash and cash equivalents 299,815 499,679


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

At 1.6.22 Cash flow At 31.5.23
£    £    £   
Net cash
Cash at bank and in hand 299,815 (295,761 ) 4,054
Bank overdrafts - (41,014 ) (41,014 )
299,815 (336,775 ) (36,960 )
Total 299,815 (336,775 ) (36,960 )

FIRST PEOPLE RECRUITMENT LIMITED (Registered number: 02615736)

Notes to the Financial Statements
for the Year Ended 31 May 2023

1. STATUTORY INFORMATION

FIRST PEOPLE RECRUITMENT 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.

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.

Turnover
All revenues arises from the rendering of services. Revenue is measured at the fair value of the consideration received or receivable, excluding discounts and VAT.

Revenues arising from temporary personnel services are recognised when the services are rendered and timesheets submitted. Revenues from permanent placement services are recognised at the time the candidate begins full-time employment and an allowance is established for non-fulfilment of permanent placement obligations.

Where the company acts as a principal in transactions and has risks and rewards of ownership (such as the liability for the cost of temporary personnel and the risk of loss for collection and performance of pricing adjustments), the gross amounts of turnover and cost of sales are recorded.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Furniture & equipment - 20% on cost
Fixtures and fittings - 15% on cost
Motor vehicles - 25% on cost

Financial instruments
Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less.

Short-term debtors and creditors
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in profit or loss under other operating expenses.

The carrying value of all financial assets and liabilities are measured at amortised cost.

Long-term debtors and creditors
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.


FIRST PEOPLE RECRUITMENT LIMITED (Registered number: 02615736)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

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.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Rentals under operating leases are charged to the profit and loss account on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate.

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.

Provisions for dilapidations and vacant properties
Provisions are recognised in full for the expected future costs of restoring leased premises back to their original condition and for continued lease rental costs due for closed offices.

A provision is recognised when the company has a legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the present value, with the impact of any unwinding of the discount recognised in the profit and loss account for the year.

Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

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:

31.5.23 31.5.22
£    £   
Temporary sales 18,238,265 14,232,453
Permanent placements 501,408 379,319
Client recharges 42,456 26,728
18,782,129 14,638,500

FIRST PEOPLE RECRUITMENT LIMITED (Registered number: 02615736)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

3. TURNOVER - continued

An analysis of turnover by geographical market is given below:

31.5.23 31.5.22
£    £   
United Kingdom 18,782,129 14,638,500
18,782,129 14,638,500

4. EMPLOYEES AND DIRECTORS
31.5.23 31.5.22
£    £   
Wages and salaries 1,325,554 1,146,917
Social security costs 173,929 146,706
Other pension costs 162,247 120,931
1,661,730 1,414,554

The average number of employees during the year was as follows:
31.5.23 31.5.22

Sales and administrative staff 40 34
Temporary staff 724 667
764 701

In addition to the wages and salaries shown above and included within the Administrative Expenses, there is a further £15,230,358 ( made up of wages and salaries = £14,151,866, Social Security costs = £957,883, and other Pensions costs = £120,608 (2022: £11,987,673 made up of wages and salaries = £11,193,426, Social Security costs = £704,577, and other Pensions costs = £99,508)) wages which is included in cost of sales.

31.5.23 31.5.22
£    £   
Directors' remuneration 211,666 166,930
Directors' pension contributions to money purchase schemes 123,660 80,950

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 3

Information regarding the highest paid director for the year ended 31 May 2023 is as follows:
31.5.23
£   
Emoluments etc 95,000
Pension contributions to money purchase schemes 3,660

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.5.23 31.5.22
£    £   
Hire of plant and machinery 10,500 12,464
Other operating leases 86,363 74,000
Depreciation - owned assets 57,959 45,803
(Profit)/loss on disposal of fixed assets (315 ) 175
Auditors' remuneration 15,100 3,050

FIRST PEOPLE RECRUITMENT LIMITED (Registered number: 02615736)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.5.23 31.5.22
£    £   
Invoice discount interest 930 348
Invoice discount commission 15,996 18,327
16,926 18,675

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.5.23 31.5.22
£    £   
Current tax:
UK corporation tax 159,255 72,370

Deferred tax 7,892 (6,993 )
Tax on profit 167,147 65,377

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:

31.5.23 31.5.22
£    £   
Profit before tax 801,954 335,891
Profit multiplied by the standard rate of corporation tax in the UK of 20%
(2022 - 19%)

160,391

63,819

Effects of:
Expenses not deductible for tax purposes 1,306 702
Capital allowances in excess of depreciation (2,442 ) -
Depreciation in excess of capital allowances - 7,849
Deferred tax 7,892 (6,993 )
Total tax charge 167,147 65,377

8. DIVIDENDS
31.5.23 31.5.22
£    £   
Ordinary shares of £1 each
Interim 333,332 200,102

FIRST PEOPLE RECRUITMENT LIMITED (Registered number: 02615736)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

9. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Furniture and Motor
property & equipment fittings vehicles Totals
£    £    £    £    £   
COST
At 1 June 2022 55,430 138,018 24,352 119,990 337,790
Additions 41,220 93,945 2,725 72,367 210,257
Disposals (3,550 ) (39,601 ) (12,938 ) (39,643 ) (95,732 )
At 31 May 2023 93,100 192,362 14,139 152,714 452,315
DEPRECIATION
At 1 June 2022 28,184 105,788 23,303 80,237 237,512
Charge for year 13,553 21,710 953 21,743 57,959
Eliminated on disposal (3,018 ) (37,470 ) (12,938 ) (27,930 ) (81,356 )
At 31 May 2023 38,719 90,028 11,318 74,050 214,115
NET BOOK VALUE
At 31 May 2023 54,381 102,334 2,821 78,664 238,200
At 31 May 2022 27,246 32,230 1,049 39,753 100,278

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.5.23 31.5.22
£    £   
Trade debtors 3,122,686 2,278,303
Other debtors 16,552 15,650
Prepayments 62,305 53,762
3,201,543 2,347,715

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.5.23 31.5.22
£    £   
Bank loans and overdrafts (see note 12) 41,014 -
Trade creditors 69,277 33,371
Tax 159,241 72,370
Social security and other taxes 347,042 301,035
VAT 947,031 791,585
Other creditors 634,060 557,886
Invoice discounting liability (56,544 ) (1,748 )
2,141,121 1,754,499

12. LOANS

An analysis of the maturity of loans is given below:

31.5.23 31.5.22
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 41,014 -

FIRST PEOPLE RECRUITMENT LIMITED (Registered number: 02615736)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.5.23 31.5.22
£    £   
Within one year 99,013 91,637
Between one and five years 189,413 281,817
In more than five years - 20,312
288,426 393,766

14. SECURED DEBTS

The following secured debts are included within creditors:

31.5.23 31.5.22
£    £   

15. FINANCIAL INSTRUMENTS

The company has a Fixed and Floating Charge with RBS Invoice Finance Limited.

Amount secured
All monies due or to become due from the company to the chargee under the terms of the aforementioned instrument creating or evidencing the charge

Short particulars
Fixed and floating charges over the undertaking and all property and assets present and future including goodwill bookdebts uncalled capital buildings fixtures fixed plant and machinery.

16. PROVISIONS FOR LIABILITIES
31.5.23 31.5.22
£    £   
Deferred tax 19,261 11,369

Deferred
tax
£   
Balance at 1 June 2022 11,369
Provided during year 7,892
Balance at 31 May 2023 19,261

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.5.23 31.5.22
value: £    £   
1,117 Ordinary £1 1,117 1,117

FIRST PEOPLE RECRUITMENT LIMITED (Registered number: 02615736)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

18. RESERVES
Retained
earnings
£   

At 1 June 2022 980,823
Profit for the year 634,807
Dividends (333,332 )
At 31 May 2023 1,282,298

19. ULTIMATE PARENT COMPANY

First People Recruitment Holdings Limited is regarded by the directors as being the company's ultimate parent company.

First People Recruitment Holdings Limited acquired 79% of the share capital of First People Recruitment Limited on 6th January 2015 and is the company's immediate and ultimate parent undertaking. Mr. M Foster who owns 50% of the shares of First People Recruitment Holdings Limited together with a minority interest in First People Recruitment Limited is the company's ultimate controlling party.

20. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
31.5.23 31.5.22
£    £   
Dividends 333,332 160,816

Key management personnel of the entity or its parent (in the aggregate)
31.5.23 31.5.22
£    £   
Dividends 66,666 40,020

M Foster

During the year dividends amounting to £66,666 (2022: £40,020) were paid to Mr M Foster. In addition, a further £133,333 (2022: £80,000) dividend was paid from the parent company.

P G Simpson

During the year dividends amounting to £133,333 (2022: £80,000) were paid from the parent company.