REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
FOR |
ABACUS EMPLOYMENT SERVICES LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
FOR |
ABACUS EMPLOYMENT SERVICES LIMITED |
ABACUS EMPLOYMENT SERVICES LIMITED (REGISTERED NUMBER: 02638307) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Income Statement | 8 |
Balance Sheet | 9 |
Statement of Changes in Equity | 10 |
Cash Flow Statement | 11 |
Notes to the Cash Flow Statement | 12 |
Notes to the Financial Statements | 13 |
ABACUS EMPLOYMENT SERVICES LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Statutory Auditor |
Fleming Court |
Leigh Road |
Eastleigh |
Southampton |
Hampshire |
SO50 9PD |
ABACUS EMPLOYMENT SERVICES LIMITED (REGISTERED NUMBER: 02638307) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
The directors present their strategic report for the year ended 30th September 2023. |
REVIEW OF BUSINESS |
The economic environment has continued to be extremely tough over the past year. The market has been constantly changing and challenging, considering this environment, the Board are satisfied with the results posted for the period. The changed management processes adopted by the Company during prior years have allowed us to adapt to these market conditions. |
The Key Performance Indicators for the company are considered to be sales and gross margins. Reported sales have increased on the prior year from £13,479,281 to £13,770,111 (2.2% increase). Our relationships with key partners continue to strengthen and grow, with our share of their business expanding, however the impact of the overall market place has affected business levels. We are confident that when the market improves, these relationships will continue to grow. An area that the Board are pleased with this year is the gradual improvement in margin. Margin remains a challenge and will always be a key focus area, however, we have made progress over the past year. This is representative of the relationship with our key clients and the understanding they have of the value we add to their business. Gross margin percentage has improved this year to 18.26% (from 17.55% in 2022). Our aim remains to improve this overall margin, ensuring that we charge appropriately for the value we add to our clients business. |
The Board were delighted to complete the acquisition of the Goodwill of Dovetail HRS Ltd during the year. We consider Dovetail to complement the traditional Abacus business opening up new avenues for growth. Dovetail was a specialist supplier of Managerial, HR, Professional and Facilities Management workers, with an established permanent business. The purchase and subsequent integration will give Abacus the ability to leverage this additional opportunity. The initial results during the months following the transaction are positive. |
The investment in our resourcing function that was highlighted last year has proved a success and ensured the highest level of service to our clients that is possible. |
The realignment of the cost base to reflect the challenging market in previous years has been maintained and continues to be a critical area of focus. During the year the decision was taken to acquire one of the branch offices that we previously rented, this results in reduced running costs and we consider it to be a positive investment for the future. The process of decisions on spend being discussed and ratified by the management team remains in place, this ensures all areas of the business are aligned. |
As we have stated in previous years, cost control and cash management are key focus areas, this has again proven even more critical throughout the period, it is constantly monitored and reviewed. The focus on cash is essential to ensure that we are set for the future. Alongside cost management we recognise the importance of keeping our infrastructure robust and current. We intend to maintain the investment made in previous years to ensure our systems are industrial strength and fit for the future. |
Compliance remains of paramount importance to us, as evidenced by our membership to the recognised regulatory bodies within the recruitment sector. This and our processes enable us to ensure that we are up to date with changes in legislation and are able to adapt quickly to implement necessary changes in operating practices. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The key risk and uncertainty at this time surrounds the economic climate and how this impacts demand for our services. With the continuing issue around the cost of living and finance/interest costs remaining high there is still significant risk and uncertainty. We continue to take a cautious, but long term focussed, approach on how we transact through the coming period. |
ON BEHALF OF THE BOARD: |
ABACUS EMPLOYMENT SERVICES LIMITED (REGISTERED NUMBER: 02638307) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
The directors present their report with the financial statements of the company for the year ended 30th September 2023. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 September 2023 was £96,000 (2022: £136,000). |
FUTURE DEVELOPMENTS |
The directors will continue their policy of growing organically within the current branch network. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st October 2022 to the date of this report. |
FINANCIAL INSTRUMENTS |
In order to manage the day to day financial needs of the company the directors have an invoice financing facility with HSBC Bank. The company always works within this facility and the major risk is if the underlying debtors that the facility is secured against do not pay then HSBC Bank have recourse to the company. To manage this risk the company has strict credit rules in place in respect of new clients and constant monitoring of existing clients. |
For asset purchases the company uses a combination of Hire Purchase and Term Loans. |
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 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. |
ABACUS EMPLOYMENT SERVICES LIMITED (REGISTERED NUMBER: 02638307) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
AUDITORS |
The auditors, Langdowns DFK Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ABACUS EMPLOYMENT SERVICES LIMITED |
Opinion |
We have audited the financial statements of Abacus Employment Services Limited (the 'company') for the year ended 30th September 2023 which comprise the Income Statement, Other 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 30th September 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 |
ABACUS EMPLOYMENT SERVICES LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
As part of our audit planning procedures we identify the significant laws and regulations applicable to the company based upon our knowledge of the company, the industry in which it operates and from making enquiries with management. We consider those laws and regulations where non-compliance may have a material effect on the financial statements and those which have a direct impact on the financial statements such as compliance with the requirements of the Companies Act 2006. |
Audit procedures performed by the engagement team in relation to laws and regulations include making enquiries of management as to any known or suspected instances of non-compliance, maintaining awareness throughout the course of the audit as to any indications of instances of non-compliance and undertaking a review of the disclosures in the financial statements to supporting information and to disclosure checklists. |
We also consider areas that are at a higher risk of causing material misstatement in the financial statements due to irregularities, including those resulting from fraud and how such fraud may occur. We discuss with senior management the key controls in place to mitigate the risk of fraud and enquire as to whether they are aware of, or suspect, any fraudulent activities having taken place. |
Throughout the audit, we maintain an appropriate level of professional scepticism when provided with information and explanations. We consider the appropriateness of significant accounting journals that were processed during the year, assess the reasonableness of any significant accounting estimates and consider whether there were any indications of bias by management during the year that represents a risk of material misstatement due to fraud. We also carry out analytical procedures to identify any unusual or unexpected variances to expectations as these may be an indication of management over-ride or management bias. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ABACUS EMPLOYMENT SERVICES 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. |
for and on behalf of |
Statutory Auditor |
Fleming Court |
Leigh Road |
Eastleigh |
Southampton |
Hampshire |
SO50 9PD |
ABACUS EMPLOYMENT SERVICES LIMITED (REGISTERED NUMBER: 02638307) |
INCOME STATEMENT |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
113,459 | 110,380 |
Other operating income | 4 |
OPERATING PROFIT | 6 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
ABACUS EMPLOYMENT SERVICES LIMITED (REGISTERED NUMBER: 02638307) |
BALANCE SHEET |
30TH SEPTEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Revaluation reserve | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
ABACUS EMPLOYMENT SERVICES LIMITED (REGISTERED NUMBER: 02638307) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1st October 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) |
Balance at 30th September 2022 | 1,000 | 85,934 | 221,815 | 308,749 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) |
Balance at 30th September 2023 | 217,590 |
ABACUS EMPLOYMENT SERVICES LIMITED (REGISTERED NUMBER: 02638307) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 59,151 | 78,800 |
Amount withdrawn by directors | (110,328 | ) | (91,817 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
509,166 |
Cash and cash equivalents at end of year | 2 | 27,525 | 95,571 |
ABACUS EMPLOYMENT SERVICES LIMITED (REGISTERED NUMBER: 02638307) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 96,018 | 38,215 |
136,671 | 132,579 |
Decrease in trade and other debtors |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
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 30th September 2023 |
30.9.23 | 1.10.22 |
£ | £ |
Cash and cash equivalents | 27,525 | 95,571 |
Year ended 30th September 2022 |
30.9.22 | 1.10.21 |
£ | £ |
Cash and cash equivalents | 95,571 | 509,166 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
At 1.10.22 | Cash flow | At 30.9.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 95,571 | (68,046 | ) | 27,525 |
95,571 | ( |
) | 27,525 |
Debt |
Debts falling due within 1 year | (6,683 | ) | (14,912 | ) | (21,595 | ) |
Debts falling due after 1 year | (40,469 | ) | (159,923 | ) | (200,392 | ) |
(47,152 | ) | (174,835 | ) | (221,987 | ) |
Total | 48,419 | (242,881 | ) | (194,462 | ) |
ABACUS EMPLOYMENT SERVICES LIMITED (REGISTERED NUMBER: 02638307) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
1. | STATUTORY INFORMATION |
Abacus Employment Services Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets. |
Turnover |
Turnover represents the total services invoiced during the year on a weekly basis, net of Value Added Tax. It is recognised when the company obtains the right to receive consideration for the services provided. |
Tangible fixed assets |
Freehold property | - |
Fixtures and fittings | - |
Computer equipment | - |
All fixed assets are initially recorded at cost. |
Government grants |
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model. |
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. |
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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
ABACUS EMPLOYMENT SERVICES LIMITED (REGISTERED NUMBER: 02638307) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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. |
Financial instruments |
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Debtors and creditors receivable / payable within one year |
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 the profit and loss account in other administrative expenses. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of businesses in 2010 and in 2023, has and is being amortised evenly over their estimated useful lives of five years. |
4. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Government grants |
Government grants include furlough claims in respect of the COVID-19 pandemic. |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Productive | 580 | 605 |
Administrative | 32 | 28 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
ABACUS EMPLOYMENT SERVICES LIMITED (REGISTERED NUMBER: 02638307) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Audit fee |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Invoice Discounting Interest |
Interest on Overdue Tax |
Loan |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
UK corporation tax has been charged at 19% (2022 - 19%). |
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: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
Deferred tax movement | 5,634 | (272 | ) |
investments |
Total tax charge | 9,023 | 16,944 |
ABACUS EMPLOYMENT SERVICES LIMITED (REGISTERED NUMBER: 02638307) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim |
10. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1st October 2022 |
Additions |
At 30th September 2023 |
AMORTISATION |
At 1st October 2022 |
and 30th September 2023 |
NET BOOK VALUE |
At 30th September 2023 |
At 30th September 2022 |
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | and | Computer |
property | fittings | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1st October 2022 |
Additions |
At 30th September 2023 |
DEPRECIATION |
At 1st October 2022 |
Charge for year |
At 30th September 2023 |
NET BOOK VALUE |
At 30th September 2023 |
At 30th September 2022 |
Cost or valuation at 30th September 2023 is represented by: |
Fixtures |
Freehold | and | Computer |
property | fittings | equipment | Totals |
£ | £ | £ | £ |
Valuation in 2020 | 85,000 | - | - | 85,000 |
Valuation in 2018 | 123,323 | - | - | 123,323 |
Cost | 585,879 | 54,045 | 103,337 | 743,261 |
794,202 | 54,045 | 103,337 | 951,584 |
ABACUS EMPLOYMENT SERVICES LIMITED (REGISTERED NUMBER: 02638307) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
If Freehold properties had not been revalued they would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 585,879 | 291,677 |
Aggregate depreciation | (75,042 | ) | (63,874 | ) |
One of the freehold properties was valued on an open market basis on 10th March 2021 by Haslams Surveyors LLP . |
The directors have assessed this valuation along with the cost of the property acquired in the year and confirmed a reasonable value for the properties as £794,202 as at 30th September 2023. |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Bad debt provision | (19,451 | ) | - |
Directors' current accounts | 48,186 | 13,277 |
Prepayments and accrued income |
Included in trade debtors are factored debts of £1,612,386 (2022: £1,762,957). |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Invoice discounting advance |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 440,981 | 400,870 |
Other creditors |
Directors' current accounts | 18,002 | 34,270 |
Accruals and deferred income |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 15) |
15. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
ABACUS EMPLOYMENT SERVICES LIMITED (REGISTERED NUMBER: 02638307) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
15. | LOANS - continued |
2023 | 2022 |
£ | £ |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more than 5 years | 99,285 | 10,520 |
16. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
Invoice discounting advance | 1,432,500 | 1,289,892 |
The bank loans are secured by way of a debenture over the assets of the company and a limited guarantee for £70,000 given by one of the directors, Mr D G J Fuller. |
The invoice discounting advance is secured against trade debtors. |
18. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | ( |
) | ( |
) |
Deferred tax on property revaluation | 35,677 | 30,382 |
25,653 | 20,019 |
Deferred |
tax |
£ |
Balance at 1st October 2022 |
Provided during year |
Balance at 30th September 2023 |
ABACUS EMPLOYMENT SERVICES LIMITED (REGISTERED NUMBER: 02638307) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 1,000 | 1,000 |
20. | RESERVES |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1st October 2022 | 307,749 |
Profit for the year | - |
Dividends | ( |
) | - | ( |
) |
Revaluation reserve | 4,225 | (4,225 | ) | - |
At 30th September 2023 | 220,167 |
21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 30th September 2023 and 30th September 2022: |
2023 | 2022 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Mrs B A Fuller's loan was unsecured with interest charged at HMRC approved rates and will be repaid within nine months of the year end. |
Mr D G J Fuller's loan was unsecured with interest charged at HMRC approved rates and will be repaid within nine months of the year end. |
22. | RELATED PARTY DISCLOSURES |
2023 | 2022 |
£ | £ |
Wages | 496,348 | 497,014 |
Rent | 7,500 | 30,000 |
Amount due from related party |
Amount due to related party |
ABACUS EMPLOYMENT SERVICES LIMITED (REGISTERED NUMBER: 02638307) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
22. | RELATED PARTY DISCLOSURES - continued |
The amounts due to related parties are unsecured with interest charged at HMRC approved rates with no fixed date of repayment. |
The amounts due from related parties are unsecured with interest charged at HMRC approved rates and will be repaid within nine months of the year end. |
2023 | 2022 |
£ | £ |
Wages | 171,395 | 175,168 |