REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 May 2023 |
for |
FIRST PEOPLE RECRUITMENT LIMITED |
REGISTERED NUMBER: |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
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: |
FIRST PEOPLE RECRUITMENT LIMITED (Registered number: 02615736) |
Strategic Report |
for the Year Ended 31 May 2023 |
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 |
The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31 May 2023 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2022 to the date of this report. |
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: |
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. |
for and on behalf of |
Chartered Accountants |
Statutory Auditors |
1 High Street |
Guildford |
Surrey |
GU2 4HP |
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 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
814,952 | 352,958 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
818,880 | 354,566 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
FIRST PEOPLE RECRUITMENT LIMITED (Registered number: 02615736) |
Balance Sheet |
31 May 2023 |
31.5.23 | 31.5.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Debtors | 10 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2023 |
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 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) |
Amount withdrawn by directors | - | (49 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
499,679 |
Cash and cash equivalents at end of year | 2 | ( |
) | 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 |
Depreciation charges |
(Profit)/loss on disposal of fixed assets | ( |
) |
Finance costs | 16,926 | 18,675 |
Finance income | (2,428 | ) | (108 | ) |
Taxation |
874,166 | 400,437 |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase 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 31 May 2023 |
31.5.23 | 1.6.22 |
£ | £ |
Cash and cash equivalents | 4,054 | 299,815 |
Bank overdrafts | ( |
) |
(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 | ( |
) | (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 |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
Furniture & equipment | - |
Fixtures and fittings | - |
Motor vehicles | - |
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 |
£ | £ |
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 |
4. | EMPLOYEES AND DIRECTORS |
31.5.23 | 31.5.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
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 |
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 |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director for the year ended 31 May 2023 is as follows: |
31.5.23 |
£ |
Emoluments etc |
Pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.5.23 | 31.5.22 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
(Profit)/loss on disposal of fixed assets | ( |
) |
Auditors' remuneration |
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 |
Invoice discount commission |
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 |
Deferred tax | ( |
) |
Tax on profit |
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 |
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 | 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 |
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 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 May 2023 |
DEPRECIATION |
At 1 June 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.5.23 | 31.5.22 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.5.23 | 31.5.22 |
£ | £ |
Bank loans and overdrafts (see note 12) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 947,031 | 791,585 |
Other creditors |
Invoice discounting liability | (56,544 | ) | (1,748 | ) |
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 |
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 |
Between one and five years |
In more than five years |
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 |
Provided during year |
Balance at 31 May 2023 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.5.23 | 31.5.22 |
value: | £ | £ |
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 |
Profit for the year |
Dividends | ( |
) |
At 31 May 2023 |
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 |
31.5.23 | 31.5.22 |
£ | £ |
Dividends | 333,332 | 160,816 |
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. |