Company registration number 06570143 (England and Wales)
MAJOR RECRUITMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
MAJOR RECRUITMENT LIMITED
COMPANY INFORMATION
Directors
Philip Bottomley
Katie Nebard
Joanne Lofts
Kelly Tulloch
Ross Bagley
David Burdaky
Company number
06570143
Registered office
16a Market Avenue
Huddersfield
West Yorkshire
England
HD1 2BB
Auditor
BHP LLP
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
MAJOR RECRUITMENT LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 30
MAJOR RECRUITMENT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present the strategic report for the year ended 31 March 2023.
Review of the business
During the year to 31 March 2023 the company continued it’s growth for another year. Gross profit increased by 31%. The company continued to invest in further opportunities in order to grow both geographically and in maturity, with branches established in 2022 either growing in 2023 or being divested as necessary.
The company benefitted from continued infrastructure and human capital investments in its central support services function, allowing the company to achieve better overall results with more streamlined resources than otherwise would have been achieved.
Principal risks and uncertainties
The company is exposed to price risk through fluctuations in the prices of its inputs (e.g. labour) and outputs (e.g. services). These fluctuations could impact the companies profitability and financial position. The company manages price risk through various strategies, including diversified sourcing, and flexible pricing arrangements.
The company is exposed to liquidity risk and manages this risk through various strategies, including daily treasury management, maintaining adequate cash reserves, diversifying its funding sources and negotiating favourable payment terms with both creditors and debtors.
The company is exposed to cash flow risk and manages this through regular cashflow forecasting, budgeting and forecasting and robust credit control procedures.
Key performance indicators
The company's key financial and other performance indicators during the year were as follows:
Price risk, credit risk, liquidity risk and cash flow risk
The business' principal financial instruments comprise bank balances, trade debtors, trade creditors, loans to the business and finance lease agreements. The main purpose of these instruments is to finance the business' operations.
In respect of bank balances and short-term borrowing, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of flexible loans at floating rates of interest. All of the business' cash balances are held in such a way that achieves a competitive rate of interest. The business makes use of money market facilities where funds are available.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.
Trade creditors'' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. The business is a lessee in respect of finance leased assets. The liquidity risk in respect of these is managed by ensuring that there are sufficient funds to meet payments.
MAJOR RECRUITMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Promoting the success of the company
This S172 statement explains how Major Recruitment’s Directors:
have engaged with employees, suppliers, customers and others; and
have considered employee interests, the need to foster business relationships with suppliers, customers and others, and the effects of those considerations, including on the principal decisions taken during the financial year.
It focuses on matters of strategic importance to Major Recruitment and the level of information disclosed is consistent with the size and the complexity of Major Recruitment’s business.
After due and careful consideration of the requirements set out in S172 and having regard to long-term consequences and the interests of stakeholders in relation to Board decision-making, the Directors, during the financial year ending 31 March 2023, have acted in a way that they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole.
General confirmation of directors’ duties
Major Recruitment’s Board has a clear framework for determining the matters within its remit and certain financial and strategic thresholds have been set, in order to identify matters requiring Board consideration and approval. Board decision-making is predicated on the appropriateness of information provided to Directors which is subject to review as part of the wider board evaluation process. When making decisions, each Director ensures that (s)he acts in the way he or she considers, in good faith, would most likely promote Shell’s success for the benefit of its members as a whole, and in doing so has regard (among other matters) to the issues set out below.
S172(1) (a) “The likely consequences of any decision in the long term”
The Directors understand the business and both the evolving and challenging environment in which we operate, we continue to have a strong, resilient business including focus on geographical and sector diversity, by putting stakeholders at the centre of our strategy, innovating the products and solutions customers need on our growth journey.
The Directors recognise there are significant complexities in relation to Board decision-making, given differing societal and stakeholder views about our operations and the intricacies associated with the evolving energy transition. Accordingly, the Directors have considered S172 and made their decisions in good faith relating to Major Recruitment’s strategy having regard to the long-term sustainable success of the company.
S172(1) (b) “The interests of the Company’s employees”
The Directors recognise that Major’s employees are core to our business model and the safe delivery of our strategic ambitions. The success of our business depends on attracting, retaining, developing and motivating talented employees. The Directors consider and assess the implications of relevant decisions on employees and the wider workforce. The Directors seek to ensure that Major remains a responsible employer, including with respect to pay and benefits, fairness (including gender pay gap reporting), diversity, health and safety issues, and the workplace environment.
S172(1) (c) “The need to foster the Company’s business relationships with suppliers, customers and others”
Delivering our strategy requires strong mutually beneficial relationships with the workforce, suppliers, customers and partners. Major seeks to promote and apply certain general principles in such relationships. The businesses continually assess the priorities related to customers and those with whom we do business, with the Board engaging with the businesses on these topics, for example, within the context of business strategy updates and investment proposals.
The Directors also receive updates on a variety of topics that indicate how these stakeholders have been engaged with respect to items such as project updates and supplier contract management. Businesses also provide information, as relevant, on customers and joint-venture partners in relation to business strategies, projects, and investment proposals.
MAJOR RECRUITMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
S172(1) (d) “The impact of the Company’s operations on the community and the environment”
The Board receives information on various topics to help it make decisions. The topics can include, for example, the Net Carbon Footprint target, proposals to invest or divest, and business strategy reviews. The information also goes into Group-level overviews, such as updates on safety and environment performance. This enabled the Board to maintain and strengthen the interface with businesses and staff, with virtual engagements additionally used when appropriate, making the best use of technology available. Each year, Major select a charity that operates at the heart of the community and runs many company and individual fund raising events in support if that charity. In 2022-23 that charity was Zoe's Place Baby Hospice, a United Kingdom based registered charity founded by Professor Jack Scarisbrick in 1995. It provides palliative and respite care for very or terminally ill babies and children up to five years old. There are currently three hostels, one each in Liverpool, Middlesbrough, and Coventry. For 2023-24 the chosen charity is Maggie’s – a network of centres working alongside hospitals providing practical and emotional support to cancer patients around the country.
S172(1) (e) “The desirability of the Company maintaining a reputation for high standards of business conduct”
Major aims to meet the need for sourcing talent in economically, environmentally, and socially responsible ways. The Board periodically reviews and approves clear frameworks, such as its Modern Slavery Statement, to ensure that high standards are maintained in both the business and in Major’s business relationships.
S172(1) (f) “The need to act fairly as between members of the Company”
After weighing up all relevant factors, the Directors consider which course of action best enables delivery of our strategy in the long-term interests of the Company, taking into consideration the effect on stakeholders. In doing so, our Directors act fairly as between the Company’s members but are not required to balance the Company’s interests with those of other stakeholders. This can sometimes mean that certain stakeholder interests may not be fully aligned, but the Board believe that the best overall outcome can be achieved by selecting a particular course of action.
Philip Bottomley
Director
7 March 2024
MAJOR RECRUITMENT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the company continued to be that of a recruitment agency.
Results and dividends
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £158,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Philip Bottomley
Katie Nebard
Joanne Lofts
Kelly Tulloch
Nicholas Worton
(Resigned 11 May 2023)
Ross Bagley
David Burdaky
Future developments
The directors are confident of continued performance.
Auditor
In accordance with the company's articles, a resolution proposing that BHP LLP be reappointed as auditor of the company will be put at a General Meeting.
Energy and carbon report
2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
150,160
-
- Electricity purchased
178,415
-
328,575
-
MAJOR RECRUITMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
27.03
-
- Fuel consumed for owned transport
-
-
27.03
-
Scope 2 - indirect emissions
- Electricity purchased
32.12
-
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
99.80
-
Total gross emissions
158.95
-
Intensity ratio
Tonnes CO2e per employee
0.4
Quantification and reporting methodology
The company has followed the 2019 HM Government Environmental Reporting Guidelines and GHG Reporting protocol – Corporate Standard.
We have also used the 2022 UK Government’s Conversion Factors for Corporate Reporting. We have used an operational approach to define our scope and boundaries.
The primary source for measuring energy consumption have been invoices received, expense claims submitted and energy supplier interval data. Where invoices are not co-terminus with our financial year end we have pro-rated the cost accordingly.
Electricity, gas and transport usage data has been taken from taken from the 12 month period covering this report.
Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.
Measures taken to improve energy efficiency
Throughout the year a number of steps have been taken to reduce emissions.
Sourcing increasing of electric cars in company car fleet.
Installing more energy efficient heat pumps to heat office where possible and affordable.
Subscribing to green electric tariffs where possible.
MAJOR RECRUITMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
Statement of directors' responsibilities
The directors are responsible for preparing the annual report 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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.
The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Philip Bottomley
Director
7 March 2024
MAJOR RECRUITMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MAJOR RECRUITMENT LIMITED
- 7 -
Opinion
We have audited the financial statements of Major Recruitment Limited (the 'company') for the year ended 31 March 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 March 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.
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 Auditor's 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
MAJOR RECRUITMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MAJOR RECRUITMENT LIMITED
- 8 -
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 directors' report.
We have nothing to report in respect of the following matters in relation to which 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 is 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.
Auditor's 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 an auditor's report 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.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focused on laws and regulations, relevant to the company, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, review of client’s operation of controls within the year, in particular manual journals, review of provisions, in particular bad debt provision, and a review of legal expenses. There are inherent limitations in the audit procedures described and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
MAJOR RECRUITMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MAJOR RECRUITMENT LIMITED
- 9 -
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 an auditor's report 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.
Jamie Williams
Senior Statutory Auditor
For and on behalf of BHP LLP
7 March 2024
Chartered Accountants
Statutory Auditor
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
MAJOR RECRUITMENT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
58,311,723
48,054,809
Cost of sales
(46,941,038)
(39,352,069)
Gross profit
11,370,685
8,702,740
Administrative expenses
(12,796,640)
(10,422,839)
Other operating income
1,763,440
1,949,696
Operating profit
4
337,485
229,597
Interest receivable and similar income
7
185,131
62,492
Interest payable and similar expenses
8
(253,803)
(226,601)
Amounts written off investments
9
-
(15,984)
Profit before taxation
268,813
49,504
Tax on profit
10
(97,791)
(19,890)
Profit for the financial year
171,022
29,614
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MAJOR RECRUITMENT LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
973,927
899,770
Current assets
Debtors
14
23,226,623
20,202,647
Cash at bank and in hand
151,405
895,469
23,378,028
21,098,116
Creditors: amounts falling due within one year
15
(23,087,831)
(20,625,511)
Net current assets
290,197
472,605
Total assets less current liabilities
1,264,124
1,372,375
Creditors: amounts falling due after more than one year
16
(725,642)
(838,783)
Provisions for liabilities
Deferred tax liability
19
23,440
31,572
(23,440)
(31,572)
Net assets
515,042
502,020
Capital and reserves
Called up share capital
21
76,874
76,874
Profit and loss reserves
438,168
425,146
Total equity
515,042
502,020
The financial statements were approved by the board of directors and authorised for issue on 7 March 2024 and are signed on its behalf by:
Philip Bottomley
Director
Company registration number 06570143 (England and Wales)
MAJOR RECRUITMENT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2021
61,500
440,532
502,032
Year ended 31 March 2022:
Profit and total comprehensive income
-
29,614
29,614
Issue of share capital
21
15,374
-
15,374
Dividends
11
-
(45,000)
(45,000)
Balance at 31 March 2022
76,874
425,146
502,020
Year ended 31 March 2023:
Profit and total comprehensive income
-
171,022
171,022
Dividends
11
-
(158,000)
(158,000)
Balance at 31 March 2023
76,874
438,168
515,042
MAJOR RECRUITMENT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
10,579
851,897
Interest paid
(253,803)
(226,601)
Income taxes paid
(128,518)
Net cash (outflow)/inflow from operating activities
(371,742)
625,296
Investing activities
Purchase of tangible fixed assets
(101,452)
(440,526)
Proceeds from disposal of tangible fixed assets
119,458
153,619
Interest received
185,131
62,492
Net cash generated from/(used in) investing activities
203,137
(224,415)
Financing activities
Proceeds from issue of shares
15,374
Proceeds from borrowings
262,500
Repayment of borrowings
(239,937)
(166,630)
Payment of finance leases obligations
(176,628)
(104,664)
Dividends paid
(158,000)
(45,000)
Net cash used in financing activities
(574,565)
(38,420)
Net (decrease)/increase in cash and cash equivalents
(743,170)
362,461
Cash and cash equivalents at beginning of year
894,575
532,114
Cash and cash equivalents at end of year
151,405
894,575
Relating to:
Cash at bank and in hand
151,405
895,469
Bank overdrafts included in creditors payable within one year
(894)
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
1
Accounting policies
Company information
Major Recruitment Limited is a private company limited by shares incorporated in England and Wales. The registered office is 16a Market Avenue, Huddersfield, West Yorkshire, England, HD1 2BB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The directors have prepared cashflows and forecasts, which cover a period of at least 12 months from the signing date of these financial statements. They show the company being able to settle its liabilities as they fall due over the period.true
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life of 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
20-30% straight line basis
Computer equipment
3 years straight line
Motor vehicles
25% reducing balance basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
Grants received in relation to the government Coronavirus Job Retention Scheme (Furlough) have been recognised within other operating income. The grant is accounted for on the accruals basis once the related payroll return has been submitted.
Support received in relation to the interest paid by the UK government under the Coronavirus Business Interruption Loan Scheme is recognised within other operating income on the accruals basis to match the corresponding expense.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Sales cut off
An element of judgement is involved in the recognition of sales and related purchases around the year end, due to the nature of the work. A review is performed by the directors to determine the period in which sales and purchases relate to, to allocate sales and candidate costs to the correct year end.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Sales - Temporary staff
56,795,056
46,759,097
Sales - Permanent staff
1,516,667
1,295,712
58,311,723
48,054,809
2023
2022
£
£
Turnover analysed by geographical market
Sales - UK
57,957,677
47,680,345
Sales - Rest of World
354,046
374,464
58,311,723
48,054,809
2023
2022
£
£
Other revenue
Interest income
185,131
62,492
Grants received
-
850,638
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(4,649)
(3,356)
Government grants
-
(850,638)
Fees payable to the company's auditor for the audit of the company's financial statements
25,400
30,345
Depreciation of owned tangible fixed assets
160,126
120,411
Depreciation of tangible fixed assets held under finance leases
118,397
106,249
Profit on disposal of tangible fixed assets
(25,261)
(7,350)
Operating lease charges
572,355
466,381
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Administration and support
239
188
Directors
8
8
Total
247
196
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
51,263,967
42,994,652
Social security costs
3,129,596
2,871,836
Pension costs
213,810
281,866
54,607,373
46,148,354
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
498,466
367,154
Company pension contributions to defined contribution schemes
9,749
5,523
508,215
372,677
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
110,269
81,506
Company pension contributions to defined contribution schemes
1,306
550
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
185,131
62,492
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
222,336
207,032
Other finance costs:
Interest on finance leases and hire purchase contracts
31,467
19,569
253,803
226,601
9
Amounts written off loans
2023
2022
£
£
Amounts written back to/(written off) loans
-
(15,984)
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
105,923
5,344
Adjustments in respect of prior periods
(5,026)
Total current tax
105,923
318
Deferred tax
Origination and reversal of timing differences
(8,132)
19,572
Total tax charge
97,791
19,890
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
268,813
49,504
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
51,074
9,406
Tax effect of expenses that are not deductible in determining taxable profit
36,755
28,491
Other permanent differences
9,962
(12,981)
Under/(over) provided in prior years
(5,026)
Taxation charge for the year
97,791
19,890
11
Dividends
2023
2022
£
£
Final paid
158,000
45,000
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
12
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2022 and 31 March 2023
25,000
Amortisation and impairment
At 1 April 2022 and 31 March 2023
25,000
Carrying amount
At 31 March 2023
At 31 March 2022
13
Tangible fixed assets
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2022
142,178
525,596
977,519
1,645,293
Additions
7,353
37,060
402,464
446,877
Disposals
(171,575)
(171,575)
At 31 March 2023
149,531
562,656
1,208,408
1,920,595
Depreciation and impairment
At 1 April 2022
129,421
259,401
356,701
745,523
Depreciation charged in the year
6,970
89,549
182,004
278,523
Eliminated in respect of disposals
(77,378)
(77,378)
At 31 March 2023
136,391
348,950
461,327
946,668
Carrying amount
At 31 March 2023
13,140
213,706
747,081
973,927
At 31 March 2022
12,757
266,195
620,818
899,770
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Motor vehicles
557,891
353,398
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
14,226,026
16,847,802
Other debtors
6,890,445
2,744,070
Prepayments and accrued income
2,110,152
610,775
23,226,623
20,202,647
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
894
Obligations under finance leases
18
147,955
115,988
Other borrowings
17
11,941,673
11,267,353
Trade creditors
5,565,546
7,522,807
Corporation tax
127,676
150,271
Other taxation and social security
881,159
161,380
Other creditors
3,941,515
1,093,059
Accruals and deferred income
482,307
313,759
23,087,831
20,625,511
Security has been given on the company's assets in relation to obligations under finance leases and other borrowings of £12,089,628 (2022 - £11,384,235).
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
18
346,970
210,140
Other borrowings
17
378,672
628,643
725,642
838,783
Security has been given on the company's assets in relation to obligations under finance leases and other borrowings of £725,642 (2022 - £838,783).
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
17
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
894
Other loans
12,320,345
11,895,996
12,320,345
11,896,890
Payable within one year
11,941,673
11,268,247
Payable after one year
378,672
628,643
The loans are secured on the company's assets.
18
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
182,585
134,167
In two to five years
424,922
249,800
607,507
383,967
Less: future finance charges
(112,582)
(57,839)
494,925
326,128
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
19
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
23,440
31,572
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
19
Deferred taxation
(Continued)
- 26 -
2023
Movements in the year:
£
Liability at 1 April 2022
31,572
Credit to profit or loss
(8,132)
Liability at 31 March 2023
23,440
The amount of the net reversal of deferred tax expected to occur next year is £55,000, relating to the reversal of existing timing differences on tangible fixed assets.
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
213,810
281,866
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
61,500
61,500
61,500
61,500
B Ordinary shares of £1 each
7,687
7,687
7,687
7,687
C Ordinary shares of £1 each
7,687
7,687
7,687
7,687
76,874
76,874
76,874
76,874
The ordinary shares have no prescribed rights re dividends, distribution of capital or redemption. On a show of hands, one member one vote, on a poll, one share one vote.
A, B and C shares carry the right to vote at general meetings of the company. In the event of a sale or on a return of capital the surplus assets of the company shall be applied first to the shareholders in the amount equal to the accruals and/or unpaid amount of dividends, second in paying to the shareholders the amounts paid up on the shares held by each of them, third in paying to the holders of the A ordinary shares the sum of £5,000,000.
There is no right to fixed income; the profits which the company may determine to distribute in any financial year shall be apportioned between the holders of each different class of share in such proportions as the company in general meeting shall determine.
During the prior year, 7,687 B Ordinary shares and 7,687 C Ordinary shares were issued at par.
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
22
Financial commitments, guarantees and contingent liabilities
The company has given cross guarantees in respect of the bank borrowings of its related parties.
At the year end the total potential liability was £145,832 (2022: £160,535).
23
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
631,183
553,261
Between two and five years
1,342,245
879,782
1,973,428
1,433,043
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
24
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales and management fees receivable
Purchases and rent payable
2023
2022
2023
2022
£
£
£
£
Other related parties
3,395,822
3,366,848
21,056,983
5,548,170
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts owed to related parties
£
£
Other related parties
7,562,182
2,411,356
The following amounts were outstanding at the reporting end date:
2023
Balance
Amounts owed by related parties
£
Other related parties
5,681,999
2022
Balance
Amounts owed in previous period
£
Other related parties
4,428,401
The expense recognised during the period in respect of bad or doubtful debts due from related parties was £165,028 (2022 - £157,663).
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
25
Directors' transactions
Dividends totalling £158,000 (2022 - £45,000) were paid in the year in respect of shares held by the company's directors.
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Philip Bottomley - Loan account
2.00
234,925
226,900
6,753
(218,355)
250,223
Katie Nebard - Loan account
2.00
17,632
32,835
707
(38,000)
13,174
Ross Bagley - Loan account
2.00
-
8,533
379
-
8,912
252,557
268,268
7,839
(256,355)
272,309
26
Ultimate controlling party
The company is controlled by Philip Bottomley who owns 80% of the share capital.
27
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
171,022
29,614
Adjustments for:
Taxation charged
97,791
19,890
Finance costs
253,803
226,601
Investment income
(185,131)
(62,492)
Gain on disposal of tangible fixed assets
(25,261)
(7,350)
Depreciation and impairment of tangible fixed assets
278,523
226,660
Movements in working capital:
Increase in debtors
(3,023,976)
(8,867,588)
Increase in creditors
2,443,808
9,286,562
Cash generated from operations
10,579
851,897
MAJOR RECRUITMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
28
Analysis of changes in net debt
1 April 2022
Cash flows
New finance leases
31 March 2023
£
£
£
£
Cash at bank and in hand
895,469
(744,064)
-
151,405
Bank overdrafts
(894)
894
-
894,575
(743,170)
151,405
Borrowings excluding overdrafts
(11,895,996)
(424,349)
-
(12,320,345)
Obligations under finance leases
(326,128)
176,628
(345,425)
(494,925)
(11,327,549)
(990,891)
(345,425)
(12,663,865)
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