Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31provision of interim management, consultancy and recruitment services focusing on business and technology change, HR transformation and operational subject matter experts.50falsefalse2023-01-0150falsefalse 05048716 2023-01-01 2023-12-31 05048716 2022-01-01 2022-12-31 05048716 2023-12-31 05048716 2022-12-31 05048716 2022-01-01 05048716 5 2023-01-01 2023-12-31 05048716 5 2022-01-01 2022-12-31 05048716 d:CompanySecretary1 2023-01-01 2023-12-31 05048716 d:Director1 2023-01-01 2023-12-31 05048716 d:Director2 2023-01-01 2023-12-31 05048716 d:Director3 2023-01-01 2023-12-31 05048716 d:Director4 2023-01-01 2023-12-31 05048716 d:Director5 2023-01-01 2023-12-31 05048716 d:Director6 2023-01-01 2023-12-31 05048716 d:Director7 2023-01-01 2023-12-31 05048716 d:Director7 2023-12-31 05048716 d:RegisteredOffice 2023-01-01 2023-12-31 05048716 e:FurnitureFittings 2023-01-01 2023-12-31 05048716 e:OfficeEquipment 2023-01-01 2023-12-31 05048716 e:OfficeEquipment 2023-12-31 05048716 e:OfficeEquipment 2022-12-31 05048716 e:OfficeEquipment e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 05048716 e:CurrentFinancialInstruments 2023-12-31 05048716 e:CurrentFinancialInstruments 2022-12-31 05048716 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 05048716 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 05048716 e:ReportableOperatingSegment1 2023-01-01 2023-12-31 05048716 e:ReportableOperatingSegment1 2022-01-01 2022-12-31 05048716 f:UnitedKingdom 2023-01-01 2023-12-31 05048716 f:UnitedKingdom 2022-01-01 2022-12-31 05048716 e:UKTax 2023-01-01 2023-12-31 05048716 e:UKTax 2022-01-01 2022-12-31 05048716 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 05048716 e:RetainedEarningsAccumulatedLosses 2023-12-31 05048716 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 05048716 e:RetainedEarningsAccumulatedLosses 2022-12-31 05048716 e:RetainedEarningsAccumulatedLosses 2022-01-01 05048716 d:OrdinaryShareClass1 2023-01-01 2023-12-31 05048716 d:OrdinaryShareClass1 2023-12-31 05048716 d:OrdinaryShareClass1 2022-12-31 05048716 d:FRS102 2023-01-01 2023-12-31 05048716 d:Audited 2023-01-01 2023-12-31 05048716 d:FullAccounts 2023-01-01 2023-12-31 05048716 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 05048716 e:WithinOneYear 2023-12-31 05048716 e:WithinOneYear 2022-12-31 05048716 e:BetweenOneFiveYears 2023-12-31 05048716 e:BetweenOneFiveYears 2022-12-31 05048716 e:AcceleratedTaxDepreciationDeferredTax 2023-12-31 05048716 e:AcceleratedTaxDepreciationDeferredTax 2022-12-31 05048716 e:TaxLossesCarry-forwardsDeferredTax 2023-12-31 05048716 e:TaxLossesCarry-forwardsDeferredTax 2022-12-31 05048716 e:RetirementBenefitObligationsDeferredTax 2023-12-31 05048716 e:RetirementBenefitObligationsDeferredTax 2022-12-31 05048716 g:PoundSterling 2023-01-01 2023-12-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 05048716










PRACTICUS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
PRACTICUS LIMITED
 

COMPANY INFORMATION


Directors
B A Kershaw 
J W L Luckhurst 
D A Tolhurst 
P B Wandless 
B Culora 
J Roop 
S K Hawkins (appointed 19 January 2024)




Company secretary
R G Hunte



Registered number
05048716



Registered office
Riverside Barns
Remenham Church Lane

Remenham

Henley-On-Thames

Oxfordshire

RG9 3DB




Independent auditor
James Cowper Kreston Audit
Chartered Accountants and Statutory Auditor

Reading Bridge House

George Street

Reading

Berkshire

RG1 8LS





 
PRACTICUS LIMITED
 

CONTENTS



Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Analysis of net debt
14
Notes to the financial statements
15 - 25


 
PRACTICUS LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

 
The Directors are pleased to present their strategic report together with the audited financial statements for the period ended 31 December 2023.
Review of the Business
Our strategic purpose is helping people navigate change through the provision of Recruitment, Consulting and Advisory Services. Our principal markets include Strategic Change, Operational Efficiency, Cultural and Behavioural Engagement, Digital and Technology Change. The Company provides services across a broad portfolio of industries in both the public and private sector. 
A turbulent financial climate and geopolitical issues resulted in a notable downturn in certain types of vacancies across the United Kingdom in 2023. Although Practicus had a strong start to 2023, the tougher trading conditions were felt from mid-year onwards, particularly within the Healthcare part of our business. Swift actions were taken to minimise the losses for the year including growth from our Senior Permanent Recruitment Service offering. This growth in our Senior Permanent channel has continued into 2024 with Q1 results being 40% higher than the same period last year.
In addition, over the past year, we have been extending our product suite in support of our purpose, to help people navigate change. We have matured our PMO as a Service offering, to compliment and build on our existing markets and bolster our core Interim Management business. We have also been developing a data product to support banks and other highly regulated markets tackle challenges around data literacy and staff engagement. This product has been developed in collaboration with an investment bank and a pensions house. The impact on staff behaviour within these clients has been described as “very positive” and we are about to take the product out to a wider audience. As we mature these consulting products, we anticipate achieving a greater degree of access and trust from our clients and the expectation is that this will translate into greater opportunities for the other channels of our business. On top of this, we are maturing our ‘Ask the Community’ offering which has now developed a life of its own and is yielding recruitment opportunities we wouldn’t otherwise have had.   
As with 2023, so it is with 2024 that we will continue with our planned investment in people, process and technology, providing the foundations, structure and scale required to achieve more sustainable growth. We have just celebrated our 20th Birthday as a business and are preparing our teams internally for where we believe the best change opportunities (sectors and disciplines) will be for the next decade. We welcome Sam Hawkins, the Director of our Commercial business onto our Board. Sam has been with Practicus for 12 years and brings huge energy to the business. 
Key performance indicators (KPIs) used by the company to monitor progress are set out below:
£000’s  2023   2022
Turnover  23,316 26,551
Gross profit  5,244  5,652
EBITDA  (97)  98
 
Page 1

 
PRACTICUS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Principal Risks and Uncertainties
The Directors continue to make risk management a priority and devote their effort and attention to ensuring that risks are identified and mitigated such that the business has a robust, stable and sustainable platform for growth. A summary of the risks and actions taken to mitigate them is set out below:
 
Risk
Action taken to mitigate risk
People
The Company’s future success relies on recruiting, developing and incentivising its senior management and other key employees. The loss of key personnel may have an adverse impact on the Company’s business and relationships. 

The Company continues to focus on ensuring that it has the necessary skills, resources and work environment required for a high performing business. The Company’s philosophy of incentivising people through share options aims at keeping people within the business for the long term.
Legal and regulatory changes
The Company is subject to legislation and regulations in each of its locations. Any changes to these may impact the manner in which the Company conducts its business and could therefore affect its financial performance.

The Company monitors the legal and regulatory situations in the markets in which it operates. We are members of APSCo and we use advisors with good understanding of the relevant laws and labour regulations. We formally review all contracts and have established our own IR35 panel to manage any potential risk.
Financial risks
The main financial risks facing the Company are availability of funds to meet business needs and credit risks arising from customer defaults.
Funding
The Company has flexible financing arrangements and finances its operations through invoice discounting.
 
Credit risk
Credit risk is tightly managed to minimise any bad debts arising from non-payment by our customers.

Going Concern
There are no material uncertainties that may cast significant doubt on the ability of the Company to continue as a going concern that have been identified by the Directors. The company has sufficient reserves as well as an invoice discounting facility available to draw down on debtors.
The Company’s business activities, together with the factors likely to affect its future development, performance and position are set out in this Strategic Report.
Employee Involvement
Details of the number of employees and related costs can be found in note 6 to the financial statements.
The Company’s business is dependent upon its employees. As such, the Company continues to focus on ensuring it has the necessary skills, resources and work environment required for a high-performing business.
The Company continually seeks to develop its employees and invest in training to nurture talent in our business. There are a number of ways we ensure our employees are involved in the business and issues relating to its performance, including regular employee briefings, monthly employee feedback via “Listen to the Business”, bi-annual workshop led conferences and regular lunch and learns. To encourage employees to have a stake in the business there is also a share option scheme. 
The Company has a formal approach towards succession planning, internal recruitment and promotion with decisions based on an individual’s ability to perform the role via a competency framework.
 
Page 2

 
PRACTICUS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


The Company gives full consideration to applications for employment from disabled applicants where a disabled person can adequately fulfil the requirements of the job. Should an employee become disabled whilst working for the Company, every effort is made to accommodate them or to find a suitable alternative role and to assist with any re-training.
Bribery and Corruption
Bribery and corruption is unfortunately a feature of corporate and public life in many countries. Practicus therefore has a policy in place so that all staff are aware of acceptable practices and behaviours. This is in accordance with The Bribery Act 2010 which came into force on 1 July 2011.
Corporate Social Responsibility Statement
Practicus Limited is a socially responsible company. We make every effort to consider the impact of our business practices on society and strive to ensure that what we do, and how we do it, is beneficial to our clients, candidates, employees, communities and the environment. We believe in giving back and supporting the invaluable work performed by our chosen charities, by either getting involved and supporting their various activities or by making regular donations.
 


This report was approved by the board and signed on its behalf.



................................................
D A Tolhurst
Director

Date: 12 April 2024

Page 3

 
PRACTICUS LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors

The directors who served during the year were:

B A Kershaw 
J W L Luckhurst 
D A Tolhurst 
P B Wandless 
B Culora 
J Roop 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditor

The auditor, James Cowper Kreston Auditwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 4

 
PRACTICUS LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

This report was approved by the board and signed on its behalf.
 





................................................
D A Tolhurst
Director

Date: 12 April 2024

Page 5

 
PRACTICUS LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRACTICUS LIMITED
 

Opinion


We have audited the financial statements of Practicus Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its loss 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 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 United Kingdom, including the Financial Reporting Council'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 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 ReportOur 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.


Page 6

 
PRACTICUS LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRACTICUS LIMITED (CONTINUED)


Opinion 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 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.


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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 4, 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.


Page 7

 
PRACTICUS LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRACTICUS LIMITED (CONTINUED)


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.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 
The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows: 
 
Enquiry of management around actual and potential litigation and claims;
Enquiry of management and those charged with governance to identify any material instances of non-compliance with laws and regulations;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.


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 Auditor's report.


Page 8

 
PRACTICUS LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRACTICUS LIMITED (CONTINUED)


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 2006Our 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.





Darren O'Connor BSc (Hons) FCCA ACA (Senior Statutory Auditor)
  
for and on behalf of
James Cowper Kreston Audit
 
Chartered Accountants and Statutory Auditor
  
Reading Bridge House
George Street
Reading
Berkshire
RG1 8LS

12 April 2024
Page 9

 
PRACTICUS LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£000
£000

  

Turnover
 4 
23,316
26,551

Cost of sales
  
(18,072)
(20,899)

Gross profit
  
5,244
5,652

Administrative expenses
  
(5,363)
(5,578)

Operating (loss)/profit
 5 
(119)
74

Interest receivable and similar income
  
3
-

Interest payable and similar expenses
  
(2)
(4)

(Loss)/profit before taxation
  
(118)
70

Tax on (loss)/profit
 8 
23
(23)

(Loss)/profit for the financial year
  
(95)
47

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 15 to 25 form part of these financial statements.

Page 10

 
PRACTICUS LIMITED
REGISTERED NUMBER: 05048716

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£000
£000

Fixed assets
  

Tangible assets
 9 
31
43

  
31
43

Current assets
  

Debtors: amounts falling due within one year
 10 
2,951
3,998

Cash at bank and in hand
 11 
10
36

  
2,961
4,034

Creditors: amounts falling due within one year
 12 
(2,501)
(3,491)

Net current assets
  
 
 
460
 
 
543

Total assets less current liabilities
  
491
586

  

Net assets
  
491
586


Capital and reserves
  

Profit and loss account
 15 
491
586

  
491
586


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
D A Tolhurst
Director

Date: 12 April 2024

The notes on pages 15 to 25 form part of these financial statements.

Page 11

 
PRACTICUS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Profit and loss account
Total equity

£000
£000

At 1 January 2023
586
586


Comprehensive income for the year

Loss for the year
(95)
(95)
Total comprehensive income for the year
(95)
(95)


At 31 December 2023
491
491


The notes on pages 15 to 25 form part of these financial statements.


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Profit and loss account
Total equity

£000
£000

At 1 January 2022
539
539


Comprehensive income for the year

Profit for the year
47
47
Total comprehensive income for the year
47
47


At 31 December 2022
586
586


The notes on pages 15 to 25 form part of these financial statements.

Page 12

 
PRACTICUS LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£000
£000

Cash flows from operating activities

(Loss)/profit for the financial year
(95)
47

Adjustments for:

Depreciation of tangible assets
22
24

Interest paid
2
4

Interest received
(3)
-

Taxation charge
(23)
23

Decrease/(increase) in debtors
1,070
(811)

(Decrease)/increase in creditors
(752)
458

Corporation tax (paid)
(13)
(74)

Net cash generated from operating activities

208
(329)


Cash flows from investing activities

Purchase of tangible fixed assets
(10)
(36)

Interest received
3
-

Net cash from investing activities

(7)
(36)

Cash flows from financing activities

Invoice discounting
(225)
300

Interest paid
(2)
(4)

Net cash used in financing activities
(227)
296

Net (decrease) in cash and cash equivalents
(26)
(69)

Cash and cash equivalents at beginning of year
36
105

Cash and cash equivalents at the end of year
10
36


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
10
36

10
36


The notes on pages 15 to 25 form part of these financial statements.

Page 13

 
PRACTICUS LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£000

£000

£000

Cash at bank and in hand

36

(26)

10


36
(26)
10

The notes on pages 15 to 25 form part of these financial statements.

Page 14

 
PRACTICUS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Practicus Limited  is a limited liability company incorporated in England and Wales. The address of its registered office is Riverside Barns, Remenham Church Lane, Remenham, Henley-On-Thames, Oxfordshire, RG9 3DB. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.3

Turnover

Turnover is recognised on delivery of the service provided. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

 
2.4

Operating leases: the Company as lessee

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

Page 15

 
PRACTICUS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.6

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 16

 
PRACTICUS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.7
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, straight line or reducing balance method.

Depreciation is provided on the following basis:

Fixtures and fittings
-
25% - 33% reduced balance and 20% - 33% straight line
Office equipment
-
25% - 33% reduced balance and 25% - 33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.8

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.9

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.10

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.11

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

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PRACTICUS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

  Financial instruments

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amount of reported 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 judgments and estimates have had the most significant effects on amounts recognised in the financial statements.
Provisions
In recognising provisions, the company evaluates the extent to which it is probable that it has incurred a legal or constructive obligation in respect of past events and the probability that there will be an outflow of benefits as a result. The judgments used to recognise provisions are based on currently known factors which may vary over time, resulting in changes in the measurement of recorded amount as compared to initial estimates.
Tangible fixed assets
Tangible fixed assets are depreciated over their useful lives taking into account residual value, where appropriate. The actual lives of the assets and residual values may vary depending on a number of factors.

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PRACTICUS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£000
£000

Revenue from contracts with customers
23,316
26,551


Analysis of turnover by country of destination:

2023
2022
£000
£000

United Kingdom
23,316
26,551



5.


Operating profit/(loss)

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

2023
2022
£000
£000

Depreciation of tangible fixed assets
22
24

Fees payable to the group's auditor and its associates for the audit of the 
company's financial statements
18
17

Fees payable to the group's auditor and its associates for other services: 
Tax compliance services
2
2

Other operating lease rentals
93
111

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PRACTICUS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Employees

Staff costs were as follows:


2023
2022
£000
£000

Wages and salaries
4,000
4,176

Social security costs
452
507

Cost of defined contribution scheme
114
97

4,566
4,780


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Employee numbers
50
50




7.


Directors' remuneration

2023
2022
£000
£000



Directors' remuneration
1,195
1,257

Company contributions to defined contribution pension schemes
36
24

1,231
1,281

The aggregate of remuneration and amounts receivable under long term incentive schemes of the highest paid director was £251k (2022: £269k), and company pension contributions of £9K (2022: £5k) were made to a defined contribution pension scheme.
The total amount of employee benefits received by key management personnel for the year amounted to £1,231k (2022: £1,281k).

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PRACTICUS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Taxation


2023
2022
£000
£000

Corporation tax


Current tax on profits for the year
-
12

Adjustments in respect of previous periods
-
6

Total current tax
-
18

Deferred tax


Origination and reversal of timing differences
(23)
5

Total deferred tax
(23)
5


Taxation on (loss)/profit on ordinary activities
(23)
23

Factors affecting tax charge for the year

The tax charge for the year which has been calculated on the profits on ordinary activities before tax at the standard rate of corporation tax in the UK of 25% from the 1 April 2023 (2022: 19%). This is deemed to have nil impact on the financial statements due to companies loss making performance.


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PRACTICUS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Tangible fixed assets





Fixtures, Fittings and Office equipment

£000



Cost or valuation


At 1 January 2023
489


Additions
10



At 31 December 2023

499



Depreciation


At 1 January 2023
446


Charge for the year
22



At 31 December 2023

468



Net book value



At 31 December 2023
31



At 31 December 2022
43

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PRACTICUS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Debtors

2023
2022
£000
£000


Trade debtors
2,018
2,967

Other debtors
41
39

Prepayments and accrued income
864
987

Deferred taxation
28
5

2,951
3,998



11.


Cash and cash equivalents

2023
2022
£000
£000

Cash at bank and in hand
10
36



12.


Creditors: Amounts falling due within one year

2023
2022
£000
£000

Invoice discounting facility
81
306

Trade creditors
1,514
1,875

Corporation tax
-
12

Other taxation and social security
339
463

Other creditors
80
34

Accruals and deferred income
487
801

2,501
3,491


The invoice discounting facility is secured against the invoices in which it relates to. 

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PRACTICUS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Deferred taxation




2023


£000






At beginning of year
5


Charged to profit or loss
23



At end of year
28

The deferred tax asset is made up as follows:

2023
2022
£000
£000


Fixed asset timing differences
3
3

Short term timing differences
2
2

Losses and other deductions
23
-

28
5


14.


Share capital

2023
2022
£
£
Authorised



100,000,000 (2022 - 100,000,000) Ordinary shares of £0.00001 each
1,000
1,000

Allotted, called up and fully paid



27,000,000 (2022 - 27,000,000) Ordinary shares of £0.00001 each
270
270



15.


Reserves

Profit and loss account

Includes all current and prior period retained profits and losses.


16.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge
represents contributions payable by the Company to the fund and amounted to £113,848 (2022: £97,107). Contributions totalling £30,387 (2022: £22,068) were payable to the fund at the balance sheet date and are included in creditors.

Page 24

 
PRACTICUS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£000
£000


Not later than 1 year
96
93

Later than 1 year and not later than 5 years
78
165

174
258


18.


Related party transactions

Practicus Limited provided a loan to Meglio Limited, a company partly owned by some of the directors of Practicus Limited of £200,000 in FY21. The remaining balance was provided for in FY22 and has been written off in the year.
During the year the Company paid £Nil (2022: £21,792) to Curtis Banks Pensions for rent and rates for the property owned by the Directors' Pension Scheme. 

Page 25