Company Registration No. 08230012 (England and Wales)
Tripod Partners Limited
Annual report and financial statements
for the year ended 30 September 2023
Tripod Partners Limited
Company information
Directors
Graham Smith
Dean Covill
Company number
08230012
Registered office
National House
Wardour Street
London
W1F OTA
Independent auditor
Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
Tripod Partners Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 22
Tripod Partners Limited
Strategic report
For the year ended 30 September 2023
1
The directors present the strategic report for the year ended 30 September 2023.
Fair Review of the Business
The year has seen the business continue to consolidate investments in new staff in recent years. Together with our preferred standing with many customers, and our inclusion in a significant government framework project, this has seen turnover continue to grow to £121.9m (2022: £99.6m).
The Qualified Social Work Division remains the largest division, net fee income grew by 21% year on year. The division trades under Tripod Partners Ltd.
The Allied Health Division grew by 44% year on year, continued new additions to the team in the division opens new revenue opportunities. The division trades under Tripod Partners Ltd.
The Nursing division benefitted from a major contract with the Home Office, this saw net fee income rise tenfold from the prior year. This project came to an end in the final quarter, and performance is expected to be weaker in the year ending September 2024. The division trades under Tripod Partners Ltd.
The main sales divisions are provided with support from an office in South Africa which operates under a wholly owned subsidiary of Tripod Group (EPPACT Ltd, registered in South Africa). This is fully embedded and has played a crucial part in the strong growth. Additional back office services are now provided from this office. We continue to develop profit centres from this location.
Administrative expenses reduced in the year, however, in the final quarter significant investment in additional business development and marketing functions were made. The investment into digital marketing and process automations are an exciting step, although the full benefits are not expected to be seen until towards the end of the financial year ending September 2024.
Overall, operating profit has increased significantly to £2,775k (2022: £1,855k). The Directors acknowledge the exceptional project revenue in 2023, and the investment in new areas and marketing mean that profits in 2024 are unlikely to remain at this level, however, the core of the business remains strong, and the business continues to invest in attracting and retaining the best talent.
Principal risks and uncertainties
The directors believe that the business plan going forward has been predominantly de-risked due to the diversification into multiple sectors. Sector heads are appointed internally within the company and staff are fully committed and motivated to achieve the growth targets.
The company's operations expose it to a variety of risks including those outlined below. The directors review and agree policies for managing these risks and these are summarised below.
(a) Liquidity risk
The company makes use of a factoring account facility with HSBC to manage its liquidity risk.
(b) Operational risk
The company is exposed to operational risks which may arise due to failure of operational systems or those of third party service providers.
(c) Market risk
The directors review the market risk applicable to the company on an on-going basis, by considering the likelihood of market developments and consequent effect on profitability, net assets and liquidity.
(d) Credit risk
The company is exposed to credit risk arising predominantly from it's clients who owe the company fees. New customers are only accepted after they have been approved by the credit controller.
Tripod Partners Limited
Strategic report (continued)
For the year ended 30 September 2023
2
Key performance indicators
The company uses a number of measures to assess its success in meeting its objectives. These include growth in fees received and growth in profit levels. The directors are satisfied that performance, by reference to these key performance indictors, has been in line with expectations for the year.
Outlook
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.
The directors recognise that cost of living crisis, the continued impact of inflation and the hike in interest rates in the United Kingdom and across the world represents a material uncertainty to the future of the economy and casts doubt on the ability of many companies to continue as a going concern. However, due to the nature of the business and the public sector client base, the demand for temporary workers in the health sector has been maintained over the last couple of years, and revenues have continued to increase resulting in the cash flow of the company remaining strong and sufficient to allow the company to trade strongly throughout this period of uncertainty. The directors are confident that the strong trading results and the resources available will continue through these continued uncertain times. The directors consider it appropriate to prepare the financial statements on a going concern basis. These financial statements do not include any adjustments that would result from the going concern basis of preparation being inappropriate.
Graham Smith
Director
11 April 2024
Tripod Partners Limited
Directors' report
For the year ended 30 September 2023
3
The directors present their annual report and financial statements for the year ended 30 September 2023.
Principal activities
The principal activity of the company continued to be that of temporary employment agency services.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £1,053,750. 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:
Graham Smith
Dean Covill
Auditor
Saffery LLP have expressed their willingness to continue in office.
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;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement 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.
Tripod Partners Limited
Directors' report (continued)
For the year ended 30 September 2023
4
On behalf of the board
Graham Smith
Director
11 April 2024
Tripod Partners Limited
Independent auditor's report
To the members of Tripod Partners Limited
5
Opinion
We have audited the financial statements of Tripod Partners Limited (the 'company') for the year ended 30 September 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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 30 September 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
Tripod Partners Limited
Independent auditor's report (continued)
To the members of Tripod Partners Limited
6
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.
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.
Tripod Partners Limited
Independent auditor's report (continued)
To the members of Tripod Partners Limited
7
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.
Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above 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. Also, 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.
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.
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.
Tripod Partners Limited
Independent auditor's report (continued)
To the members of Tripod Partners Limited
8
Jamie Cassell
Senior Statutory Auditor
For and on behalf of Saffery LLP
11 April 2024
Chartered Accountants
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
Tripod Partners Limited
Statement of comprehensive income
For the year ended 30 September 2023
9
2023
2022
Notes
£
£
Turnover
3
121,911,613
99,558,829
Cost of sales
(111,619,410)
(89,292,795)
Gross profit
10,292,203
10,266,034
Administrative expenses
(7,698,073)
(8,521,141)
Other operating income
180,502
110,105
Operating profit
4
2,774,632
1,854,998
Interest payable and similar expenses
8
(6,248)
(2,868)
Profit before taxation
2,768,384
1,852,130
Tax on profit
9
(617,215)
(374,146)
Profit for the financial year
2,151,169
1,477,984
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
Tripod Partners Limited
Statement of financial position
As at 30 September 2023
10
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
80,518
72,094
Current assets
Debtors
12
17,358,732
15,961,404
Cash at bank and in hand
192,695
60,360
17,551,427
16,021,764
Creditors: amounts falling due within one year
13
(14,586,152)
(14,124,622)
Net current assets
2,965,275
1,897,142
Total assets less current liabilities
3,045,793
1,969,236
Creditors: amounts falling due after more than one year
14
(39,136)
(59,998)
Net assets
3,006,657
1,909,238
Capital and reserves
Called up share capital
17
100
100
Profit and loss reserves
3,006,557
1,909,138
Total equity
3,006,657
1,909,238
The financial statements were approved by the board of directors and authorised for issue on 11 April 2024 and are signed on its behalf by:
Graham Smith
Director
Company Registration No. 08230012
Tripod Partners Limited
Statement of changes in equity
For the year ended 30 September 2023
11
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2021
100
1,424,154
1,424,254
Year ended 30 September 2022:
Profit and total comprehensive income for the year
-
1,477,984
1,477,984
Dividends
10
-
(993,000)
(993,000)
Balance at 30 September 2022
100
1,909,138
1,909,238
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
2,151,169
2,151,169
Dividends
10
-
(1,053,750)
(1,053,750)
Balance at 30 September 2023
100
3,006,557
3,006,657
Tripod Partners Limited
Notes to the financial statements
For the year ended 30 September 2023
12
1
Accounting policies
Company information
Tripod Partners Limited is a private company limited by shares incorporated in England and Wales. The registered office is National House, Wardour Street, London, W1F OTA.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.true
The directors recognise that the continued cost of living crisis, the impact of inflation and the hike in interest rates in the United Kingdom and across the world represents a material uncertainty to the future of the economy and casts doubt on the ability of many companies to continue as a going concern. However, due to the nature of the business and the public sector client base, the demand for temporary workers in the health sector has been maintained over the last couple of years, and revenues have continued to increase resulting in the cash flow of the company remaining strong and sufficient to allow the company to trade strongly throughout this period of uncertainty. The directors are confident that the strong trading results and the resources available will continue through these uncertain times. The directors consider it appropriate to prepare the financial statements on a going concern basis.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for 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.
Tripod Partners Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
1
Accounting policies (continued)
13
Turnover from contractor placements, representing fees billed for the services of contractors including their costs, is recognised when the service has been provided.
Turnover from permanent placements is recognised on the invoice date. Invoices are raised on the candidate start date.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
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, fittings & equipment
20% - 33% straight line
Computer equipment
33% straight line
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.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
1.6
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.
Tripod Partners Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
1
Accounting policies (continued)
14
1.7
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 statement of financial position 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.
Basic financial assets
Basic financial assets, which include debtors, 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.
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.
Tripod Partners Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
1
Accounting policies (continued)
15
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
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.
1.9
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 income statement 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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
Tripod Partners Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
1
Accounting policies (continued)
16
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
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.
1.13
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.
2
Critical accounting 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.
Accrued income
Income that is earned during the year but not invoiced by the year end is accrued for, instead of recognising it when the invoice is raised and settled. Accrued income is estimated by reviewing work completed in the period preceding the year end, using reports detailing candidate timesheets taking place in that period.
3
Turnover
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Provision of contractors
119,216,264
97,340,827
Permanent placements
2,311,054
1,986,097
Other revenue
384,295
231,905
121,911,613
99,558,829
Tripod Partners Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
17
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
39,350
6,125
Depreciation of owned tangible fixed assets
53,742
43,841
Operating lease charges
298,205
215,483
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Sales
44
39
Administrative
21
14
Total
65
53
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
5,986,472
4,670,829
Social security costs
751,513
565,847
Pension costs
143,141
82,218
6,881,126
5,318,894
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
433,921
321,521
Company pension contributions to defined contribution schemes
17,812
14,583
451,733
336,104
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
237,500
200,000
Tripod Partners Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
18
7
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
53,000
46,000
For other services
All other non-audit services
16,776
17,363
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
6,248
2,868
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
617,215
374,146
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
2,768,384
1,852,130
Expected tax charge based on the standard rate of corporation tax in the UK of 22.00% (2022: 19.00%)
609,044
351,905
Tax effect of expenses that are not deductible in determining taxable profit
46,287
22,241
Group relief
(38,116)
Taxation charge for the year
617,215
374,146
10
Dividends
2023
2022
£
£
Final paid
1,053,750
993,000
Tripod Partners Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
19
11
Tangible fixed assets
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
Cost
At 1 October 2022
132,534
62,603
195,137
Additions
14,360
47,806
62,166
At 30 September 2023
146,894
110,409
257,303
Depreciation and impairment
At 1 October 2022
74,230
48,813
123,043
Depreciation charged in the year
27,948
25,794
53,742
At 30 September 2023
102,178
74,607
176,785
Carrying amount
At 30 September 2023
44,716
35,802
80,518
At 30 September 2022
58,304
13,790
72,094
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
13,071,561
11,691,405
Corporation tax recoverable
3
Amounts owed by group undertakings
508,274
371,883
Other debtors
26,734
75,216
Prepayments and accrued income
3,752,160
3,822,900
17,358,732
15,961,404
Tripod Partners Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
20
13
Creditors: amounts falling due within one year
2023
2022
as restated
£
£
Bank loans and overdrafts
15
22,400
22,400
Invoice discounting
11,112,467
10,466,560
Trade creditors
451,195
308,334
Amounts owed to group undertakings
1,018,971
866,645
Corporation tax
164,140
313,814
Other taxation and social security
801,897
1,151,066
Other creditors
404,013
231,170
Accruals and deferred income
611,069
764,633
14,586,152
14,124,622
The bank loans and overdrafts balance is an invoice factoring facility which includes a discounting charge at 2.5% above the Bank of England base rate and a further interest charge at 0.23%. It also includes a variable rate loan with the total rate payable being the reference interest rate plus a lending margin of 3%.
14
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
15
39,136
59,998
Creditors due after one year includes a 5 year variable rate bank loan which includes a total rate payable being 3% above the Bank of England base rate.
The bank holds a guarantee as security for all the present and future debts, moneys and and liabilities owed to the bank by the entity.
Tripod Partners Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
21
15
Loans and overdrafts
2023
2022
£
£
Bank loans
61,536
82,398
Invoice financing
11,112,467
10,466,560
11,174,003
10,548,958
Payable within one year
11,134,867
10,488,960
Payable after one year
39,136
59,998
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
143,141
82,218
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
18
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
119,362
109,455
Between two and five years
57,312
148,461
176,674
257,916
The operating lease commitments are in relation to the future lease payments for office rent and motor vehicles.
Tripod Partners Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
22
19
Related party transactions
Graham Smith Business Services Limited is a company that Graham Smith is a shareholder and director of. During the year, the company paid for services totaling £25,202 (2022: £23,310). No amounts were outstanding as at the year ended 30 September 2023 (2022: £nil).
Philip Randerson was a previous director of the company who has a outstanding director loan balance of £40,000 (2022: £40,000) in the period. Amounts have been included in Other Creditors (note 13). He was not a director at the year end.
At the year end £nil (2022: £130,000) remains outstanding from Frontier Consulting Limited, a fellow subsidiary undertaking. £809,536 (2022: £771,778) is due to Frontier Consulting Limited at the year end relating to management charges. This is reported within note 13.
Management recharges due to Frontier Consulting Limited for the period were equal to £495,779 (2022: £771,778).
Tripod Partners Limited has taken the exemption in accordance with FRS102 section 33 for subsidiary undertakings to not disclose related party transactions with other entities where the relationship is as such that they are wholly owned. Therefore, transactions of this nature have not been disclosed.
Dividends paid to directors were concluded under normal market conditions.
20
Ultimate controlling party
The ultimate parent company is Tripod Group Limited, by virtue of its 100% ownership of the company. Copies of the consolidated financial statements can be obtained from its registered office at National House, Wardour Street, London, W1F OTA.
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