Caseware UK (AP4) 2022.0.179 2022.0.179 2023-03-312023-03-31truetruetrue5truetruefalse2022-04-01falsetrueIT Services13 03673102 2022-04-01 2023-03-31 03673102 2023-03-31 03673102 2021-04-01 2022-03-31 03673102 2022-03-31 03673102 2021-04-01 03673102 c:Director1 2022-04-01 2023-03-31 03673102 c:Director3 2022-04-01 2023-03-31 03673102 c:Director3 2023-03-31 03673102 c:RegisteredOffice 2022-04-01 2023-03-31 03673102 d:ComputerEquipment 2023-03-31 03673102 d:ComputerEquipment 2022-03-31 03673102 d:CurrentFinancialInstruments 2023-03-31 03673102 d:CurrentFinancialInstruments 2022-03-31 03673102 d:CurrentFinancialInstruments 1 2023-03-31 03673102 d:CurrentFinancialInstruments 1 2022-03-31 03673102 d:CurrentFinancialInstruments d:WithinOneYear 2023-03-31 03673102 d:CurrentFinancialInstruments d:WithinOneYear 2022-03-31 03673102 f:UnitedKingdom 2022-04-01 2023-03-31 03673102 f:UnitedKingdom 2021-04-01 2022-03-31 03673102 f:RestEuropeOutsideUK 2022-04-01 2023-03-31 03673102 f:RestEuropeOutsideUK 2021-04-01 2022-03-31 03673102 f:RestWorldOutsideUK 2022-04-01 2023-03-31 03673102 f:RestWorldOutsideUK 2021-04-01 2022-03-31 03673102 d:ShareCapital 2023-03-31 03673102 d:ShareCapital 2022-03-31 03673102 d:ShareCapital 2021-04-01 03673102 d:SharePremium 2022-04-01 2023-03-31 03673102 d:SharePremium 2023-03-31 03673102 d:SharePremium 2022-03-31 03673102 d:SharePremium 2021-04-01 03673102 d:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 03673102 d:RetainedEarningsAccumulatedLosses 2023-03-31 03673102 d:RetainedEarningsAccumulatedLosses 2021-04-01 2022-03-31 03673102 d:RetainedEarningsAccumulatedLosses 2022-03-31 03673102 d:RetainedEarningsAccumulatedLosses 2021-04-01 03673102 c:OrdinaryShareClass1 2022-04-01 2023-03-31 03673102 c:OrdinaryShareClass1 2023-03-31 03673102 c:OrdinaryShareClass1 2022-03-31 03673102 c:OrdinaryShareClass2 2022-04-01 2023-03-31 03673102 c:OrdinaryShareClass2 2023-03-31 03673102 c:OrdinaryShareClass2 2022-03-31 03673102 c:FRS102 2022-04-01 2023-03-31 03673102 c:Audited 2022-04-01 2023-03-31 03673102 c:FullAccounts 2022-04-01 2023-03-31 03673102 c:PublicLimitedCompanyPLCNotQuotedOnAnyExchange 2022-04-01 2023-03-31 xbrli:shares iso4217:GBP xbrli:pure
Company registration number: 03673102







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2023


IT HUMAN RESOURCES PLC






































img7f21.png                        

 


IT HUMAN RESOURCES PLC
 


 
COMPANY INFORMATION


Directors
S M Gallagher 
V S Cassidy (appointed 14 February 2022)




Registered number
03673102



Registered office
48 Warwick Street

London

W1B 5NL




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

Lynton House

7-12 Tavistock Square

London

WC1H 9LT





 


IT HUMAN RESOURCES PLC
 



CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' 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 - 19


 


IT HUMAN RESOURCES PLC
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

Introduction
 
The directors present their Annual Report and financial statements for the year ended 31 March 2023.
This report has been prepared by the directors in accordance with the requirements of section 414 of the Companies Act 2006. The company’s independent auditor is required by law to report on whether the information given in the Strategic Report is consistent with the financial statements. The auditor’s report is set out further in the document.

Principal Activities
 
The principal activity of the Company is that of an IT Recruitment Agency and Business to UK and international clients.

Business Review
 
The Company operates from the UK in the IT technical, Telco and SAP arena, providing its clients with recruitment solutions for their temporary / contract projects as well as proving them with permanent IT resources. The Company works with large global businesses, looking to partner with them for their IT resourcing requirements in whatever geographical location they operate in.
The strategy of driving the business forward through robust cost controls and increased contact and permanent recruitment solutions for our global clients remains in place. The Company operates in a challenging environment and the impact of the war in Ukraine added an element of complexity to the market dynamics.

Financial key performance indicators
 
Results for the year ending March 2023 saw a 31.2% fall in turnover to £5.17m (2022: £7.52m). Gross margin declined by 32.54% to £0.85m (2022: £1.26m) with gross margin percentage decrease to 16.4% (2022: 16.7%). Tight cost controls resulted in administration expenses of £0.47m, down 35.7% on the prior year (2022: £0.73m) returning on operating profit of £372,000 for the year (2022: £517,000).  Profit before tax was £277,000 (2022: £434,000). As a result of the above, net liabilities decreased to £2.03m (2022: £2.30m).  The brand remains strong and the Company has the full support and backing from its parent company, ITHR Group Plc.
The Company supplies clients globally, with turnover widely spread geographically, minimising its risk from regional, national and international slow-downs. Turnover is derived 35.8% UK (2022: 46.9%), 55.2% European (2022: 43.2%) and
9% the rest of the world (2022: 9.9%).

Other key performance indicators
 
Non-financial KPIs are not produced in this report due to the nature of the business and the Board are of the opinion that the omission of such KPIs does not detract from the understanding of the Company’s performance.

Page 1

 


IT HUMAN RESOURCES PLC
 



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

Future Developments
 
The Company will continue to increase its sales capability by attracting, developing and retaining talented and experienced sales consultants and managers to provide a first-class recruitment service to its clients and candidates alike.

Principal Risks and Uncertainties
The Company has in place adequate working capital solutions to enable it to grow its turnover and gross margin for the foreseeable future and the Board see’s no reason as to why such growth and continued profitability in the coming year will not be achieved.
Directors Statement of Compliance with duty to promote the success of the Company
Section 172 of the Companies Act 2006 requires Directors to take into consideration the interest of stakeholders and other matters in their decision making. The Board considers that the decision they have made during the financial year and the way they have acted has been in the best interest or stakeholders and related parties, having regard for matters set out in s172(1) (a-f) of the Act.
The Board acts in good faith and in a manner that they consider promotes the success of the business for the benefit of its members and stakeholders. The Company’s key stakeholders are internal staff, candidates, clients and suppliers. The Company engages with its employees, clients, candidates and suppliers through a variety of means including:
Employees: internal updates on the Company’s development 
Clients: proving support and advice to help build strong long-term relationships which helps them  achieve their project goals and objectives.
Suppliers and candidates: Effective and consistent communication and updates on contracts to develop long-term business relationships.


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



S M Gallagher
Director

Date: 23 December 2023

Page 2

 


IT HUMAN RESOURCES PLC
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023

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

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 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 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.

Results and dividends

The profit for the year, after taxation, amounted to £276,663 (2022 - £433,983).

The directors do not recommend the payment of a dividend (2022 - £nil)

Directors

The directors who served during the year were:

S M Gallagher 
V S Cassidy (appointed 14 February 2022)

Future developments

The planned future developments of the business are disclosed in detail in the financial statements of the parent company, ITHR Group Plc.

Disclosure of information to auditors

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 auditors are 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 auditors are aware of that information.

Page 3

 


IT HUMAN RESOURCES PLC
 


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

Post balance sheet events

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

Auditors

The auditorsMenzies LLPwill be proposed for reappointment in accordance with section 489 of the Companies Act 2006.

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





................................................
S M Gallagher
Director

Date: 23 December 2023

Page 4

 


IT HUMAN RESOURCES PLC
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IT HUMAN RESOURCES PLC

Opinion


We have audited the financial statements of IT Human Resources Plc (the 'Company') for the year ended 31 March 2023, which comprise the Statement of comprehensive income, the Statement of financial position, 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 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.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 Auditors' 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 5

 


IT HUMAN RESOURCES PLC


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IT HUMAN RESOURCES PLC (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 3, 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 6

 


IT HUMAN RESOURCES PLC


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IT HUMAN RESOURCES PLC (CONTINUED)

Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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.


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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including: 
 
The Companies Act 2006
Financial Reporting Standard 102
UK tax legislation
UK employment legislation

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of relevant documentation.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. No issues were identified in this area.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur. We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

Posting of unusual journals and complex transactions; or
The use of management override of controls to manipulate results, or to cause the Company to enter into transactions not in its best interest.

As a result of the above, the audit procedures performed by the engagement team included:

Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
Challenging assumptions and judgements made by management in its significant accounting estimates; and
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Page 7

 


IT HUMAN RESOURCES PLC


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IT HUMAN RESOURCES PLC (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 Auditors' 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.





Andrew Wooding FCA (Senior Statutory Auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
Lynton House
7-12 Tavistock Square
London
WC1H 9LT

23 December 2023
Page 8

 


IT HUMAN RESOURCES PLC
 


 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
Note
£
£

  

Turnover
 4 
5,171,886
7,522,375

Cost of sales
  
(4,324,989)
(6,266,999)

Gross profit
  
846,897
1,255,376

Administrative expenses
  
(475,060)
(738,207)

Operating profit
 5 
371,837
517,169

Interest payable and similar expenses
 8 
(95,174)
(83,186)

Profit before tax
  
276,663
433,983

Profit for the financial year
  
276,663
433,983

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 12 to 19 form part of these financial statements.

Page 9

 


IT HUMAN RESOURCES PLC
REGISTERED NUMBER:03673102



STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023

2023
2022
Note
£
£

  

Current assets
  

Debtors: amounts falling due within one year
 11 
1,247,976
1,727,561

Cash at bank and in hand
  
107,001
83,364

  
1,354,977
1,810,925

Creditors: amounts falling due within one year
 12 
(3,380,217)
(4,112,828)

Net current liabilities
  
 
 
(2,025,240)
 
 
(2,301,903)

Total assets less current liabilities
  
(2,025,240)
(2,301,903)

  

Net liabilities
  
(2,025,240)
(2,301,903)


Capital and reserves
  

Called up share capital 
 13 
106,500
106,500

Share premium account
 14 
9,200
9,200

Profit and loss account
 14 
(2,140,940)
(2,417,603)

  
(2,025,240)
(2,301,903)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 December 2023.




S M Gallagher
Director

The notes on pages 12 to 19 form part of these financial statements.

Page 10

 


IT HUMAN RESOURCES PLC
 



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


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 April 2021
106,500
9,200
(2,851,586)
(2,735,886)



Profit for the year
-
-
433,983
433,983



At 1 April 2022
106,500
9,200
(2,417,603)
(2,301,903)



Profit for the year
-
-
276,663
276,663


At 31 March 2023
106,500
9,200
(2,140,940)
(2,025,240)


The notes on pages 12 to 19 form part of these financial statements.

Page 11

 


IT HUMAN RESOURCES PLC
 


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

1.


General information

IT Human Resources Plc (the "Company") is a public company limited by shares and is incorporated and domiciled in England and Wales. Its registered office is 48 Warwick Street,  London, W1B 5NL.

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 judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of ITHR Group plc as at 31 March 2023 and these financial statements may be obtained from Companies House.

 
2.3

Going concern

The Company made a profit before tax of £276,663 (2022 - profit of £433,983) and has net liabilities of £2,025,240 (2022 - £2,301,903). The financial statements have been prepared on a going concern basis which the directors believe to be appropriate for the following reason. The Company is reliant for its working capital on funds provided to it by the Company’s ultimate parent company, ITHR Group Plc, which has provided the Company with an undertaking that it will, for at least 12 months from the date of approval of these financial statements, continue to make such funds as are needed by the company. This should enable the Company to continue in operational existence for the foreseeable future by meeting its liabilities as and when they fall due for payment. In addition, the ultimate parent company, ITHR Group plc has given an undertaking not to call on the outstanding intercompany balance until such time as the company has the ability to make such a repayment. Based on this undertaking the directors believe that it remains appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate. 

Page 12

 


IT HUMAN RESOURCES PLC
 


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

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Transactions in foreign currencies are translated to the Company’s functional currency at the average rate of exchange ruling for the month of transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Foreign exchange differences arising on translation are recognised in the profit and loss account.

 
2.5

Revenue

Contract and temporary fee revenue is billed on receipt of an approved timesheet.
Permanent introduction fees are recognised for each placement with due regard to the point when a candidate starts their employment and in conjunction with milestones agreed to with the client. These milestones generally relate to the candidate’s length of service at their placement.
The turnover shown in the profit and loss account represents amounts receivable for services provided during the year in the normal course of business, net of trade discounts, VAT and other sales and related taxes.

 
2.6

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.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method.

 
2.8

Pensions

Defined contribution pension plan

A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the periods during which services are rendered by employees.

Page 13

 


IT HUMAN RESOURCES PLC
 


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

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Significant judgements
The directors have made no key judgements (apart from those involving estimations) in the process of applying the entity's accounting policies.
 
Key sources of estimation uncertainty
Permanent placement revenue recognition
The Company’s and client imposed terms and conditions for the permanent placement of candidates allow the entity to only invoice the client on the start date of the candidate. It is the Company's policy to therefore recognise income on start date and not any earlier date between the candidate accepting a permanent position and their start date.
Recoverability of intercompany balances
Management regularly assess balances due from other entities within the group and whether these are recoverable. Where it is considered that the future cashflows of these debts are less than the carrying value in the books, appropriate provisions are made against these balances to reflect the recoverability of the asset. See note 11.


4.


Turnover

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
1,709,035
3,540,418

Rest of Europe
2,840,198
3,238,346

Rest of the world
622,653
743,611

5,171,886
7,522,375



5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
(28,592)
23,105

Amounts payable to Menzies LLP of £17,000 (2022: £15,500) for the audit of the Company are borne by the parent company, ITHR Group Plc. Non-audit remuneration relating to tax compliance services of £2,000 (2022: £1,600) relating to the Company are borne by the Parent Company, ITHR Group Plc.

Page 14

 


IT HUMAN RESOURCES PLC
 


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

6.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
287,412
430,807

Social security costs
36,588
50,370

Cost of defined contribution scheme
5,133
7,759

329,133
488,936


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


        2023
        2022
            No.
            No.







Sales
5
13


7.


Directors' remuneration

During the year some of the Directors were remunerated by the Company's parent ITHR Group Plc.


8.


Interest payable and similar expenses

2023
2022
£
£


Interest payable to group
23,164
23,118

Other interest payable
72,010
60,068

95,174
83,186


9.


Taxation


2023
2022
£
£



Total current tax
-
-
Page 15

 


IT HUMAN RESOURCES PLC
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
276,663
433,983


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
52,566
82,457

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,192
1,129

Capital allowances for year in excess of depreciation
(72)
(88)

Utilisation of tax losses
(53,686)
(83,498)

Total tax charge for the year
-
-


Factors that may affect future tax charges

Changes to the UK corporation tax rates were substantively enacted as part of Finance Bill 2021 on 10 June 2021. These include increment of the rate of corporation tax to 25 percent from 19 percent from April 2023.
Deferred tax assets in respect of tax losses carried forward of £3,291,198 (2022: £3,615,641) have not been recognised in the financial statements due to uncertainty over the timing of future profits. Unrecognised deferred tax amounts to £822,800 (2022: £903,910).

Page 16

 


IT HUMAN RESOURCES PLC
 


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

10.


Tangible fixed assets





Computer equipment

£



Cost


At 1 April 2022
2,749



At 31 March 2023

2,749



Depreciation


At 1 April 2022
2,749



At 31 March 2023

2,749



Net book value



At 31 March 2023
-



At 31 March 2022
-


11.


Debtors

2023
2022
£
£


Trade debtors
1,226,413
1,631,151

Other debtors
8,303
9,913

Prepayments and accrued income
9,356
86,497

Tax recoverable
3,904
-

1,247,976
1,727,561


Page 17

 


IT HUMAN RESOURCES PLC
 


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

12.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
381,681
509,902

Amounts owed to group undertakings
2,777,855
2,464,657

Other taxation and social security
9,158
16,513

Invoice finance
176,470
450,976

Other creditors
1,455
57,397

Accruals and deferred income
33,598
613,383

3,380,217
4,112,828


Amounts owed to group undertakings are subject to an interest charge of 1%.
The group had a £3m invoice discounting facility with Secure Trust Bank. The amount drawn down at the year-end was £176,470 (2022: £450,976). There is an unlimited inter-group cross guarantee over the assets of the group between the Company, its parent company and its fellow subsidiary companies and a personal guarantee was provided by Mr S Gallagher. At the reporting date, the group as a whole had a net debtor balance of £884,791 (2022 - net debtor balance of £63,536) on the invoice discounting facility.


13.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



2,130,000 (2022 - 2,130,000) A Ordinary shares of £0.049994 each
106,488
106,488
1,200 (2022 - 1,200) B Ordinary shares of £0.010000 each
12
12

106,500

106,500

A Ordinary shares hold voting and dividend rights. B Ordinary shares hold no voting rights and shall not entitle the holders to any dividends.



14.


Reserves

Share premium account

The share premium account includes the premium on issue of equity shares, net of any issue cost.

Profit and loss account

The profit & loss account represents cumulative profits or losses, net of dividends paid and other adjustments.

Page 18

 


IT HUMAN RESOURCES PLC
 


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

15.


Related party transactions

The company has taken advantage of the S33.1A exemption granted by FRS102 from disclosing transactions with other wholly owned members of the group headed by ITHR Group Plc.
Mr S Gallagher has provided a personal guarantee as part of the group’s invoice discounting facility with Secure Trust Bank.


16.


Controlling party

The Company is a subsidiary undertaking of ITHR Group Plc, which is the ultimate parent company.
The largest and smallest group in which the results of the Company are consolidated is that headed by ITHR Group Plc, incorporated in the UK. The consolidated financial statements of these groups are available to the public and may be obtained from Companies House.
The ultimate controlling party is considered to be Mr S Gallagher, by virtue of his shareholding in ITHR Group Plc.

 
Page 19