REGISTERED NUMBER: 09358207 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 May 2023 |
for |
FPR GROUP LIMITED |
Previously known as |
First People Recruitment Group |
REGISTERED NUMBER: 09358207 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 May 2023 |
for |
FPR GROUP LIMITED |
Previously known as |
First People Recruitment Group |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 May 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Consolidated Statement of Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Company Cash Flow Statement | 15 |
Notes to the Cash Flow Statements | 16 |
Notes to the Consolidated Financial Statements | 18 |
FPR GROUP LIMITED |
previously known as First People Recruitment Group |
Company Information |
for the Year Ended 31 May 2023 |
DIRECTORS: |
SECRETARY: | |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Martin Joseph |
AUDITORS: |
Chartered Accountants |
Statutory Auditors |
1 High Street |
Guildford |
Surrey |
GU2 4HP |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Group Strategic Report |
for the Year Ended 31 May 2023 |
The directors present their strategic report of the company and the group for the year ended 31 May 2023. |
REVIEW OF BUSINESS |
The principal activity of the company during the year continued to be the provision of temporary and permanent staff to companies through-out the UK. Company turnover increased to £14,638,500. |
2021 - 2022 saw the end of the global Covid-19 pandemic which had a significant impact on the global economy and on all businesses. An increase in demand for permanent and temporary recruitment services throughout the company's specialist divisions resulted in increased company turnover. The company introduced an improved client retention and development strategy which assisted in creating stronger client relationships across the business. |
The directors were pleased with the profit achieved on ordinary activities. |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Group Strategic Report |
for the Year Ended 31 May 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors have identified below a summary of the main risks which could potentially impact the business's operating and financial performance. |
People |
The success of the business relies upon the commitment and expertise of its staff. The business benefits from high levels of staff retention. Training programmes have been established which ensure staff are trained and developed in the relevant areas. Career development is a key focus area and annual appraisals and regular review meetings are carried out with all employees. |
Macro-economic environment |
The post covid environment, which lead to a spike in demand for products and service across the world, created an increase in demand for both skilled and unskilled staff compared with the previous 12 months. The skill shortage within the UK also lead to an increase in demand for permanent recruitment services. The end of the free movement of labour from the European Union continues to effect specific sectors within in the UK, including Food Production, Hospitality and Health & Social Care. |
The recruitment industry operates within a very competitive environment and can be susceptible to changes in economic conditions. This risk is managed by implementing a robust sales strategy and client retention strategy to achieve revenues from temporary and permanent services. |
The Directors are continually reviewing strategies to increase productivity and maintaining an efficient operating platform. |
Micro-economic environment |
The business has a very strong financial platform which has helped to protect it from any negative short-term effects which have been caused by the Covid 19 pandemic. The company continues to manage and maintain a strong credit control process. The company benefits from a large spread of clients, not being over reliant on any one customer. |
Technology |
Each year technology is reviewed and implemented where appropriate. New technology has been introduced across the company to facilitate flexible working practices and to ensure the company can offer services to its customers and service users. Strong relationships have been established with IT providers and back-up solutions are in place. A disaster recovery programme is in place to ensure the secure and continued running of the business in the event of severe disruption. |
Regulatory Environment |
The recruitment industry is governed by increasing levels of regulation, these bring in opportunities and risks. In addition to this, clients now require more complex levels of compliance. The Directors and management team of FPR Group is committed to meeting all of its regulatory responsibilities. Memberships of professional bodies and specialist advisors ensure up to date information on regulatory changes. |
Financial Instruments |
All clients are based within the UK and the company's Invoice Discounting facility is a central component of its financial structure. Credit Control and Cash Flow is good. An excellent relationship exists between the company and its bank. |
The directors have identified below a summary of the main risks which could potentially impact the business's operating and financial performance. |
Research and development and future developments |
The company is committed to expanding the number of clients it works with across the six core divisions. The continued investment in Technology coupled with training and development of our recruitment teams will be central to future growth. |
FINANCIAL INSTRUMENTS |
All clients are based within the UK and the company's Invoice Discounting facility is a central component of its financial structure. Credit Control and Cash Flow is good. An excellent relationship exists between the company and its bank. |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Group Strategic Report |
for the Year Ended 31 May 2023 |
FUTURE DEVELOPMENTS |
The company is committed to expanding the number of clients it works with across the six core divisions. The continued investment in Technology coupled with training and development of our recruitment teams will be central to future growth. |
ON BEHALF OF THE BOARD: |
20 February 2024 |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Report of the Directors |
for the Year Ended 31 May 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 May 2023. |
CHANGE OF NAME |
DIVIDENDS |
Interim dividends per share were paid as follows: |
8 | - 30 June 2022 |
8 | - 31 July 2022 |
8 | - 31 August 2022 |
8 | - 30 September 2022 |
8 | - 31 October 2022 |
8 | - 30 November 2022 |
48 | - 31 December 2022 |
8 | - 31 January 2023 |
34.666 | - 28 February 2023 |
8 | - 31 March 2023 |
20 | - 30 April 2023 |
100 | - 31 May 2023 |
266.666 |
The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31 May 2023 will be £ 266,666 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2022 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
There were no political donations in the year. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Report of the Directors |
for the Year Ended 31 May 2023 |
AUDITORS |
The auditors, WHITTINGTONS, will be deemed to continue in office under S487(2) of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
FPR GROUP LIMITED |
previously known as First People Recruitment Group |
Opinion |
We have audited the financial statements of FPR GROUP LIMITED (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement, Company Cash Flow Statement and Notes to the Cash Flow Statements, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 May 2023 and of the group's 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 group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
FPR GROUP LIMITED |
previously known as First People Recruitment Group |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
Statutory Auditors |
1 High Street |
Guildford |
Surrey |
GU2 4HP |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Consolidated |
Statement of Comprehensive |
Income |
for the Year Ended 31 May 2023 |
31.5.23 | 31.5.22 |
Notes | £ | £ |
TURNOVER | 3 | 18,782,129 | 14,638,500 |
Cost of sales | 15,534,630 | 12,217,966 |
GROSS PROFIT | 3,247,499 | 2,420,534 |
Administrative expenses | 2,487,951 | 2,123,044 |
759,548 | 297,490 |
Other operating income | 1,500 | 1,500 |
OPERATING PROFIT | 5 | 761,048 | 298,990 |
Interest receivable and similar income | 2,428 | 108 |
763,476 | 299,098 |
Interest payable and similar expenses | 6 | 16,926 | 18,675 |
PROFIT BEFORE TAXATION | 746,550 | 280,423 |
Tax on profit | 7 | 167,147 | 65,377 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 579,403 | 215,046 |
Profit attributable to: |
Owners of the parent | 446,108 | 200,259 |
Non-controlling interests | 133,295 | 14,787 |
579,403 | 215,046 |
Total comprehensive income attributable to: |
Owners of the parent | 512,774 | 200,259 |
Non-controlling interests | 66,629 | 14,787 |
579,403 | 215,046 |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Consolidated Balance Sheet |
31 May 2023 |
31.5.23 | 31.5.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 105,749 | 161,138 |
Tangible assets | 11 | 238,200 | 100,278 |
Investments | 12 | - | - |
343,949 | 261,416 |
CURRENT ASSETS |
Debtors | 13 | 3,201,543 | 2,347,715 |
Cash at bank and in hand | 4,054 | 299,840 |
3,205,597 | 2,647,555 |
CREDITORS |
Amounts falling due within one year | 14 | 2,141,111 | 1,754,499 |
NET CURRENT ASSETS | 1,064,486 | 893,056 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 1,408,435 | 1,154,472 |
PROVISIONS FOR LIABILITIES | 17 | 19,261 | 11,369 |
NET ASSETS | 1,389,174 | 1,143,103 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 1,000 | 1,000 |
Share premium | 19 | 114,219 | 114,219 |
Retained earnings | 19 | 1,071,189 | 891,747 |
SHAREHOLDERS' FUNDS | 1,186,408 | 1,006,966 |
NON-CONTROLLING INTERESTS | 20 | 202,766 | 136,137 |
TOTAL EQUITY | 1,389,174 | 1,143,103 |
The financial statements were approved by the Board of Directors and authorised for issue on 20 February 2024 and were signed on its behalf by: |
M Foster - Director |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Company Balance Sheet |
31 May 2023 |
31.5.23 | 31.5.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Cash at bank |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Share premium | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 266,652 | 160,001 |
The financial statements were approved by the Board of Directors and authorised for issue on |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 May 2023 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 June 2021 | 1,000 | 851,488 | 114,219 |
Changes in equity |
Dividends | - | (160,000 | ) | - |
Total comprehensive income | - | 200,259 | - |
Balance at 31 May 2022 | 1,000 | 891,747 | 114,219 |
Changes in equity |
Dividends | - | (266,666 | ) | - |
Total comprehensive income | - | 446,108 | - |
Balance at 31 May 2023 | 1,000 | 1,071,189 | 114,219 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1 June 2021 | 966,707 | 161,372 | 1,128,079 |
Changes in equity |
Dividends | (160,000 | ) | (40,022 | ) | (200,022 | ) |
Total comprehensive income | 200,259 | 14,787 | 215,046 |
Balance at 31 May 2022 | 1,006,966 | 136,137 | 1,143,103 |
Changes in equity |
Dividends | (266,666 | ) | - | (266,666 | ) |
Total comprehensive income | 446,108 | 66,629 | 512,737 |
Balance at 31 May 2023 | 1,186,408 | 202,766 | 1,389,174 |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Company Statement of Changes in Equity |
for the Year Ended 31 May 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 June 2021 |
Changes in equity |
Dividends | - | ( | ) | - | ( | ) |
Total comprehensive income | - | - |
Balance at 31 May 2022 | 1,000 | 595,460 | 114,219 | 710,679 |
Changes in equity |
Dividends | - | ( | ) | - | ( | ) |
Total comprehensive income | - | - |
Balance at 31 May 2023 |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Consolidated Cash Flow Statement |
for the Year Ended 31 May 2023 |
31.5.23 | 31.5.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 277,561 | 63,656 |
Interest paid | (16,926 | ) | (18,675 | ) |
Tax paid | (72,384 | ) | (35,887 | ) |
Net cash from operating activities | 188,251 | 9,094 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (210,257 | ) | (6,593 | ) |
Sale of tangible fixed assets | 14,691 | - |
Interest received | 2,428 | 108 |
Net cash from investing activities | (193,138 | ) | (6,485 | ) |
Cash flows from financing activities |
Capital repayments in year | - | (3,899 | ) |
Amount withdrawn by directors | - | (49 | ) |
Equity dividends paid | (266,666 | ) | (160,000 | ) |
Net cash from financing activities | (266,666 | ) | (163,948 | ) |
Decrease in cash and cash equivalents | (271,553 | ) | (161,339 | ) |
Cash and cash equivalents at beginning of year | 2 | 299,840 | 499,703 |
Cash and cash equivalents at end of year | 2 | (36,949 | ) | 299,840 |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Company Cash Flow Statement |
for the Year Ended 31 May 2023 |
31.5.23 | 31.5.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( | ) | ( | ) |
Net cash from operating activities | ( | ) | ( | ) |
Cash flows from investing activities |
Dividends received |
Net cash from investing activities |
Cash flows from financing activities |
Equity dividends paid | ( | ) | ( | ) |
Net cash from financing activities | ( | ) | ( | ) |
(Decrease)/increase in cash and cash equivalents | ( | ) |
Cash and cash equivalents at beginning of year | 2 | 24 |
Cash and cash equivalents at end of year | 2 | 11 | 25 |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Notes to the Cash Flow Statements |
for the Year Ended 31 May 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Group |
31.5.23 | 31.5.22 |
£ | £ |
Profit before taxation | 746,550 | 280,423 |
Depreciation charges | 113,418 | 101,193 |
(Profit)/loss on disposal of fixed assets | (315 | ) | 175 |
Government grants | (1,500 | ) | (1,500 | ) |
Finance costs | 16,926 | 18,675 |
Finance income | (2,428 | ) | (108 | ) |
872,651 | 398,858 |
Increase in trade and other debtors | (853,828 | ) | (452,076 | ) |
Increase in trade and other creditors | 258,738 | 116,874 |
Cash generated from operations | 277,561 | 63,656 |
Company |
31.5.23 | 31.5.22 |
£ | £ |
Profit for the financial year |
Finance income | (266,666 | ) | (160,080 | ) |
Cash generated from operations | ( | ) | ( | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statements in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Group | Company |
Year ended 31 May 2023 |
31.5.23 | 1.6.22 | 31.5.23 | 1.6.22 |
£ | £ | £ | £ |
Cash and cash equivalents | 4,054 | 299,840 | 11 | 25 |
Bank overdrafts | (41,003 | ) | - |
(36,949 | ) | 299,840 | 11 | 25 |
Year ended 31 May 2022 |
31.5.22 | 1.6.21 | 31.5.22 | 1.6.21 |
£ | £ | £ | £ |
Cash and cash equivalents | 299,840 | 499,703 | 25 | 24 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
Group |
At 1.6.22 | Cash flow | At 31.5.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 299,840 | (295,786 | ) | 4,054 |
Bank overdrafts | - | (41,003 | ) | (41,003 | ) |
299,840 | (336,789 | ) | (36,949 | ) |
Total | 299,840 | (336,789 | ) | (36,949 | ) |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Notes to the Cash Flow Statements |
for the Year Ended 31 May 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) - continued |
Company |
At 1.6.22 | Cash flow | At 31.5.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 25 | (14 | ) | 11 |
Bank overdrafts | - | - | - |
25 | (14 | ) | 11 |
Total | 25 | (14 | ) | 11 |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 May 2023 |
1. | STATUTORY INFORMATION |
FPR GROUP LIMITED is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and estimates |
The preparation of the financial statements requires management to make judgements, estimates and |
assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the |
amounts reported for revenues and expenses during the year. However, the nature of estimation means that |
actual outcomes could differ from those estimates. The following judgements (apart from those involving |
estimates) have had the most significant effect on amounts recognised in the financial statements. |
Turnover |
All revenues arises from the rendering of services. Revenue is measured at the fair value of the consideration received or receivable, excluding discounts and VAT. |
Revenues arising from temporary personnel services are recognised when the services are rendered and |
timesheets submitted. Revenues from permanent placement services are recognised at the time the candidate begins full-time employment and an allowance is established for non-fulfilment of permanent placement obligations. |
Where the company acts as a principal in transactions and has risks and rewards of ownership (such as the |
liability for the cost of temporary personnel and the risk of loss for collection and performance of pricing |
adjustments), the gross amounts of turnover and cost of sales are recorded. |
Goodwill |
Goodwill is the difference between amounts paid on the acquisition of a business an the fair value of the separable net assets. it is amortised to profit and loss over its estimated economic life. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Financial instruments |
Cash and cash equivalents |
Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less. |
Short-term debtors and creditors |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at |
transaction price. Any losses arising from impairment are recognised in profit or loss under other operating |
expenses. |
The carrying value of all financial assets and liabilities are measured at amortised cost. |
Long-term debtors and creditors |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at |
transaction price. |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
31.5.23 | 31.5.22 |
£ | £ |
Temporary sales | 18,238,265 | 14,232,453 |
Permanent placements | 501,408 | 379,319 |
Client recharges | 42,456 | 26,728 |
18,782,129 | 14,638,500 |
An analysis of turnover by geographical market is given below: |
31.5.23 | 31.5.22 |
£ | £ |
United Kingdom | 18,782,129 | 14,638,500 |
18,782,129 | 14,638,500 |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
4. | EMPLOYEES AND DIRECTORS |
31.5.23 | 31.5.22 |
£ | £ |
Wages and salaries | 1,325,554 | 1,146,917 |
Social security costs | 173,929 | 146,706 |
Other pension costs | 162,247 | 120,931 |
1,661,730 | 1,414,554 |
The average number of employees during the year was as follows: |
31.5.23 | 31.5.22 |
Sales and administrative staff | 40 | 34 |
Temporary staff | 724 | 667 |
In addition to the wages and salaries shown above and included within the Administrative Expenses, there is a further £15,230,358 (made up of wages and salaries = £14,151,866, Social Security costs = £957,883, and other Pensions costs = £120,608 (2022: £11,987,673 made up of wages and salaries = £11,193,426, Social Security costs = £704,577, and other Pensions costs = £99,508)) wages which is included in cost of sales. |
31.5.23 | 31.5.22 |
£ | £ |
Directors' remuneration | 211,666 | 166,930 |
Directors' pension contributions to money purchase schemes | 123,660 | 80,950 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 3 |
Information regarding the highest paid director for the year ended 31 May 2023 is as follows: |
31.5.23 |
£ |
Emoluments etc | 91,666 |
Pension contributions to money purchase schemes | 60,000 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.5.23 | 31.5.22 |
£ | £ |
Hire of plant and machinery | 10,500 | 12,464 |
Other operating leases | 86,363 | 74,000 |
Depreciation - owned assets | 57,959 | 45,803 |
(Profit)/loss on disposal of fixed assets | (315 | ) | 175 |
Goodwill amortisation | 55,389 | 55,389 |
Auditors' remuneration | 15,100 | 3,050 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.5.23 | 31.5.22 |
£ | £ |
Invoice discount interest | 930 | 348 |
Invoice discount commission | 15,996 | 18,327 |
16,926 | 18,675 |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.5.23 | 31.5.22 |
£ | £ |
Current tax: |
UK corporation tax | 159,255 | 72,370 |
Deferred tax | 7,892 | (6,993 | ) |
Tax on profit | 167,147 | 65,377 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.5.23 | 31.5.22 |
£ | £ |
Profit before tax | 746,550 | 280,423 |
Profit multiplied by the standard rate of corporation tax in the UK of 20 % (2022 - 19 %) | 149,310 | 53,280 |
Effects of: |
Expenses not deductible for tax purposes | 12,387 | 11,241 |
Capital allowances in excess of depreciation | (2,442 | ) | - |
Depreciation in excess of capital allowances | - | 7,849 |
Deferred tax | 7,892 | (6,993 | ) |
Total tax charge | 167,147 | 65,377 |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
31.5.23 | 31.5.22 |
£ | £ |
Ordinary shares of £1 each |
Interim | 266,666 | 160,000 |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 June 2022 |
and 31 May 2023 | 604,250 |
AMORTISATION |
At 1 June 2022 | 443,112 |
Amortisation for year | 55,389 |
At 31 May 2023 | 498,501 |
NET BOOK VALUE |
At 31 May 2023 | 105,749 |
At 31 May 2022 | 161,138 |
11. | TANGIBLE FIXED ASSETS |
Group |
Improvements | Fixtures |
to | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 June 2022 | 55,430 | 138,018 | 24,352 | 119,990 | 337,790 |
Additions | 41,220 | 93,945 | 2,725 | 72,367 | 210,257 |
Disposals | (3,550 | ) | (39,601 | ) | (12,938 | ) | (39,643 | ) | (95,732 | ) |
At 31 May 2023 | 93,100 | 192,362 | 14,139 | 152,714 | 452,315 |
DEPRECIATION |
At 1 June 2022 | 28,184 | 105,788 | 23,303 | 80,237 | 237,512 |
Charge for year | 13,553 | 21,710 | 953 | 21,743 | 57,959 |
Eliminated on disposal | (3,018 | ) | (37,470 | ) | (12,938 | ) | (27,930 | ) | (81,356 | ) |
At 31 May 2023 | 38,719 | 90,028 | 11,318 | 74,050 | 214,115 |
NET BOOK VALUE |
At 31 May 2023 | 54,381 | 102,334 | 2,821 | 78,664 | 238,200 |
At 31 May 2022 | 27,246 | 32,230 | 1,049 | 39,753 | 100,278 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 June 2022 |
and 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
31.5.23 | 31.5.22 |
£ | £ |
Trade debtors | 3,122,686 | 2,278,303 |
Other debtors | 16,552 | 15,650 |
Prepayments | 62,305 | 53,762 |
3,201,543 | 2,347,715 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
31.5.23 | 31.5.22 |
£ | £ |
Bank loans and overdrafts (see note 15) | 41,003 | - |
Trade creditors | 69,278 | 33,371 |
Tax | 159,241 | 72,370 |
Social security and other taxes | 347,042 | 301,035 |
VAT | 947,031 | 791,585 |
Other creditors | 634,060 | 557,886 |
Invoice discounting liability | (56,544 | ) | (1,748 | ) |
2,141,111 | 1,754,499 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
31.5.23 | 31.5.22 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 41,003 | - |
16. | FINANCIAL INSTRUMENTS |
The company has a Fixed and Floating Charge with RBS Invoice Finance Limited. |
Amount secured |
All monies due or to become due from the company to the chargee under the terms of the aforementioned instrument creating or evidencing the charge |
Short particulars |
Fixed and floating charges over the undertaking and all property and assets present and future including goodwill bookdebts uncalled capital buildings fixtures fixed plant and machinery. |
17. | PROVISIONS FOR LIABILITIES |
Group |
31.5.23 | 31.5.22 |
£ | £ |
Deferred tax | 19,261 | 11,369 |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
17. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 June 2022 | 11,369 |
Provided during year | 7,892 |
Balance at 31 May 2023 | 19,261 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.5.23 | 31.5.22 |
value: | £ | £ |
Ordinary | £1 | 1,000 | 1,000 |
19. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 June 2022 | 891,747 | 114,219 | 1,005,966 |
Profit for the year | 446,108 | 446,108 |
Dividends | (266,666 | ) | (266,666 | ) |
At 31 May 2023 | 1,071,189 | 114,219 | 1,185,408 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 June 2022 | 709,679 |
Profit for the year |
Dividends | ( | ) | ( | ) |
At 31 May 2023 | 709,665 |
20. | NON-CONTROLLING INTERESTS |
The minority interest shown in the Balance Sheet as at 31st May 2023 is £202,766 (2022: £136,137). |
21. | RELATED PARTY DISCLOSURES |
Key management personnel of the entity or its parent (in the aggregate) |
31.5.23 | 31.5.22 |
£ | £ |
Dividends | 266,666 | 160,000 |
FPR GROUP LIMITED (Registered number: 09358207) |
previously known as First People Recruitment Group |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
21. | RELATED PARTY DISCLOSURES - continued |
M Foster |
During the year dividends amounting to £133,333 (2022: £80,000) were paid from First People Recruitment Holdings Limited and £66,666 (2022: £40,020) were paid from First People Recruitment Limited. |
P G Simpson |
During the year dividends amounting to £133,333 (2022: £80,000) were paid from First People Recruitment Holdings Limited. |
22. | ULTIMATE CONTROLLING PARTY |
Mr Mark Foster and Mr Paul Simpson each have a 50% equity interest in the Company and are the controlling parties. |