REGISTERED NUMBER: 10299571 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
FOR |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES |
REGISTERED NUMBER: 10299571 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
FOR |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
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 | 4 |
Statement of Directors' Responsibilities | 5 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 14 |
Consolidated Statement of Changes in Equity | 16 |
Company Statement of Changes in Equity | 17 |
Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Cash Flow Statement | 19 |
Notes to the Consolidated Financial Statements | 21 |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MAY 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditor |
3 Durrant Road |
Bournemouth |
Dorset |
BH2 6NE |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
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. |
Principal activity |
The principal activity of the group is in the EdTech sector, providing careers development, training, and employment opportunities in its target sectors, with a focus on high-in-demand tech skills. |
Fair review of the business |
The group operates a digitally driven business model that focuses on the provision of industry leading training and qualifications, combined with careers support and access to employment opportunities, to help individuals re-skill and secure new roles. |
At the core of the group's mission is a strong focus to deliver social as well as economic value on behalf of its customers, aiming to break down the barriers to prosperous careers for individuals from disadvantaged backgrounds and to help improve diversity and inclusion across the industries the businesses specialise in. |
The 'Hatch Digital Skills' (formerly 'R2W Infinity Global.IO') subsidiary, which was a start-up enterprise launched in 2019, operates a B2B revenue model and specialises in high-in-demand digital skills, working with major technology companies to solve their growing digital skills gaps, sourcing, training and placing new talent into industry, often from non-traditional backgrounds. |
The group has been successful in raising ongoing funding from shareholders to support the growth and market roll-out of the Hatch Digital proposition, securing new B2B customers and investing in its innovative delivery model. |
The group was also the parent company of 'The Training Room' subsidiary until November 2022. The Training Room operates a B2C revenue model, providing online training, dedicated tutor support and careers support. The business specialises in the Health & Fitness industry as well as operating in the IT and Education sectors. To help improve access to its products and services, the business also provides a student financing option to customers to improve affordability and accessibility. |
Due to the economic impact of Covid-19 and wider labour market dynamics, demand for The Training Room's products materially declined from the second half of 2021 and into 2022 and as a result, with the support of its secured creditor, the business was placed into Administration in November 2022. It continues to trade and provide services to all existing customers to ensure their education is delivered and loan repayments are collected. |
Moving into 2023 and beyond, route2work's strategic priorities are firmly focused on Hatch Digital Skills, B2B revenue models and the tech skills sector. |
In support of the business, in the summer of 2023, the balance sheet was materially strengthened following the approval to convert c. £5.5m of loan notes into ordinary equity, demonstrating the positive long-term view of the loan note holders. |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2023 |
REVIEW OF BUSINESS |
Results & performance |
The Board monitors the progress of the business through the following KPI's and the results below are for continuing operations: |
o Revenue: £2,752,825 (2022: £5,197,250) |
o Gross profit margin: 44% (2022: 25%) |
o Cash flow for the year: -£109,474 (2022: -£204,761) |
Revenue has decreased by 47% in a challenging consumer market, affected by COVID and overall labour and economic conditions; the business market has proven to be more resilient. the Gross Profit has been impacted by price pressure in the market, partially compensated by cost saving and efficiency in the operating model and by investment in our B2B channel that is experiencing increasing demand. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The process of risk assessment and risk management is addressed through a framework of policies, procedures, and internal controls. All policies are subject to Board approval and ongoing review by management. Compliance with regulation, legal and ethical standards is a high priority for the Board. |
The Board is responsible for satisfying itself that a robust internal control framework exists to manage financial risks and to ensure that the business operates effectively. |
The main risks that the business has faced over the last 12 months relates to a decrease in demand for new tech hires in the UK economy, impacting the positive growth rate seen in the group's B2B proposition in 2022 and the first half of 2023. This is being mitigated by the development of potential opportunities outside of the UK, as well as new product development to support the upskilling of existing staff within our customer base. |
In 2023, further investment has been secured from current shareholders to support the ongoing development and working capital of Hatch Digital Skills subsidiary. The group aims to raise further funding in 2024. |
FUTURE OUTLOOK |
Entering 2024, the business aims to grow its revenues in the B2B digital & tech sector through securing new orders through established customers, new customer acquisition supported by the roll out of new marketing initiatives, expand into new markets and the launch of new products of services. |
The Board remains focused on accelerating growth, improving financial performance in-year and delivering a significant uplift in the forward order book. |
ON BEHALF OF THE BOARD: |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
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. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the provision of technical and vocational secondary education. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 May 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
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. |
AUDITORS |
The auditors, Carter & Coley Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
FOR THE YEAR ENDED 31 MAY 2023 |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES |
Opinion |
We have audited the financial statements of Route2Work Limited and its subsidiaries (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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. |
Material uncertainty relating to going concern |
We draw attention to note 2 of the financial statements which indicates that the company is dependent on continuing to obtain funding for future cashflow requirements. These conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. |
Our opinion is not modified in respect of this matter. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report, the Report of the Directors and the Statement of Directors' Responsibilities, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES |
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. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in making accounting estimates. Audit procedures performed by the engagement team included - |
Inspecting correspondence with regulators and tax authorities |
Discussion with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud |
Evaluating management's controls designed to prevent and detect irregularities |
Identifying and testing journals, in particular journal entries posted with an unusual account combinations, postings by unusual account users or with unusual descriptions |
Challenging assumptions and judgements made by management in their accounting estimates |
Completing analytical work, to include comparison with prior periods |
Reviewing financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES |
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 and Statutory Auditor |
3 Durrant Road |
Bournemouth |
Dorset |
BH2 6NE |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 2,752,825 | 5,197,250 |
Cost of sales | 1,543,212 | 3,875,618 |
GROSS PROFIT | 1,209,613 | 1,321,632 |
Administrative expenses | 397,415 | 4,790,043 |
OPERATING PROFIT/(LOSS) | 4 | 812,198 | (3,468,411 | ) |
Interest payable and similar expenses | 6 | 805,020 | 861,808 |
PROFIT/(LOSS) BEFORE TAXATION | 7,178 | (4,330,219 | ) |
Tax on profit/(loss) | 7 | (114,539 | ) | (2,346 | ) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
Profit/(loss) attributable to: |
Owners of the parent | 121,717 | (4,327,873 | ) |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | 121,717 | (4,327,873 | ) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
121,717 |
(4,327,873 |
) |
Total comprehensive income attributable to: |
Owners of the parent | 121,717 | (4,327,873 | ) |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
CONSOLIDATED BALANCE SHEET |
31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 43,333 | 110,000 |
Tangible assets | 10 | 2,368 | 2,179 |
Investments | 11 | - | - |
45,701 | 112,179 |
CURRENT ASSETS |
Stocks | 12 | - | 8,389 |
Debtors | 13 | 114,599 | 5,835,809 |
Cash at bank and in hand | 40,074 | 149,548 |
154,673 | 5,993,746 |
CREDITORS |
Amounts falling due within one year | 14 | 2,217,116 | 10,489,395 |
NET CURRENT LIABILITIES | (2,062,443 | ) | (4,495,649 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
(2,016,742 |
) |
(4,383,470 |
) |
CREDITORS |
Amounts falling due after more than one year |
15 |
(6,449,264 |
) |
(4,833,640 |
) |
PROVISIONS FOR LIABILITIES | 18 | (629,386 | ) | - |
NET LIABILITIES | (9,095,392 | ) | (9,217,110 | ) |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
CONSOLIDATED BALANCE SHEET - continued |
31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 19 | 4,949,823 | 4,949,823 |
Share premium | 20 | 2,380,734 | 2,380,734 |
Capital redemption reserve | 20 | 208 | 208 |
Retained earnings | 20 | (16,426,157 | ) | (16,547,875 | ) |
SHAREHOLDERS' FUNDS | (9,095,392 | ) | (9,217,110 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on 9 February 2024 and were signed on its behalf by: |
G Ferro - Director |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
COMPANY BALANCE SHEET |
31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
( |
) |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) |
NET LIABILITIES | ( |
) | ( |
) |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
COMPANY BALANCE SHEET - continued |
31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium | 20 |
Capital redemption reserve | 20 |
Retained earnings | 20 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
Company's loss for the financial year | (2,728,760 | ) | (1,861,680 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MAY 2023 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 June 2021 | 4,939,025 | (12,220,002 | ) | 2,041,479 | 208 | (5,239,290 | ) |
Changes in equity |
Increase in share capital | 10,798 | - | 339,255 | - | 350,053 |
Total comprehensive income | - | (4,327,873 | ) | - | - | (4,327,873 | ) |
Balance at 31 May 2022 | 4,949,823 | (16,547,875 | ) | 2,380,734 | 208 | (9,217,110 | ) |
Changes in equity |
Total comprehensive income | - | 121,717 | - | - | 121,717 |
Balance at 31 May 2023 | 4,949,823 | (16,426,158 | ) | 2,380,734 | 208 | (9,095,393 | ) |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MAY 2023 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 June 2021 | ( |
) | ( |
) |
Changes in equity |
Increase in share capital | 10,798 | - | 339,255 | - | 350,053 |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 May 2022 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 May 2023 | ( |
) | ( |
) |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (514,168 | ) | (365,899 | ) |
Interest paid | (145,325 | ) | (861,808 | ) |
Tax paid | - | 2,346 |
Net cash from operating activities | (659,493 | ) | (1,225,361 | ) |
Cash flows from investing activities |
Purchase of intangible fixed assets | - | (89,625 | ) |
Purchase of tangible fixed assets | (2,141 | ) | (1,605 | ) |
Sale of tangible fixed assets | 427 | 664 |
Net cash from investing activities | (1,714 | ) | (90,566 | ) |
Cash flows from financing activities |
New loans in year | 1,394,000 | - |
Loan repayments in year | (10,649 | ) | (9,761 | ) |
Issue of shares | - | 350,053 |
Loan debtor finance repayments | (831,618 | ) | - |
Other borrowing draw downs | - | 770,874 |
Net cash from financing activities | 551,733 | 1,111,166 |
Decrease in cash and cash equivalents | (109,474 | ) | (204,761 | ) |
Cash and cash equivalents at beginning of year |
2 |
149,548 |
354,309 |
Cash and cash equivalents at end of year | 2 | 40,074 | 149,548 |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2023 |
1. | RECONCILIATION OF OPERATING PROFIT/(LOSS) TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Operating profit/(loss) | 812,198 | (3,468,411 | ) |
Depreciation charges | 68,619 | 262,293 |
(Profit)/loss on disposal of fixed assets | (427 | ) | 280 |
Impairment | 114,539 | 88,869 |
Exceptional item - company leaving group | (1,470,801 | ) | - |
(475,872 | ) | (3,116,969 | ) |
Decrease in stocks | 8,389 | - |
Decrease in trade and other debtors | 789,606 | 1,928,754 |
(Decrease)/increase in trade and other creditors | (836,291 | ) | 822,316 |
Cash generated from operations | (514,168 | ) | (365,899 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 May 2023 |
31/5/23 | 1/6/22 |
£ | £ |
Cash and cash equivalents | 40,074 | 149,548 |
Year ended 31 May 2022 |
31/5/22 | 1/6/21 |
£ | £ |
Cash and cash equivalents | 149,548 | 354,309 |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/6/22 | Cash flow | At 31/5/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 149,548 | (109,474 | ) | 40,074 |
149,548 | (109,474 | ) | 40,074 |
Debt |
Debts falling due within 1 year | (5,973,326 | ) | 4,559,325 | (1,414,001 | ) |
Debts falling due after 1 year | (3,505,286 | ) | (1,383,105 | ) | (4,888,391 | ) |
(9,478,612 | ) | 3,176,220 | (6,302,392 | ) |
Total | (9,329,064 | ) | 3,066,746 | (6,262,318 | ) |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
1. | STATUTORY INFORMATION |
Route2Work Limited and its subsidiaries is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The financial statements have been prepared on a going concern basis as the directors and investors intend, as per the business plan, to continue to raise sufficient funds to cover the ongoing cashflow needs for a period of at least 12 months from the date of approving these financial statements, including funds from the Directors and main shareholders. |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
Basis of consolidation |
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of the business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent considerations after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for the final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at at cost less impairment. |
Deferred tax is recognised on differences between the value of the assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill. |
The consolidated financial statements incorporate those of Route2Work Limited and all its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes. |
All the financial statements are made up to 31st May 2023. One of the subsidiaries went into administration during the year and, with control having passed to the administrators, it has been treated as having left the group at that date. |
Where necessary, adjustments are made to the financial statements of subsidiaries to bring accounting policies used into line with those used by other members of the group. |
All intra-group transactions, balances and unrealized gains on transactions between group companies are eliminated on consolidation. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. |
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. In the group financial statements, joint ventures are accounted for using the equity method. |
Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates. In the group financial statements, associates are accounted for using the equity method. |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Revenue recognition |
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Group's activities. Revenue is shown net of value added tax, rebates and discounts. |
Revenue includes income received in respect of training and career support services. Students can enrol onto a three year course with full career support or opt for a training only course. Where courses are provided at a rate that is below market rate the course is discounted to the extent it is material. |
Revenue from students who opt for a training only option is recognised by reference to stage of completion of the training course. |
For full courses the training courses are provided at the start of the course and the majority of revenue is recognised at this time by the stage of completion of the training course. The remaining revenue is recognised over the remaining period of the service provided. |
Income received in advance and payments on account for training services are deferred and included within creditors. |
Student registration fees are recognised up front. Registration fees cover reservation of a student's place on a course, up front administrative costs and any registration fees with the awarding body. |
Business to business sales which includes training services and the sale of eLearning licences are recognised by reference to the terms within the contract. |
Finance income |
Revenue includes interest income due on credit agreements made with students. |
Interest income is recognised on an accruals basis based on the outstanding balance. |
Each interest rate is inherent to each individual loan agreement. |
Goodwill |
Goodwill is normally written off over 10 years however in the opinion of the directors its value has been impaired to nil. |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
An impairment loss has been recognised in the Consolidated Income Statement, following an assessment at the Consolidated Balance Sheet date indicating the recoverable amount was less than its carrying value. |
Tangible fixed assets |
Improvements to property | - |
Plant & machinery | - |
Fitness equipment | - |
Computer equipment | - |
Fixed assets are initially recognised at cost. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less any provision for impairment. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Classification |
The group holds the following financial instruments:- |
Short term trade and other debtors and creditors |
Long term loan debtors held at amortised cost |
Intercompany loans held at amortised cost; and |
Cash and bank balances |
All financial instruments are classified as basic. |
Recognition and measurement |
The group has chosen to apply the recognition and measurement principles in FRS102. |
Financial instruments are recognised when the group becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the asset expire or substantially all risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the group's obligations are discharged, expire or are cancelled. |
Except for the loan debtors finance facility and other loans, all other instruments are initially measured at transaction price, including transaction costs, and are substantially carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking into account impairment adjustments. |
The loan debtor finance facility is initially measured at transaction price, and is subsequently carried at amortised cost using the effective interest method. |
Other loans are measured at transaction price and subsequently carried at amortised cost. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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. |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
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 |
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. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,571,939 | 3,336,883 |
Social security costs | 181,874 | 358,282 |
Other pension costs | 22,341 | 56,488 |
1,776,154 | 3,751,653 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 5 | 4 |
Other | 33 | 79 |
The average number of employees by undertakings that were proportionately consolidated during the year was 23 (2022 - 83 ) . |
2023 | 2022 |
£ | £ |
Directors' remuneration | 324,948 | 424,402 |
Directors' pension contributions to money purchase schemes | 1,871 | 3,426 |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 180,350 | 179,800 |
Pension contributions to money purchase schemes | 770 | 1,320 |
4. | OPERATING PROFIT/(LOSS) |
The operating profit (2022 - operating loss) is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 613 | 2,497 |
Other operating leases | 51,888 | 637,330 |
Depreciation - owned assets | 1,952 | 19,460 |
(Profit)/loss on disposal of fixed assets | (427 | ) | 280 |
Patents and licences amortisation | 834 | 208 |
Software development amortisation | 65,833 | 242,625 |
Auditors' remuneration | 5,250 | 22,000 |
Foreign exchange differences | 251 | - |
5. | EXCEPTIONAL ITEMS |
A subsidiary entered into administration on 17 November 2022. As control of that company has been transferred to the administrators as described in note 2 the company is treated as having left the group on that date and this has resulted in net liabilities of £2,060,638 being derecognised in the group financial statements. |
A guarantee has been given to a funding provider in respect of loans to that subsidiary. The amount due by the subsidiary to the funding provider as at 31 May 2023 amounted to £629,386 and is included in other provisions. |
The net effect is a credit to the Income Statement of £1,431,252 (2022 £Nil). |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | 141,277 | 328,737 |
Interest on late tax | 4,049 | 8,228 |
Other interest paid | 659,694 | 524,843 |
805,020 | 861,808 |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
7. | TAXATION |
Analysis of the tax credit |
The tax credit on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | - | (2,346 | ) |
(Over)/under provision | (114,539 | ) | - |
Tax on profit/(loss) | (114,539 | ) | (2,346 | ) |
There are significant taxation losses which are carried forward within the group. |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and | Software |
Goodwill | licences | development | Totals |
£ | £ | £ | £ |
COST |
At 1 June 2022 | 5,162,615 | 2,500 | 1,257,583 | 6,422,698 |
Disposals | - | - | (1,005,084 | ) | (1,005,084 | ) |
At 31 May 2023 | 5,162,615 | 2,500 | 252,499 | 5,417,614 |
AMORTISATION |
At 1 June 2022 | 5,162,615 | 208 | 1,149,875 | 6,312,698 |
Amortisation for year | - | 834 | 65,833 | 66,667 |
Eliminated on disposal | - | - | (1,005,084 | ) | (1,005,084 | ) |
At 31 May 2023 | 5,162,615 | 1,042 | 210,624 | 5,374,281 |
NET BOOK VALUE |
At 31 May 2023 | - | 1,458 | 41,875 | 43,333 |
At 31 May 2022 | - | 2,292 | 107,708 | 110,000 |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
to | Plant & | Fitness | Computer |
property | machinery | equipment | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 June 2022 | 96,287 | 33,872 | 2,767 | 117,555 | 250,481 |
Additions | - | 2,141 | - | - | 2,141 |
Disposals | (96,287 | ) | (27,021 | ) | (2,767 | ) | (117,555 | ) | (243,630 | ) |
At 31 May 2023 | - | 8,992 | - | - | 8,992 |
DEPRECIATION |
At 1 June 2022 | 96,287 | 31,693 | 2,767 | 117,555 | 248,302 |
Charge for year | - | 1,952 | - | - | 1,952 |
Eliminated on disposal | (96,287 | ) | (27,021 | ) | (2,767 | ) | (117,555 | ) | (243,630 | ) |
At 31 May 2023 | - | 6,624 | - | - | 6,624 |
NET BOOK VALUE |
At 31 May 2023 | - | 2,368 | - | - | 2,368 |
At 31 May 2022 | - | 2,179 | - | - | 2,179 |
11. | FIXED ASSET INVESTMENTS |
Group |
Shares in |
group |
undertakings |
£ |
COST |
Reversal of impairments | 2,003 |
At 31 May 2023 | 2,003 |
PROVISIONS |
Reversal of impairments | 2,003 |
At 31 May 2023 | 2,003 |
NET BOOK VALUE |
At 31 May 2023 | - |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 June 2022 |
Reversal of impairments |
At 31 May 2023 |
PROVISIONS |
At 1 June 2022 |
and 31 May 2023 | 5,920,015 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 5th Floor, 167-169 Great Portland Street, London, W1W 5PW |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
Registered office: 5th Floor, 167-169 Great Portland Street, London, W1W 5PW |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Registered office: 5th Floor, 167-169 Great Portland Street, London, W1W 5PW |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Registered office: 5th Floor, 167-169 Great Portland Street, London, W1W 5PW |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
Registered office: 20 Old Bailey, London, EC4M 7AN |
Nature of business: |
% |
Class of shares: | holding |
TTR PT Limited entered administration on 17 November 2022. |
As at 31 May 2022 its aggregate capital and reserves were £(7,773,533) and the loss for for that year was £2,832,899. |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
Subsidiaries |
Details of the company's subsidiaries at 31 May 2023 are as follows |
Name of Undertaking |
Registered office |
Class of Shares held |
2023 |
2022 |
TTR PT Limited | United Kingdom | Ordinary | 100% | 100% |
Zoodle Solutions Limited | United Kingdom | Ordinary | 100% | 100% |
Route2Work Digital Limited | United Kingdom | Ordinary | 100% | 100% |
TTR E-Learning Limited | United Kingdom | Ordinary | 100% | 100% |
Hatch Digital Skills Ltd | United Kingdom | Ordinary | 100% | 100% |
The principal activity of TTR PT Limited was that of technical and vocational secondary education. TTR PT entered into administration on 17 November 2022. |
The principal activity of Hatch Digital Skills Limited is that of technical and vocational secondary education. |
Zoodle Solutions Limited, Route2Work Digital Limited and TTR E-Learning Limited were dormant throughout the current and previous period. |
12. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | - | 8,389 |
13. | DEBTORS |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year: |
Trade debtors | 77,046 | 3,244,231 |
Other debtors | 2,662 | 26,922 |
Prepayments and accrued income | 34,891 | 88,227 |
114,599 | 3,359,380 |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
13. | DEBTORS - continued |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due after more than one | year: |
Trade debtors | - | 2,476,429 |
Aggregate amounts | 114,599 | 5,835,809 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 9,973 | 4,569,298 |
Other loans (see note 16) | 1,404,028 | 1,404,028 |
Trade creditors | 152,353 | 610,557 |
Amounts owed to group undertakings | - | - |
Social security and other taxes | 65,416 | 342,493 |
VAT | 11,433 | 1,593,296 | - | - |
Other creditors | - | 2,000 |
Pension payable | 2,015 | 1,959 | - | - |
Payments on account | - | 92,550 | - | - |
Accruals and deferred income | 571,898 | 1,873,214 |
2,217,116 | 10,489,395 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 16) | 19,617 | 30,512 |
Other loans (see note 16) | 4,868,774 | 3,474,774 |
Accruals and deferred income | 1,560,873 | 1,328,354 |
6,449,264 | 4,833,640 |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 9,973 | 4,569,298 |
Other loans | 1,404,028 | 1,404,028 |
1,414,001 | 5,973,326 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 10,225 | 9,973 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 9,392 | 20,539 |
Other loans - 2-5 years | 4,868,774 | 3,474,774 |
4,878,166 | 3,495,313 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Bank loans | 29,590 | 4,599,810 |
The loans are secured by fixed and floating charges over the group's assets. |
18. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Other provisions | 629,386 | - | 629,386 | - |
Aggregate amounts | 629,386 | - | 629,386 | - |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
Various group members have given a guarantee to a funding provider in respect of loans to a subsidiary. The amount due on these loans by the subsidiary to the funding provider as at 31 May 2023 amounted to £629,386. |
The subsidiary entered into administration on 17 November 2022 and it is probable that this guarantee will be called upon. |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Nominal | 2022 | 2022 |
Number: | Class: | value: | £ | £ |
45,653 | A Ordinary | £1 | 45,653 | 45,653 |
234,166 | B Ordinary | £1 | 234,166 | 234,166 |
3,885,000 | Preferred | £1 | 3,885,000 | 3,885,000 |
785,000 | Convertible preference shares | £1 | 785,000 | 785,000 |
3,830 | C Ordinary | 0.1p | 4 | 4 |
4,949,823 | 4,939,823 |
20. | RESERVES |
Group |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 June 2022 | (16,547,874 | ) | 2,380,734 | 208 | (14,166,932 | ) |
Profit for the year | 121,717 | 121,717 |
At 31 May 2023 | (16,426,157 | ) | 2,380,734 | 208 | (14,045,215 | ) |
Company |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 June 2022 | ( |
) | (11,187,011 | ) |
Deficit for the year | ( |
) | ( |
) |
At 31 May 2023 | ( |
) | (13,915,771 | ) |
ROUTE2WORK LIMITED AND ITS SUBSIDIARIES (REGISTERED NUMBER: |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
20. | RESERVES - continued |
21. | RELATED PARTY DISCLOSURES |
GROUP |
Summary of transactions with other related parties |
During the year, the group purchased goods and services totalling £NIL (2022 - £35,918) from a company controlled by a director.The amount due to the related party at the balance sheet date amounted to £NIL (2022 - £14,835). |
Included in current and non current borrowings are loans due to directors of the company. At the balance sheet date the amount due to directors within one year was £29,028 (2022- £29,028) and the amount due to directors after one year was £4,868,774 (2022 - £3,474,774). Interest included in the profit and loss account for the year amounted to £443,694 (2022 - £287,843). The amount included in accruals at the balance sheet date amounted to £1,562,520 (2022 - £1,118,826). |
COMPANY |
Summary of transactions with other related parties |
During the year, the group purchased goods and services totalling £NIL (2022 - £35,918) from a company controlled by a director.The amount due to the related party at the balance sheet date amounted to £NIL (2022 - £14,835). |
Included in current and non current borrowings are loans due to directors of the company. At the balance sheet date the amount due to directors within one year was £29,028 (2022- £29,028) and the amount due to directors after one year was £4,868,774 (2022 - £3,474,774). Interest included in the profit and loss account for the year amounted to £443,694 (2022 - £287,843). The amount included in accruals at the balance sheet date amounted to £1,562,520 (2022 - £1,118,826). |
22. | SHARE-BASED PAYMENT TRANSACTIONS |
On 1 June 2021 the parent company granted 70,500 share options to employees and directors of a fellow subsidiary under an Enterprise Management Incentive scheme at a weighted average exercise price of 0.01p per share. |
During the current year, 14,604 options were forfeited (2022 - Nil). At 31 May 2023, none of the options had been exercised, with 55,896 options remaining outstanding. No amounts have been reflected in the accounts on the basis that any adjustment would not be material. |
On 1 June 2021 the parent company granted 25,641 share options to employees and directors of a fellow subsidiary under an Unapproved scheme at a weighted average exercise price of 0.01p per share. |
During the current year, 7,711 options were forfeited (2022 - Nil). At 31 May 2023, 3,830 of the options had been exercised, with 14,100 options remaining outstanding. No amounts have been reflected in the financial statements on the basis that any adjustment would not be material. |