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Registered number: 04651426









REMEDY RECRUITMENT GROUP LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2023

 
REMEDY RECRUITMENT GROUP LIMITED
 
 
COMPANY INFORMATION


Directors
D B Sugarman 
D Berg 
L G Burner 
R P Stockman 
C Sinclair (appointed 31 January 2023)




Company secretary
M L Sugarman



Registered number
04651426



Registered office
Suite F101 First Floor Sterling House
Langston Road

Loughton

Essex

IG10 3TS




Independent auditors
Haslers
Chartered Accountants & Statutory Auditor

Old Station Road

Loughton

Essex

IG10 4PL





 
REMEDY RECRUITMENT GROUP LIMITED
 

CONTENTS



Page
Strategic Report
 
1
Directors' Report
 
2
Directors' Responsibilities Statement
 
3
Independent Auditors' Report
 
4 - 7
Statement of Comprehensive Income
 
8
Balance Sheet
 
9
Statement of Changes in Equity
 
10
Statement of Cash Flows
 
11 - 12
Analysis of Net Debt
 
13
Notes to the Financial Statements
 
14 - 26


 
REMEDY RECRUITMENT GROUP LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2023

Introduction
 
This report provides an overview of our company’s performance and strategy for the financial year ending 30 April 2023. Our company, a leading temporary recruitment agency in the UK, has continued to navigate the challenges and opportunities in the recruitment sector. 

Business review
 
Our business model is centered around providing high-quality temporary staffing solutions to businesses across the Social work, Education and Medical sectors. Our strategy involves leveraging our extensive network, robust screening processes, and industry knowledge to meet our clients’ unique needs. Despite the challenges faced in the year ended 30 April 2023, our company has demonstrated resilience and adaptability. We remain committed to our mission of connecting businesses with the right talent, and we look forward to building on our successes in the coming year. 

Principal risks and uncertainties
 
The recruitment industry faces several risks and uncertainties, including economic fluctuations and changes in employment laws. We have risk management strategies in place to mitigate these challenges. 

Key performance indicators
 
Our key performance indicators include the number of successful placements, candidate margins, and the growth of our client base. For the year under review many of these slipped partly due to strikes in the Education sector and various internal issues. However, since then we have seen positive trends in these areas. 

Market overview and position
 
The temporary recruitment market has shown resilience amidst economic uncertainties. Our company has maintained a strong position in the market, thanks to our commitment to quality and client satisfaction. 


This report was approved by the board on 6 March 2024 and signed on its behalf.



D B Sugarman
Director

Page 1

 
REMEDY RECRUITMENT GROUP LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2023

The directors present their report and the financial statements for the year ended 30 April 2023.

Results and dividends

The loss for the year, after taxation, amounted to £58,877 (2022 - profit £179,522).

Dividends amounting to £265,000 (2022 : £128,445) were paid in the year.

Directors

The directors who served during the year were:

D B Sugarman 
D Berg 
L G Burner 
R P Stockman 
C Sinclair (appointed 31 January 2023)

Future developments

Looking ahead, we aim to further strengthen our market position and enhance our service offerings. We will continue to invest in our people, technology, and processes to drive growth and deliver value to our clients. 

Disclosure of information to auditors

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

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

Post balance sheet events

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

Auditors

The auditorsHaslerswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 6 March 2024 and signed on its behalf.
 





D B Sugarman
Director

Page 2

 
REMEDY RECRUITMENT GROUP LIMITED
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2023

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;


prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 3

 
REMEDY RECRUITMENT GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF REMEDY RECRUITMENT GROUP LIMITED
 

Opinion


We have audited the financial statements of Remedy Recruitment Group Limited (the 'Company') for the year ended 30 April 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 30 April 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 4

 
REMEDY RECRUITMENT GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF REMEDY RECRUITMENT GROUP LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
REMEDY RECRUITMENT GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF REMEDY RECRUITMENT GROUP LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that:
• had a direct effect on the determination of material amounts and disclosures in the financial statements.    These included the UK Companies Act and tax legislation etc; and
• do not have a direct effect on the financial statements but compliance with which may be fundamental to   the company’s ability to operate or to avoid a material penalty. These include those rules governing the    recruitment industry; specifically IR35 and compliance with DTI Conduct of Employee Agencies 2003 and   Immigration Laws. 
We obtained an understanding of how the company are complying with those legal and regulatory frameworks by making inquiries to the management. Review of legal and professional transactions were carried out to ensure this information was corroborated.  
We discussed among the audit engagement team regarding the opportunities and incentives, including management override of controls, that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
Procedures performed to address these were as follows: 
• Identifying and assessing the design effectiveness of controls management has in place to prevent and    detect fraud, 
• Understanding how those charged with governance considered and addressed the potential for override of  controls or other inappropriate influence over the financial reporting process, 
• Challenging assumptions and judgements made by management in its significant accounting estimates,
• Identifying and testing journal entries, in particular any unusual journal entries posted around the year-end   and journal entries posted by infrequent system users; and 
• Carrying out substantive testing for expenditure to cover authorisation inline with financial procedures. 


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

Page 6

 
REMEDY RECRUITMENT GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF REMEDY RECRUITMENT GROUP LIMITED (CONTINUED)



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


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Christina Georgiou (Senior Statutory Auditor)
for and on behalf of
Haslers
Chartered Accountants
Statutory Auditor
Old Station Road
Loughton
Essex
IG10 4PL

6 March 2024
Page 7

 
REMEDY RECRUITMENT GROUP LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2023

2023
2022
Note
£
£

  

Turnover
 4 
43,271,903
34,921,831

Cost of sales
  
(37,944,657)
(30,865,383)

Exceptional cost of sales
  
-
7,762

Gross profit
  
5,327,246
4,064,210

Administrative expenses
  
(5,166,405)
(4,027,134)

Other operating income
 5 
-
151,518

Operating profit
 6 
160,841
188,594

Interest receivable and similar income
  
-
9,768

Interest payable and similar expenses
 10 
(109,165)
(338)

Profit before tax
  
51,676
198,024

Tax on profit
 11 
(110,553)
(18,502)

(Loss)/profit for the financial year
  
(58,877)
179,522

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

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

The notes on pages 14 to 26 form part of these financial statements.

Page 8

 
REMEDY RECRUITMENT GROUP LIMITED
REGISTERED NUMBER: 04651426

BALANCE SHEET
AS AT 30 APRIL 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 14 
13,853
43,346

  
13,853
43,346

Current assets
  

Debtors: amounts falling due within one year
 15 
6,513,341
7,187,172

Cash at bank and in hand
 16 
1,391
12,961

  
6,514,732
7,200,133

Creditors: amounts falling due within one year
 17 
(4,678,020)
(5,069,037)

Net current assets
  
 
 
1,836,712
 
 
2,131,096

Total assets less current liabilities
  
1,850,565
2,174,442

  

Net assets
  
1,850,565
2,174,442


Capital and reserves
  

Called up share capital 
 19 
100
100

Capital redemption reserve
  
18
18

Profit and loss account
  
1,850,447
2,174,324

  
1,850,565
2,174,442


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 6 March 2024.




D B Sugarman
Director

The notes on pages 14 to 26 form part of these financial statements.

Page 9

 
REMEDY RECRUITMENT GROUP LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 1 May 2022
100
18
2,174,324
2,174,442


Comprehensive income for the year

Loss for the year
-
-
(58,877)
(58,877)
Total comprehensive income for the year
-
-
(58,877)
(58,877)


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(265,000)
(265,000)


At 30 April 2023
100
18
1,850,447
1,850,565



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2022


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 1 May 2021
100
18
2,123,247
2,123,365


Comprehensive income for the year

Profit for the year
-
-
179,522
179,522


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(128,445)
(128,445)


At 30 April 2022
100
18
2,174,324
2,174,442


The notes on pages 14 to 26 form part of these financial statements.

Page 10

 
REMEDY RECRUITMENT GROUP LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
(58,877)
179,522

Adjustments for:

Depreciation of tangible assets
6,533
8,154

Loss on disposal of tangible assets
27,542
-

Government grants
-
(151,518)

Interest paid
109,165
338

Interest received
-
(9,768)

Taxation charge
110,553
18,502

Decrease/(increase) in debtors
666,738
(1,146,997)

(Decrease)/increase in creditors
(426,245)
831,166

Corporation tax (paid)
(68,232)
(202,669)

Net cash generated from operating activities

367,177
(473,270)
Page 11

 
REMEDY RECRUITMENT GROUP LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023


2023
2022

£
£




Cash flows from investing activities

Purchase of tangible fixed assets
(4,582)
(8,704)

Government grants received
-
151,518

Interest received
-
9,768

Net cash from investing activities

(4,582)
152,582

Cash flows from financing activities

Movements on invoice discounting
-
458,298

Dividends paid
(265,000)
(128,445)

Interest paid
(109,165)
(338)

Net cash used in financing activities
(374,165)
329,515

Net (decrease)/increase in cash and cash equivalents
(11,570)
8,827

Cash and cash equivalents at beginning of year
12,961
4,134

Cash and cash equivalents at the end of year
1,391
12,961


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,391
12,961

1,391
12,961


The notes on pages 14 to 26 form part of these financial statements.

Page 12

 
REMEDY RECRUITMENT GROUP LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 APRIL 2023




At 1 May 2022
Cash flows
At 30 April 2023
£

£

£

Cash at bank and in hand

12,961

(11,570)

1,391

Debt due within 1 year

(2,715,583)

1,142,518

(1,573,065)


(2,702,622)
1,130,948
(1,571,674)

The notes on pages 14 to 26 form part of these financial statements.

Page 13

 
REMEDY RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

1.


General information

Remedy Recruitment Group Limited is a private company, limited by shares, domiciled in England and Wales, registration number 04651426. The registered office is Suite F101 First Floor Sterling House, Langston Road, Loughton, Essex, United Kingdom, IG10 3TS. The principal activity of the company continued to be that of recruitment consultants.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

The financial statements are presented in £ sterling which is the functional currency of the company and rounded to the nearest pound sterling.

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.3

Operating leases: the Company as lessee

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

 
2.4

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

Page 14

 
REMEDY RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

2.Accounting policies (continued)

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Pensions

Defined contribution pension plan

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

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

 
2.8

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

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

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

 
2.9

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

Page 15

 
REMEDY RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

2.Accounting policies (continued)

 
2.10

Tangible fixed assets

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

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

Depreciation is provided on the following basis:

Fixtures and fittings
-
between 3 - 5 years

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

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

 
2.11

Debtors

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

 
2.12

Cash and cash equivalents

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

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

 
2.13

Creditors

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

 
2.14

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes
Page 16

 
REMEDY RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

2.Accounting policies (continued)


2.14
Financial instruments (continued)

party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is
Page 17

 
REMEDY RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

2.Accounting policies (continued)


2.14
Financial instruments (continued)

immaterial.

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

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

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.15

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 18

 
REMEDY RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In applying the Company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.
The directors do not believe that there have been judgements (apart from those involving estimates) made in the process of applying the above accounting policies that have had a significant effect on amounts recognised in the financial statements.  


4.


Turnover

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


2023
2022
£
£

Turnover
43,271,903
34,921,831

43,271,903
34,921,831


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Government grants receivable
-
151,518

-
151,518



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Other operating lease rentals
72,815
110,593

Page 19

 
REMEDY RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
19,750
18,000

8.


Employees

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


2023
2022
£
£

Wages and salaries
3,259,073
2,430,032

Social security costs
420,992
249,143

Cost of defined contribution scheme
28,187
97,523

3,708,252
2,776,698


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


        2023
        2022
            No.
            No.







Employees
52
50


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
958,190
580,011

Company contributions to defined contribution pension schemes
4,843
5,283

963,033
585,294


During the year retirement benefits were accruing to  directors £5,283 (2022 - £5,283) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £219,716 (2022 - £154,760).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,320 (2022 - £1,320).

Page 20

 
REMEDY RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

10.


Interest payable and similar expenses

2023
2022
£
£


Interest on PAYE
31,222
338

Interest on Invoice Discounting
77,943
-

109,165
338


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
81,965
26,612

Adjustments in respect of previous periods
28,588
-


110,553
26,612


Total current tax
110,553
26,612

Deferred tax


Origination and reversal of timing differences
-
(8,110)

Total deferred tax
-
(8,110)


Tax on profit
110,553
18,502
Page 21

 
REMEDY RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

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

2023
2022
£
£


Profit on ordinary activities before tax
51,676
198,024


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
9,818
37,625

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
73,395
-

Other differences leading to an increase (decrease) in the tax charge
27,340
(19,123)

Total tax charge for the year
110,553
18,502


Factors that may affect future tax charges

During March 2021 the UK chancellor announced an expected change to the UK’s main  corporation tax rates from 19% to 25% which was subsequently enacted into the Finance Act in June 2021. The main rate will increase to 25% from 1 April 2023  for companies with taxable profits above £250,000 with a small companies rate of 19% for companies with taxable profits below £50,000. A marginal rate will be applicable to profits between these two limits. The above changes may impact the corporation tax provision of the Company from 1 April 2023.


12.


Dividends

2023
2022
£
£


Dividends
265,000
128,445

265,000
128,445

Page 22

 
REMEDY RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

13.


Exceptional items

2023
2022
£
£


Unauthorised expenditure
-
(7,762)

-
(7,762)


14.


Tangible fixed assets





Fixtures and fittings

£



Cost or valuation


At 1 May 2022
79,879


Additions
4,582


Disposals
(57,967)



At 30 April 2023

26,494



Depreciation


At 1 May 2022
36,533


Charge for the year on owned assets
6,533


Disposals
(30,425)



At 30 April 2023

12,641



Net book value



At 30 April 2023
13,853



At 30 April 2022
43,346

Page 23

 
REMEDY RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

15.


Debtors

2023
2022
£
£


Trade debtors
5,485,948
4,981,974

Other debtors
974,121
1,228,832

Prepayments and accrued income
53,272
976,366

6,513,341
7,187,172


During the year ended 30 April 2010, the company made a contribution to the Company's Employee Benefit Trust (EBT).
At the 30 April 2023, loans advanced by the EBT amounted to £551,666 (2022: £551,666) and are included in the other debtors above. 


16.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
1,391
12,961

1,391
12,961



17.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
7,579
38,732

Corporation tax
35,226
-

Other taxation and social security
1,468,726
902,540

Other creditors
2,577,484
3,147,768

Accruals and deferred income
589,005
979,997

4,678,020
5,069,037


Included in other creditors are amounts advanced under an invoice discounting facility of £1,573,065 (2022: £2,715,583) which are secured by a fixed and floating charge on the assets of the company.

Page 24

 
REMEDY RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

18.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
1,391
12,961




Financial assets measured at fair value through profit or loss comprised cash at bank


19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100 (2022 - 100) Ordinary shares of £1.00 each
100
100



20.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £28,187 (2022: £97,522). Contributions totalling £33,176 (2022: £55,431) were payable to the fund at the balance sheet date.


21.


Commitments under operating leases

At 30 April 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
105,395
85,458

Later than 1 year and not later than 5 years
366,356
124,862

471,751
210,320

Page 25

 
REMEDY RECRUITMENT GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

22.


Related party transactions

During the year transactions with the following related parties occurred:
During the year, remuneration paid to key management personnel was £1,015,303 (2022: £585,295)
At the year end the following amounts were due from/(to) the related parties:


2023
2022
£
£

Key management personnel
17,499
181,335
Other related parties
328,489
319,032
345,988
500,367

 
Page 26