Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
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PRACTICUS LIMITED
COMPANY INFORMATION
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PRACTICUS LIMITED
CONTENTS
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PRACTICUS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The Directors are pleased to present their strategic report together with the audited financial statements for the period ended 31 December 2023.
Review of the Business Our strategic purpose is helping people navigate change through the provision of Recruitment, Consulting and Advisory Services. Our principal markets include Strategic Change, Operational Efficiency, Cultural and Behavioural Engagement, Digital and Technology Change. The Company provides services across a broad portfolio of industries in both the public and private sector. A turbulent financial climate and geopolitical issues resulted in a notable downturn in certain types of vacancies across the United Kingdom in 2023. Although Practicus had a strong start to 2023, the tougher trading conditions were felt from mid-year onwards, particularly within the Healthcare part of our business. Swift actions were taken to minimise the losses for the year including growth from our Senior Permanent Recruitment Service offering. This growth in our Senior Permanent channel has continued into 2024 with Q1 results being 40% higher than the same period last year. In addition, over the past year, we have been extending our product suite in support of our purpose, to help people navigate change. We have matured our PMO as a Service offering, to compliment and build on our existing markets and bolster our core Interim Management business. We have also been developing a data product to support banks and other highly regulated markets tackle challenges around data literacy and staff engagement. This product has been developed in collaboration with an investment bank and a pensions house. The impact on staff behaviour within these clients has been described as “very positive” and we are about to take the product out to a wider audience. As we mature these consulting products, we anticipate achieving a greater degree of access and trust from our clients and the expectation is that this will translate into greater opportunities for the other channels of our business. On top of this, we are maturing our ‘Ask the Community’ offering which has now developed a life of its own and is yielding recruitment opportunities we wouldn’t otherwise have had. As with 2023, so it is with 2024 that we will continue with our planned investment in people, process and technology, providing the foundations, structure and scale required to achieve more sustainable growth. We have just celebrated our 20th Birthday as a business and are preparing our teams internally for where we believe the best change opportunities (sectors and disciplines) will be for the next decade. We welcome Sam Hawkins, the Director of our Commercial business onto our Board. Sam has been with Practicus for 12 years and brings huge energy to the business. Key performance indicators (KPIs) used by the company to monitor progress are set out below: £000’s 2023 2022 Turnover 23,316 26,551 Gross profit 5,244 5,652 EBITDA (97) 98
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PRACTICUS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Principal Risks and Uncertainties The Directors continue to make risk management a priority and devote their effort and attention to ensuring that risks are identified and mitigated such that the business has a robust, stable and sustainable platform for growth. A summary of the risks and actions taken to mitigate them is set out below:
Going Concern
There are no material uncertainties that may cast significant doubt on the ability of the Company to continue as a going concern that have been identified by the Directors. The company has sufficient reserves as well as an invoice discounting facility available to draw down on debtors. The Company’s business activities, together with the factors likely to affect its future development, performance and position are set out in this Strategic Report. Employee Involvement Details of the number of employees and related costs can be found in note 6 to the financial statements. The Company’s business is dependent upon its employees. As such, the Company continues to focus on ensuring it has the necessary skills, resources and work environment required for a high-performing business. The Company continually seeks to develop its employees and invest in training to nurture talent in our business. There are a number of ways we ensure our employees are involved in the business and issues relating to its performance, including regular employee briefings, monthly employee feedback via “Listen to the Business”, bi-annual workshop led conferences and regular lunch and learns. To encourage employees to have a stake in the business there is also a share option scheme. The Company has a formal approach towards succession planning, internal recruitment and promotion with decisions based on an individual’s ability to perform the role via a competency framework.
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PRACTICUS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The Company gives full consideration to applications for employment from disabled applicants where a disabled person can adequately fulfil the requirements of the job. Should an employee become disabled whilst working for the Company, every effort is made to accommodate them or to find a suitable alternative role and to assist with any re-training. Bribery and Corruption Bribery and corruption is unfortunately a feature of corporate and public life in many countries. Practicus therefore has a policy in place so that all staff are aware of acceptable practices and behaviours. This is in accordance with The Bribery Act 2010 which came into force on 1 July 2011. Corporate Social Responsibility Statement Practicus Limited is a socially responsible company. We make every effort to consider the impact of our business practices on society and strive to ensure that what we do, and how we do it, is beneficial to our clients, candidates, employees, communities and the environment. We believe in giving back and supporting the invaluable work performed by our chosen charities, by either getting involved and supporting their various activities or by making regular donations.
This report was approved by the board and signed on its behalf.
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PRACTICUS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
The directors who served during the year were:
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
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 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
There have been no significant events affecting the Company since the year end.
The auditor, James Cowper Kreston Audit, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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PRACTICUS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
This report was approved by the board and signed on its behalf.
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PRACTICUS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRACTICUS LIMITED
We have audited the financial statements of Practicus Limited (the 'Company') for the year ended 31 December 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 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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PRACTICUS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRACTICUS LIMITED (CONTINUED)
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.
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.
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PRACTICUS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRACTICUS LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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. The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:
∙Enquiry of management around actual and potential litigation and claims;
∙Enquiry of management and those charged with governance to identify any material instances of non-compliance with laws and regulations;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.
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 Auditor's report.
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PRACTICUS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRACTICUS LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants and Statutory Auditor
Reading Bridge House
George Street
Berkshire
RG1 8LS
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PRACTICUS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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PRACTICUS LIMITED
REGISTERED NUMBER: 05048716
BALANCE SHEET
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 25 form part of these financial statements.
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PRACTICUS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
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PRACTICUS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
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PRACTICUS LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023
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PRACTICUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Practicus Limited is a limited liability company incorporated in England and Wales. The address of its registered office is Riverside Barns, Remenham Church Lane, Remenham, Henley-On-Thames, Oxfordshire, RG9 3DB.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
Functional and presentation currency
Transactions and balances
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PRACTICUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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PRACTICUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, straight line or reducing balance method.
Depreciation is provided on the following basis:
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.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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PRACTICUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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.
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 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.
Provisions In recognising provisions, the company evaluates the extent to which it is probable that it has incurred a legal or constructive obligation in respect of past events and the probability that there will be an outflow of benefits as a result. The judgments used to recognise provisions are based on currently known factors which may vary over time, resulting in changes in the measurement of recorded amount as compared to initial estimates. Tangible fixed assets Tangible fixed assets are depreciated over their useful lives taking into account residual value, where appropriate. The actual lives of the assets and residual values may vary depending on a number of factors.
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PRACTICUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Analysis of turnover by country of destination:
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PRACTICUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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PRACTICUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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PRACTICUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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PRACTICUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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PRACTICUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Profit and loss account
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 £113,848 (2022: £97,107). Contributions totalling £30,387 (2022: £22,068) were payable to the fund at the balance sheet date and are included in creditors.
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PRACTICUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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