Company Registration No. 09580248 (England and Wales)
Tripod Group Limited
Annual report and
group financial statements
for the year ended 30 September 2023
Tripod Group Limited
Company information
Directors
Graham Smith
Dean Covill
Company number
09580248
Registered office
National House
Wardour Street
London
W1F OTA
Independent auditor
Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
Tripod Group Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 27
Tripod Group Limited
Strategic report
For the year ended 30 September 2023
1

The directors present the strategic report for the year ended 30 September 2023.

Fair review of the business

The year has seen the business continue to take full advantage of investments in new staff in recent years. Together with our preferred standing with many customers this has seen turnover continue to grow to £126.5m (2022: £99.5m). Gross profit has increased in line with this to £10.9m (2022: £9.9m).

 

The Qualified Social Work Division remains the largest division, net fee income grew by 21% year on year. The division trades under Tripod Partners Ltd.

 

The Allied Health Division grew by 44% year on year, continued new additions to the team in the division opens new revenue opportunities. The division trades under Tripod Partners Ltd.

 

The Nursing division benefitted from a major contract with the Home Office, this saw net fee income rise tenfold from the prior year. This project came to an end in the final quarter, and performance is expected to be weaker in the year ending September 2024. The division trades under Tripod Partners Ltd.

 

Frontier Consulting Group Ltd, of which Tripod Group Ltd is a 70% shareholder continued to develop building its own client base and subcontracting onto contracts held with Tripod Partners Ltd. The subsidiary focuses on consultancy projects in local councils and permanent placement of workers, either domestic or recruited from overseas into the country of client. Frontier delivered its first RPO project in 2023, managing the full recruitment process for domestic permanent social workers into a UK council. Investment in staff for future growth (particularly into new overseas markets) saw profits reduce to £430k (2022: £766k)

 

Hourglass Staffing Ltd continued its growth with revenue up to £889K (2022: £50k), however the division was still loss making.

 

The main sales divisions are provided with support from an office in South Africa which operates under a wholly owned subsidiary of Tripod Group (EPPACT Ltd, registered in South Africa). This is fully embedded and has played a crucial part in the strong growth. Additional back office services are now provided from this office. We continue to develop profit centres from this location.

 

Administrative expenses saw a small increase (3%), however, in the final quarter significant investment in additional business development and marketing functions were made. The investment into digital marketing and process automations are an exciting step, although the full benefits are not expected to be seen until towards the end of the financial year ending September 2024.

 

Overall, consolidated operating profit has increased significantly to £3,098k (2022: £2,368k). The Directors acknowledge the exceptional project revenue in 2023, and the investment in new areas and marketing mean that profits in 2024 are unlikely to remain at this level, however, the core of the business remains strong, and the business continues to invest in attracting and retaining the best talent.

 

 

 

Tripod Group Limited
Strategic report (continued)
For the year ended 30 September 2023
2
Principal risks and uncertainties

The directors believe that the business plan going forward has been predominantly de-risked due to the diversification into multiple sectors. Sector heads are appointed internally within the company and staff are fully committed and motivated to achieve the growth targets.

 

The group's operations expose it to a variety of risks including those outlined below. The directors review and agree policies for managing these risks and these are summarised below.

 

(a) Liquidity risk

The group makes use of a factoring account facility with HSBC to manage its liquidity risk.

 

(b) Operational risk

The group is exposed to operational risks which may arise due to failure of operational systems or those of third party service providers.

 

(c) Market risk

The directors review the market risk applicable to the group on an on-going basis, by considering the likelihood of market developments and consequent effect on profitability, net assets and liquidity.

 

(d) Credit risk

The group is exposed to credit risk arising predominantly from it's clients who owe the group fees. New customers are only accepted after they have been approved by the credit controller.

Key performance indicators

The group uses a number of measures to assess its success in meeting its objectives. These include growth in fees received and growth in profit levels. The directors are satisfied that performance, by reference to these key performance indictors, has been in line with expectations for the year.

Outlook

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

The directors recognise that cost of living crisis, the continued impact of inflation and the hike in interest rates in the United Kingdom and across the world represents a material uncertainty to the future of the economy and casts doubt on the ability of many companies to continue as a going concern. However, due to the nature of the business and the public sector client base, the demand for temporary workers in the health sector has been maintained over the last couple of years, and revenues have continued to increase resulting in the cash flow of the company remaining strong and sufficient to allow the company to trade strongly throughout this period of uncertainty. The directors are confident that the strong trading results and the resources available will continue through these uncertain times. The directors consider it appropriate to prepare the financial statements on a going concern basis. These financial statements do not include any adjustments that would result from the going concern basis of preparation being inappropriate.

 

On behalf of the board

Dean Covill
Director
11 April 2024
Tripod Group Limited
Directors' report
For the year ended 30 September 2023
3

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

Principal activities

The principal activity of the group continued to be that of temporary employment agency services.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Graham Smith
Dean Covill
Auditor

Saffery LLP expressed their willingness to continue in office.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual 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 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Tripod Group Limited
Directors' report (continued)
For the year ended 30 September 2023
4
On behalf of the board
Dean Covill
Director
11 April 2024
Tripod Group Limited
Independent auditor's report
To the members of Tripod Group Limited
5
Opinion

We were engaged to audit the financial statements of Tripod Group Limited (the 'company') and its subsidiaries (the 'group') for the year ended 30 September 2023 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and 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 FRS 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report 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.

 

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.

Tripod Group Limited
Independent auditor's report (continued)
To the members of Tripod Group Limited
6

Opinions on other matters prescribed by the Companies Act 2006

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

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 their 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:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 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.

Tripod Group Limited
Independent auditor's report (continued)
To the members of Tripod Group Limited
7

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent company by discussions with directors and by updating our understanding of the sector in which the group and parent company operates.

 

Laws and regulations of direct significance in the context of the group and parent company include The Companies Act 2006 and UK Tax legislation.

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of group and parent company financial statement disclosures. We reviewed the parent company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

As group auditors, our assessment of matters relating to non-compliance with laws or regulations and fraud differed at group and component level according to their particular circumstances. Our communications included a request to identify instances of non-compliance with laws and regulations and fraud that could give rise to a material misstatement of the group financial statements in addition to our risk assessment.

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Tripod Group Limited
Independent auditor's report (continued)
To the members of Tripod Group Limited
8

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.

 

Jamie Cassell (Senior Statutory Auditor)
For and on behalf of Saffery LLP
11 April 2024
Chartered Accountants
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
Tripod Group Limited
Group statement of comprehensive income
For the year ended 30 September 2023
9
2023
2022
Notes
£
£
Turnover
3
126,472,169
99,551,696
Cost of sales
(115,561,930)
(89,633,254)
Gross profit
10,910,239
9,918,442
Administrative expenses
(7,755,325)
(7,592,941)
Other operating income
132,502
42,693
Operating profit
4
3,287,416
2,368,194
Interest payable and similar expenses
8
(14,959)
(4,943)
Profit before taxation
3,272,457
2,363,251
Tax on profit
9
(712,032)
(520,491)
Profit for the financial year
2,560,425
1,842,760
Profit for the financial year is attributable to:
- Owners of the parent company
2,436,078
1,663,416
- Non-controlling interests
124,347
179,344
2,560,425
1,842,760
Total comprehensive income for the year is attributable to:
- Owners of the parent company
2,436,078
1,663,416
- Non-controlling interests
124,347
179,344
2,560,425
1,842,760
Tripod Group Limited
Group statement of financial position
As at 30 September 2023
10
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
147,260
116,157
Current assets
Debtors
14
17,095,573
15,472,980
Cash at bank and in hand
231,932
76,152
17,327,505
15,549,132
Creditors: amounts falling due within one year
15
(13,862,104)
(13,341,811)
Net current assets
3,465,401
2,207,321
Total assets less current liabilities
3,612,661
2,323,478
Creditors: amounts falling due after more than one year
16
(39,136)
(59,998)
Net assets
3,573,525
2,263,480
Capital and reserves
Called up share capital
18
75
75
Profit and loss reserves
3,269,759
2,084,061
Equity attributable to owners of the parent company
3,269,834
2,084,136
Non-controlling interests
303,691
179,344
3,573,525
2,263,480
The financial statements were approved by the board of directors and authorised for issue on 11 April 2024 and are signed on its behalf by:
Dean Covill
Director
Company Registration No. 09580248 (England and Wales)
Tripod Group Limited
Company statement of financial position
As at 30 September 2023
11
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
12
415
415
Current assets
Debtors
14
100
100
Cash at bank and in hand
7,234
500
7,334
600
Creditors: amounts falling due within one year
15
(4,731)
(465)
Net current assets
2,603
135
Net assets
3,018
550
Capital and reserves
Called up share capital
18
75
75
Profit and loss reserves
2,943
475
Total equity
3,018
550

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company's profit for the period was £1,194,968 (2022: £992,350).

The financial statements were approved by the board of directors and authorised for issue on 11 April 2024 and are signed on its behalf by:
Dean Covill
Director
Company Registration No. 09580248 (England and Wales)
Tripod Group Limited
Group statement of changes in equity
For the year ended 30 September 2023
12
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 October 2021
75
1,407,120
1,407,195
-
1,407,195
Year ended 30 September 2022:
Profit and total comprehensive income
-
1,663,416
1,663,416
179,344
1,842,760
Dividends
10
-
(993,000)
(993,000)
-
(993,000)
Other movements
-
6,525
6,525
-
6,525
Balance at 30 September 2022
75
2,084,061
2,084,136
179,344
2,263,480
Year ended 30 September 2023:
Profit and total comprehensive income
-
2,436,078
2,436,078
124,347
2,560,425
Dividends
10
-
(1,250,380)
(1,250,380)
-
(1,250,380)
Balance at 30 September 2023
75
3,269,759
3,269,834
303,691
3,573,525
Tripod Group Limited
Company statement of changes in equity
For the year ended 30 September 2023
13
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2021
75
475
550
Year ended 30 September 2022:
Profit and total comprehensive income for the year
-
993,000
993,000
Dividends
-
(993,000)
(993,000)
Balance at 30 September 2022
75
475
550
Year ended 30 September 2023:
Profit and total comprehensive income
-
1,194,968
1,194,968
Dividends
-
(1,192,500)
(1,192,500)
Balance at 30 September 2023
75
2,943
3,018
Tripod Group Limited
Group statement of cash flows
For the year ended 30 September 2023
14
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
2,293,615
336,745
Interest paid
(14,959)
(4,943)
Income taxes paid
(766,889)
(370,000)
Net cash inflow/(outflow) from operating activities
1,511,767
(38,198)
Investing activities
Purchase of tangible fixed assets
(84,745)
(28,248)
Proceeds from disposal of tangible fixed assets
-
6,385
Net cash used in investing activities
(84,745)
(21,863)
Financing activities
Repayment of borrowings
(20,862)
(22,139)
Dividends paid to equity shareholders
(1,250,380)
(993,000)
Net cash used in financing activities
(1,271,242)
(1,015,139)
Net increase/(decrease) in cash and cash equivalents
155,780
(1,075,200)
Cash and cash equivalents at beginning of year
76,152
1,144,827
Effect of foreign exchange rates
-
0
6,525
Cash and cash equivalents at end of year
231,932
76,152
Relating to:
Cash at bank and in hand
231,932
76,152
Tripod Group Limited
Notes to the financial statements
For the year ended 30 September 2023
15
1
Accounting policies
Company information

Tripod Group Limited (“the company”) is a private limited company incorporated in England and Wales. The registered office is National House, Wardour Street, London, W1F OTA.

 

The group consists of Tripod Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

The company has taken advantage of section 405(2) of the Companies Act 2006 not to include in the consolidation those subsidiary entities that are not material for the purpose of giving a true and fair view.

Tripod Group Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
1
Accounting policies (continued)
16
1.2
Basis of consolidation

The group financial statements incorporate those of Tripod Group Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

 

All financial statements are made up to 30 September 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The directors recognise that the continued cost of living crisis, the impact of inflation and the hike in interest rates in the United Kingdom and across the world represents a material uncertainty to the future of the economy and casts doubt on the ability of many companies to continue as a going concern. However, due to the nature of the business and the public sector client base, the demand for temporary workers in the health sector has been maintained over the last couple of years, and revenues have continued to increase resulting in the cash flow of the company remaining strong and sufficient to allow the company to trade strongly throughout this period of uncertainty. The directors are confident that the strong trading results and the resources available will continue through these uncertain times. The directors consider it appropriate to prepare the financial statements on a going concern basis.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover from contractor placements, representing fees billed for the services of contractors including their costs, which is recognised when the service has been provided.

 

Turnover from permanent placements is recognised on the invoice date. Invoices are raised on the candidate start date.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
20%-33% straight line
Computer equipment
33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

Tripod Group Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
1
Accounting policies (continued)
17
1.6
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

1.8
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Tripod Group Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
1
Accounting policies (continued)
18
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

1.10
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

Tripod Group Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
1
Accounting policies (continued)
19
1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Tripod Group Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
1
Accounting policies (continued)
20
1.16

Prior year restatement

The prior year restatement to the cash flow statement relates to a reclass of invoice discounting included in creditors payable from cash and cash equivalents to movements in working capital in the cash flows from operating activities note.

 

The prior year restatement to creditors due within one year relates to a reclass of the invoicing discounting facility from bank loans and overdrafts to invoice discounting.

 

There has been no impact on the profit and loss account and balance sheet.

2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

Accrued income

Income that is earned during the year but not invoiced by the year end is accrued for, instead of recognising it when the invoice is raised and settled. Accrued income is estimated by reviewing work completed in the period preceding the year end, using reports detailing candidate timesheets taking place in that period.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Provision of contractors
121,312,408
97,333,693
Permanent placements
4,609,007
1,986,098
Other revenue
550,754
231,905
126,472,169
99,551,696
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Exchange losses
54,849
10,367
Depreciation of owned tangible fixed assets
53,742
42,375
Operating lease charges
317,105
215,483
Tripod Group Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
21
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company's subsidiaries
53,000
46,000
For services in respect of associated pension schemes
All other non-audit services
16,500
9,000
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Sales
44
39
-
-
Administrative
21
14
-
-
65
53
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
6,682,035
4,747,614
-
0
-
0
Social security costs
751,513
565,847
-
-
Pension costs
144,941
82,218
-
0
-
0
7,578,489
5,395,679
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
385,621
321,521
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
237,500
200,000
Tripod Group Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
22
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
6,816
2,868
Interest on invoice finance arrangements
8,143
2,075
Total finance costs
14,959
4,943
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
712,032
520,491

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
3,272,457
2,363,251
Expected tax charge based on the standard rate of corporation tax in the UK of 22.00% (2022: 19.00%)
719,941
449,018
Tax effect of expenses that are not deductible in determining taxable profit
10,434
22,241
Group relief
(38,116)
-
0
Depreciation on assets not qualifying for tax allowances
11,821
41,990
Other impact of group reporting
7,952
7,242
Taxation charge
712,032
520,491
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
1,250,380
993,000
Tripod Group Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
23
11
Tangible fixed assets
Group
Fixtures and fittings
Computer equipment
Total
£
£
£
Cost
At 1 October 2022
152,081
87,119
239,200
Additions
14,991
69,854
84,845
At 30 September 2023
167,072
156,973
324,045
Depreciation and impairment
At 1 October 2022
74,230
48,813
123,043
Depreciation charged in the year
27,948
25,794
53,742
At 30 September 2023
102,178
74,607
176,785
Carrying amount
At 30 September 2023
64,894
82,366
147,260
At 30 September 2022
77,851
38,306
116,157
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
415
415
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2022 and 30 September 2023
415
Carrying amount
At 30 September 2023
415
At 30 September 2022
415
Tripod Group Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
24
13
Subsidiaries

Details of the company's subsidiaries at 30 September 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Tripod Allied Health Limited
England and Wales
Dormant
Ordinary shares
100.00
Tripod Partners Limited
England and Wales
Temporary employment agency services
Ordinary shares
100.00
EPPACT Pty Limited
South Africa
Temporary employment agency services
Ordinary Shares
100.00
Hourlgass Staffing Limited
England and Wales
Temporary employment agency services
Ordinary shares
100.00
Frontier Consulting Limited
England and Wales
Temporary employment agency services
Ordinary shares
71.06

All subsidiaries have the same registered office as Tripod Group Limited other than EPPACT Pty Limited. The registered office for EPPACT Pty Limited is 3 Marmer Street, Stellenridge, Bellville, Western Cape, 7530.

14
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
13,173,309
11,557,756
-
0
-
0
Unpaid share capital
-
0
100
100
100
Other debtors
25,346
92,224
-
0
-
0
Prepayments and accrued income
3,896,918
3,822,900
-
0
-
0
17,095,573
15,472,980
100
100
Tripod Group Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
25
15
Creditors: amounts falling due within one year
Group
Company
as restated
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
22,400
22,400
-
0
-
0
Invoice discounting
11,120,473
10,466,560
-
0
-
0
Trade creditors
479,365
348,112
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
3,616
-
0
Corporation tax payable
405,302
460,159
-
0
-
0
Other taxation and social security
813,025
1,161,604
-
-
Other creditors
410,470
229,275
1,115
465
Accruals and deferred income
611,069
653,701
-
0
-
0
13,862,104
13,341,811
4,731
465

The invoice factoring facility includes a discounting charge at the Bank of England base rate plus the discounting margin equivalent to 1.82% per annum. Interest is charged at 0.23% .

 

It also includes a variable rate loan with the total rate payable being the reference interest rate plus a lending margin of 3%.

16
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans and overdrafts
39,136
59,998
-
0
-
0

Creditors due after one year includes a 5 year variable rate bank loan which includes a total rate payable being 3% above the Bank of England base rate.

 

The bank holds a guarantee as security for all the present and future debts, moneys and and liabilities owed to the bank by the entity.

17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
144,941
82,218

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Tripod Group Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
26
18
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and not fully paid
Ordinary shares of £0.01 each
75
75
19
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
119,362
109,455
-
-
Between two and five years
57,312
148,461
-
-
176,674
257,916
-
-
20
Related party transactions

Graham Smith Business Services Limited is a company that Graham Smith is a shareholder and director of. During the year, the company paid for services totaling £25,202 (2022: £23,310). No amounts were outstanding as at the year ended 30 September 2023 (2022: £nil).

 

Philip Randerson was a previous director of the company who has a outstanding director loan balance of £40,000 (2022: £40,000) in the period. Amounts have been included in Other Creditors. He was not a director at the year end.

 

Tripod Group Limited has taken the exemption in accordance with FRS102 section 33 for subsidiary undertakings to not disclose related party transactions with other entities where the relationship is as such that they are wholly owned. Therefore, transactions of this nature have not been disclosed.

 

Dividends paid to directors in the period were concluded under normal market conditions.

21
Ultimate controlling party

The directors consider there no one ultimate controlling party.

Tripod Group Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
27
22
Cash generated from group operations
2023
2022
as restated
£
£
Profit for the year after tax
2,560,425
1,842,760
Adjustments for:
Taxation charged
712,032
520,491
Finance costs
14,959
4,943
Depreciation and impairment of tangible fixed assets
53,742
42,375
Movements in working capital:
Increase in debtors
(1,622,693)
(3,681,052)
Increase in creditors
575,150
1,607,228
Cash generated from operations
2,293,615
336,745

 

23
Analysis of changes in net debt - group
1 October 2022
Cash flows
30 September 2023
£
£
£
Cash at bank and in hand
76,152
155,780
231,932
Bank loans and overdrafts
(10,548,958)
(633,051)
(11,182,009)
(10,472,806)
(477,271)
(10,950,077)
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