Company registration number 05115229 (England and Wales)
ALLEN LANE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ALLEN LANE LIMITED
COMPANY INFORMATION
Directors
Y Ono
M Goldstone
S Bradby
C E Bruin
Secretary
T J F Collins
Company number
05115229
Registered office
33 King Street
St James's
London
United Kingdom
SW1Y 6RJ
Auditor
HW Fisher LLP
Acre House
11-15 William Road
London
United Kingdom
NW1 3ER
Business address
33 King Street
St James's
London
United Kingdom
SW1Y 6RJ
ALLEN LANE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Income statement
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
ALLEN LANE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report of Allen Lane Limited (‘Allen Lane’) for the year ended 31 December 2023.

Fair review of the business

In 2023, Allen Lane remained a market leader in Public Sector Recruitment, specialising in the provision of interim recruitment, executive search, permanent recruitment and managed service solutions. It continued to provide its core recruitment specialisms in Finance, IT, Procurement, Project Management and Legal and Governance recruitment (added in 2022), and also added the provision of Property and Housing recruitment services to its portfolio of disciplines.

 

Internally, Allen Lane continued to invest heavily in systems modernisation with the implementation of a new, industry leading CRM system; it increased investment in access to databases; delivered increased training to staff and introduced a number of new consultants to the company including growing our SLT (which had 50% female representation in 2023). Allen Lane continues to maintain very high internal standards through its accreditations for international standards ISO 9001 (Quality Management Systems), 14001 (Environmental Management Systems) and 27001 (Information Security Management Systems).

 

However, 2023 proved to be challenging from an operational and revenue perspective for the company and for many established recruitment companies. Fewer significant (volume) permanent recruitment campaigns were won compared to historically and there continued to be squeezes on margins in the NHS and Central Government sectors in particular with regards to interim contingent labour. A likely election in 2024 has added to organisations hesitating before staffing / launching new programmes and we have reacted by better populating (with recruiters) the markets with fewer barriers for entry, in contrast to those where there are not the volume of opportunities that we have seen before. These factors combined to adversely impact revenue in 2023.

 

Headline numbers in 2023 compared to 2022 show a decrease in turnover to £57.1m (2022: £62.8m). Gross profit and profit / (loss) before interest and tax decreased to £9.2m (2022: £9.9m) and £0.9m (2022: £1.1m) respectively.

Key Performance Indicators

Allen Lane monitors and analyses its performance using the following key performance indicators:

 

Financial risks facing the company

The financial risks facing Allen Lane are:

 

ALLEN LANE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

 

Operational risks & uncertainties facing the company

Allen Lane is exposed to the following risks and uncertainties:

 

On behalf of the board

M Goldstone
Director
5 July 2024
ALLEN LANE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of Allen Lane Limited ('Allen Lane') during the period was that of a recruitment agency. Allen Lane specialises in the provision of interim and permanent recruitment in dedicated sectors such as the NHS, Central Government, Local Government, Charities & the Arts, Housing and Education. Allen Lane offers recruitment of roles in Finance, IT, Procurement, Legal and Governance, Property and Housing, and Change/Project Management.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £2,000,000. The directors do not recommend payment of a further dividend.

Directors

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

Y Ono
M Goldstone
S Bradby
C E Bruin
Post reporting date events

There are no significant events since the balance sheet date which would require disclosure in these financial statements.

Future developments

Allen Lane continues to closely monitor revenue, profitability and cash on hand as the UK continues to face challenges post-Covid such as candidate labour shortages and internal employee changes. As a result of strong financial controls and management, Allen Lane is in a strong financial position going forward.

Auditor

The auditor, HW Fisher LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
M Goldstone
Director
5 July 2024
ALLEN LANE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ALLEN LANE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALLEN LANE LIMITED
- 5 -
Opinion

We have audited the financial statements of Allen Lane Limited (the 'company') for the year ended 31 December 2023 which comprise the income statement, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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 101 Reduced Disclosure Framework (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 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 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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

ALLEN LANE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALLEN LANE LIMITED
- 6 -
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:

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 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.

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.

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.

As part of our planning process:

 

ALLEN LANE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALLEN LANE LIMITED
- 7 -

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.

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.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.

Tanya Craft (Senior Statutory Auditor)
For and on behalf of HW Fisher LLP
Chartered Accountants
Statutory Auditor
Acre House
11-15 William Road
London
United Kingdom
NW1 3ER
5 July 2024
ALLEN LANE LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Revenue
2
57,135,375
62,849,776
Cost of sales
3
(47,974,049)
(52,948,077)
Gross profit
9,161,326
9,901,699
Administrative expenses
3
(8,297,152)
(8,761,491)
Other operating income
-
0
2,263
Operating profit
864,174
1,142,471
Investment income
7
35,120
5,861
Finance costs
8
(16,740)
(27,663)
Profit before taxation
882,554
1,120,669
Tax on profit
9
(249,161)
(312,519)
Profit and total comprehensive income for the financial year
633,393
808,150

The income statement has been prepared on the basis that all operations are continuing operations.

ALLEN LANE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
10
263,201
590,889
Current assets
Trade and other receivables
11
5,559,916
3,181,519
Cash and cash equivalents
1,377,064
5,231,420
6,936,980
8,412,939
Current liabilities
13
(2,550,208)
(2,773,928)
Net current assets
4,386,772
5,639,011
Total assets less current liabilities
4,649,973
6,229,900
Non-current liabilities
13
-
(215,627)
Provisions for liabilities
Other provisions
17
(67,826)
(65,519)
Net assets
4,582,147
5,948,754
Equity
Called up share capital
19
2,200
2,200
Retained earnings
4,579,947
5,946,554
Total equity
4,582,147
5,948,754
The financial statements were approved by the board of directors and authorised for issue on 5 July 2024 and are signed on its behalf by:
M Goldstone
Director
Company registration number 05115229
ALLEN LANE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 January 2022
2,200
5,138,404
5,140,604
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
808,150
808,150
Balance at 31 December 2022
2,200
5,946,554
5,948,754
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
633,393
633,393
Transactions with owners in their capacity as owners:
Dividends
12
-
(2,000,000)
(2,000,000)
Balance at 31 December 2023
2,200
4,579,947
4,582,147
ALLEN LANE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

Allen Lane Limited is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is 33 King Street, St James's, London, United Kingdom, SW1Y 6RJ. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards and with those parts of the Companies Act 2006 applicable to companies reporting under FRS 101.

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.

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:

Where required, equivalent disclosures are given in the group accounts of Outsourcing UK Limited. The group accounts of the immediate parent comany are available to the public and can be obtained as set out in note 20.

1.2
Going concern

The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future based on the continued profitability after the year end and the review of forecasts for the next 12 months. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

ALLEN LANE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.3
Revenue

Revenue is recognised at the fair value of the consideration received for services provided in the normal course of business, and is shown net of VAT. Turnover represents fees earned from the placement of permanent candidates and temporary contractors during the year.

 

Turnover arising from the placement of permanent candidates is recognised at the time the candidate commences employment.

 

Turnover arising from temporary placements is recognised over the period that temporary workers are provided.

 

The revenue generated by the company is from the performance obligation of either (i) the permanent placement of an individual with a client, which is satisfied upon the individual commencing employment with the client, or (ii) as temporary workers are provided to the client.

 

Revenue recognition under IFRS 15 is consistent with prior practice for the company’s revenue as described above.

1.4
Property, plant and equipment

Property, plant and equipment are measured at cost, net of depreciation and any impairment losses.

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

Right-of-use assets
Over the lease term
Leasehold improvements
Over the lease term
Fixtures, fittings and equipment
Straight line over 5-10 years
Computer equipment
Straight line over 2-4 years

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.

1.5
Impairment of non-current assets

At each reporting end date, the company reviews the carrying amounts of its property, plant and equipment 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).

1.6
Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

1.7
Financial assets

Financial assets are recognised in the company's statement of financial position when The company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

Financial assets are initially measured at fair value plus transaction costs.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

ALLEN LANE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets

The company assesses on a forward-looking basis the expected credit loss associated with its financial assets. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

 

For trade receivables, the company applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.8
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments.

Financial liabilities, including trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

1.9
Equity instruments

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

 

Share capital represents the nominal value of equity shares that have been issued.

 

Retained earnings represent all current and prior period retained profit and losses.

1.10
Taxation

The tax expense represents the tax currently payable.

 

Deferred tax has not been recognised as it is immaterial to these financial statements.

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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

1.11
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event and it is probable that the company will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.

 

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

ALLEN LANE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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

1.13
Retirement benefits

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

1.14
Leases

At inception, The company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, The company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; The company's estimate of the amount expected to be payable under a residual value guarantee; or The company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

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.

2
Revenue
2023
2022
£
£
Revenue analysed by class of business
Recruitment fees (turnover recognised over time)
55,314,924
60,829,370
Recruitment fees (turnover recognised at a point in time)
1,820,451
2,020,406
57,135,375
62,849,776
ALLEN LANE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Revenue
(Continued)
- 15 -
2023
2022
£
£
Revenue analysed by geographical market
United Kingdom
56,596,118
62,849,776
Rest of the World
539,257
-
57,135,375
62,849,776
3
Expenses by nature
Administrative expenses by nature
2023
2022
£
£
Staff costs
5,881,299
6,047,202
Rent, rates and services costs
228,007
195,035
Computer running and software costs
240,202
245,095
Auditors' remuneration - statutory audit
55,083
36,250
Depreciation of property, plant and equipment
332,982
329,499
(Profit)/loss on disposal of property, plant and equipment
-
2,390
Exchange losses
254
142
Consultancy fees
271,601
623,353
Factoring charges
468,359
507,280
Entertaining
201,608
204,278
Other expenses
617,757
570,967
8,297,152
8,761,491
Cost of sales by nature
2023
2022
£
£
Subcontractor labour
47,966,927
52,943,223
Other direct expenses
7,122
4,854
47,974,049
52,948,077
4
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
55,083
36,500
Other services
5,750
5,500
60,833
42,000
ALLEN LANE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
5
Employees

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

2023
2022
Number
Number
Consultants
33
31
Operations
12
11
Total
45
42

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
5,179,205
5,281,991
Social security costs
653,543
715,945
Pension costs
48,431
46,980
5,881,179
6,044,916
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
487,500
501,641
Company pension contributions to defined contribution schemes
2,642
2,752
490,142
504,393

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
288,719
276,396
Company pension contributions to defined contribution schemes
1,321
1,321
7
Investment income
2023
2022
£
£
Interest income
Interest on bank deposits
35,120
5,861
ALLEN LANE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
8
Finance costs
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on lease liabilities
14,433
25,143
Other finance costs:
Unwinding of discount on provisions
2,307
2,520
Total finance costs
16,740
27,663
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
249,161
312,519

The charge for the year can be reconciled to the profit per the income statement as follows:

2023
2022
£
£
Profit before taxation
882,554
1,120,669
Expected tax charge based on a corporation tax rate of 23.52% (2022: 19.00%)
207,577
212,927
Effect of expenses not deductible in determining taxable profit
20,386
75,100
Depreciation in excess of capital allowances
24,474
8,359
Other tax adjustments
(3,276)
16,133
Taxation charge for the year
249,161
312,519
10
Property, plant and equipment
Right-of-use assets
Leasehold improvements
Fixtures, fittings and equipment
Computer equipment
Total
£
£
£
£
£
Cost
At 31 December 2022
1,173,332
396,201
356,055
241,425
2,167,013
Additions
-
0
-
0
919
4,375
5,294
At 31 December 2023
1,173,332
396,201
356,974
245,800
2,172,307
Accumulated depreciation and impairment
At 31 December 2022
787,389
329,470
319,180
140,085
1,576,124
Charge for the year
220,062
44,601
19,337
48,982
332,982
At 31 December 2023
1,007,451
374,071
338,517
189,067
1,909,106
ALLEN LANE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Property, plant and equipment
Right-of-use assets
Leasehold improvements
Fixtures, fittings and equipment
Computer equipment
Total
£
£
£
£
£
(Continued)
- 18 -
Carrying amount
At 31 December 2023
165,881
22,130
18,457
56,733
263,201
At 31 December 2022
385,943
66,731
36,875
101,340
590,889

Property, plant and equipment includes right-of-use assets, as follows:

Right-of-use assets
2023
2022
£
£
Net values
Property
163,550
381,616
Fixtures, fittings and equipment
2,331
4,327
165,881
385,943
Depreciation charge for the year
Property
218,066
218,065
Fixtures, fittings and equipment
1,996
1,996
220,062
220,061

The total cash outflow for leases was £351,481 (2022: £351,481).

11
Trade and other receivables
2023
2022
£
£
Trade receivables
3,832,974
1,331,373
Amounts owed by fellow group undertakings
141,000
99,478
Prepayments and accrued income
1,585,942
1,750,668
5,559,916
3,181,519

The company is party to a debt factoring arrangement where it factors a portion of its gross debtor values and advances received are without recourse. The company has presented a net figure in trade receivables in respect of the portion of debtors not factored, being the gross trade receivable balance factored less the sum of all non-returnable advances received without recourse. The relevant figures are as follows: gross trade receivables of £3,758,272 (2022: £6,040,388) less non returnable advances of £3,112,774 (2022: £5,071,346) giving a net balance of £645,498 (2022: £969,042) under this arrangement included within the trade receivables balance above.

 

The bank holds a fixed and floating charge on all freehold, leasehold and book debts and other assets.

ALLEN LANE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
12
Dividends
2023
2022
2023
2022
per share
per share
£
£
Amounts recognised as distributions to equity holders:
Ordinary shares
Final dividend paid
1,000.00
-
2,000,000
-
13
Liabilities
Current
Non-current
2023
2022
2023
2022
Notes
£
£
£
£
Trade and other payables
15
1,869,737
2,088,605
-
0
-
0
Corporation tax
11,295
12,134
-
-
Other taxation and social security
453,549
394,721
-
-
Lease liabilities
16
215,627
278,468
-
215,627
2,550,208
2,773,928
-
215,627
14
Fair value of financial liabilities

The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.

15
Trade and other payables
2023
2022
£
£
Trade payables
58,722
181,700
Amounts owed to fellow group undertakings
955
1,053
Accruals and deferred income
1,639,660
1,717,933
Other payables
170,400
187,919
1,869,737
2,088,605
16
Lease liabilities
2023
2022
Maturity analysis
£
£
Within one year
147,588
292,901
In two to five years
-
147,303
Total undiscounted liabilities
147,588
440,204
Future finance charges and other adjustments
68,039
53,891
Lease liabilities in the financial statements
215,627
494,095
ALLEN LANE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Lease liabilities
(Continued)
- 20 -

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2023
2022
£
£
Current liabilities
215,627
278,468
Non-current liabilities
-
215,627
215,627
494,095
2023
2022
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
14,433
25,143

Lease payments represent rentals payable by the company for its business premises (property) and for a photocopier (fixtures, fittings and equipment). The lease term for the business premises ends on 24 September 2024 and the lease term for the photocopier ends on 28 February 2025.

 

There are no contingent rent, renewal or purchase options and escalation clauses in the lease agreement. There are no significant restrictions imposed by lease arrangements.

 

The incremental borrowing rate at the date of initial application (i.e. the rate at 1 June 2019) for the business premises is 4% per annum.

 

The incremental borrowing rate at the date of the lease for the photocopier on 1 January 2020 is 4% per annum.

 

Please see note 10 for details regarding right of use assets.

17
Provisions for liabilities
2023
2022
£
£
Dilapidations
67,826
65,519
Movements on provisions:
Dilapidations
£
At 1 January 2023
65,519
Unwinding of discount
2,307
At 31 December 2023
67,826

The provision recorded in the financial statements reflects the present value of the estimated cost of dilapidations at the end of the lease of the client's business premises. This has been calculated based on a discount rate of 4%. The amount would be payable upon the end of the lease on 24 September 2024.

ALLEN LANE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
48,431
46,980

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,000
2,000
2,000
2,000
B Ordinary shares of 10p each
2,000
2,000
200
200
4,000
4,000
2,200
2,200

B Ordinary shares are non pari passu with Ordinary shares and attach no right for the holder to receive notice, attend or vote at any general meeting or written resolution. The holder has no entitlement to receive dividends and has only limited rights to capital on distribution.

 

The company does not have a limited amount of authorised share capital.

20
Controlling party

The immediate parent company is ALV Groupco Limited. ALV Groupco Limited is a company incorporated in England and Wales with registered office at 33 King Street, St James's, London, England, SW1Y 6RJ.

 

Outsourcing UK Limited is the smallest group that prepares group accounts and in which the company is a member. The consolidated accounts are publicly available from Companies House.

 

The ultimate parent company of Allen Lane Limited is Outsourcing Inc. This is a company incorporated in Japan and the registered office is 1-8-3 Marunouchi, Chiyoda-ku, Tokyo. This is the largest group that prepares group accounts and in which The company is a member. The consolidated accounts are publicly available from 1-8-3 Marunouchi, Chiyoda-ku, Tokyo.

 

In the opinion of the directors, there is no single ultimate controlling party.

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