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REGISTERED NUMBER: 07807506 (England and Wales)















BLUESTONES INVESTMENT GROUP LIMITED

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023






BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 10

Report of the Independent Auditors 12

Consolidated Income Statement 15

Consolidated Other Comprehensive Income 16

Consolidated Statement of Financial Position 17

Company Statement of Financial Position 18

Consolidated Statement of Changes in Equity 19

Company Statement of Changes in Equity 20

Consolidated Statement of Cash Flows 21

Notes to the Consolidated Statement of Cash Flows 22

Notes to the Consolidated Financial Statements 24


BLUESTONES INVESTMENT GROUP LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 OCTOBER 2023







DIRECTORS: C Pendergast
P M Stratford
P R Broderick
D A Gregson
S Pendergast
T H S Trotter
S A Gosling





REGISTERED OFFICE: Unit A Telford Court
Chester Gates Business Park
Chester
CH1 6LT





REGISTERED NUMBER: 07807506 (England and Wales)





AUDITORS: DJH Audit Limited
Accountants
Statutory Auditors
The Exchange
5 Bank Street
Bury
BL9 0DN

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023


The directors present their strategic report of the Company and the Group for the year ended 31 October 2023.

INTRODUCTION

The principal activity of the Group is the operation of a portfolio of recruitment and staffing services businesses.

The Bluestones Group model has evolved from investing in start-up companies and building brands through a joint venture (JV) approach, where Bluestones takes a majority stake in each JV in return for providing funding and support services; to operating as a multi-service organisation across three core divisions: recruitment, support, and investment. Where the core recruitment division retains its focus on growth of its existing portfolio through three primary strategic activities: self-funded acquisition, bolt-on activity for existing businesses, and organic growth through sector penetration, geographical expansion, and headcount growth; the investment division seeks to continue the identification of and investment in new JV opportunities that can scale quickly and ultimately progress into the core recruitment division; and the support division which provides a range of support services specifically to the recruitment sector, including marketing, IT, funding, and payroll.

Bluestones Group provides a full suite of support services centrally to its core recruitment and investment JV brands that includes marketing, IT (front, middle and back-office systems), HR, legal, contractor pay and bill, funding, and administration, and the enhanced purchasing power that comes from being part of a large organisation.

OUR CURRENT BRANDS AND BUSINESS STRUCTURE

The Group evolved its business structure to reflect its 'all things recruitment' focus, introducing three distinct yet complementary divisions: Recruitment, Investment, and Support. The recruitment division is where the Group's portfolio of brands operates within one of the six clearly defined sectors, as outlined in the sector overview below.

At the end of the financial year, after some sector consolidation within the Group's portfolio, there were a total of 17 active and continuing brands/businesses.

EDUCATION

Across the education division there is a range of traditional recruitment businesses that focus on temporary supply and permanent placements to Multi Academy Trusts, Local Authority Maintained and Independent school across England and Wales predominantly.

The education division is split into four separate, yet complementary divisions: supply, tutors, learning & development, and master vend solutions.

The supply business has experienced record demand for its supply staff across the last 12 months and it well placed to meet this demand with our market leading approach to candidate upskilling, job ready training and formal qualification routes.

The tutoring business has seen an increased uptake from tutors and schools for our Professional Tutor programme mapped against 22 standards for tutoring excellence and subsequently delivered to a significant increase to pupils across virtual schools and local authorities.

The learning and development business, Connex Academy, has delivered record numbers of online learners via its CPD platform with over 33,000 regular users and has continued to develop its available Ofqual regulated qualifications for distance learners. The demand for the teacher training programmes offered by the business has never been greater.

The business has launched its master vend technology solution to meet the increasing demand from the academisation agenda, to manage school supply in a PCR15-compliant (Public Contracts Regulations) programme. The division is now one of eight approved suppliers for Lot 2.1 and 2.2 of Crown Commercial Services master vend agreement, a key public sector contract award.



BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

GENERALIST

A challenging year across the Industrial, Logistics and Retail sectors with volumes by client dropping significantly. A focussed increase in business development activity to mitigate existing client volume shortfalls supported by tighter management of overheads helped the businesses in maintaining productivity. As the year progressed there was easing across most markets which created an improved performance across Q3 and Q4, and the collective businesses entered Q1 of the new financial year ahead of expectation.

HEALTHCARE

Throughout the UK during this financial year, the NHS healthcare market has continued to see a high level of vacancies along with high levels of absence, both of which continue to drive (agency) demand.

NHS Trusts continue to restrict off-framework agencies to reduce high cost off-framework spend. There has also been an increase in supply engagement through portals leading to further investment in our technology strategy to keep pace with the ever-evolving market and ensure both the client and candidate engagement models meet the needs of our customers.

The Group's healthcare division diversified its offering in 2022 with the launch of a complex care business, positioned to provide high-quality residential care services for young people throughout England and Wales. This business is now registered with the three major regulatory bodies, the Care Quality Commission (CQC), Care Inspectorate Wales (CIW) and OFSTED. The success of this business has supported a significant shift forward in profitability of the division and the momentum of growth continues into the new financial year.

PROFESSIONAL

The end of 21/22 saw an improved outlook for the Professional brands following an unpredictable period after the pandemic. The market however presented new challenges as we moved into the 22/23 financial year and the cautious sentiment from clients and candidates returned and with it a more challenging landscape. As the year progressed the hiring patterns across clients eased slightly but no major increases materialised until Q4. The improved market conditions have continued into the new financial year and a more positive outlook is being presented by our Professional brands.

Investment in technology and candidate attraction tools continued fuelling growth and supporting productivity.

SUPPORT

The support division provides recruitment specific services to the staffing sector including funding, invoicing and payroll, marketing services, IT support, and management accounts.

The funding business, Recruitment Funding Solutions, continues to focus on the provision of key back-office functions specifically into the recruitment market. The business offers end to end support to temporary recruitment agencies inclusive of payroll, invoicing, and credit control services.

During the financial year, the business has extended its service offering to the market with a new back-to-back funding product being launched. This offering will allow the business to further establish its presence in the market and to engage with larger more established recruitment agencies.

The business has been successful in continuing to spread its client portfolio into a broader range of sectors which has helped to alleviate seasonal downturns in business levels across different sectors. The business has also continued to be impacted by climate struggles in key sectors such as construction and logistics where insolvencies remain high.

The payroll business provides commercial services to recruitment agencies and contractors across the UK. The business operates across a variety of sectors offering various services including PAYE Umbrella and CIS contracting solutions.


BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

The business has been impacted by turbulence in the construction sector with increased insolvencies across the industry impacting clients and hiring requirements. The business was successful in renewing its accreditation with FCSA which confirms its position as a compliant provider in the market and is well placed for future sector consolidation as non-compliant providers exit the market.

TECHNICAL / ENGINEERING

The division's blue-collar brand is MEP Resourcing, which delivers fixed priced labour only projects in the Mechanical and Electrical & Plumbing sector to main and subcontractor clients nationwide.

The retained search business within the division, CHI has a global client base and delivers at senior commercial and technical level. Less than 30% of revenues are UK/EU-based, with 40% in North America, and the balance across the South-East Asia region.

CURRENT TRADING CONDITIONS
The recruitment sector experienced several challenges throughout the period, largely driven by economic uncertainty, cost of living increases, and inflation higher than it has been for decades.

Despite economic headwinds and challenges in certain sectors such as manufacturing, we have seen sustained demand for talent return in certain industries, such as healthcare and professional services. The skills shortage in these areas has been acute, creating a highly competitive market for top candidates.

Candidate scarcity across many sectors continued to impact, and with unemployment rates remaining low, the pool of job seekers has been limited somewhat, making it increasingly difficult to source and attract the best talent - driving salaries and rates up in certain sectors.

In the final calendar quarter of 2022, with inflation still in double digits, hiring activity had slowed with many businesses adopting a cautious approach to recruitment, leading to an overall drop in vacancies for the first time in two years. By the end of the period, inflation had more than halved.

Businesses across the Group continued to invest in technology to improve efficiencies across the portfolio and enhance the service provision to clients and candidates. Across all businesses in the portfolio, the importance of technology is abundantly clear, from business-critical CRM and ATS systems, AI technologies, communications platforms, automation, open APIs, and ongoing systems integration - all of which promises to streamline processes, improve customer touchpoints and general experience, and deliver cost and efficiency savings.

Businesses across the Group continued to invest in and develop their ESG and ED&I propositions, reflecting the broader expectation from clients and candidates, particularly from a talent attraction and retention perspective. This is no longer limited to public sector organisations either, with many private sector contracts making this a requirement for suppliers.

Reflecting on the trading conditions of the UK recruitment sector in 2023, several significant events, economic factors, and general influencing factors have shaped the landscape. These conditions impacted the industry, leading to both challenges and opportunities.

1. Economic recovery: After a challenging period marked by the COVID-19 pandemic, the UK experienced an economic recovery of sorts in 2023. As businesses resumed operations and expanded, there was an increased demand for recruitment services. Industries such as technology, healthcare, and green energy saw particularly robust growth, creating new opportunities for recruitment firms.

2. Skills shortages: The recruitment industry in the UK faced persistent challenges due to skills shortages in various sectors. The pandemic disrupted education and training systems, leading to a mismatch between available talent and industry requirements. Recruitment businesses had to devise innovative approaches to bridge this gap, such as upskilling programs, partnerships with educational institutions, and attracting talent from overseas.


BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

3. Remote work and hybrid work models: The rise of remote work and hybrid work models significantly impacted the recruitment landscape in 2023. Companies increasingly embraced flexible work arrangements, which expanded the talent pool geographically. Recruitment firms had to adapt their processes to effectively source, assess, and onboard remote workers. Additionally, the need for specialized technology and cybersecurity talent surged as companies prioritized digital transformation.

4. Sustainability and diversity: Environmental sustainability and diversity emerged as crucial factors influencing recruitment decisions in 2023. Companies placed greater emphasis on sustainability practices, requiring recruitment businesses to identify candidates with relevant experience and values aligned with sustainability goals. Similarly, diversity and inclusion initiatives gained momentum, with organizations seeking to create more diverse workforces. Recruitment firms had to incorporate diversity-focused strategies to meet client expectations.

5. Technological advancements: The recruitment industry continued to be shaped by technological advancements in 2023. Artificial intelligence (AI) and automation played an increasingly significant role in candidate sourcing, screening, and matching processes. Recruitment firms that embraced emerging technologies gained a competitive edge by streamlining operations, enhancing candidate experiences, and providing data-driven insights to clients. As the nascent AI technology develops at pace it is increasingly being integrated into existing systems and platforms.

6. Regulatory changes: The year 2023 witnessed regulatory changes that impacted the recruitment sector. Legislative developments, such as updates to employment laws, data protection regulations, and compliance requirements, necessitated businesses to remain vigilant and adapt their practices accordingly. Staying informed and ensuring compliance became crucial for recruitment firms.

In summary, the trading conditions for a UK recruitment business in 2023 were influenced by ongoing Brexit-related uncertainty, an economic recovery post-COVID-19, skills shortages, remote work trends, sustainability and diversity considerations, technological advancements, and regulatory changes. Navigating these factors required adaptability, innovative strategies, and a focus on leveraging opportunities emerging from evolving market dynamics.

SECTION 172(1) STATEMENT
EMPLOYEES

The company seeks to recruit, train and retain the best possible people for all its positions. Full and fair consideration is given to applications for employment from disabled people.

The company looks to create a vibrant and exciting work environment where people want to come to work, contribute, develop and succeed. The company communicates with employees regularly using a combination of company intranet and both video conferencing and face to face meetings.

CUSTOMERS

The company seeks to offer its customers the best possible service and customer care.

The directors want the company to be a strong trading partner of choice by enhancing value for all customers.

ENVIRONMENT

The company considers the impact its operations may potentially have on the environment and only promotes working practices to meet current environmental and best practice.


BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

STRATEGY

The company has adopted strategies to ensure that it is achieving its objectives and these are reviewed regularly by the directors and senior management team.

The company maintains a strong industry presence and has built excellent and long term customer relationships allowing it to develop its commercial activities and service offering.

The company purposefully seeks to trade with strong business partners who have like-minded values and operate sound health and safety and environmental policies.

STREAMLINED ENERGY AND CARBON REPORTING

During the year ended 31 October 2023, the company reported the following in respect of Group energy use:


2023
UK energy use (kWh) 19.999
Associated greenhouse gas emissions (Tonnes of CO2) location based 93.44
Intensity ratio (Tonnes of CO2 emissions per employee) location based 2.176

The greenhouse gas (GHG) emissions have been assessed following the GHG Protocol Corporate Reporting Standard and have used the 2022 emission conversion factors published by Department for Environment, Food and Rural Affairs (Defra) and the Department for Business, Energy & Industrial Strategy (BEIS). The assessment follows dual reporting where the location-based and market-based approach for assessing Scope 2 emissions from electricity usage. The financial control approach has been used.

The company has taken the decision to implement several measures with the aim of reducing emissions. These include:
- the fleet of company cars are being replaced with electric cars, the fleet will become fully electric in due course,
- electric charging points are being installed across all sites in the coming months,
- increasing virtual meetings and conference calls to reduce travel emissions,
- providing employees and management with the option to work from home, where possible, to reduce travel emissions,
- reducing the number of paper documents and storing more documents electronically.

RESEARCH AND DEVELOPMENT
The Group has continued to invest in selected technologies and platforms that are tailored to individual business requirements across the portfolio. However, wherever possible, the Group has utilised its economies of scale and business synergies to support technology implementation across multiple business units, working with established providers of recruitment-specific technologies that are proven to add value and improve overall business efficiencies.

The Group now has a core suite of CRM systems and ATS platforms that have been selected to support business requirements. Along with recruitment support functions such as marketing, IT, HR, legal, and finance - and the associated technology available for each of these - the Group is ensuring consistency, ease-of-support, and standardisation across its portfolio.

There has been limited research and development in the period beyond customising and adapting existing technologies to better support Group businesses and processes.


BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

FINANCIAL PERFORMANCE
One of the key metrics in the recruitment sector is the Gross Profit achieved from activities on temporary workers together with Net Fee Income from permanent placements. The overall Gross Profit margin has reduced slightly from 18% to 17% year on year. The Group's trading performance as measured by revenue has increased to £113.9m in the year ending 31 October 2023, from £113.3m in the previous financial year.

Within the recruitment sector EBITDA is seen as a key financial statement indicator in recognising performance. The Group's EBITDA for the year ended 31 October 2023 was £4,127k compared with £5,932k for the year ended 31 October 2022. The reduction in EBITDA was a result of further investment in staff and corporate development initiatives.

The directors are confident that the year ending 31 October 2024 will see an increase in revenue, gross profit, and EBITDA, with several new customers and significant key accounts having been won in 2022/23. This financial year has also included ongoing investment in systems and technology, improvements in process and procedures, and consolidation within the brand portfolio that will lead to a more efficient overhead base.

The Group statement of financial position shows a satisfactory position in the development of the Group given the substantial ongoing investment in the brand portfolio and IT which continued throughout this financial year. Total equity was £2,212k as of 31 October 2023 compared with £3,290k as of 31 October 2022. The Group continues to have a strong balance sheet.

The Group is continuing its approach to developing individual brands within its portfolio to engage in activities in different areas of recruitment through its "All Things Recruitment" wheel concept, and is confident that further progress will be made in 2024 and beyond.

The Group has now also commenced with its buy and build strategy and has already completed an number of strategic acquisitions.

With the recent change of government we expect a positive impact with increasing investment in both the Medical and Education sectors as a result of new initiatives.

PRINCIPAL RISKS AND UNCERTAINTIES
The company uses various financial instruments which include trade receivables. The main purpose of these financial instruments is to raise finance for the company's operations.

The senior management team agree policies for mitigating the risks arising from the company's financial trading. The principal ones are as follows:

Candidate Shortages The business employs a range of operational tactics to mitigate the risk of candidate shortages, deployed across its key focus areas of attraction, retention, and re-engagement. In particular, best practice approaches to tackling candidate shortages are shared across divisions and brands, leveraging the collective capabilities and knowledge within the Group.
Cost of living The Group regularly benchmarks its employees' salaries and packages to ensure it pays within agreed criteria (typically middle to upper quartile); as well as reviewing the total remuneration packages available and core benefits across the Group, to ensure they're meaningful and valuable to individuals, and competitive in the context of the broader market.

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

Credit Risk In order to manage credit risk, the directors give credit to customers with the anticipation of a good payment record. Debts are reviewed regularly in conjunction with debt aging and collection history. Credit insurance is also held across the Group's debtor book.
Interest Rate Risk The Group finances its operation through a combination of retained profits, and a factoring arrangement with a reputable provider. As the Group's revenue, profit and net assets grow it is anticipated that the interest cost of debt will reduce.
Sector / Competitor Risk The Group operates in a highly competitive market sector with some major national players. However, with the development of our specific model, encouraging the equity participation by individual directors, the Group companies ensure a high-quality level of service to both customers and particularly to individuals who are engaged to supply their services on a temporary placement basis.
Customer Risk The customer risk is always dependent upon the level of service, and it is for this reason that the directors are restructuring the Group on a divisional basis to ensure a greater offering in individual sectors. Also, the opportunity to cross sell to clients across the Bluestones network is valuable and an area that the Group is continuing to develop.
Legal and Regulatory Risk The recruitment industry has long been a target of HMRC review. This has resulted in material changes in the legislation from April 2016. These changes affect every recruitment agency and the Group therefore has adapted to these regulatory changes to ensure that the Group is compliant with Inland Revenue requirements. The directors have not seen any "fall off" of activity because of these changes. The directors are mindful of legislative changes and will ensure that this area of risk is continually monitored.
Inflation, recession &
economic uncertainty
Economic uncertainty has continued to impact the Group's macro trading environment, its portfolio of brands, and the customers that it works with. With extended hiring periods, delayed commitment to projects, and a reluctance for candidates to move all being seen as consequences of this uncertainty - the Group will continue to monitor its impact and adjust its tactics and strategies accordingly.
IT and Cyber Risk We have ensured that the Group employs some of the most up-to-date security provisions in connection with its data, conscious of the fact that the data is held on thousands of individuals and that must be protected. We have put in place a robust disaster recovery program to ensure that the Group's activities can continue in the event of an information technology failure.
International conflict The Russia-Ukraine war escalated and continued throughout 2023, and created a degree of uncertainty within the UK and other developed countries as to the extent to which this would impact elsewhere in the world. From financial commitments from supporting countries to disruptions to international trade, this conflict can and has had an impact on selected sectors in which the Group trades.
AI The pace of development of AI technology has presented opportunities and risks in equal measure. As existing technology providers have moved to adopt and integrate the technology into their existing systems, there is uncertainty regarding the pace of change, the extent to which AI can automate and support existing businesses, and perhaps more far reaching, how AI can replace the need for humans in certain roles and functions.


BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

KEY FINANCIAL INDICATORS
Internally the key financial indicators and management information are regarded as very important and are assessed and reviewed company by company and acted upon on a daily, weekly and monthly basis.

There is a high-level three-year plan and a detailed annual budget prepared which is reviewed on a quarterly basis. Key Financial Indicators include:

- Revenue growth
- Revenue per customer
- Trade indemnity / Insurable risk on a customer-by-customer basis
- EBITDA / by division / by brand
- Gross profit achieved
- Gross margin achieved by consultant
- Conversion ratio of gross margin to EBITDA
- Profitability per head - fees per full time equivalent (FTE) employee
- Debtor days
- Creditor days
- Permanent fee per placement
- Number of temporary workers at work
- Forward bookings for temporary workers

CONCLUSION
In summary, this financial period ending October 2023 has been a positive year of improving business outlook across all Group divisions. Continued overhead control has been balanced against the pursuit of growth through investing in headcount and technology, supporting organic growth, identifying suitable acquisition opportunities, and improving operational efficiency.

The Group's vision targeting a combined £1bn revenue remains aspirational, yet achievable, and will be supported via its three strategic pillars: organic growth, bolt-on activities, and acquisitions (in selected target sectors).

Further work in structuring the Group across its three divisions of Recruitment, Investment, and Support continued during the period, and looking ahead will be refined further, leading to improved succession planning, strategic actions, and enhanced performance across all divisions.

This positive outlook is re-enforced by the Group's current performance which shows sustained growth, whilst our finance and back-office investment has given us greater control and measurement of the business.

ON BEHALF OF THE BOARD:





S Pendergast - Director


30 July 2024

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 OCTOBER 2023


The directors present their report with the financial statements of the Company and the Group for the year ended 31 October 2023.

PRINCIPAL ACTIVITY
The principal activity of the group in the year under review was that of investing in startup and early stage businesses predominantly in the recruitment and staffing service industries.

DIVIDENDS
Dividends of £2,322,296 (2022: £2,870,028) were paid in the year.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report.

C Pendergast
P M Stratford
P R Broderick
D A Gregson
S Pendergast
T H S Trotter

Other changes in directors holding office are as follows:

S A Gosling - appointed 31 July 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 OCTOBER 2023


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
DJH Audit Limited has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for it to be deemed reappointed as auditor in the absence of an Annual General Meeting.

ON BEHALF OF THE BOARD:





S Pendergast - Director


30 July 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BLUESTONES INVESTMENT GROUP LIMITED


Opinion
We have audited the financial statements of Bluestones Investment Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 October 2023 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

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 the 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 in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BLUESTONES INVESTMENT GROUP LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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

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

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of our planning process:
- We enquired of management the systems and controls the group has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The group did not inform us of any known, suspected or alleged fraud.
- We obtained an understanding of the legal and regulatory frameworks applicable to the group. We determined that the following were most relevant: FRS 102, Companies Act 2006, Health & Safety At Work 1974, Employment Act 2008 and General Data Protection Regulations (GDPR).
- We considered the incentives and opportunities that exist in the group, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
- Using our knowledge of the group, together with the discussions held with the group at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BLUESTONES INVESTMENT GROUP LIMITED


The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
- Identifying and testing journal entries, in particular those that were significant and unusual.
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entity's ability to continue in operation.
- Testing key revenue lines, in particular cut-off, for evidence of management bias.
- Obtaining third-party confirmation of material bank and loan balances.
- Documenting and verifying all significant related party balances and transactions.
- Reviewing documentation such as the group board minutes, for discussions of irregularities including fraud.

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

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




Richard Taylor (Senior Statutory Auditor)
for and on behalf of DJH Audit Limited
Accountants
Statutory Auditors
The Exchange
5 Bank Street
Bury
BL9 0DN

30 July 2024

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

CONSOLIDATED
INCOME STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023

2023 2022
Notes £    £   

REVENUE 3 113,944,942 113,349,704

Cost of sales (94,765,666 ) (93,308,317 )
GROSS PROFIT 19,179,276 20,041,387

Administrative expenses (16,611,460 ) (15,368,098 )
OPERATING PROFIT 5 2,567,816 4,673,289

Interest receivable and similar income - 20
2,567,816 4,673,309

Interest payable and similar expenses 6 (307,956 ) (188,891 )
PROFIT BEFORE TAXATION 2,259,860 4,484,418

Tax on profit 7 (1,014,892 ) (1,330,197 )
PROFIT FOR THE FINANCIAL YEAR 1,244,968 3,154,221
Profit attributable to:
Owners of the parent 1,311,351 2,960,330
Non-controlling interests (66,383 ) 193,891
1,244,968 3,154,221

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

CONSOLIDATED
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,244,968 3,154,221


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,244,968

3,154,221

Total comprehensive income attributable to:
Owners of the parent 1,311,351 2,960,330
Non-controlling interests (66,383 ) 193,891
1,244,968 3,154,221

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 OCTOBER 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 10 1,814,309 3,061,509
Property, plant and equipment 11 392,964 435,375
Investments 12 - -
2,207,273 3,496,884

CURRENT ASSETS
Inventories 13 839,052 729,590
Debtors 14 16,262,175 15,709,037
Cash at bank 1,194,686 1,230,180
18,295,913 17,668,807
CREDITORS
Amounts falling due within one year 15 (18,185,874 ) (17,730,699 )
NET CURRENT ASSETS/(LIABILITIES) 110,039 (61,892 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,317,312

3,434,992

CREDITORS
Amounts falling due after more than one
year

16

(16,667

)

(26,667

)

PROVISIONS FOR LIABILITIES 20 (88,427 ) (118,779 )
NET ASSETS 2,212,218 3,289,546

CAPITAL AND RESERVES
Called up share capital 21 2,000 2,000
Capital redemption reserve 22 116 116
Retained earnings 22 1,889,480 2,900,425
SHAREHOLDERS' FUNDS 1,891,596 2,902,541

NON-CONTROLLING INTERESTS 320,622 387,005
TOTAL EQUITY 2,212,218 3,289,546

The financial statements were approved by the Board of Directors and authorised for issue on 30 July 2024 and were signed on its behalf by:




S A Gosling - Director


BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

COMPANY STATEMENT OF FINANCIAL POSITION
31 OCTOBER 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 10 1,248,618 1,846,631
Property, plant and equipment 11 51,947 149,789
Investments 12 42,938 42,938
1,343,503 2,039,358

CURRENT ASSETS
Inventories 13 556 -
Debtors 14 22,289,145 16,726,657
Cash at bank 54,756 34,088
22,344,457 16,760,745
CREDITORS
Amounts falling due within one year 15 (22,957,015 ) (17,967,092 )
NET CURRENT LIABILITIES (612,558 ) (1,206,347 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

730,945

833,011

PROVISIONS FOR LIABILITIES 20 (1,493 ) (23,953 )
NET ASSETS 729,452 809,058

CAPITAL AND RESERVES
Called up share capital 21 2,000 2,000
Capital redemption reserve 22 116 116
Retained earnings 22 727,336 806,942
SHAREHOLDERS' FUNDS 729,452 809,058

Company's profit for the financial year 341,232 186,904

The financial statements were approved by the Board of Directors and authorised for issue on 30 July 2024 and were signed on its behalf by:





S A Gosling - Director


BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023

Called up Capital
share Retained redemption
capital earnings reserve
£    £    £   
Balance at 1 November 2021 2,000 2,810,123 116

Changes in equity
Dividends - (2,870,028 ) -
Total comprehensive income - 2,960,330 -
Balance at 31 October 2022 2,000 2,900,425 116

Changes in equity
Dividends - (2,322,296 ) -
Total comprehensive income - 1,311,351 -
Balance at 31 October 2023 2,000 1,889,480 116
Non-controlling Total
Total interests equity
£    £    £   
Balance at 1 November 2021 2,812,239 193,114 3,005,353

Changes in equity
Dividends (2,870,028 ) - (2,870,028 )
Total comprehensive income 2,960,330 193,891 3,154,221
Balance at 31 October 2022 2,902,541 387,005 3,289,546

Changes in equity
Dividends (2,322,296 ) - (2,322,296 )
Total comprehensive income 1,311,351 (66,383 ) 1,244,968
Balance at 31 October 2023 1,891,596 320,622 2,212,218

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 November 2021 2,000 1,336,420 116 1,338,536

Changes in equity
Total comprehensive income - 186,904 - 186,904
Dividends - (716,382 ) - (716,382 )
Balance at 31 October 2022 2,000 806,942 116 809,058

Changes in equity
Total comprehensive income - 341,232 - 341,232
Dividends - (420,838 ) - (420,838 )
Balance at 31 October 2023 2,000 727,336 116 729,452

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 4,304,767 5,271,654
Interest paid (307,956 ) (188,891 )
Tax paid (1,423,346 ) (746,346 )
Net cash from operating activities 2,573,465 4,336,417

Cash flows from investing activities
Purchase of intangible fixed assets (35,000 ) (532,125 )
Purchase of property, plant & equipment (234,707 ) (197,404 )
Purchase of fixed asset investments - (160 )
Cash on acquisition of subsidiaries - 435,332
Interest received - 20
Net cash from investing activities (269,707 ) (294,337 )

Cash flows from financing activities
Loan repayments in year (11,422 ) (12,344 )
Amount introduced by director - 5,534
Amount withdrawn by director (5,534 ) -
Equity dividends paid (2,322,296 ) (2,870,028 )
Net cash from financing activities (2,339,252 ) (2,876,838 )

(Decrease)/increase in cash and cash equivalents (35,494 ) 1,165,242
Cash and cash equivalents at beginning of
year

2

1,230,180

64,938

Cash and cash equivalents at end of year 2 1,194,686 1,230,180

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 2,259,860 4,484,418
Depreciation charges 1,559,318 1,258,969
Finance costs 307,956 188,891
Finance income - (20 )
4,127,134 5,932,258
Increase in inventories (109,462 ) (122,766 )
(Increase)/decrease in trade and other debtors (553,138 ) 629,459
Increase/(decrease) in trade and other creditors 840,233 (1,167,297 )
Cash generated from operations 4,304,767 5,271,654

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 October 2023
31.10.23 1.11.22
£    £   
Cash and cash equivalents 1,194,686 1,230,180
Year ended 31 October 2022
31.10.22 1.11.21
£    £   
Cash and cash equivalents 1,230,180 64,938


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.11.22 Cash flow At 31.10.23
£    £    £   
Net cash
Cash at bank 1,230,180 (35,494 ) 1,194,686
1,230,180 (35,494 ) 1,194,686
Debt
Debts falling due within 1 year (11,422 ) 1,422 (10,000 )
Debts falling due after 1 year (26,667 ) 10,000 (16,667 )
(38,089 ) 11,422 (26,667 )
Total 1,192,091 (24,072 ) 1,168,019

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023


4. ACQUISITION OF BUSINESS

During the prior year the group acquired a 80% share in a subsidiary undertaking

Net assets acquired £
Fixed assets 508,301
Debtors 191,063
Cash at bank 435,332
Creditors (990,080 )
144,616

No acquisitions were made in the current year.

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023


1. STATUTORY INFORMATION

Bluestones Investment Group Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 07807506 and its registered office address is Unit A Telford Court, Chester Gates Business Park, Chester, United Kingdom, CH1 6LT.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
The directors report that after making enquiries, they have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. In making this assessment the directors have taken into account available bank and other facilities and financial projections. For this reason they continue to adopt the going concern basis in preparing the financial statements.

Basis of consolidation
The group financial statements consolidate those of Bluestones Investment Group Limited and its subsidiary undertakings made up to 31 October 2023.

Subsidiaries are consolidated from their date of acquisition, being the date on which the group obtains control and continues to be consolidated until the date such control ceases.

Control comprises the power to govern the financial and operating policies of the investee so as to obtain benefit from its activities.

Significant judgements and estimates
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management's best knowledge of the amount, events or actions, actual results ultimately may differ from those estimates.

The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

The directors use judgement to provide against bad debts using knowledge of customers and experience. The provisions are revisited after the statement of financial position date to ensure they are appropriate.

Determining the useful economic life of goodwill is considered a key judgement in calculating an appropriate amortisation charge. When applying this valuation technique, the group relies on a number of factors, including historical results, business plans, forecasts and market data. Changes in the conditions for these judgments and estimates can significantly affect the assessed value of goodwill.

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


2. ACCOUNTING POLICIES - continued

Revenue
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts. rebates, value added tax and other sales taxes. Revenue is recognised when the services have been provided to the customer.

Goodwill
Goodwill, being the amounts paid in connection with the acquisition of various businesses since 2017, is amortised over its estimated useful life.

Useful life of existing goodwill ranges from three to six years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of five years.

Property, plant and equipment
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 25% on cost
Fixtures and fittings - 20% on cost
Computer equipment - 25% on cost

The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises.

Inventories
Work in progress is valued at the cost of the service provided.

Financial instruments
The group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment.

If objective evidence of impairment is found, an impairment loss is recognised in the income statement.

Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Taxation
Taxation for the year comprises current and deferred tax.

Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


2. ACCOUNTING POLICIES - continued

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Development costs are capitalised in the year in which they are incurred and written off over its useful life of 5 years.

Foreign currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date.

Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the income statement on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to the income statement in the period to which they relate.

Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks and other short term liquid investments with original maturities of three months or less.

Dividends
Equity dividends are recognised when they become legally payable and are no longer at the discretion of the group.

Invoice finance
The group operates an invoice finance facility and is able to raise funds against its trade receivable. The facility has full recourse and therefore trade receivables and invoice finance are reported as a separate asset and liability.

3. REVENUE

Substantially all revenue is from the United Kingdom and relates to the principal activities of the Group.

4. EMPLOYEES AND DIRECTORS

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


2023 2022
£ £
Wages and salaries 9,877,611 7,708,604
Social security 778,472 762,653
Other pension costs 143,151 117,758
10,799,234 8,589,015

The average number of employees during the year was as follows:
2023 2022
Administration 240 235

2023 2022
£ £
Directors' remuneration 235,694 1,386,510

Total remuneration of the highest paid director was £112,000.

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):
2023 2022
£ £
Hire of plant and machinery 19,226 8,792
Other operating leases - rent 697,238 667,385
Depreciation - owned assets 277,118 193,409
Development cost amortisation 1,075,525 1,022,781
Goodwill amortisation 206,675 42,779
Auditors' remuneration 89,000 84,000
Foreign exchange differences 11,453 3,702


6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 2,866 1,493
Bank loan interest 810 1,048
Factoring charges 304,280 186,350
307,956 188,891

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 1,144,004 1,030,529
Corporation tax prior year adjustment (98,760 ) 275,064
Total current tax 1,045,244 1,305,593

Deferred tax (30,352 ) 24,604
Tax on profit 1,014,892 1,330,197

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 2,259,860 4,484,418
Profit multiplied by the standard rate of corporation tax in the UK of 25 %
(2022 - 19 %)

564,965

852,039

Effects of:
Expenses not deductible for tax purposes 12,783 36,099
Depreciation in excess of capital allowances 242,849 216,191
Utilisation of tax losses (22,024 ) (40,505 )
Adjustments to tax charge in respect of previous periods (98,760 ) 275,064
Research and development tax credit (35,000 ) (50,106 )
Other timing differences 56,876 41,415
Effect of change in tax rate 293,203 -
Total tax charge 1,014,892 1,330,197

For financial years beginning after 1 April 2023, the corporation tax rate increased to 25% for profits over £250,000. A small profits rate (SPR) will also be introduced for companies with profits of £50,000 or less so that they will continue to pay corporation tax at 19%. Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by marginal relief. The directors are not aware of any other factors that will materially affect the future tax charge.

8. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


9. DIVIDENDS

2023 2022
£ £
Paid 2,322,296 2,870,028

10. INTANGIBLE FIXED ASSETS

Group
Development
Goodwill costs Totals
£    £    £   
COST
At 1 November 2022 572,411 5,166,450 5,738,861
Additions - 35,000 35,000
At 31 October 2023 572,411 5,201,450 5,773,861
AMORTISATION
At 1 November 2022 221,849 2,455,503 2,677,352
Amortisation for year 206,675 1,075,525 1,282,200
At 31 October 2023 428,524 3,531,028 3,959,552
NET BOOK VALUE
At 31 October 2023 143,887 1,670,422 1,814,309
At 31 October 2022 350,562 2,710,947 3,061,509

Company
Development
Goodwill costs Totals
£    £    £   
COST
At 1 November 2022 270,000 3,165,063 3,435,063
Additions - 35,000 35,000
At 31 October 2023 270,000 3,200,063 3,470,063
AMORTISATION
At 1 November 2022 - 1,588,432 1,588,432
Amortisation for year - 633,013 633,013
At 31 October 2023 - 2,221,445 2,221,445
NET BOOK VALUE
At 31 October 2023 270,000 978,618 1,248,618
At 31 October 2022 270,000 1,576,631 1,846,631

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


11. PROPERTY, PLANT AND EQUIPMENT

Group
Improvements Fixtures
to and Computer
property fittings equipment Totals
£    £    £    £   
COST
At 1 November 2022 29,779 69,602 1,507,017 1,606,398
Additions - 30,492 204,215 234,707
At 31 October 2023 29,779 100,094 1,711,232 1,841,105
DEPRECIATION
At 1 November 2022 27,071 43,359 1,100,593 1,171,023
Charge for year 2,166 50,602 224,350 277,118
At 31 October 2023 29,237 93,961 1,324,943 1,448,141
NET BOOK VALUE
At 31 October 2023 542 6,133 386,289 392,964
At 31 October 2022 2,708 26,243 406,424 435,375

Company
Improvements Fixtures
to and Computer
property fittings equipment Totals
£    £    £    £   
COST
At 1 November 2022 23,279 68,602 534,243 626,124
Additions - 329 - 329
At 31 October 2023 23,279 68,931 534,243 626,453
DEPRECIATION
At 1 November 2022 23,279 42,359 410,697 476,335
Charge for year - 19,938 78,233 98,171
At 31 October 2023 23,279 62,297 488,930 574,506
NET BOOK VALUE
At 31 October 2023 - 6,634 45,313 51,947
At 31 October 2022 - 26,243 123,546 149,789

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


12. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 November 2022
and 31 October 2023 42,938
NET BOOK VALUE
At 31 October 2023 42,938
At 31 October 2022 42,938


BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


12. FIXED ASSET INVESTMENTS - continued



Subsidiary
Proportion
held
Nature of
business
Direct /
indirect
Apex Marketing Services Limited 75% Recruitment Direct
Bluestones Investment Group - Professional Services Limited 100% Recruitment Direct
Bluestones Investment Group - Support Services Limited 90% Recruitment Direct
Bluestones Investment Group - Specialist Services Limited 100% Recruitment Direct
Bluestones Logistics Limited 100% Recruitment Direct
Bluestones Medical Recruitment Limited 96% Recruitment Direct
Bluestones Staffing N.I. Limited 75% Recruitment Indirect
Bluestones One Merchandising Limited 75% Recruitment Direct
Bluestones One Store Development Limited 100% Recruitment Direct
Bluestones One Installations Limited 80% Recruitment Direct
Bluestones Supply Chain Limited 75% Recruitment Indirect
Bluestones Supply Chain Derby Limited 80% Recruitment Indirect
Chad Harrison Limited 90% Recruitment Direct
Cogent Staffing Limited 75% Recruitment Indirect
Connex Education Partnership Limited 100% Recruitment Indirect
Connex Education Partnership Birmingham Limited 90% Recruitment Indirect
Connex Education Partnership Derby Limited 75% Recruitment Indirect
Connex Education Partnership Liverpool Limited 90% Recruitment Indirect
Connex Education Partnership London Limited 90% Recruitment Indirect
Connex Education Partnership Manchester Limited 75% Recruitment Indirect
Connex Education Partnership Nottingham Limited 90% Recruitment Indirect
Connex Education Partnership Warrington Limited 90% Recruitment Indirect
Zircon IT Systems Limited 75% Recruitment Direct
Harrison Sands Limited 75% Recruitment Direct
Bluestones Offshore Solutions Partner Limited 100% Recruitment Direct
MEP Resourcing Limited 75% Recruitment Direct
Bluestones 102 Limited 100% Recruitment Indirect
NC Associates Limited 75% Recruitment Direct
NC Associates Liverpool Limited 100% Recruitment Indirect
NWP Resourcing Limited 85% Recruitment Indirect
Recruitment Funding Solutions Limited 77% Recruitment Indirect
Recruitment Training Group Limited 100% Recruitment Indirect
The Classroom Partnership Limited 100% Recruitment Direct
SEDA Talent Limited 100% Recruitment Indirect
Chad Harrison Life Sciences Limited 100% Recruitment Indirect
The International Teaching Partnership Limited 100% Recruitment Indirect
Recruit Ready Partnership Limited 100% Recruitment Direct
Teacher Training College Limited 75% Recruitment Indirect
Connex Education Academy Limited 80% Recruitment Indirect
Connex Education Partnership Cardiff Limited 75% Recruitment Indirect
Bluestones Medical Complex Care Limited 80% Recruitment Direct
Quest Pay Solutions NE Limited 80% Recruitment Direct
Quest Pay Solutions NW Limited 80% Recruitment Indirect
Connex Education Partnership North East Limited 90% Recruitment Indirect

All of the above companies are incorporated in the United Kingdom and all shares held are ordinary. Some are held by intermediate holding companies within the group.

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


13. INVENTORIES

Group Company
2023 2022 2023 2022
£    £    £    £   
Work-in-progress 839,052 729,590 556 -

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade receivables 13,683,705 14,555,206 17,037 2,061
Amounts owed by group undertakings - - 20,247,991 15,914,832
Other debtors 2,204,933 814,398 1,864,834 697,408
Corporation tax receivable - - 52,891 -
Prepayments and accrued income 373,537 339,433 106,392 112,356
16,262,175 15,709,037 22,289,145 16,726,657

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 17) 10,000 11,422 - -
Trade payables 1,024,297 659,257 384,218 121,362
Amounts owed to group undertakings - - 14,829,320 9,484,873
Corporation tax 461,850 839,778 - 116,035
Social security and other taxes 4,858,298 4,861,639 118,071 90,669
Other creditors 8,345,327 7,416,874 5,692,560 6,251,567
Directors' current accounts - 5,534 - 5,534
Accrued expenses 3,486,102 3,936,195 1,932,846 1,897,052
18,185,874 17,730,699 22,957,015 17,967,092

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group
2023 2022
£    £   
Bank loans (see note 17) 16,667 26,667

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


17. LOANS

An analysis of the maturity of loans is given below:

Group
2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 10,000 11,422
Amounts falling due between one and two years:
Bank loans - 1-2 years 10,000 10,000
Amounts falling due between two and five years:
Bank loans - 2-5 years 6,667 16,667

18. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 230,788 300,127
Between one and five years 422,399 498,958
653,187 799,085

19. SECURED DEBTS

The following secured debts are included within creditors:

Group
2023 2022
£    £   
Invoice discounting creditor 6,961,161 6,246,807

RBS Invoice Finance Limited and Aldermore Bank PLC have a fixed and floating charge on assets of subsidiaries.

20. PROVISIONS FOR LIABILITIES

Group Company
2023 2022 2023 2022
£    £    £    £   
Deferred tax 88,427 118,779 1,493 23,953

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


20. PROVISIONS FOR LIABILITIES - continued

Group
Deferred
tax
£   
Balance at 1 November 2022 118,779
Provided during year (30,352 )
Balance at 31 October 2023 88,427

Company
Deferred
tax
£   
Balance at 1 November 2022 23,953
Provided during year (22,460 )
Balance at 31 October 2023 1,493

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1,399 A Ordinary Shares £1 1,399 1,399
400 B Ordinary shares £1 400 400
1 C Ordinary Shares £1 1 1
100 D Ordinary Shares £1 100 100
100 E Ordinary Shares £1 100 100
2,000 2,000

22. RESERVES

Group
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 November 2022 2,900,425 116 2,900,541
Profit for the year 1,311,351 - 1,311,351
Dividends (2,322,296 ) - (2,322,296 )
At 31 October 2023 1,889,480 116 1,889,596

BLUESTONES INVESTMENT GROUP LIMITED (REGISTERED NUMBER: 07807506)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


22. RESERVES - continued

Company
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 November 2022 806,942 116 807,058
Profit for the year 341,232 - 341,232
Dividends (420,838 ) - (420,838 )
At 31 October 2023 727,336 116 727,452

The capital redemption reserve records the nominal value of the shares repurchased by the parent company.

23. RELATED PARTY DISCLOSURES

The group has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Key Management Personnel

The group was provided services from key management personnel during the year amounting to £455,840 (2022: £873,604).

Other related parties

During in the year amounts totalling £193,200 were paid in respect of rent to a company in which a director also held a directorship and was sole shareholder.

24. POST BALANCE SHEET EVENTS

After the statement of financial position date, but prior to the date of this report, two further acquisitions were made.

In January 2024 the group acquired Australasian Recruitment Company Limited and its subsidiary.

In April 2024 the group acquired Bluestones Equity Partners Limited and its subsidiaries.

25. ULTIMATE CONTROLLING PARTY

The controlling party is the largest shareholder Steven Pendergast.