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Registered number: 08837446










ORBITAL PAYROLL GROUP LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2023

 
ORBITAL PAYROLL GROUP LIMITED
 
 
COMPANY INFORMATION


Director
J Myatt 




Registered number
08837446



Registered office
Digital Media Centre
County Way

Barnsley

South Yorkshire

S70 2JW




Independent auditors
Shorts
Chartered Accountants & Statutory Auditor

Cedar House

63 Napier Street

Sheffield

South Yorkshire

S11 8HA





 
ORBITAL PAYROLL GROUP LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 2
Director's Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Consolidated Statement of Income and Retained Earnings
 
9
Consolidated Balance Sheet
 
10
Company Balance Sheet
 
11
Consolidated Statement of Cash Flows
 
12
Notes to the Financial Statements
 
13 - 26


 
ORBITAL PAYROLL GROUP LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

Introduction
 
The directors present their group strategic report for the year ended 31 October 2023.

Principal activity

The principal activities of the group are to operate as a payroll intermediary offering outsourced self-employed and PAYE pay models to contingent workers who are engaged on temporary assignments through recruitment agencies.

Business review
 
2023-24 was a challenging year for the business. We experienced a drop in sales in the last half of the year which adversely affected turnover and gross margin. This was due to adverse market conditions which impacted the whole sector. Furthermore, we deemed that further provision against historic outstanding debt was required based on the age and collectability of the book debts.
The turbulent economic backdrop in the UK has impacted the construction sector with a number of large-scale construction projects being deferred to 2024 and several reputable companies going into administration. This has had a knock on effect on the business as a large proportion of workers are employed in this sector.
Work has been ongoing on validation of historical debt with many customers now settling debt via payment plans or where the debt is deemed uncollectable making provision in the accounts for such.  This exercise is expected to be completed during 2024.  The business now has robust financial controls in place which limit exposure to bad debts so this is a legacy issue rather than an ongoing one.
The business has now attained SafeRec accreditation which audits all our payslips in real-time, per pay run.  This gives both workers and agencies the confidence that all payroll deductions are legitimate and all tax and national insurance contributions are being paid over to HMRC correctly.  As an early adopter of SafeRec, it is felt we have a competitive advantage and an opportunity to expand market share over the coming years.
Given the adverse market conditions and legacy issues regarding recoverability of debt it is felt that the modest pre-tax profit reported is reasonable.  Moreover, now that the historical debt has been largely addressed, robust business processes and systems are in place and with the achievement of the SafeRec accreditation the business is well placed to grow back to previous levels of activity and importantly any increase in margin will not be eroded as has been the case in prior years.

Principal risks and uncertainties
 
The principal risks still include adhering to HMRC legislation and any sudden changes to how it interprets compliance enforcement for payroll intermediaries. 
The business is sensitive to downturns in the construction industry and is seeking to mitigate this by targeting business within other areas such as education and healthcare.

Financial key performance indicators
 
The directors uses the following key performance indicator to monitor performance of the business:
Gross Margin: 0.9% (2022: 1.1%)

Page 1

 
ORBITAL PAYROLL GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023

Director's statement of compliance with duty to promote the success of the Group
 
The Director of Orbital Payroll Group Limited has a legal responsibility under section 172 of the Companies Act 2006 in the way he considers, in good faith, would be most likely to promote the company’s success for the benefit of its key stakeholders as a whole. The Director recognises that building strong relationships with business stakeholders will enable the company to deliver on its long-term goals and operate the business in a sustainable way.
The director of the company has acted in accordance with a set of general duties and considerations which are detailed in section 172 of the UK Companies Act 2006. These are summarised below:
• The likely consequences of any decision in the long term
• The interests of the company employees
• The need to foster the company’s business relationships with suppliers, customers and others
• The impact of the company’s operations on the community and environment
• The desire of the company to maintain a reputation for high standards of business conduct
• The need to act fairly between all members of the company
Engaging with stakeholders
Employees
The Group invests in the future of its employees and actively encourages career progression to maximise talent. To support this culture, we offer a diverse range of learning and development opportunities alongside recruitment of talent from the local area.
We recognise the importance of communication with our employees and we actively seek opportunities to engage with our staff.  Staff have regular meetings with their direct manager to feedback, agree objectives and seek appropriate support if needed.
Customers
Some of the business’ ongoing objectives are to achieve reputational growth and retain existing business, listen to client feedback and implement solutions. We pride ourselves on our integrity and the professional manner in which we conduct business.
Environment
The company’s approach is to create positive change and believe in being proactive on environmental issues to reduce our impact on the planet. We source materials from sustainable partners and innovate our processes to minimise our environmental impact, ensuring sustainability is maximised.
Risk Management
The business regularly reviews the risk the business is exposed to in terms of compliance, economic, health & safety and business continuity risks and actively looks to mitigate these potential risks.


This report was approved by the board on 30 July 2024 and signed on its behalf.



J Myatt
Director

Page 2

 
ORBITAL PAYROLL GROUP LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

The Director presents his report and the financial statements for the year ended 31 October 2023.

Results and dividends

The profit for the year, after taxation, amounted to £89,790 (2022 - £60,940).

Director

The Director who served during the year was:

J Myatt 

Director's responsibilities statement

The Director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the Director to prepare financial statements for each financial year. Under that law the Director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Director must not approve the financial statements unless he is 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 Director is required to:


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

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK 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 Group will continue in business.

The Director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Future developments

We are hopeful that 2024 will see an upturn in the general economy and the construction sector in particular. With the advantage of SafeRec accreditation and much more robust business processes in place the business can focus its efforts on sales growth and we have successfully managed to achieve listing on a number of tenders due to holding the SafeRec accreditation. We expect sales to increase from Q2 onwards and plan to have an exit rate similar to FY22 levels.  We are also targeting non-construction sectors such as education and healthcare to mitigate exposure. 

Page 3

 
ORBITAL PAYROLL GROUP LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023

Disabled employees

The Group has given full and fair consideration to applications for employment from disabled persons, having regard to their particular aptitudes and abilities. Wherever possible the Group continues the employment of, and arranges for the appropriate training of, employees who become disabled whilst employed by the Group. The Group’s policy of training, career development and promotion applies equally to all employees whether disabled or not.

Greenhouse gas emissions, energy consumption and energy efficiency action

The Group has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as its energy consumption in the United Kingdom for the year is 40,000kWh or lower.

Disclosure of information to auditors

The Director at the time when this Director's Report is approved has confirmed that:
 
so far as  is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

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

Auditors

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

This report was approved by the board on 30 July 2024 and signed on its behalf.
 





J Myatt
Director

Page 4

 
ORBITAL PAYROLL GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ORBITAL PAYROLL GROUP LIMITED
 

Opinion


We have audited the financial statements of Orbital Payroll Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 October 2023, which comprise the Consolidated Statement of Income and Retained Earnings, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the Director's 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 or 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 Director with respect to going concern are described in the relevant sections of this report.


Page 5

 
ORBITAL PAYROLL GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ORBITAL PAYROLL GROUP LIMITED (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the 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 Director's Report.


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


adequate accounting records have not been kept 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 Director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 6

 
ORBITAL PAYROLL GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ORBITAL PAYROLL GROUP LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Director's Responsibilities Statement set out on page 3, the Director is 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 Director determines 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 Director is 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 Director either intends 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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
through discussions with the directors and other management and from our commercial knowledge and experience of the clients business, we identified the laws and regulations applicable to the Company; and
focusing on the specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, we assessed the extent of compliance with those laws and regulations identified above through making enquiries of management and inspecting relevant correspondence.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;
reviewed the general ledger entries during the year to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were
Page 7

 
ORBITAL PAYROLL GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ORBITAL PAYROLL GROUP LIMITED (CONTINUED)


indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims;
considering relationships with HMRC and other relevant regulators; and
reviewing legal and professional costs to identify any indicators of litigation.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they
may involve deliberate concealment or collusion.
 
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Use of our report
 

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





Andrew Irvine (Senior Statutory Auditor)
  
for and on behalf of
Shorts
 
Chartered Accountants
Statutory Auditor
  
Cedar House
63 Napier Street
Sheffield
South Yorkshire
S11 8HA

30 July 2024
Page 8

 
ORBITAL PAYROLL GROUP LIMITED
 
 
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 OCTOBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
174,951,258
198,776,362

Cost of sales
  
(173,343,200)
(196,535,515)

Gross profit
  
1,608,058
2,240,847

Administrative expenses
  
(1,490,705)
(2,135,182)

Other operating income
 5 
59,292
-

Operating profit
 6 
176,645
105,665

Interest receivable and similar income
 10 
1,833
350

Interest payable and similar expenses
 11 
(42,512)
(20,548)

Profit before tax
  
135,966
85,467

Tax on profit
 12 
(46,176)
(24,527)

Profit after tax
  
89,790
60,940

  

  

Retained earnings at the beginning of the year
  
123,161
62,221

Profit for the year attributable to the owners of the parent
  
89,790
60,940

Dividends declared and paid
  
(180,000)
-

Retained earnings at the end of the year
  
32,951
123,161

The notes on pages 13 to 26 form part of these financial statements.

Page 9

 
ORBITAL PAYROLL GROUP LIMITED
REGISTERED NUMBER: 08837446

CONSOLIDATED BALANCE SHEET
AS AT 31 OCTOBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 14 
7,207
9,930

Current assets
  

Debtors: amounts falling due within one year
 16 
3,727,299
6,123,582

Cash at bank and in hand
  
4,383,678
4,793,751

  
8,110,977
10,917,333

Creditors: amounts falling due within one year
 17 
(8,073,862)
(10,793,755)

Net current assets
  
 
 
37,115
 
 
123,578

Total assets less current liabilities
  
44,322
133,508

Provisions for liabilities
  

Deferred taxation
 18 
(1,371)
-

Net assets
  
42,951
133,508


Capital and reserves
  

Called up share capital 
 19 
7,500
7,500

Capital redemption reserve
 20 
2,500
2,500

Profit and loss account
 20 
32,951
123,508

  
42,951
133,508


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 July 2024.




J Myatt
Director

The notes on pages 13 to 26 form part of these financial statements.

Page 10

 
ORBITAL PAYROLL GROUP LIMITED
REGISTERED NUMBER: 08837446

COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 15 
2,101
2,101

Current assets
  

Debtors: amounts falling due within one year
 16 
158,013
331,994

Cash at bank and in hand
  
103,351
107,887

  
261,364
439,881

Creditors: amounts falling due within one year
 17 
(229,455)
(407,627)

Net current assets
  
 
 
31,909
 
 
32,254

Total assets less current liabilities
  
34,010
34,355

  

  

Net assets
  
34,010
34,355


Capital and reserves
  

Called up share capital 
 19 
7,500
7,500

Capital redemption reserve
 20 
2,500
2,500

Profit and loss account
  
(24,010)
(24,355)

  
34,010
34,355


The Company has taken advantage of the exemption under Section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the Company for the year was £180,000 (2022: £Nil).
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 July 2024.


J Myatt
Director

The notes on pages 13 to 26 form part of these financial statements.

Page 11

 
ORBITAL PAYROLL GROUP LIMITED
 

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

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
89,790
60,940

Adjustments for:

Depreciation of tangible assets
4,867
5,002

Interest paid
42,512
20,548

Interest received
(1,833)
(350)

Taxation charge
46,176
24,527

Decrease/(increase) in debtors
2,396,140
(377,835)

Decrease in creditors
(2,764,297)
(824,543)

Corporation tax paid
(605)
(20,372)

Net cash used in operating activities

(187,250)
(1,112,083)


Cash flows from investing activities

Purchase of tangible fixed assets
(2,144)
(11,283)

Interest received
1,833
350

Net cash used in investing activities

(311)
(10,933)

Cash flows from financing activities

Interest paid
(42,512)
(20,548)

Dividends paid
(180,000)
-

Net cash used in financing activities
(222,512)
(20,548)

Net decrease in cash and cash equivalents
(410,073)
(1,143,564)

Cash and cash equivalents at beginning of year
4,793,751
5,937,315

Cash and cash equivalents at the end of year
4,383,678
4,793,751


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
4,383,678
4,793,751


Page 12

 
ORBITAL PAYROLL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

1.


General information

Orbital Payroll Group Limited is a private Company, limited by shares, incorporated in England and Wales. Its registered office is Digital Media Centre, County Way, Barnsley, South Yorkshire, S70 2JW.                Its registered number is 08837446.
The financial statements are presented in sterling which is the functional currency of the Company and rounded to the nearest pound. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Income and Retained Earnings in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Income and Retained Earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 03 November 2014.

Page 13

 
ORBITAL PAYROLL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

 
2.3

Going concern

The financial statements have been prepared on the going concern basis which assumes that the Group will continue in operational existence for the foreseeable future. 
Management have produced detailed forecasts and projections based on current and forecast growth rates. These forecasts have been subject to sensitivity analysis to ensure all likely scenarios have been considered. 
Management have worked tirelessly to clear the historic trade debtor balances across the Group and implemented additional controls whilst also reviewing credit terms with customers to ensure that current trade debtor balances remain recoverable. The Group are still collecting a number of historic balances via various methods and have sufficient provisions in place at the year end to mitigate the risk that the debtors default. 
It is of the view of management that the future pipeline of work is strong, and with the introduction of SafeRec, of which the Group is a founding member, they are able to provide additional clarity and confidence to both agencies and workers, which is thought to give the Group a competitive advantage. 
As a result, the director is confident that the Group will be able to pay its debts as they fall due.

 
2.4

Revenue

Turnover represents the fair value of consideration received or receivable from the sale of consultancy services. Fair value reflects the amount agreed in the form of contractual charges for each type of service. Fee income is stated net of amounts collected on behalf of third parties such as sales taxes, goods and services taxes and value added taxes.
Turnover is recognised to the extent that the Group obtains the right to consideration in exchange for its performance. Right to consideration is based on the Group confirming completion of its contractual obligations in relation to the services provided.
The contractor will complete an assignment for an agency who will then pay the Group the agreed contract rate (after deducting their fee). The Group will then recognise the gross revenue in respect of this assignment and the cost of the contractor. Once the contractor then submits their timesheet, the Group will transfer the remuneration due to the contractor to them after deducting the fee (margin).
This means that there are two elements of revenue recognised; the gross revenue received from the agency which is recognised when the money is received from the agency (which is net nil as it is equal to the cost of the contractors), and the margin recognised when processing timesheets. 

 
2.5

Operating leases: the Group as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 14

 
ORBITAL PAYROLL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

 
2.6

Interest income

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

 
2.7

Finance costs

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

 
2.8

Pensions

Defined contribution pension plan

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

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

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

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

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

Page 15

 
ORBITAL PAYROLL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

 
2.10

Tangible fixed assets

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

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

Depreciation is provided on the following basis:

Fixtures and fittings
-
25%
straight line
Computer equipment
-
33%
straight line

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

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

 
2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

  
2.12

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. 
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Page 16

 
ORBITAL PAYROLL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

  
2.13

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other
third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 
2.14

Dividends

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


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

No significant judgements have had to be made by management in preparing these financial statements.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimate will, by definition, seldom equal the related actual results. The estimate and assumption that has the greatest level of uncertainty is addressed below:
 
(i) Impairment of debtors
The Group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of the debtors and historical experience.

Page 17

 
ORBITAL PAYROLL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

4.


Turnover

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


2023
2022
£
£

Sales
172,291,819
195,534,269

Admin fees
2,659,439
3,242,093

174,951,258
198,776,362


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Other operating income
59,292
-



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation
4,867
5,002

Other operating leases
24,469
14,179


7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
7,000
6,500

Fees payable to the Company's auditors in respect of:

The auditing of accounts of subsidiaries of the Company
30,000
28,500

Taxation services
3,000
2,500

Page 18

 
ORBITAL PAYROLL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

8.


Employees

Staff costs, including Director's remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

  

Wages and salaries
  
23,439,418
33,149,056
-
-

Social security costs
  
2,199,066
3,081,178
-
-

Cost of defined contribution pension scheme
  
168,313
240,615
-
-

  
25,806,797
36,470,849
-
-


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


        2023
        2022
            No.
            No.







Paid workers
712
1,064



Administration staff
26
26



Director
1
1

739
1,091

Included in the above is £758,011 (2022: £774,161) relating to costs for operational staff in the Group who contribute to the day to day running of the Group. All operational staff are employed by             Orbital Management Services Limited and are classified as administration staff in the above employee split.
The remainder of staff costs relate to costs for contracted employees who are employed by             Orbital Umbrella Limited and Orbital Management Solutions Limited. These are classified as paid workers in the average employee numbers above and their costs are included within cost of sales. 


9.


Director's remuneration

2023
2022
£
£

Director's remuneration
8,628
8,628


Page 19

 
ORBITAL PAYROLL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

10.


Interest receivable

2023
2022
£
£


Other interest receivable
1,833
350


11.


Interest payable and similar expenses

2023
2022
£
£


Other interest payable
42,512
20,548


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
44,061
-

Adjustments in respect of previous periods
601
-


Total current tax
44,662
-

Deferred tax


Origination and reversal of timing differences
1,514
24,527


Tax on profit
46,176
24,527
Page 20

 
ORBITAL PAYROLL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the calculated rate of corporation tax in the UK of 22% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit before tax
135,966
85,467


Profit multiplied by the calculated rate of corporation tax in the UK of 22% (2022 - 19%)
29,913
16,239

Effects of:


Expenses not deductible for tax purposes
14,467
9,022

Capital allowances for year in excess of depreciation
-
(643)

Tax credits
1,013
-

Adjustments to tax charge in respect of prior periods
601
-

Remeasurement of deferred tax for changes in tax rates
182
(36)

Movement in deferred tax not recognised
-
(55)

Total tax charge for the year
46,176
24,527


13.


Dividends

2023
2022
£
£


Dividends
180,000
-

Page 21

 
ORBITAL PAYROLL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

14.


Tangible fixed assets

Group






Fixtures and fittings
Computer equipment
Total

£
£
£



Cost


At 1 November 2022
7,985
76,695
84,680


Additions
990
1,154
2,144


Disposals
-
(41,338)
(41,338)



At 31 October 2023

8,975
36,511
45,486



Depreciation


At 1 November 2022
7,880
66,870
74,750


Charge for the year on owned assets
145
4,722
4,867


Disposals
-
(41,338)
(41,338)



At 31 October 2023

8,025
30,254
38,279



Net book value



At 31 October 2023
950
6,257
7,207



At 31 October 2022
105
9,825
9,930

Page 22

 
ORBITAL PAYROLL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost


At 1 November 2022
2,101



At 31 October 2023
2,101





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Orbital Management Services Limited
Ordinary
100%
Orbital Management Systems Limited
Ordinary
100%
Orbital Umbrella Limited
Ordinary
100%
Orbital Management Solutions Limited
Ordinary
100%

All of these undertakings have the same registered office as the group, which is shown on the General Information page.

Page 23

 
ORBITAL PAYROLL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

16.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
3,610,405
5,871,066
-
-

Amounts owed by group undertakings
-
-
158,013
155,540

Other debtors
63,285
211,558
-
176,454

Prepayments and accrued income
53,609
40,815
-
-

Deferred taxation
-
143
-
-

3,727,299
6,123,582
158,013
331,994



17.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
961,012
907,731
-
-

Amounts owed to group undertakings
-
-
227,628
407,627

Corporation tax
44,061
-
-
-

Other taxation and social security
6,718,470
9,611,533
-
-

Other creditors
131,981
175,658
1,827
-

Accruals and deferred income
218,338
98,833
-
-

8,073,862
10,793,755
229,455
407,627



18.


Deferred taxation


Group



2023


£






At beginning of year
143


Charged to profit or loss
(1,514)



Liability at end of year
(1,371)

Page 24

 
ORBITAL PAYROLL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
 
18.Deferred taxation (continued)

Company


2023






At end of year
-
The deferred taxation asset is made up as follows:

Group
Group
2023
2022
£
£

Accelerated capital allowances
(1,541)
(2,205)

Tax losses carried forward
-
2,206

Short term timing differences
170
142

(1,371)
143


19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



7,500 (2022 - 7,500) Ordinary Shares shares of £1.00 each
7,500
7,500



20.


Reserves

Capital redemption reserve

The capital redemption reserve consists of amounts transferred following the redemption or purchase of the Company's own shares.

Profit and loss account

The profit and loss account consists of profits made by the Group attributable to the shareholders of the
parent company.


21.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £168,313 (2022 - £240,614). Contributions totalling £39,614 (2022 - £52,353) were payable to the fund at the balance sheet date and are included in creditors.

Page 25

 
ORBITAL PAYROLL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

22.


Commitments under operating leases

At 31 October 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
13,022
5,646

23.


Director's advances, credit and guarantees

2023
2022
£
£
J Myatt
Balance outstanding at start of year

176,453

93,054
 
Amounts advanced

47,995

92,027
 
Amounts repaid

(180,000)

(8,628)
 
Asset at end of year
44,448

176,453
 


24.


Controlling party

The ultimate controlling party is J Myatt.

Page 26