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Registration number: 12993932

Social Work Partners Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2022

 

Social Work Partners Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Profit and Loss Account

10

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Statement of Cash Flows

14

Notes to the Financial Statements

15 to 25

 

Social Work Partners Limited

Company Information

Directors

L A C Silvester

S D Lock

Registered office

150 Minories
London
EC3N 1LS

Bankers

Lloyds Bank plc
239 High Street
West Bromwich
West Midlands
B70 8NA

Auditors

Lambert Chapman LLP
Chartered Accountants and Statutory Auditors
3 Warners Mill
Silks Way
Braintree
Essex
CM7 3GB

 

Social Work Partners Limited

Strategic Report for the Year Ended 31 December 2022

The directors present their strategic report for the year ended 31 December 2022.

Principal activity

The principal activity of the company is that of a recruitment agency.

Fair review of the business

The year to 31 December 2022 was the first full year of trade.

On 16th March 2022 the business acquired the assets of a competitor social work agency which resulted in the significant growth in turnover and the acquisition of several talented staff that resulted in the Company’s significant growth in the year.

The company generated significant losses in the year as a result of a rapid build, however, these were expected due to the significant investment in staff and associated costs during the year to December 2022.

The company generated Turnover of £29,876,929 with a gross margin of £2,493,421. These were in line with expectations.

The majority of losses during the year were accumulated in the first six months of trade as a result of the significant investment in staff.

The company provided for bad debts from other group companies of £378,351 which had a negative impact on results.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2022

2021

Gross margin

£

2,493,421

-

Debtor days

Days

64

-

Staff turnover

%

33

-

 

Social Work Partners Limited

Strategic Report for the Year Ended 31 December 2022

Principal risks and uncertainties

The business is sensitive to changes in government policy as the core business is generated from local authorities. In addition there are risks and uncertainty around government policy concerning data management and employment laws.

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

(a) Liquidity risk
The company makes use of Invoice Finance to ensure cashflow is effectively maintained on invoicing local authorities.

(b) Operational risk
The company is exposed to operational risks which may arise due to failure of operational systems or those of third-party service providers.

(b) Market risk
The directors review the market risk applicable to the company on an ongoing basis by considering the likelihood of market developments and the consequent effect on profitability, net assets and liquidity.

(d) Credit risk
The company is exposed to credit risk arising predominantly from its clients who owe the company fees. The company also has a robust credit control team and policies to ensure prompt payment of invoices in line with credit terms. Both of these elements manage the Company’s liquidity risk.

Likely future developments

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

The directors recognise that cost of living crisis, the continued impact of inflation, and the hike in interest rates in the United Kingdom and across the world represent a material uncertainty to the future of the economy and casts doubt on the ability of many companies to continue as a going concern.

However. due to the nature of the business and the public sector client base, the demand for temporary workers in the social work sector has been maintained.

The 2023 and 2024 results look very strong with significant increases in core key performance indicators thus justifying the core board strategy.

Approved by the Board on 26 July 2024 and signed on its behalf by:

.........................................
L A C Silvester
Director

   
     
 

Social Work Partners Limited

Directors' Report for the Year Ended 31 December 2022

The directors present their report and the financial statements for the year ended 31 December 2022.

Directors of the company

The directors who held office during the year were as follows:

W A Berritt (ceased 23 May 2023)

L A C Silvester (appointed 21 April 2022)

The following director was appointed after the year end:

S D Lock (appointed 23 May 2023)

Information included in the Strategic Report

Information on Likely future developments has been provided within the Strategic report.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the Board on 26 July 2024 and signed on its behalf by:

.........................................
L A C Silvester
Director

   
     
 

Social Work Partners Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

 

Social Work Partners Limited

Independent Auditor's Report to the Members of Social Work Partners Limited

Opinion

We have audited the financial statements of Social Work Partners Limited (the 'company') for the year ended 31 December 2022, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 company's affairs as at 31 December 2022 and of its loss 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other matters
Comparative information in the financial statements is derived from the company's prior period financial statements which were not audited.

Emphasis of matter

We draw attention to note 2 of the financial statements, which describes the current trading status of the company and considerations in relation to going concern. Our opinion is not modified in respect of this matter.

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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Social Work Partners Limited

Independent Auditor's Report to the Members of Social Work Partners Limited

We have nothing to report in this regard.

Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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, or returns adequate for our audit have not been received from branches not visited by us; or

the 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 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor Responsibilities for the audit of the financial statements

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

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

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. 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:

 

Social Work Partners Limited

Independent Auditor's Report to the Members of Social Work Partners Limited

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the recruitment sector;

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, employment and health and safety legislation;

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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;

tested journal entries to identify unusual transactions;

assessed whether judgements and assumptions made in determining the accounting estimates were 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; and

enquiring of management as to actual and potential litigation and claims.

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

Use of our report

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

 

Social Work Partners Limited

Independent Auditor's Report to the Members of Social Work Partners Limited





Graham McNeill FCCA (Senior Statutory Auditor)
For and on behalf of Lambert Chapman LLP, Statutory Auditor

3 Warners Mill
Silks Way
Braintree
Essex
CM7 3GB

29 July 2024

 

Social Work Partners Limited

Profit and Loss Account for the Year Ended 31 December 2022

Note

2022
£

Unaudited
2021
£

Turnover

3

29,876,929

-

Cost of sales

 

(27,383,508)

(1,148)

Gross profit/(loss)

 

2,493,421

(1,148)

Exceptional items

4

(378,351)

-

Administrative expenses

 

(2,947,796)

(43,651)

Interest payable and similar expenses

5

(326,903)

-

Loss before tax

 

(1,159,629)

(44,799)

Tax on loss

9

178,430

-

Loss for the financial year

 

(981,199)

(44,799)

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Social Work Partners Limited

Statement of Comprehensive Income for the Year Ended 31 December 2022

2022
£

2021
£

Loss for the year

(981,199)

(44,799)

Total comprehensive income for the year

(981,199)

(44,799)

 

Social Work Partners Limited

(Registration number: 12993932)
Balance Sheet as at 31 December 2022

Note

2022
£

Unaudited
2021
£

Fixed assets

 

Intangible assets

10

100,000

-

Tangible assets

11

41,063

19,913

 

141,063

19,913

Current assets

 

Debtors

12

7,466,735

52,808

Cash at bank and in hand

13

1,694

335

 

7,468,429

53,143

Creditors: Amounts falling due within one year

14

(8,634,490)

(116,855)

Net current liabilities

 

(1,166,061)

(63,712)

Net liabilities

 

(1,024,998)

(43,799)

Capital and reserves

 

Called up share capital

16

1,000

1,000

Retained earnings

(1,025,998)

(44,799)

Shareholders' deficit

 

(1,024,998)

(43,799)

Approved and authorised by the Board on 26 July 2024 and signed on its behalf by:
 

.........................................
L A C Silvester
Director

   
     
 

Social Work Partners Limited

Statement of Changes in Equity for the Year Ended 31 December 2022

Share capital
£

Retained earnings
£

Total
£

At 1 January 2022

1,000

(44,799)

(43,799)

Loss for the year

-

(981,199)

(981,199)

At 31 December 2022

1,000

(1,025,998)

(1,024,998)


 

Share capital
£

Retained earnings
£

Total
£

Loss for the year

-

(44,799)

(44,799)

New share capital subscribed

1,000

-

1,000

At 31 December 2021

1,000

(44,799)

(43,799)


 


 

 

Social Work Partners Limited

Statement of Cash Flows for the Year Ended 31 December 2022

2022
£

2021
£

Cash flows from operating activities

Loss for the year

(981,199)

(44,799)

Adjustments to cash flows from non-cash items

Depreciation and amortisation

34,551

569

Finance costs

326,903

-

Income tax (credit)

(178,430)

-

(798,175)

(44,230)

Working capital adjustments

Increase in trade and other debtors

(7,235,496)

(52,808)

Increase in trade and other creditors

2,813,623

116,855

Net cash flow from operating activities

(5,220,048)

19,817

Cash flows from investing activities

Acquisitions of tangible assets

(35,701)

(20,482)

Acquisition of intangible assets

(120,000)

-

Net cash flows from investing activities

(155,701)

(20,482)

Cash flows from financing activities

Interest paid

(326,903)

-

Proceeds from issue of ordinary shares, net of issue costs

-

1,000

Increase in invoice discounting borrowings

5,704,011

-

Net cash flows from financing activities

5,377,108

1,000

Net increase in cash and cash equivalents

1,359

335

Cash and cash equivalents at 1 January

335

-

Cash and cash equivalents at 31 December

1,694

335

 

Social Work Partners Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is: 150 Minories, London, EC3N 1LS.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

These financial statements are presented in Sterling (£), which is the company's functional currency.

Going concern

The Company’s business activities, together with the factors likely to affect its future development, its financial position, financial risk management objectives and its exposures to risks and uncertainties are described in the Strategic Report.

The directors have considered the availability of resources to meet the Company’s liabilities for the going concern review period through to 31 July 2025. The directors have considered the going concern position of the Company, taking into account the performance of the 2022 year, the actuals to May 2024 and the forecasts up to July 2025. As part of this going concern review, the directors have analysed forecasts covering a period through to 31 July 2025 which demonstrates that the company will continue to have sufficient cash availability and profitability to continue as a going concern.

Critical accounting judgements and key sources of estimation uncertainty

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

The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies that have the most significant effect on the amounts recognised in the financial statements are as follows:

Determine whether there are indicators of impairment of the company's tangible and intangible assets. Factors taken into consideration in reaching a decision include the economic viability and expected future financial performance of an asset.

Recoverability of trade and intercompany debtors - Debtors are reviewed regularly to ascertain whether a provision is required. Regular meetings are held with credit control to provide updates on trade debtors outside of credit control.

 

Social Work Partners Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the placement of permanent and temporary staff in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when:
- the amount of revenue can be reliably measured;
- it is probable that future economic benefits will flow to the entity;
- and specific criteria have been met for each of the company's activities.

Turnover from temporary placements represents the fees billed for the services performed including their costs and is recognised when the service has been provided.

Turnover from permanent placements is recognised based on the start date of the candidate.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

Current Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax is recognised on material temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax assets on unused tax losses are only recognised when the directors consider it probable that the losses will be utilised in future periods. Deferred tax is recognised as current or non-current depending on when the directors expect the losses be utilised.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation.

Depreciation

Depreciation is charged so as to write off the cost of assets, over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Office equipment

33% straight line

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

 

Social Work Partners Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

20% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits.

Trade debtors

Trade debtors are amounts due from customers for recruitment services performed in the ordinary course of business.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Share capital

Ordinary shares are classified as equity.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
All financial instruments shown in these financial statements are basic financial instruments as defined by Section 11 of FRS 102.

 Recognition and measurement
Basic financial instruments are initially recognised at transaction price and subsequently measured at amortised cost using the effective interest rate method.

 Impairment
Financial assets are reviewed for impairment at each reporting date.

Current versus non-current classification

Assets and liabilities are recognised as non-current where the debtor has the unconditional right to defer settlement for more than 12 months from the reporting date.

 

Social Work Partners Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2022
£

Unaudited
2021
£

Rendering of services

29,876,929

-

The analysis of the company's Turnover for the year by class of business is as follows:

2022
£

Unaudited
2021
£

Permanent sales

157,313

-

Temporary sales

29,719,616

-

29,876,929

-

The analysis of the company's Turnover for the year by market is as follows:

2022
£

Unaudited
2021
£

UK

29,876,929

-

4

Exceptional items

Intercompany loans written off

During the year the company wrote off loans with related parties as detailed below:

2022
£

Unaudited
2021
£

Teber Group Limited (immediate parent company)

327,180

-

Teber GS Limited (fellow subsidiary with common parent)

51,171

-

378,351

-

5

Interest payable and similar expenses

2022
£

Unaudited
2021
£

Interest expense on taxes and social security

10,394

-

Foreign exchange losses

22

-

Invoice discounting charges and interest

316,487

-

326,903

-

 

Social Work Partners Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2022
£

Unaudited
2021
£

Wages and salaries

29,161,621

11,625

Social security costs

219,111

1,096

Pension costs, defined contribution scheme

20,933

-

Other employee expense

391

-

29,402,056

12,721

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2022
No.

Unaudited
2021
No.

Directors

1

1

Administration and support

11

-

Sales

22

-

34

1

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2022
£

Unaudited
2021
£

Remuneration

52,560

-

Contributions paid to money purchase schemes

441

-

53,001

-

During the year the number of directors who were receiving benefits and share incentives was as follows:

2022
No.

2021
No.

Accruing benefits under money purchase pension scheme

1

-

8

Auditors' remuneration

2022
£

2021
£

Audit of the financial statements

16,250

-


 

 

Social Work Partners Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

9

Taxation

Tax charged/(credited) in the profit and loss account

2022
£

2021
£

Deferred taxation

Arising from origination and reversal of timing differences

(178,430)

-

The rate of tax for the year is the same as the standard rate of corporation tax in the UK (2021 - the same as the standard rate of corporation tax in the UK) of 19% (2021 - 19%).

The differences are reconciled below:

2022
£

Unaudited
2021
£

Loss before tax

(1,159,629)

(44,799)

Corporation tax at standard rate

(220,330)

(8,512)

Tax increase/(decrease) from effect of capital allowances and depreciation

1,765

(1,168)

Effect of expenses not deductible in determining taxable profit/ (tax loss)

84,217

347

(Decrease)/increase from tax losses for which no deferred tax asset was recognised

(9,333)

9,333

Tax increase from changes in pension fund liability

8,074

-

Difference in tax rate used for deferred tax calculations

(42,823)

-

Total tax credit

(178,430)

-

Deferred tax

Deferred tax assets and liabilities

2022

Asset
£

Liability
£

Accelerated capital allowances

-

10,266

Taxable losses carried forward

188,696

-

188,696

10,266

2021

Asset
£

Liability
£

Accelerated capital allowances

-

3,783

Taxable losses carried forward

3,783

-

3,783

3,783

There are £Nil of unused tax losses (2021 - £49,120) for which no deferred tax asset is recognised in the balance sheet.

The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £129,861 (2021 - £-). The company expects to make significant profits in the the next reporting period and utilise tax losses carried forward on which a deferred tax asset has been recognised in these financial statements.

 

Social Work Partners Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

10

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

Additions acquired separately

120,000

120,000

At 31 December 2022

120,000

120,000

Amortisation

Amortisation charge

20,000

20,000

At 31 December 2022

20,000

20,000

Carrying amount

At 31 December 2022

100,000

100,000

11

Tangible assets

Office equipment
 £

Total
£

Cost or valuation

At 1 January 2022

20,482

20,482

Additions

35,701

35,701

At 31 December 2022

56,183

56,183

Depreciation

At 1 January 2022

569

569

Charge for the year

14,551

14,551

At 31 December 2022

15,120

15,120

Carrying amount

At 31 December 2022

41,063

41,063

At 31 December 2021

19,913

19,913

 

Social Work Partners Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

12

Debtors

Note

2022
£

2021
£

Trade debtors

 

6,309,557

-

Amounts owed by related parties

19

142,492

-

Other debtors

 

213,874

37,994

Prepayments

 

622,382

14,814

Deferred tax assets

9

178,430

-

   

7,466,735

52,808

Less non-current portion

 

(48,569)

-

 

7,418,166

52,808

Debtors include amounts owed by group undertakings, whilst these amounts are due on demand, it is unlikely that they will be repaid in full during the coming year.

Other debtors include £151,353 (2021 - £nil) which is owed by a related party company.

Details of non-current trade and other debtors

£48,569 (2021 -£Nil) of Deferred tax assets is classified as non current. As not all deferred tax assets are expected to reverse within 12 months from the reporting date a portion has been classified as non-current.

Debtors pledged as security
The carrying amount of trade debtors pledged as security for liabilities amounted to £6,309,557 (2021 - £Nil).

Trade debtors have been pledged as security for company's invoice discounting facility.

13

Cash and cash equivalents

2022
£

Unaudited
2021
£

Cash at bank

1,694

335

 

Social Work Partners Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

14

Creditors

Note

2022
£

Unaudited
2021
£

Due within one year

 

Trade creditors

 

1,527,452

7,844

Amounts due to group undertakings

19

14,853

102,251

Social security and other taxes

 

564,162

3,918

Outstanding defined contribution pension costs

 

42,494

-

Other creditors

 

5,718,399

1,642

Directors loan

 

8,384

-

Accruals

 

758,746

1,200

 

8,634,490

116,855

Other creditors include invoice discounting facilities which are secured to the value of £5,704,011 (2021 - £-).

15

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £20,933 (2021 - £Nil).

Contributions totalling £42,494 (2021 - £Nil) were payable to the scheme at the end of the year and are included in creditors.

16

Share capital

Allotted, called up and fully paid shares

2022

2021

No.

£

No.

£

Ordinary shares of £1 each

1,000

1,000

1,000

1,000

       

Rights, preferences and restrictions

Ordinary £1 shares have the following rights, preferences and restrictions:
Each share carries full rights to voting, payment of dividends and distributions.

 

Social Work Partners Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

17

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2022
£

2021
£

Not later than one year

81,910

118,646

Later than one year and not later than five years

151,161

-

233,071

118,646

The amount of non-cancellable operating lease payments recognised as an expense during the year was £148,383 (2021 - £15,244).

18

Analysis of changes in net debt

At 1 January 2022
£

Financing cash flows
£

At 31 December 2022
£

Cash and cash equivalents

Cash

335

1,359

1,694

Borrowings

Invoice discounting creditor

-

(5,704,011)

(5,704,011)

 

335

(5,702,652)

(5,702,317)

19

Related party transactions

Key management compensation

2022
£

2021
£

Salaries and other short term employee benefits

128,667

-

Post-employment benefits

1,211

-

129,878

-

 

Social Work Partners Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

The company had the following related party balances owed to it/ (owed by it) at the reporting date.
 

2022
 £

Unaudited
2021
£

Teber Group Limited (immediate parent company)

-

(102,251)

Connect Exec Limited (fellow subsidiary with common parent)

3,633

-

Team Support Healthcare Limited (fellow subsidiary with common parent)

(14,853)

-

Entrada Recruitment Group Limited (fellow subsidiary with common parent)

138,859

-

Twenty4Seven Education Limited (a company owned by W A Berritt, shown within Other debtors)

151,353

-

278,992

(102,251)

Related party balances are unsecured, interest free and repayable on demand.

20

Financial instruments

All financial instruments are treated as basic financial instruments as defined by Section 11 of FRS 102 and are held at amortised cost.

21

Parent and ultimate parent undertaking

The company's immediate parent is Teber Group Limited, incorporated in England & Wales.

 The ultimate parent is Teber Holding Limited, incorporated in Cyprus.