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COMPANY REGISTRATION NUMBER: 10332357
Blue Garnet Management Services Limited
Financial Statements
1 April 2023
Blue Garnet Management Services Limited
Financial Statements
Year ended 1 April 2023
Contents
Page
Strategic report
1
Directors' report
3
Independent auditor's report to the members
5
Consolidated income statement
9
Consolidated statement of financial position
10
Company statement of financial position
11
Consolidated statement of changes in equity
12
Company statement of changes in equity
13
Consolidated statement of cash flows
14
Notes to the financial statements
15
Blue Garnet Management Services Limited
Strategic Report
Year ended 1 April 2023
The directors present their strategic report for the year ended 1 April 2023. Blue Garnet Management Services Limited is the parent of the Blue Garnet Group (the 'Group'). We specialise in payroll services, working with contractors, agencies and workers supplying PAYE and CIS services in a wide range of industries. The main subsidiaries within the Group are Apex Europe Limited and Emerald Sales Limited. Apex Europe's principal activity is Umbrella Payroll services which is fully compliant with SDC legislation. Emerald Sales deals with all Construction Industry Self Employed individuals.
Review of business
Turnover has decreased to £24,136,791 from £26,805,459 a decrease of £2,668,668 which represents a 10% year on year decrease. The group is in the process of applying for the accreditation and once achieved expects turnover to improve considerably to prior year levels before continuing to expand and grow further. This improvement will firmly underpin the success of the strategies being deployed. During the year the directors performed a strategic re-evaluation of the group's operational efficiency, particularly in terms of the credit risks associated with the payment of workers' expenses. This has precipitated a move away from this mode of operation, and in doing so improved the group's long-term sustainability, resilience and prospects of future success in the industry. The re-evaluation also led to changes in provisioning methodology, and to the write-off of debts previously held to be recoverable. The total write-off in the year of £325,304 is not considered to be recurring, and the negative effect on profitability therefore temporary.
Principal risks and uncertainties
The group operates within the gig industry, working with umbrella employees in the sector. This is an area which is impacted by legislative changes with its principal risks being governmental changes and the associated impact on the regulations along with any changes in employment law and agency workers regulations. The group's credit and price risk are very low as the structure of the business means monies are received upfront so the group does not have any external debtors. There is an unsecured intercompany debtor to an associated non group entity. While interest is charged on this loan it is considered recoverable due the other assets held within the associated company. The group manages financial risk by monitoring cash flow to ensure that the group is able to meet its foreseeable debts as they fall due. The directors recognise the importance of the group's environmental responsibilities. The group monitors its impact on the environment, and designs and implements policies to mitigate any adverse impact that might be caused by its activities. These include recycling and reduction of energy consumption. The group communicates wherever possible with electronic methods in order to minimise its carbon footprint.
This report was approved by the board of directors on 1 August 2024 and signed on behalf of the board by:
Miss L McLachlan
Director
Registered office:
Old Hall Farm
19 Barnston Lane
Moreton
Wirral
CH46 7TN
Blue Garnet Management Services Limited
Directors' Report
Year ended 1 April 2023
The directors present their report and the financial statements of the group for the year ended 1 April 2023 .
Directors
The directors who served the company during the year were as follows:
Mr L McLachlan
Miss L McLachlan
Dividends
Particulars of recommended dividends are detailed in note 11 to the financial statements.
Employment of disabled persons
The group fully considers any applications made by disabled persons for employment, whilst bearing in mind the applicant's aptitudes and abilities. The group's policy includes the arrangement of appropriate training and opportunities for career development of disabled persons are identical to that of other employees. It is the group's policy that in the event of any members of staff becoming disabled, the upmost effort is made to ensure their continued employment with the group and that the appropriate training is arranged.
Employee involvement
It is the group's policy that matters in which will likely affect the employee's interests are communicated and discussed via unions, staff councils and meetings. The group's policy is to ensure all employees are aware of the financial and economic factors that affect the performance of the group, which is conveyed by providing employees with information on training and other key developments.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and 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 judgments and accounting estimates that are reasonable and prudent; - 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information.
This report was approved by the board of directors on 1 August 2024 and signed on behalf of the board by:
Miss L McLachlan
Director
Registered office:
Old Hall Farm
19 Barnston Lane
Moreton
Wirral
CH46 7TN
Blue Garnet Management Services Limited
Independent Auditor's Report to the Members of Blue Garnet Management Services Limited
Year ended 1 April 2023
Opinion
We have audited the financial statements of Blue Garnet Management Services Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 1 April 2023 which comprise the consolidated income statement, 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 the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the group's and of the parent company's affairs as at 1 April 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; - 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's 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 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 directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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. 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 strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the 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 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 strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - We ascertained what financial controls are in place to prevent loss or misappropriation of the group's assets, reached conclusions on their adequacy, and observed them in operation. - Based on the above we assessed the risk that the accounts could be misstated due to irregularities, and selected appropriately sized samples of transactions to verify through detailed testing. - Sample sizes were such that we would expect to have a reasonable expectation of discovering material misstatements. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
A D French
(Senior Statutory Auditor)
For and on behalf of
Hailwood & Co.
Chartered accountants & statutory auditor
392-394 Hoylake Road
Moreton
Wirral
CH46 6DF
1 August 2024
Blue Garnet Management Services Limited
Consolidated Income Statement
Year ended 1 April 2023
2023
2022
Note
£
£
Turnover
4
24,136,791
26,805,459
Cost of sales
( 22,456,029)
( 24,676,308)
-------------
-------------
Gross profit
1,680,762
2,129,151
Administrative expenses
( 1,626,352)
( 1,803,013)
------------
------------
Operating profit
5
54,410
326,138
Other interest receivable and similar income
8
2,162
1,450
Interest payable and similar expenses
9
( 3,305)
( 4,214)
------------
------------
Profit before taxation
53,267
323,374
Tax on profit
10
( 10,494)
( 61,833)
--------
---------
Profit for the financial year
42,773
261,541
--------
---------
All the activities of the group are from continuing operations.
The group has no other recognised items of income and expenses other than the results for the year as set out above.
Blue Garnet Management Services Limited
Consolidated Statement of Financial Position
1 April 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
12
1,967
Current assets
Debtors
14
1,773,640
1,886,801
Cash at bank and in hand
273,419
475,166
------------
------------
2,047,059
2,361,967
Creditors: amounts falling due within one year
15
( 1,731,351)
( 1,971,922)
------------
------------
Net current assets
315,708
390,045
---------
---------
Total assets less current liabilities
315,708
392,012
Creditors: amounts falling due after more than one year
16
( 49,223)
( 70,834)
---------
---------
Net assets
266,485
321,178
---------
---------
Capital and reserves
Called up share capital
18
353
353
Profit and loss account
19
266,132
320,825
---------
---------
Shareholders funds
266,485
321,178
---------
---------
These financial statements were approved by the board of directors and authorised for issue on 1 August 2024 , and are signed on behalf of the board by:
Miss L McLachlan
Director
Company registration number: 10332357
Blue Garnet Management Services Limited
Company Statement of Financial Position
1 April 2023
2023
2022
Note
£
£
Fixed assets
Investments
13
958,470
958,470
Current assets
Debtors
14
286,605
294,573
Cash at bank and in hand
3,154
45,899
---------
---------
289,759
340,472
Creditors: amounts falling due within one year
15
( 262,255)
( 256,151)
---------
---------
Net current assets
27,504
84,321
---------
------------
Total assets less current liabilities
985,974
1,042,791
Creditors: amounts falling due after more than one year
16
( 23,427)
( 34,167)
---------
------------
Net assets
962,547
1,008,624
---------
------------
Capital and reserves
Called up share capital
18
353
353
Share premium account
19
499,647
499,647
Other reserves, including the fair value reserve
19
458,470
458,470
Profit and loss account
19
4,077
50,154
---------
------------
Shareholders funds
962,547
1,008,624
---------
------------
The profit for the financial year of the parent company was £ 51,389 (2022: £ 479,737 ).
These financial statements were approved by the board of directors and authorised for issue on 1 August 2024 , and are signed on behalf of the board by:
Miss L McLachlan
Director
Company registration number: 10332357
Blue Garnet Management Services Limited
Consolidated Statement of Changes in Equity
Year ended 1 April 2023
Called up share capital
Profit and loss account
Total
£
£
£
At 4 April 2021
353
139,284
139,637
Profit for the year
261,541
261,541
----
---------
---------
Total comprehensive income for the year
261,541
261,541
Dividends paid and payable
11
( 80,000)
( 80,000)
----
---------
---------
Total investments by and distributions to owners
( 80,000)
( 80,000)
At 3 April 2022
353
320,825
321,178
Profit for the year
42,773
42,773
----
---------
---------
Total comprehensive income for the year
42,773
42,773
Dividends paid and payable
11
( 97,466)
( 97,466)
----
--------
--------
Total investments by and distributions to owners
( 97,466)
( 97,466)
----
---------
---------
At 1 April 2023
353
266,132
266,485
----
---------
---------
Blue Garnet Management Services Limited
Company Statement of Changes in Equity
Year ended 1 April 2023
Called up share capital
Share premium account
Other reserves, including the fair value reserve
Profit and loss account
Total
£
£
£
£
£
At 4 April 2021
353
499,647
211,593
( 102,706)
608,887
Profit for the year
479,737
479,737
Other comprehensive income for the year:
Reclassification from revaluation reserve to profit and loss account
( 246,877)
( 246,877)
Reclassification from fair value reserve to profit and loss account
246,877
246,877
----
---------
---------
---------
---------
Total comprehensive income for the year
246,877
232,860
479,737
Dividends paid and payable
11
( 80,000)
( 80,000)
----
---------
---------
---------
---------
Total investments by and distributions to owners
( 80,000)
( 80,000)
At 3 April 2022
353
499,647
458,470
50,154
1,008,624
Profit for the year
51,389
51,389
----
---------
---------
---------
------------
Total comprehensive income for the year
51,389
51,389
Dividends paid and payable
11
( 97,466)
( 97,466)
----
----
----
--------
--------
Total investments by and distributions to owners
( 97,466)
( 97,466)
----
---------
---------
--------
---------
At 1 April 2023
353
499,647
458,470
4,077
962,547
----
---------
---------
--------
---------
Blue Garnet Management Services Limited
Consolidated Statement of Cash Flows
Year ended 1 April 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
42,773
261,541
Adjustments for:
Depreciation of tangible assets
1,967
1,967
Other interest receivable and similar income
( 2,162)
( 1,450)
Interest payable and similar expenses
3,305
4,214
Tax on profit
10,494
61,833
Accrued (income)/expenses
( 437,038)
99,867
Changes in:
Trade and other debtors
244,977
( 354,483)
Trade and other creditors
61,924
( 265,886)
---------
---------
Cash generated from operations
( 73,760)
( 192,397)
Interest paid
( 3,305)
( 4,214)
Interest received
2,162
1,450
Tax paid
( 9,418)
( 41,489)
--------
---------
Net cash used in operating activities
( 84,321)
( 236,650)
--------
---------
Cash flows from financing activities
Proceeds from borrowings
( 19,960)
( 9,167)
Dividends paid
( 97,466)
( 80,000)
---------
---------
Net cash used in financing activities
( 117,426)
( 89,167)
---------
---------
Net decrease in cash and cash equivalents
( 201,747)
( 325,817)
Cash and cash equivalents at beginning of year
475,166
800,983
---------
---------
Cash and cash equivalents at end of year
273,419
475,166
---------
---------
Blue Garnet Management Services Limited
Notes to the Financial Statements
Year ended 1 April 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Old Hall Farm, 19 Barnston Lane, Moreton, Wirral, CH46 7TN.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Valuation of investment
As describe in the accounting policies, investment in subsidiaries are recognised at fair value with changes in fair value recognised in other comprehensive income.
Debtor balances
The directors have made a judgement that a significant amount due from a connected party is recoverable.
Disclosure exemptions
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.
Consolidation
The effects of events in relation to the period ended 1 April 2023 which occurred before the date of approval of the financial statements by the Board of Directors, have been included in the statements to the extent required to show a true and fair view of the state of affairs at 1 April 2023 and of the results for the period ended on that date. The consolidated financial statements are prepared under the acquisition method and include the results of the company, its subsidiaries, and its share of associates profits, losses, assets, and liabilities. Adjustments are made to eliminate any inter-group transactions, balances, profits, and losses. On acquisition the assets and liabilities of a subsidiary are measured at fair value at the date of acquisition, any excess in value over the cost is recognised in the consolidate accounts as goodwill.
Judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily available from other sources. The estimates and underlying assumptions are based on experience and other factors considered to be relevant. Actual results may differ from these estimates. The key judgements and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described in the accounting policies.
Revenue recognition
The group turnover, derived from ordinary activities, represents net invoiced sales from the provision of personnel payment management services and holding company management fees and is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover is recognised as the service is provided. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current tax and deferred tax recognised in the reporting period. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax payable or recoverable using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the reporting 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. Current or deferred taxation assets and liabilities are not discounted. 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.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery
-
33% straight line
Investments
Investments in subsidiaries are recognised at fair value with changes in fair value recognised in other comprehensive income in accordance with paragraph 17.15E and 17.15F.
All subsidiaries are owned 100% and included in the consolidation.
Financial instruments
Directors loans and intercompany loans (being repayable on demand), trade debtors and trade creditors are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2023
2022
£
£
Rendering of services
24,136,791
26,805,459
-------------
-------------
The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit or loss is stated after charging:
2023
2022
£
£
Depreciation of tangible assets
1,967
1,967
Impairment of trade debtors
325,304
---------
-------
6. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
14,583
9,750
--------
-------
7. Staff costs
The average number of persons employed by the group during the year, including the directors, amounted to:
2023
2022
No.
No.
Apex employees
275
358
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
9,661,687
11,412,520
Social security costs
1,046,864
1,132,339
Other pension costs
99,716
96,839
-------------
-------------
10,808,267
12,641,698
-------------
-------------
8. Other interest receivable and similar income
2023
2022
£
£
Other interest receivable and similar income
2,162
1,450
-------
-------
9. Interest payable and similar expenses
2023
2022
£
£
Interest on banks loans and overdrafts
2,042
2,948
Other interest payable and similar charges
1,263
1,266
-------
-------
3,305
4,214
-------
-------
10. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
10,494
61,833
Tax on profit
10,494
61,833
--------
--------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2022: higher than) the standard rate of corporation tax in the UK of 19 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
53,267
323,374
--------
---------
Profit on ordinary activities by rate of tax
13,107
61,441
Effect of expenses not deductible for tax purposes
6,887
21,292
Income not taxable for tax purposes
( 9,500)
( 20,900)
--------
---------
Tax on profit
10,494
61,833
--------
---------
11. Dividends
2023
2022
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
97,466
80,000
--------
--------
12. Tangible assets
Group
Plant and machinery
£
Cost
At 4 April 2022 and 1 April 2023
5,900
-------
Depreciation
At 4 April 2022
3,933
Charge for the year
1,967
-------
At 1 April 2023
5,900
-------
Carrying amount
At 1 April 2023
-------
At 3 April 2022
1,967
-------
The company has no tangible assets.
13. Investments
The group has no investments.
Company
Shares in group undertakings
£
Cost
At 4 April 2022 and 1 April 2023
958,470
---------
Impairment
At 4 April 2022 and 1 April 2023
---------
Carrying amount
At 4 April 2022 and 1 April 2023
958,470
---------
At 3 April 2022
958,470
---------
Cost or valuation at 1 April 2023 is represented by:
Shares in group undertakings
£
Valuation in 2019
366,824
Valuation in 2020
(241,489)
Valuation in 2022
333,135
Cost
500,000
---------
958,470
---------
All subsidiaries registered offices are Old Farm Hall, Barnston Lane, Wirral, CH46 7TN.
Subsidiaries, associates and other investments
Details of the investments in which the parent company has an interest of 20% or more are as follows:
Class of share
Percentage of shares held
Subsidiary undertakings
Apex Europe Limited
Ordinary
100
Emerald Sales Limited
Ordinary
100
Jefferson O'Connor Limited
Ordinary
100
Apex Outsourcing Limited
Ordinary
100
Apex Payroll Solutions Limited
Ordinary
100
14. Debtors
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade debtors
17,791
205,231
Amounts owed by group undertakings
262,296
187,446
Prepayments and accrued income
301,845
315,612
Directors loan account
11,824
107,127
11,824
107,127
Other debtors
1,442,180
1,258,831
12,485
------------
------------
---------
---------
1,773,640
1,886,801
286,605
294,573
------------
------------
---------
---------
15. Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans and overdrafts
21,651
20,000
10,740
10,000
Trade creditors
19,297
9,133
Accruals and deferred income
21,070
326,292
5,940
3,250
Corporation tax
104,497
103,421
30,166
17,505
Social security and other taxes
1,561,602
1,511,840
10,000
Other creditors
3,234
1,236
215,409
215,396
------------
------------
---------
---------
1,731,351
1,971,922
262,255
256,151
------------
------------
---------
---------
16. Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans and overdrafts
49,223
70,834
23,427
34,167
--------
--------
--------
--------
17. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 99,716 (2022: £ 96,839 ).
18. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 0.01 each
26,475
265
26,475
265
Ordinary A shares of £ 0.01 each
8,825
88
8,825
88
--------
----
--------
----
35,300
353
35,300
353
--------
----
--------
----
19. Reserves
Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Profit and loss account - This reserve records retained earnings and accumulated losses.
20. Analysis of changes in net debt
At 4 Apr 2022
Cash flows
At 1 Apr 2023
£
£
£
Cash at bank and in hand
475,166
(201,747)
273,419
Debt due within one year
(20,000)
(1,651)
(21,651)
Debt due after one year
(70,834)
21,611
(49,223)
---------
---------
---------
384,332
( 181,787)
202,545
---------
---------
---------
Blue Garnet Management Services Limited
Notes to the Financial Statements (continued)
Year ended 1 April 2023
21. Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company and its subsidiary undertakings:
2023
Balance brought forward
Advances/ (credits) to the directors
Amounts repaid
Balance outstanding
£
£
£
£
Mr L McLachlan
85,270
1,723
( 50,000)
36,993
Miss L McLachlan
21,857
440
( 47,466)
( 25,169)
---------
-------
--------
--------
107,127
2,163
( 97,466)
11,824
---------
-------
--------
--------
2022
Balance brought forward
Advances/ (credits) to the directors
Amounts repaid
Balance outstanding
£
£
£
£
Mr L McLachlan
39,353
85,917
( 40,000)
85,270
Miss L McLachlan
61,857
( 40,000)
21,857
--------
---------
--------
---------
39,353
147,774
( 80,000)
107,127
--------
---------
--------
---------
22. Related party transactions
Group
Entities with control, joint control, or significant influence over the entity:
2023 2022
£ £
Transaction value:
Management fees incurred 430,000 600,000
Balance owed by/(owed to):
Pearl Management Limited 1,362,979 925,521
Emerald Contor Limited 2,954 5,000
Company
During the period the company entered into the following transactions with related parties:
2023 2022
£ £
Balances owed by/(owed to)
Pearl Management Limited (215,409) (215,396)
Due to Miss L McLachlan (25,169) (21,857)
Due from Mr L McLachlan 36,992 (85,270)
23. Controlling party
The controlling party is Mr L McLachlan by virtue of his shareholding.