Commercial in confidence
Financial statements
Morgan Hunt UK Limited
For the Year Ended 31 March 2024
Company No. 04349535
Commercial in confidence
Morgan Hunt UK Limited
2
Financial statements for the year ended 31 March 2024
Contents
Company information
   3
Report of the Directors
   4 - 6
Strategic Report
7 - 9
Independent auditor's report
10 - 13
Accounting policies
14 - 16
Statement of profit and loss
17
Statement of changes in equity
18
Statement of financial position
19
Notes to the financial statements
20 - 28
Commercial in confidence
Morgan Hunt UK Limited
3
Financial statements for the year ended 31 March 2024
Company Information
Directors
D Taylor
D Montagu
C Keniry
G MacDonald
R Fry
K Widdowson
Company Secretary
Oakwood Corporate Secretary Limited
Registered Company Number
04349535
Registered Office Address
3rd Floor
Standon House
21 Mansell Street
London
E1 8AA
Auditor Office Address
Moore Kingston Smith LLP
9 Appold Street
London
EC2A 2AP
Bank Office Address
HSBC UK Bank Plc
1-3 Warwick Street
Worthing
West Sussex
BN11 3DE
Commercial in confidence
Morgan Hunt UK Limited
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Financial statements for the year ended 31 March 2024
Company Information
The directors present their report and the financial statements of the company for the year ended 31 March 2024.
Principal activities and business review
Morgan Hunt UK Limited is a provider of recruitment solutions across the UK.  It focuses on both temporary and permanent placements into the public sector, not for profit organisations and the private sector.
Results and dividends
The profit for the year, after taxation, amounted to £1.2 million (2023: £0.8 million). The directors have not recommended a dividend (2023: £nil).
Directors
The directors who served the company during the year, except as otherwise stated, were as follows:
D Taylor
D Montagu
C Keniry
G MacDonald
R Fry
K Widdowson
Oakwood Corporate Secretary Limited acted as the Company Secretary throughout the year.
Directors' responsibilities statement
The directors are responsible for preparing the Strategic Report and 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, including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'). 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 and profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
Commercial in confidence
Morgan Hunt UK Limited
5
Financial statements for the year ended 31 March 2024
Report of the Directors (continued)
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.
The directors confirm that:
so far as each director is aware, there is no relevant audit information of which the company's auditor is unaware; and
the directors have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The directors are responsible for preparing the financial statements in accordance with applicable law and regulations. Having taken advice from the Audit Committee, the directors consider the financial statements, taken as a whole, provides the information necessary to assess the company's performance, business model and strategy and is fair, balanced and understandable.
To the best of our knowledge:
the financial statements, prepared in accordance with United Kingdom Generally Accepted Accounting Practice, give a true and fair view of the assets, liabilities, financial position and profit or loss of the company and the undertakings included in the consolidation taken as a whole; and
the Strategic Report and Directors' Report include a fair review of the development and performance of the business and the position of the company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.
Directors' and Officers' liability insurance
The Company maintains Directors' and Officers' liability insurance cover which is reviewed annually.
Disabled employees
The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.
Employee involvement
During the year, the policy of providing employees with information about the company has been continued through internal media methods in which employees are encouraged to present their suggestions and views on the group's performance. Regular meetings are held between local management and employees to allow a free flow of information and ideas.
Going concern
Commercial in confidence
Morgan Hunt UK Limited
6
Financial statements for the year ended 31 March 2024
Report of the Directors (continued)
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. The company made an operating profit for the year of £1.4 million (2023: £1.3 million) and had net liabilities at the balance sheet date of £0.1 million (2023: £1.3 million). The company also maintains a strong cash position.  During the year, the company has continued its focus on reducing fixed overheads including property and IT costs. As a result, the directors believe that the company will be able to continue in business and meet its liabilities as they fall due for a period of at least twelve months from the date of approval of the financial statements.
The facilities available to the company which are assumed to be available throughout the period, have been reviewed and compared to detailed cash flow forecasts prepared for the period to 31 March 2025. The business is forecast to remain cash generative and there are no anticipated shortfalls in facilities against requirements, nor breaches of covenants.
Auditor
Moore Kingston Smith LLP, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with Section 487(2) of the Companies Act 2006 unless the Company receives notice under Section 488(1) of the Act.
Information of strategic importance
Information required in accordance with s414C(11) of the Companies Act, which would otherwise be required by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008' to be contained in the directors' report has been included in the Strategic report.
ON BEHALF OF THE BOARD
D Taylor
Director
18 July 2024
Commercial in confidence
Morgan Hunt UK Limited
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Financial statements for the year ended 31 March 2024
Strategic Report
Business review
Financial overview
Gross Profit for the year ended 31 March 2024 was £12.4 million (2023: £12.7 million) – a decrease of £0.3 million (2%) on the prior year.  Operating profit was £1.4 million (2023: £1.3 million).
Financial performance
The financial performance for the year has been analysed as follows:
2024
2023
            Change
£'000
£'000
£'000
%
Turnover
48,528
50,467
(1,939)
(3.8)
Gross profit
12,441
12,709
(268)
(2.1)
Operating profit
1,357
1,342
15
1.1
Profit before tax
1,174
1,078
96
8.9
Business environment
Economic uncertainty and hesitancy by clients to commit to new hires impacted growth this year.  Despite the many challenges around the economy, the business managed to improve operating profit and productivity when compared to the previous year.  During the year the company has continued to focus on identifying efficiencies across both front and back office using advances in technology to support this. As a result, the directors believe that the company will be able to continue in business and meet its liabilities as they fall due for a period of at least twelve months from the date of approval of the financial statements.
Strategy
The company strives to consolidate and expand its reach in the sectors within which it operates.  Increased focus has been placed on business development, hiring of high calibre people, driving productivity and maintaining a high quality of service.
Turnover
Turnover has decreased by 3.8% year on year.
Gross profit
Gross margin achieved for the year equated to 25.6% (2023: 25.2%).
Administrative expenses
Total administrative expenses excluding exceptional items, remained in line with prior year.
Management reviews the company's cost base continually, ensuring costs are appropriate for current market conditions and activity.  Notwithstanding, management always strives to maintain the high quality of service and the company's ability to respond to future growth opportunities in both the public and private sectors.
Commercial in confidence
Morgan Hunt UK Limited
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Financial statements for the year ended 31 March 2024
Strategic Report (continued)
Key performance indicators
Summary of key performance indicators
The directors have monitored the progress of the company strategy and the individual strategic elements by reference to certain financial and non-financial key performance indicators.
    2024
  2023
Method of calculation
Actual
Actual
Change in turnover (%)
(3.8%)
4.0%
Year-on-year sales growth expressed as a percentage.
Gross profit margin (%)
25.64%
25.18%
Gross profit margin is the ratio of gross profit to sales expressed as a percentage.
Productivity ratio (£000)
97
126
Productivity is the gross profit divided by total staff headcount.
Debtor days (days)
43
39
Debtor days are the trade debtors divided by average daily turnover including VAT.
Principal business risks
The directors have set out below the principal risks facing the business. The directors are of the opinion that a thorough risk management process is adopted which involves the formal review of all the risks identified below. Where possible, processes are in place to monitor and mitigate such risks.
High proportion of fixed overheads
The majority of the company's costs are salary and related costs which are fixed in the short term. Any significant falls in revenues will also involve a significant reduction in commission. We believe we are well staffed in terms of our current headcount base. Management closely monitors overheads against budget on a monthly basis.
Variable revenues in a highly competitive market
The directors recognise the ongoing challenges faced by a highly competitive market and tightening of government public sector budgets. The directors are actively seeking ways of mitigating these risks, and believe continued investment in high calibre people with relevant expertise and a broadening of the product offering will help ensure the company is well positioned to benefit from the gradual economic recovery.
Credit quality of trade debtors
The credit quality of UK public sector authorities is good but the directors recognise the risks inherent in the company's exposure with vendor management organisations and other private sector companies. Policies of constant client monitoring and credit control management are in place to mitigate such risks.
Loss of key staff
The loss of key staff can adversely affect any business. The group has an on-going management training programme, of which one of the key aims is to ensure succession planning for key positions.
Liquidity risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs.
Commercial in confidence
Morgan Hunt UK Limited
9
Financial statements for the year ended 31 March 2024
Strategic Report (continued)
Financial risk management objectives and policies
The company uses various financial instruments which include cash, an invoice discounting facility, trade debtors, trade creditors and amounts due to and from group undertakings that arise directly from its operations. The main purpose of these financial instruments is to finance the company's operations. The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below.
The main risks arising from the company's financial instruments are interest rate risk and credit risk. The directors review and agree policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous periods.
Interest rate risk
The company is exposed to interest rate fluctuations on its invoice discounting facility. The company's policy for interest rate management is to maintain floating rate borrowings. Interest rate risk in respect of debt on the statement of financial position is reviewed on a regular basis against forecast interest costs and covenants.
Credit risk
The company's principal financial assets are cash and trade debtors. The credit risk associated with cash is limited as the counterparties have high credit ratings assigned by international credit-rating agencies. The principal risk arises, therefore, from trade debtors.  In order to manage credit risk, management sets limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history.
Future outlook for the business
The directors recognise the ongoing challenges faced by a highly competitive market and tightening of government public sector budgets. The directors are actively seeking ways of mitigating these risks, and believe continued investment in high calibre people with relevant expertise and a broadening of the product offering will help ensure the company is well positioned to benefit from the gradual economic recovery.
ON BEHALF OF THE BOARD
D Taylor
Director
18th July 2024
Commercial in confidence
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Independent auditor's report to the members of Morgan Hunt UK Limited
Opinion
We have audited the financial statements of Morgan Hunt UK Limited for the year ended 31 March 2024 which comprise the Statement of comprehensive income, the Statement of Changes in Equity, the Statement of financial position 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 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 company's affairs as at 31 March 2024 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The 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
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Independent auditor's report to the members of Morgan Hunt UK Limited (continued)
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:true
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 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 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 directors' responsibilities statement set out on pages 4 and 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's responsibilities for the audit of the financial statements
Commercial in confidence
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Independent auditor's report to the members of Morgan Hunt UK Limited (continued)
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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement 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 purposes of expressing an opinion on the effectiveness of the company'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 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 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.
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.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
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.
Commercial in confidence
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Independent auditor's report to the members of Morgan Hunt UK Limited (continued)
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Commercial in confidence
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Independent auditor's report to the members of Morgan Hunt UK Limited (continued)
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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 for no purpose other than to draw to the attention of the company's members those matters which we are required to include in an auditor's report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the company and company's members as a body, for our work, for this report, or for the opinions we have formed.
25 July 2024
Amanda Settle (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP, Statutory Auditor
9 Appold Street
London
EC2A 2AP
Commercial in confidence
Morgan Hunt UK Limited
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Financial statements for the year ended 31 March 2024
Accounting policies
Company information
Morgan Hunt UK limited is a Private Company Limited by shares incorporated on the 9th January 2002, the country of incorporation is United Kingdom and the address of its registered office is 3rd Floor, Standon House, 21 Mansell Street, London, E1 8AA.
Basis of preparation
These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 – 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006. The financial statements have been prepared on the historical cost basis except for the modification to a fair value basis for certain financial instruments as specified in the accounting policies below.
These financial statements for the year ended 31 March 2024 for Morgan Hunt UK Limited comply with FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and with the Companies Act 2006.
The financial statements are presented in Sterling (£) and rounded to the nearest £000's.
Statement of cash flows
The company has taken advantage of FRS 102 and has not included its own statement of cash flows and related notes in these financial statements on the basis that they are included in the consolidated cashflows of the Company's ultimate parent entity which are publicly available.true
Going concern
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. The company made an operating profit for the year of £1.4 million (2023: £1.3 million) and had net liabilities at the balance sheet date of £0.1 million (2023: £1.3 million). The company also maintains a strong cash position.  During the year, the company has continued its focus on reducing fixed overheads including property and IT costs. As a result, the directors believe that the company will be able to continue in business and meet its liabilities as they fall due for a period of at least twelve months from the date of approval of the financial statements.true
The facilities available to the company which are assumed to be available throughout the period, have been reviewed and compared to detailed cash flow forecasts prepared for the period to 31 March 2025. The business is forecast to remain cash generative and there are no anticipated shortfalls in facilities against requirements, nor breaches of covenants.
Significant judgements and estimates
Preparation of the financial statements requires management to make significant judgements and estimates in determining the carrying amounts of certain assets and liabilities. Management makes assumptions of the effects of uncertain future events on those assets and liabilities at the reporting date. The management's estimates and assumptions are based on historical experience and expectation of future events and are reviewed periodically. This disclosure excludes uncertainty over future events and judgments in respect of measuring financial instruments. There are no further significant judgements or estimates.
The principal accounting policies are set out below:
Morgan Hunt UK Limited
16
Financial statements for the year ended 31 March 2024
Accounting policies (continued)
Turnover
Turnover, which excludes value added tax, comprises the value of services undertaken by the company under its principal activity, which is the provision of recruitment consulting services. This broadly consists of:
turnover from contractor placements, representing fees received and receivable for the services of the contractor staff, being recognised when the service has been provided;
turnover from permanent placements, representing fees received and receivable as a percentage of the candidate's remuneration package, being recognised when a candidate starts employment.
Fixed assets
All fixed assets are recorded at cost, less accumulated depreciation.
Depreciation
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Leasehold Property
-
Straight line over the life of the lease
Fixtures & Fittings
-
3 years' straight line
Equipment
-
3 years' straight line
Operating lease agreements
Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the lease term, unless the rental payments are structured to increase in line with expected general inflation, in which case the group recognises annual rent expense equal to amounts owed to the lessor.
The aggregate benefit of lease incentives are recognised as a reduction to the expense recognised over the lease term on a straight line basis.
Taxation
Current tax is recognised for the amount of income tax payable in respect of profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the reporting date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the following exceptions:
Provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets, and gains on disposal of fixed assets that have been rolled over into replacement assets, only to the extent that, at the statement of financial position date, there is a binding agreement to dispose of the assets concerned. However, no provision is made where, on the basis of all available evidence at the statement of financial position date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the replacement assets are sold.
Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Morgan Hunt UK Limited
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Financial statements for the year ended 31 March 2024
Accounting policies (continued)
Deferred tax is measured on a discounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the statement of financial position date.
Foreign currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
Financial instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the statement of financial position.  Finance costs and gains or losses relating to financial liabilities are included in the Statement of Comprehensive Income. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.
Invoice discounting
Where debts are invoice discounted the separate presentation treatment proposed by Financial Reporting Standard 102 has been adopted. In accordance with Financial Reporting Standard 102 the gross amount of debts due from customers is included within trade debtors with the advances received from the finance shown as a liability.
Exceptional items
Material and non-recurring items of income and expense are disclosed in the Statement of Comprehensive Income as “Exceptional items”. Examples of items which may give rise to disclosure as “Exceptional” include gains or losses on the disposal of businesses, investments and property, plant and equipment, costs of restructuring and reorganisation of existing businesses and asset impairments.
Holiday pay accrual
Under FRS 102 an accrual for holiday pay is specifically required. The impact of this is deemed to be significant as the company's holiday year is not the same as its financial year, and employees are entitled to carry forward holiday balances to future years.
Morgan Hunt UK Limited
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Financial statements for the year ended 31 March 2024
Statement of profit and loss
2024
2023
Note
£000
£000
Turnover
48,528
50,467
1
Cost of sales
(36,087)
(37,758)
Gross profit
12,441
12,709
Administrative expenses
(11,084)
(11,367)
2
Operating profit
3
1,357
1,342
Interest payable and similar charges
(183)
(264)
6
Profit on ordinary activities before taxation
1,174
1,078
Tax on profit on ordinary activities
12
(255)
7
Profit for the financial year
1,186
823
18
Profit for the financial year attributable to:
1,186
823
Owners of the parent
1,186
823
All of the activities of the company are classed as continuing.
The company has no recognised gains or losses other than the results for the year as set out above.
The accompanying accounting policies and notes form part of these financial statements (see pages 14 – 28).
Morgan Hunt UK Limited
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Financial statements for the year ended 31 March 2024
Statement of changes in equity
Called up share capital
Profit and loss account
Total
£000
£000
£000
At 1 April 2022
1
(2,090)
(2,089)
Profit for the year
-
823
823
At 31 March 2023
      1
(1,267)
(1,266)
Profit for the year
-
1,186
1,186
At 31 March 2024
      1
(81)
(80)
Statement of financial position
The accompanying accounting policies and notes form part of these financial statements (see pages 14 - 28).
Morgan Hunt UK Limited
20
Financial statements for the year ended 31 March 2024
2024
2023
Note
£000
£000
Fixed assets
Intangible assets
-
1
8
Tangible assets
  66
105
9
66
106
Current assets
Debtors
8,848
8,798
10
Cash at bank
564
583
9,412
9,381
Creditors: amounts falling due within one year
(9,558)
(8,165)
12
Net current assets
(146)
1,216
Total assets less current liabilities
(80)
1,322
Creditors: amounts falling due after more than one year
-
(2,588)
13
Net liabilities
(80)
(1,266)
Capital and reserves
Called-up equity share capital
1
1
17
Profit and loss account
(81)
(1,267)
18
Shareholder's net deficit
(80)
(1,266)
19
These financial statements were approved by the directors and authorised for issue on 18 July 2024, and are signed on their behalf by:
D Taylor
Director
Company Registration Number: 04349535
The accompanying accounting policies and notes form part of these financial statements (see pages 14 - 28).
Morgan Hunt UK Limited
21
Financial statements for the year ended 31 March 2024
Notes to the financial statements
1
Turnover
The turnover and profit before tax are attributable to the one principal activity of the company.
An analysis of turnover is given below:
2024
2023
£000
£000
United Kingdom
48,528
50,467
2
Administrative expenses
2024
2023
£000
£000
Administrative expenses
11,084
11,367
3
Operating profit/(loss)
Operating profit/(loss) is stated after charging/ (crediting):
2024
2023
£000
£000
Depreciation of owned fixed assets
78
85
Amortisation of owned fixed assets
1
25
Auditor's remuneration:
- Audit fees
31
41
- Fees payable in respect of Corporation tax compliance
6
6
Operating lease costs:
- Plant and equipment
-
-
- Land and buildings
331
449
4
Particulars of employees
The average number of staff employed by the company during the financial year amounted to:
2024
2023
No
No
Number of administrative staff
26
25
Number of sales staff
103
101
129
126
Morgan Hunt UK Limited
22
Financial statements for the year ended 31 March 2024
Notes to the financial statements (continued)
In addition, as a provider of recruitment solutions, the company engaged under contracts for services 800 (2023: 868) temporary workers during the year (FTE).
Morgan Hunt UK Limited
23
Financial statements for the year ended 31 March 2024
Notes to the financial statements (continued)
The aggregate payroll costs of employees and temporary workers were:
2024
2023
£000
£000
Wages and salaries
7,244
7,315
Social security costs
805
853
8,049
8,168
Included within administrative expenses is £254k (2023: £222k) in relation to employee benefits accounted for as a defined contribution plan.
5
Directors
Remuneration in respect of directors was as follows:
2024
2023
£000
£000
Remuneration receivable
1,242
1,091
Remuneration of highest paid director:
2024
2023
£000
£000
Total emoluments (excluding pension contributions)
226
214
Pension Contributions
13
11
Total remuneration
239
225
Morgan Hunt UK Limited
24
Financial statements for the year ended 31 March 2024
Notes to the financial statements (continued)
6
Interest payable and similar charges
2024
2023
£000
£000
Interest payable on bank borrowing
183
146
Interest payable on loan
-
118
183
264
7
Taxation on ordinary activities
(a) Analysis of charge in the year
2024
2023
£000
£000
Current tax:
UK Corporation tax based on the results for the year
321
258
Adjustments in respect of prior periods
1
-
Total current tax
322
258
Deferred tax:
Origination and reversal of timing differences
(334)
(3)
Total deferred tax (note 10 & 11)
298
(36)
Tax on profit on ordinary activities
(12)
255
(b) Factors affecting current tax charge
2024
2023
£000
£000
Profit/(loss) on ordinary activities before taxation
1,174
1,078
Loss on ordinary activities by rate of tax at 25% (2023: 19%)
294
205
Deferred tax not recognised
(313)
-
Expenses not deductible for tax purposes
7
59
Income not taxable for tax purposes
(1)
-
Adjustments in respect of prior periods
1
-
Morgan Hunt UK Limited
25
Financial statements for the year ended 31 March 2024
Notes to the financial statements (continued)
Fixed asset differences
-
(6)
Adjustment to closing deferred tax to average rate
-
(3)
Total current tax
(12)
255
Morgan Hunt UK Limited
26
Financial statements for the year ended 31 March 2024
Notes to the financial statements (continued)
8
Intangible fixed assets
Software
£000
Cost
At 1 April 2023 and 31 March 2024
              283
Depreciation
At 1 April 2023
282
Charge for the year
1
At 31 March 2024
283
Net book value
At 31 March 2024
-
At 31 March 2023
1
Amortisation of intangible fixed assets is included in administrative expenses.
Morgan Hunt UK Limited
27
Financial statements for the year ended 31 March 2024
Notes to the financial statements (continued)
9
Tangible fixed assets
Leasehold Property
Fixtures & Fittings
Equipment
Total
£000
£000
£000
£000
Cost
At 1 April 2023
129
14
295
438
Additions
-
2
37
39
Disposals
-
(1)
-
(1)
At 31 March 2024
129
15
332
476
Depreciation
At 1 April 2023
101
13
219
333
Charge for the year
25
1
52
78
Disposals
-
(1)
-
(1)
At 31 March 2024
126
13
271
410
Net book value
At 31 March 2024
3
2
61
66
28
1
76
105
At 31 March 2023
Depreciation of tangible fixed assets is included in administrative expenses.
10
Debtors
2024
2023
£000
£000
Trade debtors
6,977
6,444
Amounts owed by group undertakings
859
851
Other debtors
265
183
Morgan Hunt UK Limited
28
Financial statements for the year ended 31 March 2024
Notes to the financial statements (continued)
Prepayments and accrued income
449
1,320
Deferred tax asset
298
-
8,848
8,798
The company's trade debtors of £6,977k (2023: £6,444k) are subject to invoice discounting.
Morgan Hunt UK Limited
29
Financial statements for the year ended 31 March 2024
Notes to the financial statements (continued)
11
Deferred taxation
The deferred tax included in the statement of financial position is as follows:
2024
2023
£000
£000
Included in creditors (note 10 and 12)
298
(36)
The movement in the deferred taxation account during the year was:
2024
2023
£000
£000
Balance brought forward
(36)
(39)
Profit and loss account movement arising during the year
334
3
Balance carried forward
298
(36)
12
Creditors: amounts falling due within one year
2024
2023
£000
£000
Invoice discounting facility
2,025
3,100
Trade creditors
228
165
Other taxation and social security
1,956
1,916
Other creditors
644
31
Accruals and deferred income
1,853
2,273
Corporation tax liability
264
232
Deferred tax liability (note 11)
-
36
Loan
2,588
412
9,558
8,165
Included within creditors is a loan for £2,588,000 that has no fixed repayment date but is repayable when certain performance criteria have been met. At the year-end those criteria have not been met in full and therefore only £593,000 will be repayable within 12 months.  However, as the company has no unconditional right to defer settlement for at least 12 months after the reporting date, the full amount of the loan is included within creditors: amounts falling due within one year.
Morgan Hunt UK Limited
30
Financial statements for the year ended 31 March 2024
Notes to the financial statements (continued)
13
Creditors: amounts falling due after more than one year
2024
2023
£000
£000
Loan
-
2,470
Interest accrual (see note below)
-
118
-
2,588
An amount of £nil (2023: £118k) was charged as interest for the year.
14
Commitments under operating leases
At 31 March 2024 the company had annual commitments under non-cancellable operating leases as set out below.
2024
2023
£000
£000
Operating leases which expire:
Within 1 year
331
449
Within 2 to 5 years
782
76
1,113
525
Morgan Hunt UK Limited
31
Financial statements for the year ended 31 March 2024
Notes to the financial statements (continued)
15
Contingencies
The company and its fellow subsidiaries have jointly guaranteed loan facilities to the immediate parent undertaking, along with the company's invoice discounting facility. The amount outstanding on the company's invoice discounting facility was £2,025k (2023: £3,100k). The invoice discounting facility is secured by a fixed and floating charge over the assets of the group.
16
Related party transactions
The Harroway Partnership (GP) Limited, a company associated with the director Hugh Willis, has provided the company with a £3m loan. The loan is repayable from July 2023 and is unsecured. The loan is subordinated only to the Company's invoice discounting facility (provided by HSBC Bank) and shall not be subordinated to any other debt, charge or facility of any sort. The payment made against the loan during the year was £412k (2023: £nil).
17
Share capital
Authorised share capital:
2024
2023
£000
£000
10,000 Ordinary shares of £0.10 each
1
1
Allotted, called up and fully paid:
                                     2024
                                   2023
No
£000
No
£000
10,000 Ordinary shares of £0.10 each
10,000
1
10,000
1
Each holder of Ordinary Shares is entitled to one vote per share; the shares have no special rights or restrictions.
18
Profit and loss account
2024
2023
£000
£000
Balance brought forward
(1,267)
(2,090)
Profit for the financial year
    1,186
  823
Balance carried forward
(81)
(1,267)
The Profit and loss account includes all current and prior period retained profit and losses.
Morgan Hunt UK Limited
32
Financial statements for the year ended 31 March 2024
Notes to the financial statements (continued)
19
Reconciliation of movements in statement of changes in equity
2024
2023
£000
£000
Opening shareholders' deficit
(1,266)
(2,089)
Profit for the financial year
1,186
823
Closing shareholders' deficit
(80)
(1,266)
20
Parent undertaking and controlling party
The company is 100% owned by Morgan Hunt Holdings Limited, its immediate parent company. The directors consider the ultimate controlling party to be Morgan Hunt Group Limited. The largest group of undertakings for which group accounts have been drawn up is that headed by Morgan Hunt Group Limited, and the smallest such group of undertakings, including the company, is that headed by Morgan Hunt Holdings Limited, both registered in England and Wales.
The parent company accounts can be obtained from the Companies House website, using the following link:  https://www.gov.uk/get-information-about-a-company
21
Auditors remuneration
2024
2023
£000
£000
Audit fees
31
31
Fees payable in respect of Corporation tax compliance
6
6
One off fee re new ISA's
-
10
37
47
22
Capital commitments
The directors have confirmed that there were no capital commitments at 31 March 2024 or at
31 March 2023.
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