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Registered number: 08607020












CORE PEOPLE LTD
ANNUAL REPORT
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
 31 JULY 2023



















 


img5749.png
01483 755 399
hamlyns.com

 
CORE PEOPLE LTD
 

COMPANY INFORMATION


Director
Daniel Peter Ratcliff 




Registered number
08607020



Registered office
Unit 2 Kings Court Burrows Lane
Gomshall

Guildford

Surrey

GU5 9QE




Independent auditors
Hamlyns Limited
Chartered Accountants & Statutory Auditors

Sundial House

High Street

Horsell

Woking

GU21 4SU






 
CORE PEOPLE LTD
 

CONTENTS



Page
Strategic report
 
 
1
Director's report
 
 
2 - 3
Independent auditors' report
 
 
4 - 7
Statement of income and retained earnings
 
 
8
Balance sheet
 
 
9
Statement of cash flows
 
 
10
Analysis of net debt
 
 
11
Notes to the financial statements
 
 
12 - 24


 
CORE PEOPLE LTD
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023

Introduction
 
Core People Limited is a recruitment company specialising in the construction industry in the UK. The company’s main focus is the supply of temporary labour and permanent placements to our clients. During this financial year the company has increased its hire of plant equipment/machinery.

Business review
 
During the financial year, the company has seen another positive year with increases in gross profit as well as operating profits. This has been achieved with the same number of staff, therefore achieving greater productivity within the business as well as increasing the hire of plant/machinery arm of the business. The increase in productivity has been achieved by improved process efficiency.

Principal risks and uncertainties
 
The current economic climate makes up the principal risk and uncertainty for the business. Although inflation is now at the BOE target interest rates remain high which will prolong the slow down within the construction industry which would then have an impact on the amount of labour needed within the industry. 
Continuing high interest rates and the appetite for risk in the financial markets has the potential to increase the costs on the business as well as lead to a reduction in available funds for construction projects in the coming years.
The change in Government and the countries financial position could lead to higher taxes on corporations which would stifle growth if implemented.

Financial key performance indicators
 
The company key performance indicators are based on turnover and gross profit percentage. We have seen a decrease in turnover of 1.7%, however our gross profit margin has increased by 8.5% during the financial year, which has made the company more profitable.

Other key performance indicators
 
The company measures it’s retention of customers, we managed to achieve only a 8% decrease on our existing customer base, however the company also measures the number of new customers onboarded which, where we have seen an increase of 10%. The company focuses on supplying the highest standard of operatives to its clients, which has led to an increase in turnover to its existing clients.


This report was approved by the board on 6 August 2024 and signed on its behalf.



___________________________
Daniel Peter Ratcliff
Director

Page 1

 
CORE PEOPLE LTD
 

 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 JULY 2023

The director presents his report and the financial statements for the year ended 31 July 2023.

Director's responsibilities statement

The director is responsible for preparing the strategic report, the director's report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the director is required to:


select suitable accounting policies for the Company's financial statements 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £915,286 (2022 - £590,582).

During the financial period, no dividends have been paid (2021: NIL) and the directors do not reccomend any further dividends based on these financial statements.

Director

The director who served during the year was:

Daniel Peter Ratcliff 

Future developments

The company aims to continue trading as they have done in previous years. No changes to operations are planned for the future.
The company continues to invest in research and development activities, the cost of which are recognised in intangible assets in the balance sheet.

Page 2

 
CORE PEOPLE LTD
 

 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023

Disclosure of information to auditors

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

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

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

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

This report was approved by the board on 6 August 2024 and signed on its behalf.
 





Daniel Peter Ratcliff
Director

Page 3

 
CORE PEOPLE LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CORE PEOPLE LTD
 

Opinion


We have audited the financial statements of Core People Ltd (the 'Company') for the year ended 31 July 2023, which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


Except for the matter explained in the Basis for qualified opinion paragraph, in our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 July 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Other information


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


We have nothing to report in this regard.


Page 4

 
CORE PEOPLE LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CORE PEOPLE LTD (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.


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


adequate accounting records have not been kept, 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 director's 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 director's responsibilities statement set out on page 2, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 5

 
CORE PEOPLE LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CORE PEOPLE LTD (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these 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 obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are the Companies Act 2006, the reporting framework of the Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and UK taxation legislation. 
We understood how the company was complying with those frameworks through discussions with management and those charged with governance. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. Based on our understanding of the entity and its environment we identified the following areas as key risks and designed our audit approach as detailed to ensure material misstatements and irregularities would be detected in these areas:
Management over-ride:
We undertook testing of controls and systems to gain assurance these have been operating as expected during the period. We also performed journal testing to test the efficacy of journals posted during the period. Additionally, we have reviewed the disclosures in the accounts and the Directors report to ensure they agree with our findings from the audit testing carried out.
Revenue recognition:
The main area of risk identified with Income recognition lies with cut off and completion of income. To ensure this is not materially misstated or manipulated we have carried out substantive testing on income cut off and completion.
Going concern:
We have reviewed the latest financials and performed sensitivity testing on budgets and forecast, as well as testing the assumptions behind these.  
Hire purchase agreements: 
The main risk in regards to hire purchase agreements is that the liability will be understated. We have requested documentation for all additions in the year and are substantively testing a sample to ensure they are being correctly accounted for. 


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.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.


Page 6

 
CORE PEOPLE LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CORE PEOPLE LTD (CONTINUED)


Use of our report
 

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







Oliver Spevack ACA FCCA (senior statutory auditor)
for and on behalf of
Hamlyns Limited
Chartered Accountants
Statutory Auditors
Sundial House
High Street
Horsell
Woking
GU21 4SU

7 August 2024
Page 7

 
CORE PEOPLE LTD
 

STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JULY 2023

2023
2022
Note
£
£

  

Turnover
 4 
19,371,220
19,708,120

Cost of sales
  
(14,240,031)
(16,173,608)

Gross profit
  
5,131,189
3,534,512

Administrative expenses
  
(3,786,481)
(2,758,297)

Other operating income
 5 
9,000
-

Operating profit
 6 
1,353,708
776,215

Interest payable and similar expenses
 10 
(430,450)
(87,096)

Profit before tax
  
923,258
689,119

Deferred tax
  
(7,972)
(98,537)

Profit after tax
  
915,286
590,582

  

  

Retained earnings at the beginning of the year
  
1,717,759
1,127,177

  
1,717,759
1,127,177

Profit for the year
  
915,286
590,582

Retained earnings at the end of the year
  
2,633,045
1,717,759
There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.

The notes on pages 12 to 24 form part of these financial statements.

Page 8

 
CORE PEOPLE LTD
REGISTERED NUMBER: 08607020

BALANCE SHEET
AS AT 31 JULY 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 12 
513,558
170,594

Tangible assets
 13 
8,329,887
5,092,897

  
8,843,445
5,263,491

Current assets
  

Debtors: amounts falling due within one year
 14 
6,637,387
7,015,387

Cash at bank and in hand
 15 
25,385
217,437

  
6,662,772
7,232,824

Creditors: amounts falling due within one year
 16 
(7,946,596)
(7,537,958)

Net current liabilities
  
 
 
(1,283,824)
 
 
(305,134)

Total assets less current liabilities
  
7,559,621
4,958,357

Creditors: amounts falling due after more than one year
 17 
(4,619,567)
(2,941,561)

Provisions for liabilities
  

Deferred tax
 20 
(106,509)
(98,537)

  
 
 
(106,509)
 
 
(98,537)

Net assets
  
2,833,545
1,918,259


Capital and reserves
  

Called up share capital 
 21 
200,500
200,500

Profit and loss account
  
2,633,045
1,717,759

  
2,833,545
1,918,259


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 6 August 2024.




___________________________
Daniel Peter Ratcliff
Director

The notes on pages 12 to 24 form part of these financial statements.

Page 9

 
CORE PEOPLE LTD
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
915,286
590,582

Adjustments for:

Amortisation of intangible assets
28,276
-

Depreciation of tangible assets
1,933,010
897,433

Loss on disposal of tangible assets
(43,605)
(8,066)

Interest paid
430,450
87,096

Taxation charge
7,972
98,537

Decrease/(increase) in debtors
714,369
(1,218,562)

(Increase)/decrease in amounts owed by associates
(336,370)
119,133

(Decrease)/increase in creditors
(898,696)
944,056

Increase in amounts owed to associates
357,155
349,451

Corporation tax (paid)/received
(249)
-

Net cash generated from operating activities

3,107,598
1,859,660


Cash flows from investing activities

Purchase of intangible fixed assets
(371,240)
(170,594)

Purchase of tangible fixed assets
(5,285,224)
(4,534,045)

Sale of tangible fixed assets
158,830
77,066

HP interest paid
(430,258)
(87,096)

Net cash from investing activities

(5,927,892)
(4,714,669)

Cash flows from financing activities

Repayment of/new finance leases
2,739,829
3,019,365

Interest paid
(192)
-

Net cash used in financing activities
2,739,637
3,019,365

Net (decrease)/increase in cash and cash equivalents
(80,657)
164,356

Cash and cash equivalents at beginning of year
(1,856,867)
(2,021,223)

Cash and cash equivalents at the end of year
(1,937,524)
(1,856,867)


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
25,385
217,437

Bank overdrafts
(1,962,909)
(2,074,304)

(1,937,524)
(1,856,867)


The notes on pages 12 to 24 form part of these financial statements.

Page 10

 
CORE PEOPLE LTD
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 JULY 2023





At 1 August 2022
Cash flows
New finance leases
At 31 July 2023
£

£

£

£

Cash at bank and in hand

217,437

(192,052)

-

25,385

Bank overdrafts

(2,074,304)

111,395

-

(1,962,909)

Debt due within 1 year

(279,878)

149,925

-

(129,953)

Finance leases

(4,684,375)

-

(2,739,828)

(7,424,203)


(6,821,120)
69,268
(2,739,828)
(9,491,680)

The notes on pages 12 to 24 form part of these financial statements.

Page 11

 
CORE PEOPLE LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

1.


General information

Core People Ltd is a private company, limited by shares, registered in England and Wales, registration number 08607020. The registered office is Unit 2, Kings Court Burrows Lane, Gomshall, Guildford, Surrey, GU5 9QE.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statement of income and retained earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 12

 
CORE PEOPLE LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Operating leases: the Company as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

 
2.5

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.6

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

Page 13

 
CORE PEOPLE LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.7

Finance costs

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

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

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

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

 
2.10

Current and deferred taxation

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

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

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

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

Page 14

 
CORE PEOPLE LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Software
-
4
years

Software development is completed in stages, at each stage of completion the associated asset will be amortised over its useful life.

 
2.12

Tangible fixed assets

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

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

Depreciation is provided on the following basis:

Plant and machinery
-
25% Straight line
Motor vehicles
-
12% - 25% Straight line
Office equipment
-
33% Straight line

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

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

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Page 15

 
CORE PEOPLE LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.17

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's balance sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

Page 16

 
CORE PEOPLE LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

3.


Judgments in applying accounting policies 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. These estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revsion affects both current and future periods.
Key estimates:
The following estimates have the most significant effect on amounts recognised in the financial statements.
Deferred tax:
A deferred tax asset of £1,301,168 has been netted off against a deferred tax liability of £1,404,748 in the financial statements. The directors consider this appropriate as future profits will be made.


4.


Turnover

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


2023
2022
£
£

Supply of labour
16,792,894
18,551,127

Equipment hire
2,578,326
1,156,993

19,371,220
19,708,120


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Sundry income
9,000
-

9,000
-


Page 17

 
CORE PEOPLE LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
9,016
118

Other operating lease rentals
65,320
50,643


7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
12,900
12,500

8.


Employees

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


2023
2022
£
£

Staff salaries
724,248
812,664

Staff national insurance
9,478
7,284

Staff pension costs
2,287
1,698

736,013
821,646


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


        2023
        2022
            No.
            No.







Directors
1
1



Administrative staff
36
36

37
37

Page 18

 
CORE PEOPLE LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

9.


Director's remuneration

2023
2022
£
£

Director's emoluments
50,000
50,000

Director's national insurance
5,848
5,739

Directors pension costs
1,313
1,313

57,161
57,052



10.


Interest payable and similar expenses

2023
2022
£
£


Other loan interest payable
192
-

Finance leases and hire purchase contracts
430,258
87,096

430,450
87,096


11.


Taxation



Factors affecting tax charge for the year

The tax assessed for the year is the same as (2022 - the same as) the standard rate of corporation tax in the UK of 19% (2022 - 19%) as set out below:

2023
2022
£
£


Profit on ordinary activities before tax
923,259
689,119


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
175,419
130,933

Effects of:


Profit/loss on sale of tangible fixed assets
(8,285)
-

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,537
7,318

Capital allowances for year in excess of depreciation
(841,743)
(709,576)

Unrelieved tax losses carried forward
671,072
571,325

Total tax charge for the year
-
-


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 19

 
CORE PEOPLE LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

12.


Intangible assets




Computer software

£



Cost


At 1 August 2022
170,594


Additions
371,240



At 31 July 2023

541,834



Amortisation


Charge for the year on owned assets
28,276



At 31 July 2023

28,276



Net book value



At 31 July 2023
513,558



At 31 July 2022
170,594



Page 20

 
CORE PEOPLE LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

13.


Tangible fixed assets





Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£



Cost or valuation


At 1 August 2022
2,460,166
3,707,284
156,268
6,323,718


Additions
1,890,218
3,395,006
-
5,285,224


Disposals
-
(213,680)
(156,268)
(369,948)



At 31 July 2023

4,350,384
6,888,610
-
11,238,994



Depreciation


At 1 August 2022
457,174
632,788
140,860
1,230,822


Charge for the year on owned assets
867,359
1,050,242
15,408
1,933,009


Disposals
-
(98,456)
(156,268)
(254,724)



At 31 July 2023

1,324,533
1,584,574
-
2,909,107



Net book value



At 31 July 2023
3,025,851
5,304,036
-
8,329,887



At 31 July 2022
2,002,992
3,074,497
15,408
5,092,897

Included in the net book value of tangible fixed assets is £7,424,203 (2022: £4,319,111) of assets financed under hire purchase agreements.


14.


Debtors

2023
2022
£
£


Trade debtors
3,884,204
4,406,140

Amounts owed by related companies
2,702,548
2,366,178

Other debtors
15,616
232,465

Prepayments and accrued income
35,019
10,604

6,637,387
7,015,387


Page 21

 
CORE PEOPLE LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

15.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
25,385
217,437

Less: bank overdrafts
(1,962,909)
(2,074,304)

(1,937,524)
(1,856,867)



16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
1,962,909
2,074,304

Trade creditors
794,138
2,721,763

Amounts owed to related companies
706,606
349,451

Corporation tax
19,916
20,165

Other taxation and social security
327,186
180,114

Obligations under finance lease and hire purchase contracts
2,804,636
1,742,814

Other creditors
1,292,313
312,171

Accruals and deferred income
38,892
137,176

7,946,596
7,537,958



17.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
4,619,567
2,941,561

4,619,567
2,941,561


Page 22

 
CORE PEOPLE LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

18.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


HP liabilities and finance leases
2,804,636
1,742,814

Between 1-2 years
2,587,066
1,647,343

Between 2-5 years
2,032,501
1,294,218

7,424,203
4,684,375

The hire purchase leases in place fall payable within 1-5 years and interest of 2% - 13%  is charged on the contracts.


19.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
25,385
217,437




Financial assets measured at fair value through profit or loss comprise of cash at bank.


20.


Deferred taxation




2023
2022


£

£






At beginning of year
(98,537)
-


Charged to profit or loss
(7,972)
(98,537)



At end of year
(106,509)
(98,537)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(1,407,677)
(751,305)

Tax losses carried forward
1,301,168
652,768

(106,509)
(98,537)

Page 23

 
CORE PEOPLE LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
 
20.Deferred taxation (continued)


It is is expected that as business growth slows and the need for new assets decreases, the tax losses carried forward will be reversed.


21.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



200,500 (2022 - 200,500) Ordinary shares of £1.00 each
200,500
200,500



22.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £1,080 (2022 - £3,011). 


23.


Related party transactions

At the balance sheet date, £128,872 (2022: £279,878) was due to the directors. This loan is interest free, repayable on demand, and included within other creditors.
Furthermore, the company had undertaken the following activity with companies under common control.
Amounts due to the company from companies under common control as at the year end £2,702,547 (2022: £2,366,178).
Amounts due from the company to companies under common control as at the year end were £706,606 2022: £349,451).
Total income from companies under common control is £7,187,534 (2022: £6,215,236) with expenses of £5,437,120 (2022: £5,513,592)



24.


Controlling party

The company is controlled, by virtue of 100% ownership of the called up share capital, by it's director.


Page 24