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Registered number: 05195273
Montash Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 31 December 2023
Kalculus
Chartered Accountants & Business Advisers
Financial Statements
Contents
Page
Strategic Report 1—3
Directors' Report 4—5
Independent Auditor's Report 6—8
Profit and Loss Account 9
Statement of Comprehensive Income 10
Balance Sheet 11
Statement of Changes in Equity 12
Statement of Cash Flows 13
Notes to the Statement of Cash Flows 14
Notes to the Financial Statements 15—21
Page 1
Strategic Report
The directors present their strategic report for the year ended 31 December 2023.
Review of the Business
This strategic report provides an overview and analysis of the audited financial statements of Montash Group for the fiscal year ending 31 December 2023. The report aims to offer insights into the financial performance, position, and strategic direction of the company.
Montash Group head office is based in London with an additional office in Germany. The Company’s subsidiaries include Montash B.V. in the Netherlands and Montash GmbH in Germany.
The Montash Group are Technology recruitment specialists. The Company’s mission is to develop partnerships with enterprises and technology experts, connecting them to achieve their goals.
The company’s specialisms are Cloud, DevOps, Data & Analytics, Cyber Security, AI, Software Engineering and SAP & ERP, delivering permanent and contingent resources through its brands; Montash and Remobi.
In financial year 2022, as the business came out of the COVID19 challenges, it saw significant growth of Net Fee Income in all specialisms. The Montash group continued to grow in both revenue and profit in 2023 despite tougher market conditions in addition to rising energy costs and the cost-of-living crisis. 
During the last quarter of 2023, and to ensure the business is well placed to meet its plans for the next financial year, the Directors took steps to reduce operational expenditure to promote an efficient Operational Support team whilst still being committed and supportive to revenue generation activities. 
The Director’s are pleased with the growth of the company and the performance during the year.
Turnover across the Montash group rose by 21% from £21.8m (2022) to £27.6m in 2023 and GP rose by 20% from £5.6m (2022) to £7.0m in 2023. Operating profit increased by 18% from £703k (2022) to £853k in 2023. 
The Montash groups financial position remains strong and improves each year with net assets of £2.1m in 2023 compared to £1.9m in 2022. The results reflect a new strategic brand; Remobi and consultancy statement of work projects as well as continuation of developing and investing in its  employees.
Key Performance Indicators
The key performance indicators used by the directors in monitoring the business during the year were as follows:
   2023
   2022
Net fee Income
  £6.97m
   £5.60m
Gross Profit
   25%
    26%
Operating Profit
   12%  
    12%
Net fees per consultant
  £170,000
  £139,500
Average Consultant Headcount
   41
   40
Principal Risks and Uncertainties
Corporate risk and mitigating risk factors are monitored by the Senior Leadership Team on a regular basis.
The groups most significant risk arises from fluctuations in the demand in the marketplace for staff across a variety of industries. To mitigate this risk, the Group ensures that it focusses on Services, Knowledge, Relationships and differentiation; being developing the company’s offerings and responding flexibly to the market.
Liquidity and credit risk are also seen as significant to the company. The group manage its cashflow using invoice discounting and mitigate our risk by having a diverse range of clients across the Technology sector. The group’s policy is to maintain excellent relationships with its bankers to ensure sufficient facilities are in place to fund the group’s needs as it expands.
The Montash group is subject to foreign exchange transactions and translations. Changes in the strength of sterling could have significant impact on the groups results. The group reduces this risk by ensuring debtor payment terms are low and sales and cost of sales are invoiced and paid in the same currencies.
The directors are continually reviewing the wider economic situation across all the geographies in which the group operates and are taking steps to mitigate the impacts. The directors believe that the company has adequate resources to manage it’s business risks effectively.
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Future Developments
The Directors will continue to invest in specific opportunities that will deliver further growth of net fee income. The company also continues to invest in its IT and management systems to maximise the experiences for our employees, candidates and clients. 
Having successfully launched Remobi in 2023, a further brand launch is being considered for 2024. This will create an opportunity to deliver even further specialised services to clients and candidates. Furthermore expansion (from the UK office) into the US is on the roadmap.  
Decision Making
The main Montash Board meet once a month. The larger Senior Leadership Team (SLT) meet more regularly, several times a month. The main Board is kept up to date on operational and financial matters relating to the group through various sources which include briefings by senior management of business units and department heads, performance reports together with analysis and feedback.
The Board takes a view on strategic long-term decisions based on research, financial and analytical modelling, seasoned professional advice and through engagement with employees, contractors and clients. These decisions could include new recruitment specialisms and strategic partnerships.
Stakeholder engagement
The Board recognises that to achieve its strategic aims, its talent base is critical to the groups success. Employee engagement therefore is of paramount importance and every effort is made to provide staff with an enriching experience that then translates to an engaged customer base and resultant commercial success. 
The company undertakes employee surveys to track levels of engagement. The output of these surveys is reviewed and used to form part of the group's people strategy. The Board supports significant levels of investment in training and development, including hosting of internal company-wide learning events and mentoring opportunities. This sits alongside a generous benefits package which includes market leading commission and bonus schemes, private medical insurance, pension contributions and others. 
The company also has a substantial Enterprise Management Incentive Scheme and in which all employees have the opportunity to join.
The Board recognises the importance of having a diverse workforce. The Group is committed to promoting fairness and equality in the workplace. 
The company has also established ‘montaSHEmpowered’ within the business, where the mission is to “empower women to rise, lead & succeed in the workplace & beyond”. The group have delivered companywide workshops on Imposter Syndrome, Conscious & Unconscious Bias, Inclusion & Diversity and Mental Health. The group encourage all employees to participate and often include external speakers from its clients to share their experiences. The group have further plans to expand the reach and scope of this forum in the coming year.
To encourage wellbeing with employees, the group also hold quarterly meditation sessions, wellbeing breakfasts, sports days, running club and charity events. 
These incentives and development of its employees allow the group to differentiate itself in a highly competitive labour market and to attract and retain high calibre employees. 
The Board also recognises that engagement with our contractors and clients is hugely important. The group have a client centric approach which is achieved by personalised services, responsive communication and strategic alignment with client objectives. 
The groups recruitment consultants regularly meet with contractors and clients to fully understand their dynamic requirements and provide expert professional advice for them to make fully informed talent decisions. The company have plans in the next financial year to broaden and provide additional events, white papers and content to support the strategy of its clients and contractors alike.
The company remains committed to delivering exceptional value to its clients and candidates. 
Despite challenges posted by market uncertainties, the company’s strong financial footing, operational resilience and strategic foresight, position it for sustained growth and success in future years.
Community and sustainability
The Montash group are a low impact business and are committed to making choices that are good for the environment, employees, customers and partners. The group have committed to setting near and long term company wide goals that will help build a better, more sustainable, environmentally friendly business focusing on 4 key pillars; Environment, Philanthropy, Workplace and Accreditation & Benchmarking.
Going Concern
The company have prepared financial projections looking forward for a period of at least 12 months from the date of signing these financial statements and these demonstrate that the group as a whole and company is expected to have sufficient cash to enable it to meet its liabilities as they become due for the period to September 2025.
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Section 172(1) Statement
The on-going and future success of the business is in the interests of all stakeholders and Montash’s directors take their duty under s172 of the Companies Act 2006 seriously. The statement below will outline how this has been achieved during the last financial year.
As a recruitment business, Montash considers it’s key stakeholders to be it’s employees, contractors and clients.
On behalf of the board
Mr A D Larholt
Director
8 August 2024
Page 3
Page 4
Directors' Report
The directors present their report and the financial statements for the year ended 31 December 2023.
Principal Activity
The principal activity of the company continued to be that of the provision of recruitment services.
Directors
The directors who held office during the year were as follows:
Mr A D Larholt
Mr Dushanthan Alagaratnam Resigned 15/09/2023
Ms Lisa Talhadas Appointed 04/09/2023
Matters covered in the Strategic Report
Disclosures required under s416(4) of the Companies Act 2006 are commented upon in the Strategic Report as the directors consider them to be of strategic importance to the business.
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, the 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, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements the directors are required to:
  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Directors' Report is approved:
  • so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they 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 auditors are aware of that information.
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Independent Auditors
The auditors, Kalculus, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board
Mr A D Larholt
Director
8 August 2024
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Independent Auditor's Report
Opinion
We have audited the financial statements of Montash Limited for the year ended 31 December 2023 which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes of Equity, Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
  • give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit/(loss) for the year then ended;
  • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
  • have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor'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 entity's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.
Opinions on Other Matters Prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
  • the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on Which We Are Required to Report by Exception
In the light of 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 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 or 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.
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Responsibilities of Directors
As explained more fully in the Directors' Responsibilities Statement set out on page 4—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
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 
The company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant:
-The Companies Act 2006;
-Financial Reporting Standard 102;
-UK employment legislation;
-UK health and safety legislation;
-General Data Protection Regulations;
-UK tax legislation
-IR35 Off payroll workers
-RTW-IDVT checking for all UK employees and UK contractors working via PSC
-Agency Worker Regulations
We assessed the extent of compliance with these laws and regulations as a part of our procedures on the related financial statements items. We understood how the Company is complying with those legal and regulatory framework by making inquiries to management and those responsible for legal and compliance procedures.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team include:
-Identifying and assessing the measures management has in place to prevent and detect fraud
-Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process,
-Challenging assumptions and judgements made by management in its significant accounting estimates, and
-Identifying and testing journal entries, in particular any journal entries posted with unusual account
combinations.
As a result of the above procedures, we considered the opportunities and incentives that exist within the organisation for fraud and identified the greatest potential therefore existing within the recognition of revenue.
Our procedures in this respect were focused on the accrued revenue and directed towards ensuring the accuracy and completeness therefore by undertaking testing of accrued revenue by reference to post year-end sales invoices and supporting contracts. We consider that the work we undertook in this regard was considered capable of detecting irregularities within the revenue recognition system.
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 increase 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. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. The risk is also greater regarding irregularities occurring due to fraud other than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresantion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use Of Our Report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters that we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
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Philip Horesh (Senior Statutory Auditor)
for and on behalf of Kalculus , Statutory Auditor
8 August 2024
Kalculus
Chartered Accountants and Registered Auditors
119 Marylebobe Road
London
NW1 5PU
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Profit and Loss Account
2023 2022
Notes £ £
TURNOVER 3 24,437,911 19,810,771
Cost of sales (18,847,821 ) (14,795,864 )
GROSS PROFIT 5,590,090 5,014,907
Administrative expenses (4,909,065 ) (4,573,606 )
OPERATING PROFIT 681,025 441,301
Interest payable and similar charges 8 (21,878 ) (13,112 )
PROFIT BEFORE TAXATION 659,147 428,189
Tax on Profit 9 (156,921 ) (81,778 )
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR 502,226 346,411
The notes on pages 14 to 21 form part of these financial statements.
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Statement of Comprehensive Income
2023 2022
£ £
PROFIT FOR THE FINANCIAL YEAR 502,226 346,411
OTHER COMPREHENSIVE INCOME FOR THE YEAR - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 502,226 346,411
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Balance Sheet
Registered number: 05195273
2023 2022
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 10 72,370 109,835
Investments 11 22,207 22,207
94,577 132,042
CURRENT ASSETS
Debtors 12 5,565,915 4,860,627
Cash at bank and in hand 800,765 731,186
6,366,680 5,591,813
Creditors: Amounts Falling Due Within One Year 13 (4,919,261 ) (4,234,008 )
NET CURRENT ASSETS (LIABILITIES) 1,447,419 1,357,805
TOTAL ASSETS LESS CURRENT LIABILITIES 1,541,996 1,489,847
PROVISIONS FOR LIABILITIES
Deferred Taxation 14 (12,391 ) (20,868 )
NET ASSETS 1,529,605 1,468,979
CAPITAL AND RESERVES
Called up share capital 16 75 75
Capital redemption reserve 38 38
Profit and Loss Account 1,529,492 1,468,866
SHAREHOLDERS' FUNDS 1,529,605 1,468,979
On behalf of the board
Mr A D Larholt
Director
8 August 2024
The notes on pages 14 to 21 form part of these financial statements.
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Statement of Changes in Equity
Share Capital Capital Redemption Profit and Loss Account Total
£ £ £ £
As at 1 January 2022 75 38 1,751,655 1,751,768
Profit for the year and total comprehensive income - - 346,411 346,411
Dividends paid - - (629,200) (629,200)
As at 31 December 2022 and 1 January 2023 75 38 1,468,866 1,468,979
Profit for the year and total comprehensive income - - 502,226 502,226
Dividends paid - - (441,600) (441,600)
As at 31 December 2023 75 38 1,529,492 1,529,605
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Statement of Cash Flows
2023 2022
Notes £ £
Cash flows from operating activities
Net cash generated from operations 1 583,041 918,526
Interest paid (20,793 ) (13,112 )
Tax (paid)/refunded (66,822 ) 22,680
Net cash generated from operating activities 495,426 928,094
Cash flows from investing activities
Purchase of tangible assets (10,142 ) (121,364 )
Cash flows from financing activities
Equity dividends paid (441,600 ) (629,200 )
Amount introduced by directors 25,895 135,794
Net cash used in financing activities (415,705 ) (493,406 )
Increase in cash and cash equivalents 69,579 313,324
Cash and cash equivalents at beginning of year 2 731,186 417,862
Cash and cash equivalents at end of year 2 800,765 731,186
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Notes to the Statement of Cash Flows
1. Reconciliation of profit for the financial year to cash generated from operations
2023 2022
£ £
Profit for the financial year 502,226 346,411
Adjustments for:
Tax on profit 156,921 81,778
Interest expense 21,878 13,112
Movements in working capital:
Increase in trade and other debtors (705,288 ) (1,841,383 )
Increase in trade and other creditors 549,067 2,275,951
Depreciation 58,237 42,657
Net cash generated from operations 583,041 918,526
2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
2023 2022
£ £
Cash at bank and in hand 800,765 731,186
3. Analysis of changes in net funds
As at 1 January 2023 Cash flows As at 31 December 2023
£ £ £
Cash at bank and in hand 731,186 69,579 800,765
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Notes to the Financial Statements
1. General Information
Montash Limited is a private company, limited by shares, incorporated in England & Wales, registered number 05195273 . The registered office is 100 Clifton Street, London, EC2A 4TP.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
2.2. Going Concern Disclosure
The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern.
2.3. Significant judgements and estimations
Preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the statement of financial position date and the amounts reported for revenues and expenses during the period. However, the nature of estimation means that actual outcomes could differ from those estimates.
No judgements or estimates were used in the preparation of the accounts.
2.4. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
2.5. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Leasehold Over 5 years
Plant & Machinery 25% on cost
Motor Vehicles 25% on cost
Fixtures & Fittings 25% on cost
2.6. Investments
Investment in subsidiaries are measured at cost less accumulated impairment. 
2.7. Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts 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 the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.
2.8. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
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2.9. Financial Instruments
Basic financial instruments
Recognition and measurement
The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans from banks. Debt instruments (other than those wholly repayable or receivable within one year), including loans and account receivables and payables, are initially measured at the transaction price (adjusted for transaction cost) and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangement constitutes a financing transaction, such as a trade debtor or creditor on extended credit terms, initial measurement is at the present value of future cash flows discounted at a market rate of interest. Subsequent measurement is at amortised cost.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If such evidence is identified, an impairment loss is recognised in the statement of comprehensive income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between carrying amount and the present value of estimated cash flows discounted at the original effective interest rate. If the financial instrument has a variable interest rate the currently effective rate under the contract is used.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset’s carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset, and the net amount reported in the statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. At present, the company has not offset any items.
Derecognition
A financial asset is derecognised only when:
• the contractual rights to the cash flows from the financial asset expire or are settled; or
• substantially all of the risks and rewards of ownership of the financial asset have been transferred to another party; or
• when despite having retained some, but not substantially all, risks and rewards of ownership, control of the asset has been transferred to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party and is able to exercise that ability
unilaterally and without needing to impose additional restrictions on the transfer. In this case, the company derecognises the asset and recognises separately any rights and obligations retained or created in the transfer.
A financial liability is derecognised when the contract that gives rise to it is settled, sold, cancelled, or expires. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such as an exchange or modification, this is treated as a derecognition of the original liability, such that the difference in the respective carrying amounts together with any costs or fees incurred are recognised in profit or loss
2.10. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
2.11. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
...CONTINUED
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2.11. Taxation - continued
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
2.12. Employee Benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock of fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2.13. Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
3. Turnover
Analysis of turnover by class of business is as follows:
2023 2022
£ £
Contractor fees 23,665,389 20,801,261
Permanent fees 772,522 1,018,171
24,437,911 21,819,432
4. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2023 2022
£ £
Audit Services
Audit of the company's financial statements 28,000 -
5. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2023 2022
£ £
Wages and salaries 3,903,089 3,183,316
Social security costs 443,263 377,274
Other pension costs 153,308 60,742
4,499,660 3,621,332
6. Average Number of Employees
Average number of employees, including directors, during the year was: 61 (2022: 55)
61 55
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7. Directors' remuneration
2023 2022
£ £
Emoluments 207,782 141,212
Company contributions to money purchase pension schemes 76,251 10,000
284,033 151,212
Information regarding the highest paid director was as follows:
2023 2022
£ £
Emoluments 159,448 -
Company contributions to money purchase pension schemes 4,794 -
164,242 -
8. Interest Payable and Similar Charges
2023 2022
£ £
Bank loans and overdrafts - 10
Other finance charges 21,878 13,102
21,878 13,112
9. Tax on Profit
The tax charge on the profit for the year was as follows:
Tax Rate 2023 2022
2023 2022 £ £
Current tax
UK Corporation Tax 23.5% 19.0% 165,398 66,824
Deferred Tax
Changes in tax rates (8,477 ) 14,954
Total tax charge for the period 156,921 81,778
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
2023 2022
£ £
Profit before tax 659,147 428,189
Tax on profit at 23.5% (UK standard rate) 153,040 81,356
Goodwill/depreciation not allowed for tax 12,868 8,105
Expenses not deductible for tax purposes 1,549 422
Capital allowances (2,383 ) (23,059 )
Short term timing differences 324 -
Difference in tax rates (8,477 ) 14,954
Total tax charge for the period 156,921 81,778
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10. Tangible Assets
Land & Property
Leasehold Plant & Machinery Motor Vehicles Fixtures & Fittings Total
£ £ £ £ £
Cost
As at 1 January 2023 83,292 31,813 44,859 554,742 714,706
Additions - - - 10,142 10,142
As at 31 December 2023 83,292 31,813 44,859 564,884 724,848
Depreciation
As at 1 January 2023 83,292 31,813 11,215 478,551 604,871
Provided during the period - - 11,215 36,392 47,607
As at 31 December 2023 83,292 31,813 22,430 514,943 652,478
Net Book Value
As at 31 December 2023 - - 22,429 49,941 72,370
As at 1 January 2023 - - 33,644 76,191 109,835
11. Investments
Subsidiaries
£
Cost
As at 1 January 2023 22,207
As at 31 December 2023 22,207
Provision
As at 1 January 2023 -
As at 31 December 2023 -
Net Book Value
As at 31 December 2023 22,207
As at 1 January 2023 22,207
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertakings
Registered office
Nature of business
Class of shares held
% Held Direct
Montash Nederland B.V
Netherlands
Recruitment
Ordinary
100
Montash GmbH
Germany
Recruitment
Ordinary
100
The aggregate capital and reserves and the results for the year of the subsidiaries noted above was as follow:
Name of undertakings
Capital and Reserves
Profit/(Loss)
£
£
Montash Nederland B.V
502,570
140,239
...CONTINUED
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Montash GmbH
       110,896
 9,582
image613,466
image 149,821
image
image
12. Debtors
2023 2022
£ £
Due within one year
Trade debtors 4,690,417 4,502,361
Prepayments and accrued income 137,179 117,618
Other debtors 738,319 240,648
5,565,915 4,860,627
Other debtors include balance of £697,775 (2022: £115,632) due from Montash GmbH, a fully owned subsidiary of the company.
13. Creditors: Amounts Falling Due Within One Year
2023 2022
£ £
Trade creditors 647,571 676,298
Other creditors 2,146,613 1,806,482
Corporation tax 164,607 66,031
Taxation and social security 273,145 178,092
Accruals and deferred income 1,687,325 1,507,105
4,919,261 4,234,008
Other creditors includes invoice discount facility of £1,577,321 (2022: £1,238,383) due at the year end. Other creditors also include balance of £386,518 (2022: £294,488) due to Montash Nederland BV, fully owned subsidiary. 
14. Deferred Taxation
The provision for deferred tax is made up as follows:
2023 2022
£ £
Other timing differences 12,391 20,868
15. Provisions for Liabilities
Deferred Tax Total
£ £
As at 1 January 2023 20,868 20,868
Reversals (8,477 ) (8,477)
Balance at 31 December 2023 12,391 12,391
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16. Share Capital
2023 2022
Allotted, called up and fully paid £ £
4,875 Ordinary A shares of £ 0.010 each 49 49
2,625 Ordinary B shares of £ 0.010 each 26 26
75 75
17. Pension Commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the charge to profit or loss in respect of defined contribution schemes was £153,308 (2022: £60,742).
At the balance sheet date contributions of £5,318 (2022: £2,897) were due to the fund and are included in creditors.
18. Dividends
2023 2022
£ £
On equity shares:
Interim dividend paid 441,600 629,200
441,600 629,200
19. Controlling Parties
The company's ultimate controlling party is A D Larholt by virtue of their interest in the share capital of the company.
20. Share-based payment transactions
Number of share option 
Exercise Price

2023
Number
2022
Number
2023
              £
2022
         £

Outstanding at                       1 January 
1,933

-
-
-
Granted
168
1,964
-
-
Lapsed
(452)
image
(31)
image
-
image
-
image
1,649
image
1,933
image
-
image
-
image
Exercisable at                     31 December 
1,649
image
-
image
-
image
-
image
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