Company registration number 08888978 (England and Wales)
LOGICAL PS GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
LOGICAL PS GROUP LIMITED
COMPANY INFORMATION
Directors
Mr Stephen Durant
Mr Ben Lerner
Secretary
Mr Ben Lerner
Company number
08888978
Registered office
Capitol
Russell Street
Leeds
LS1 5SP
Auditor
Henton & Co LLP
Northgate
118 North Street
Leeds
England
LS2 7PN
LOGICAL PS GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
Group statement of cash flows
12
Notes to the financial statements
13 - 24
LOGICAL PS GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -

The directors present the strategic report for the year ended 30 November 2023.

 

The principal activity of the company continued to be that of the provision of temporary and permanent staff within the maintenance, logistics, energy, construction and associated industries. The business tailors solutions to clients' needs which from time to time includes working as a contractor and on a price per job/task basis. As noted in last year’s report the company has been working very closely with the group’s specialist training and apprenticeship provision company. This collaboration has once again proved very successful and has continued to open doors which the company has previously struggled with. The company continues to add new customers of significant value and volume and consolidate those that were added in the previous year. The company and group’s activities have been very well received by the marketplace and pipelines are strong. The directors are excited about what the future holds for the business and the group, given anticipated investments in infrastructure and the energy sector. The director’s anticipate the coming year to show growth.

Principal activities

The principal activity of the group continued to be that of provision of temporary staff within the construction, logistics, heavy process and associated industries.

 

The review of the business is set out in the Strategic Report on page 1.

Review of the business

In common with most UK companies, trading was impacted by economic conditions and in particular the effect of interest rates on activity levels. Turnover for the year was a satisfactory £58.4m given market conditions (2022 £59.4m, 2021 £50.5m), gross profit margins held up well at 10.9% (2022 11.2%) given both increased input costs and significant pressures on charge rates and has resulted in a satisfactory level of operating profit of £1,031.0k (2022: £143k). There has been significant investment in senior business development staff/ consultants with a view to opening up large scale pipelines and ensuring regional gains are built on across the business. In common with most companies in the UK, financing costs have impacted the company’s net profit.

 

The directors of the company continue to investigate additional opportunities for business growth as well as consolidating previous achievements. The business continues operate its “Best Practice and Best in Class” approach, particularly in the areas of supply chain due diligence, regulatory compliance and social value. This expertise is being shared with both the companies supply chain and that of its existing and potential customers, this is resulting in new business opportunities being opened up.

Principal risks and uncertainties

The directors consider that there are three main risks that face the company. The first being the factors affecting the sectors in which we operate, the second being the supply of the temporary workforce which we utilise and the third is the cost of borrowing.

 

We have mitigated the risk of exposure to this these factors via the exploration of other sectors and markets in which to provide our expertise and supply our services and by driving organic growth in the other sectors within which we already operate, as well as working closely with our suppliers to help mitigate the impact of interest rates. As part of our regulatory compliance work and social value work, we are actively developing solutions for our customers and supply chain to mitigate the impact of legislation.

 

The perceived potential heightened credit risk our industries experiences is mitigated by the maintenance of credit insurance over debtor balances using a risk-based approach. Our insurer has a wealth of industry knowledge and the directors continue to commit sufficient resource to our debt collection processes to manage our day to day exposure successfully. Anticipated spending on infrastructure should help dilute the impact of this risk as shorter government payment cycles impact on cashflows.

 

With regards to the risk of supply of temporary labour, this risk has been diluted with planned changes in the mix of labour supply, service levels and markets. The company and the group is investing heavily in staff training and this is expected to aid staff retention, skill labour resource and further mitigate the risk of supply, as well resulting in an up-skilled workforce which presents further opportunities for the business. In common with other companies in our sectors the after-effects of “Brexit” pose an additional risk but this is again being mitigated by our emphasis on training provision and the investigation of other sources of supply.

LOGICAL PS GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -
Key performance indicators

Alongside the review of turnover and profit margins as the group’s key performance indicators, the directors also review debtor days, dependence on major customers and new business generation on a monthly basis to ensure there is no excessive exposure in any particular area. Debtor days have remained at an acceptable level at 66 days (2022: 58 days).

On behalf of the board

Mr Ben Lerner
Director
14 August 2024
LOGICAL PS GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 November 2023.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr Stephen Durant
Mr Ben Lerner
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the group's performance.

Auditor

In accordance with the company's articles, a resolution proposing that Henton & Co LLP be reappointed as auditor of the group will be put at a General Meeting.

Energy and carbon report

The directors have noted below the total kwH of their various premises. These figures include estimations on a number of properties due to the lack of information available from both current and previous landlords. A decrease in over 18% from 2022 to 2023 highlights the efforts made to achieve the company target of net zero. The directors continue to explore options to further reduce the energy and carbon consumption of the business such as energy purchased from suppliers using renewable resources and carbon offset.

2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Electricity purchased
85,163
100,492
- Fuel consumed for transport
112,826
141,557
197,989
242,049
LOGICAL PS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 4 -
Measures taken to improve energy efficiency

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2023 UK Government’s Conversion Factors for Company Reporting

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Going concern

The financial statements have been prepared on a going concern basis. The directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group has an on-going banking facility and has not breached any covenant or condition that would cause such facility to be withdrawn, nor does it expect the facility to be withdrawn in the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the Directors’ report and financial statements.

Principal risks and uncertainties

Business risks and factors to mitigate these risks are described in the strategic report on page 1.

On behalf of the board
Mr Ben Lerner
Director
14 August 2024
LOGICAL PS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LOGICAL PS GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of Logical PS Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

LOGICAL PS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LOGICAL PS GROUP LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

 

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

Use of our report

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

LOGICAL PS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LOGICAL PS GROUP LIMITED
- 7 -
Chris Howitt (Senior Statutory Auditor)
For and on behalf of Henton & Co LLP
14 August 2024
Chartered Accountants
Statutory Auditor
Northgate
118 North Street
Leeds
England
LS2 7PN
LOGICAL PS GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
57,557,084
59,464,198
Cost of sales
(51,157,563)
(52,739,508)
Gross profit
6,399,521
6,724,690
Administrative expenses
(5,373,398)
(6,581,764)
Operating profit
2
1,026,123
142,926
Interest receivable and similar income
5
16,258
-
0
Interest payable and similar expenses
6
(388,335)
(149,485)
Profit/(loss) before taxation
654,046
(6,559)
Tax on profit/(loss)
7
(144,278)
7,943
Profit for the financial year
509,768
1,384
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The notes on pages 13 to 24 form part of these financial statements.

LOGICAL PS GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
8
57,088
68,308
Current assets
Debtors
11
11,873,858
11,026,647
Cash at bank and in hand
4,843,110
4,731,349
16,716,968
15,757,996
Creditors: amounts falling due within one year
12
(16,191,436)
(14,559,919)
Net current assets
525,532
1,198,077
Total assets less current liabilities
582,620
1,266,385
Provisions for liabilities
Deferred tax liability
14
10,793
4,326
(10,793)
(4,326)
Net assets
571,827
1,262,059
Capital and reserves
Called up share capital
16
74
74
Capital redemption reserve
33
33
Profit and loss reserves
571,720
1,261,952
Total equity
571,827
1,262,059

The notes on pages 13 to 24 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 14 August 2024 and are signed on its behalf by:
14 August 2024
Mr Ben Lerner
Director
Company registration number 08888978 (England and Wales)
LOGICAL PS GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 NOVEMBER 2023
30 November 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
9
74
74
Current assets
Debtors
11
-
0
39,400
Cash at bank and in hand
6,802
275
6,802
39,675
Creditors: amounts falling due within one year
12
(257,372)
(2,000)
Net current (liabilities)/assets
(250,570)
37,675
Net (liabilities)/assets
(250,496)
37,749
Capital and reserves
Called up share capital
16
74
74
Profit and loss reserves
(250,570)
37,675
Total equity
(250,496)
37,749

The notes on pages 13 to 24 form part of these financial statements.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £288,244 (2022 - £37,720 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 14 August 2024 and are signed on its behalf by:
14 August 2024
Mr Ben Lerner
Director
Company registration number 08888978 (England and Wales)
LOGICAL PS GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 December 2021
74
33
1,260,568
1,260,675
Year ended 30 November 2022:
Profit and total comprehensive income
-
-
1,384
1,384
Balance at 30 November 2022
74
33
1,261,952
1,262,059
Year ended 30 November 2023:
Profit and total comprehensive income
-
-
509,768
509,768
Dividends
-
-
(1,200,000)
(1,200,000)
Balance at 30 November 2023
74
33
571,720
571,827

The notes on pages 13 to 24 form part of these financial statements.

LOGICAL PS GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
18
1,217,080
69,275
Interest paid
(388,335)
(149,485)
Income taxes paid
(22,640)
(73,342)
Net cash inflow/(outflow) from operating activities
806,105
(153,552)
Investing activities
Purchase of tangible fixed assets
(7,319)
(39,121)
Interest received
16,258
-
0
Net cash generated from/(used in) investing activities
8,939
(39,121)
Financing activities
Repayment of borrowings
496,717
416,536
Dividends paid to equity shareholders
(1,200,000)
-
0
Net cash (used in)/generated from financing activities
(703,283)
416,536
Net increase in cash and cash equivalents
111,761
223,863
Cash and cash equivalents at beginning of year
4,731,349
4,507,486
Cash and cash equivalents at end of year
4,843,110
4,731,349

The notes on pages 13 to 24 form part of these financial statements.

LOGICAL PS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 13 -
1
Accounting policies
Company information

Logical PS Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Capitol, Russell Street, Leeds, LS1 5SP.

 

The group consists of Logical PS Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

LOGICAL PS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Logical PS Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 November 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

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

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
25% straight line
Fixtures, fittings & equipment
25% straight line
Computer equipment
33% straight line
LOGICAL PS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 15 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

LOGICAL PS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 16 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

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

 

Financial assets and liabilities are offset and 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

LOGICAL PS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.11
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

LOGICAL PS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date 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. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
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 or 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.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
18,413
13,977
Loss on disposal of tangible fixed assets
126
-
Operating lease charges
8,900
-
LOGICAL PS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 19 -
3
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,000
2,000
Audit of the financial statements of the company's subsidiaries
12,000
13,000
16,000
15,000
4
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Permanent staff
78
82
2
2
Directors
2
2
-
-
Operatives
233
335
-
-
Total
313
419
2
2

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
13,035,002
13,518,686
-
0
-
0
Social security costs
1,402,002
1,511,887
-
-
Pension costs
141,677
109,343
-
0
-
0
14,578,681
15,139,916
-
0
-
0
5
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
16,258
-
0
LOGICAL PS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 20 -
6
Interest payable and similar expenses
2023
2022
£
£
Interest payable to group undertakings
14,960
-
0
Other interest
373,375
149,485
Total finance costs
388,335
149,485
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
64,819
25,047
Deferred tax
Origination and reversal of timing differences
79,459
(32,990)
Total tax charge/(credit)
144,278
(7,943)

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit/(loss) before taxation
654,046
(6,559)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
163,512
(1,246)
Tax effect of expenses that are not deductible in determining taxable profit
(7,063)
(6,104)
Unutilised tax losses carried forward
-
0
35,686
Effect of change in corporation tax rate
(7,308)
-
Group relief
(6,218)
-
0
Permanent capital allowances in excess of depreciation
855
(3,289)
Deferred tax movement
500
(32,990)
Taxation charge/(credit)
144,278
(7,943)
LOGICAL PS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 21 -
8
Tangible fixed assets
Group
Plant and equipment
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 December 2022
62,407
76,065
86,348
224,820
Additions
1,043
570
5,706
7,319
Disposals
-
0
-
0
(379)
(379)
At 30 November 2023
63,450
76,635
91,675
231,760
Depreciation and impairment
At 1 December 2022
23,758
56,929
75,825
156,512
Depreciation charged in the year
8,919
5,126
4,368
18,413
Eliminated in respect of disposals
-
0
-
0
(253)
(253)
At 30 November 2023
32,677
62,055
79,940
174,672
Carrying amount
At 30 November 2023
30,773
14,580
11,735
57,088
At 30 November 2022
38,649
19,136
10,523
68,308
The company had no tangible fixed assets at 30 November 2023 or 30 November 2022.
9
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
10
-
0
-
0
74
74
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 December 2022 and 30 November 2023
74
Carrying amount
At 30 November 2023
74
At 30 November 2022
74
10
Subsidiaries

Details of the company's subsidiaries at 30 November 2023 are as follows:

LOGICAL PS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
10
Subsidiaries
(Continued)
- 22 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Logical Personnel Solutions Limited
England and Wales
Ordinary
100.00
LP Employment & Training Services
England and Wales
Ordinary
100.00
Logical Contracting Limited
England and Wales
Ordinary
100.00
11
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
10,521,810
9,497,532
-
0
-
0
Amounts owed by group undertakings
-
-
-
39,400
Other debtors
17,279
27,532
-
0
-
0
Prepayments and accrued income
1,334,769
1,428,591
-
0
-
0
11,873,858
10,953,655
-
39,400
Deferred tax asset (note 14)
-
0
72,992
-
0
-
0
11,873,858
11,026,647
-
39,400
12
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Other borrowings
13
9,593,977
9,097,260
-
0
-
0
Trade creditors
3,196,280
4,008,399
-
0
-
0
Corporation tax payable
65,884
23,705
-
0
-
0
Other taxation and social security
1,361,779
843,117
-
-
Other creditors
1,608,424
332,241
254,372
-
0
Accruals and deferred income
365,092
255,197
3,000
2,000
16,191,436
14,559,919
257,372
2,000
13
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Other loans
9,593,977
9,097,260
-
0
-
0
Payable within one year
9,593,977
9,097,260
-
0
-
0
LOGICAL PS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
13
Loans and overdrafts
(Continued)
- 23 -

The Other loans, which relate to short-term invoice financing, are secured by fixed charges over the company's assets.

14
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
10,793
4,326
-
-
Tax losses
-
-
-
72,992
10,793
4,326
-
72,992
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 December 2022
(68,666)
-
Charge to profit or loss
79,459
-
Liability at 30 November 2023
10,793
-

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
141,677
109,343

The group operates a defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

LOGICAL PS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 24 -
16
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
70
70
70
70
A Ordinary of £1 each
2
2
2
2
B Ordinary of £1 each
2
2
2
2
74
74
74
74
17
Related party transactions

During the year, the group received management services from KLP Consultancy Limited, a company under common control, for which it paid £37,940 (2022: £1,469,177),

18
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
509,768
1,384
Adjustments for:
Taxation charged/(credited)
144,278
(7,943)
Finance costs
388,335
149,485
Investment income
(16,258)
-
0
Loss on disposal of tangible fixed assets
126
-
Depreciation and impairment of tangible fixed assets
18,413
13,977
Movements in working capital:
Increase in debtors
(920,203)
(1,935,974)
Increase in creditors
1,092,621
1,848,346
Cash generated from operations
1,217,080
69,275
19
Analysis of changes in net debt - group
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
4,731,349
111,761
4,843,110
Borrowings excluding overdrafts
(9,097,260)
(496,717)
(9,593,977)
(4,365,911)
(384,956)
(4,750,867)
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