IRIS Accounts Production v24.1.9.2 SC519438 Board of Directors 30.11.23 1.12.22 30.11.23 30.11.23 . true true true false true true false false false false false false false false false false true false Ordinary 0 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWhSC5194382022-11-30SC5194382023-11-30SC5194382022-12-012023-11-30SC5194382021-11-30SC5194382021-12-012022-11-30SC5194382022-11-30SC519438ns15:Scotland2022-12-012023-11-30SC519438ns14:PoundSterling2022-12-012023-11-30SC519438ns10:Director12022-12-012023-11-30SC519438ns10:Director22022-12-012023-11-30SC519438ns10:Consolidated2023-11-30SC519438ns10:ConsolidatedGroupCompanyAccounts2022-12-012023-11-30SC519438ns10:PrivateLimitedCompanyLtd2022-12-012023-11-30SC519438ns10:Consolidatedns10:FRS1022022-12-012023-11-30SC519438ns10:Consolidatedns10:Audited2022-12-012023-11-30SC519438ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-12-012023-11-30SC519438ns10:LargeMedium-sizedCompaniesRegimeForAccounts2022-12-012023-11-30SC519438ns10:Consolidatedns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-12-012023-11-30SC519438ns10:LargeMedium-sizedCompaniesRegimeForAccountsns10:Consolidated2022-12-012023-11-30SC519438ns10:FullAccounts2022-12-012023-11-30SC519438ns5:Subsidiary12022-12-012023-11-30SC519438ns5:Associate12022-12-012023-11-30SC519438ns5:Associate22022-12-012023-11-30SC519438ns5:Associate32022-12-012023-11-30SC519438ns5:Associate42022-12-012023-11-30SC519438ns5:Associate52022-12-012023-11-30SC519438ns5:Associate62022-12-012023-11-30SC51943812022-12-012023-11-30SC519438ns10:OrdinaryShareClass12022-12-012023-11-30SC519438ns10:Consolidated2022-12-012023-11-30SC519438ns10:RegisteredOffice2022-12-012023-11-30SC519438ns10:Consolidated2021-12-012022-11-30SC519438ns5:CurrentFinancialInstruments2023-11-30SC519438ns5:CurrentFinancialInstruments2022-11-30SC519438ns5:ShareCapital2023-11-30SC519438ns5:ShareCapital2022-11-30SC519438ns5:RetainedEarningsAccumulatedLosses2023-11-30SC519438ns5:RetainedEarningsAccumulatedLosses2022-11-30SC519438ns5:ShareCapital2021-11-30SC519438ns5:RetainedEarningsAccumulatedLosses2021-11-30SC519438ns5:RetainedEarningsAccumulatedLosses2021-12-012022-11-30SC519438ns5:RetainedEarningsAccumulatedLosses2022-12-012023-11-30SC519438ns5:NetGoodwill2022-12-012023-11-30SC519438ns5:OwnedOrFreeholdAssetsns5:LandBuildings2022-12-012023-11-30SC519438ns5:MotorVehicles2022-12-012023-11-30SC519438ns5:ComputerEquipment2022-12-012023-11-30SC519438ns5:FurnitureFittings2022-12-012023-11-30SC519438ns5:FurnitureFittings2023-11-30SC519438ns5:CostValuation2022-11-30SC519438ns5:Subsidiary112022-12-012023-11-30SC5194381ns5:Associate12022-12-012023-11-30SC519438ns5:Associate232022-12-012023-11-30SC519438ns5:Associate352022-12-012023-11-30SC5194387ns5:Associate42022-12-012023-11-30SC519438ns5:Associate582022-12-012023-11-30SC5194389ns5:Associate62022-12-012023-11-30SC519438ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-11-30SC519438ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-11-30SC519438ns10:OrdinaryShareClass12023-11-30SC519438ns5:RetainedEarningsAccumulatedLosses2022-11-30
REGISTERED NUMBER: SC519438 (Scotland)
















Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 30 November 2023

for

Connect Management Services Limited

Connect Management Services Limited (Registered number: SC519438)






Contents of the Consolidated Financial Statements
for the Year Ended 30 November 2023




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Consolidated Statement of Comprehensive Income 7

Consolidated Balance Sheet 8

Company Balance Sheet 9

Consolidated Statement of Changes in Equity 10

Company Statement of Changes in Equity 11

Consolidated Cash Flow Statement 12

Notes to the Consolidated Cash Flow Statement 13

Notes to the Consolidated Financial Statements 14


Connect Management Services Limited

Company Information
for the Year Ended 30 November 2023







DIRECTORS: G P Harper
Mrs D A Harper





REGISTERED OFFICE: 200 Bath Street
Glasgow
G2 4HG





REGISTERED NUMBER: SC519438 (Scotland)





AUDITORS: McLay McAlister & McGibbon LLP
Chartered Accountants and Statutory Auditors
145 St Vincent Street
Glasgow
G2 5JF

Connect Management Services Limited (Registered number: SC519438)

Group Strategic Report
for the Year Ended 30 November 2023

The directors present their strategic report of the company and the group for the year ended 30 November 2023.

REVIEW OF BUSINESS
Connect Management Services provides a management and consultancy service to Connect Appointments (previously known as DC Recruitment) and its subsidiary companies.

The company retains a majority interest in the share capital of the following company:
Connect Appointments Limited (previously known as DC Recruitment Limited)

PRINCIPAL RISKS AND UNCERTAINTIES
Risk management is addressed by the group through a structured framework of policies, procedures and internal controls.

STRATEGY
The group's strategy is to continue to deliver a service to clients that exceeds their expectations.

ON BEHALF OF THE BOARD:





G P Harper - Director


29 August 2024

Connect Management Services Limited (Registered number: SC519438)

Report of the Directors
for the Year Ended 30 November 2023

The directors present their report with the financial statements of the company and the group for the year ended 30 November 2023.

DIVIDENDS
The total distribution of dividends for the year ended 30 November 2023 will be £2,000 (2022: £244,833).

DIRECTORS
The directors shown below have held office during the whole of the period from 1 December 2022 to the date of this report.

G P Harper
Mrs D A Harper

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:





G P Harper - Director


29 August 2024

Report of the Independent Auditors to the Members of
Connect Management Services Limited

Opinion
We have audited the financial statements of Connect Management Services Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:
-give a true and fair view of the state of the group's and of the parent company affairs as at 30 November 2023 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the 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.

Other matters
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Connect Management Services Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance;
- results of our enquiries of management about their own identification and assessment of the risks and irregularities;
- any matters we identified having reviewed the company's internal controls established to mitigate risks of fraud or non- compliance with laws and regulations;
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

We obtained an understanding of the legal and regulatory framework that the company operates in. The key laws and regulations we considered included the UK Companies Act and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. In addition we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate. These included health and safety, GDPR and employment laws. Auditing standards limit the required audit procedures to identify non - compliance with these laws and regulations to enquiry of the directors, inspection of regulatory and legal correspondence, if any, and review of minutes of meetings. These limited procedures did not identify actual or suspected non-compliance.

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

Report of the Independent Auditors to the Members of
Connect Management Services Limited


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 a Report of the Auditors 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.




Paul Martin (Senior Statutory Auditor)
for and on behalf of McLay McAlister & McGibbon LLP
Chartered Accountants and Statutory Auditors
145 St Vincent Street
Glasgow
G2 5JF

29 August 2024

Connect Management Services Limited (Registered number: SC519438)

Consolidated Statement of Comprehensive Income
for the Year Ended 30 November 2023

30.11.23 30.11.22
Notes £    £   

TURNOVER 28,749,596 27,400,467

Cost of sales (25,481,975 ) (24,494,143 )
GROSS PROFIT 3,267,621 2,906,324

Administrative expenses (2,772,696 ) (2,293,447 )
494,925 612,877

Other operating income 267,077 418,654
OPERATING PROFIT 4 762,002 1,031,531

Income from fixed asset investments 51,495 188,400
Interest receivable and similar income 5,219 -
818,716 1,219,931

Interest payable and similar expenses 5 (30,547 ) (19,345 )
PROFIT BEFORE TAXATION 788,169 1,200,586

Tax on profit 6 (209,177 ) (230,951 )
PROFIT FOR THE FINANCIAL YEAR 578,992 969,635

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

578,992

969,635

Profit attributable to:
Owners of the parent 340,487 592,637
Non-controlling interests 238,505 376,998
578,992 969,635

Total comprehensive income attributable to:
Owners of the parent 340,487 592,637
Non-controlling interests 238,505 376,998
578,992 969,635

Connect Management Services Limited (Registered number: SC519438)

Consolidated Balance Sheet
30 November 2023

30.11.23 30.11.22
Notes £    £   
FIXED ASSETS
Intangible assets 9 852,598 974,398
Tangible assets 10 805,739 933,876
Investments 11 4,734 4,734
Investment property 12 1,381,976 1,135,712
3,045,047 3,048,720

CURRENT ASSETS
Debtors 13 4,524,277 4,438,809
Cash at bank 48,739 52,075
4,573,016 4,490,884
CREDITORS
Amounts falling due within one year 14 (5,587,988 ) (5,792,922 )
NET CURRENT LIABILITIES (1,014,972 ) (1,302,038 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,030,075

1,746,682

CREDITORS
Amounts falling due after more than one
year

15

(345,466

)

(384,393

)

PROVISIONS FOR LIABILITIES 19 (50,600 ) (57,100 )
NET ASSETS 1,634,009 1,305,189

CAPITAL AND RESERVES
Called up share capital 20 100 100
Retained earnings 21 1,139,361 800,874
SHAREHOLDERS' FUNDS 1,139,461 800,974

NON-CONTROLLING INTERESTS 22 494,548 504,215
TOTAL EQUITY 1,634,009 1,305,189

The financial statements were approved by the Board of Directors and authorised for issue on 29 August 2024 and were signed on its behalf by:





G P Harper - Director


Connect Management Services Limited (Registered number: SC519438)

Company Balance Sheet
30 November 2023

30.11.23 30.11.22
Notes £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 2,583 -
Investments 11 1,933,913 1,933,913
Investment property 12 - -
1,936,496 1,933,913

CURRENT ASSETS
Debtors 13 66,548 239,076
Cash at bank 262 2,907
66,810 241,983
CREDITORS
Amounts falling due within one year 14 (636,604 ) (1,220,920 )
NET CURRENT LIABILITIES (569,794 ) (978,937 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,366,702

954,976

CAPITAL AND RESERVES
Called up share capital 20 100 100
Retained earnings 21 1,366,602 954,876
SHAREHOLDERS' FUNDS 1,366,702 954,976

Company's profit for the financial year 413,726 480,939

The financial statements were approved by the Board of Directors and authorised for issue on 29 August 2024 and were signed on its behalf by:





Mrs D A Harper - Director


Connect Management Services Limited (Registered number: SC519438)

Consolidated Statement of Changes in Equity
for the Year Ended 30 November 2023

Called up
share Retained Non-controlling Total
capital earnings Total interests equity
£    £    £    £    £   
Balance at 1 December 2021 100 208,237 208,337 372,050 580,387

Changes in equity
Dividends - - - (244,833 ) (244,833 )
Total comprehensive income - 592,637 592,637 376,998 969,635
Balance at 30 November 2022 100 800,874 800,974 504,215 1,305,189

Changes in equity
Dividends - (2,000 ) (2,000 ) (248,172 ) (250,172 )
Total comprehensive income - 340,487 340,487 238,505 578,992
Balance at 30 November 2023 100 1,139,361 1,139,461 494,548 1,634,009

Connect Management Services Limited (Registered number: SC519438)

Company Statement of Changes in Equity
for the Year Ended 30 November 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 December 2021 100 473,937 474,037

Changes in equity
Total comprehensive income - 480,939 480,939
Balance at 30 November 2022 100 954,876 954,976

Changes in equity
Dividends - (2,000 ) (2,000 )
Total comprehensive income - 413,726 413,726
Balance at 30 November 2023 100 1,366,602 1,366,702

Connect Management Services Limited (Registered number: SC519438)

Consolidated Cash Flow Statement
for the Year Ended 30 November 2023

30.11.23 30.11.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,269,967 1,547,759
Interest paid (29,163 ) (16,903 )
Interest element of hire purchase payments
paid

(1,384

)

(2,442

)
Tax paid (173,804 ) (210,031 )
Net cash from operating activities 1,065,616 1,318,383

Cash flows from investing activities
Purchase of tangible fixed assets (11,773 ) (641,578 )
Purchase of fixed asset investments - (4,504 )
Purchase of investment property (246,264 ) (464,818 )
Sale of tangible fixed assets - 131,998
Interest received 5,219 -
Dividends received 51,495 188,400
Net cash from investing activities (201,323 ) (790,502 )

Cash flows from financing activities
Loan repayments in year (41,425 ) (45,324 )
Capital repayments in year (18,509 ) (33,734 )
Amount introduced by directors 12,254 27,746
Amount withdrawn by directors (569,777 ) (378,117 )
Equity dividends paid (2,000 ) (244,833 )
Dividends paid to minority interests (248,172 ) -
Net cash from financing activities (867,629 ) (674,262 )

Decrease in cash and cash equivalents (3,336 ) (146,381 )
Cash and cash equivalents at beginning of
year

2

52,075

198,456

Cash and cash equivalents at end of year 2 48,739 52,075

Connect Management Services Limited (Registered number: SC519438)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 30 November 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
30.11.23 30.11.22
£    £   
Profit before taxation 788,169 1,200,586
Depreciation charges 261,711 250,609
Profit on disposal of fixed assets - (38,030 )
Finance costs 30,547 19,345
Finance income (56,714 ) (188,400 )
1,023,713 1,244,110
(Increase)/decrease in trade and other debtors (71,549 ) 145,558
Increase in trade and other creditors 317,803 158,091
Cash generated from operations 1,269,967 1,547,759

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 November 2023
30.11.23 1.12.22
£    £   
Cash and cash equivalents 48,739 52,075
Year ended 30 November 2022
30.11.22 1.12.21
£    £   
Cash and cash equivalents 52,075 198,456


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.12.22 Cash flow At 30.11.23
£    £    £   
Net cash
Cash at bank 52,075 (3,336 ) 48,739
52,075 (3,336 ) 48,739
Debt
Finance leases (21,012 ) 18,509 (2,503 )
Debts falling due within 1 year (47,000 ) 5,000 (42,000 )
Debts falling due after 1 year (381,891 ) 36,425 (345,466 )
(449,903 ) 59,934 (389,969 )
Total (397,828 ) 56,598 (341,230 )

Connect Management Services Limited (Registered number: SC519438)

Notes to the Consolidated Financial Statements
for the Year Ended 30 November 2023

1. STATUTORY INFORMATION

Connect Management Services Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on the trading results for the period 27 November 2022 to 25
November 2023.

Basis of consolidation
The group financial statements consolidate the results of the company and its subsidiary undertakings for the year ended 30 November 2023.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2021, is being amortised evenly over its estimated useful life of ten years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 2% on cost
Motor vehicles - 25% on cost
Computer equipment - 25% on cost

The company's policy is to review the remaining useful economic lives and residual value of all tangible fixed
assets on an on-going basis and to adjust the depreciation charge to reflect the remaining useful economic life and residual value.

Fully depreciated assets are retained in cost and related accumulated depreciation until they are removed from service. In the case of disposals, assets and related depreciation are removed from the financial statements and the net amount, less proceeds from disposal, is charged or credited to the income statement.

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Connect Management Services Limited (Registered number: SC519438)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 November 2023

2. ACCOUNTING POLICIES - continued

Debtors
Trade debtors and other debtors are recognised at the settlement amount due with appropriate allowances for any irrecoverable amounts when there is objective evidence the asset is impaired.

Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash in hand and held at bank.

Creditors
Trade creditors and other creditors are recognised where the company has a present obligation resulting from a past event and are recognised at the settlement amount due after allowing for any trade discounts due.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Fixed asset investments
Fixed asset investments are stated at cost less provision for diminution in value.

3. EMPLOYEES AND DIRECTORS
30.11.23 30.11.22
£    £   
Wages and salaries 20,948,108 23,183,696
Social security costs 1,442,021 1,249,297
Other pension costs 218,737 220,474
22,608,866 24,653,467

Connect Management Services Limited (Registered number: SC519438)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 November 2023

3. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
30.11.23 30.11.22

Temporary staff 1,010 985
Permanent staff 41 40
1,051 1,025

The average number of employees by undertakings that were proportionately consolidated during the year was 1,051 (2022 - 1,025 ) .

30.11.23 30.11.22
£    £   
Directors' remuneration 24,967 20,217
Directors' pension contributions to money purchase schemes 7,687 3,113

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

30.11.23 30.11.22
£    £   
Depreciation - owned assets 133,010 110,619
Depreciation - assets on hire purchase contracts 6,900 18,191
Profit on disposal of fixed assets - (38,030 )
Goodwill amortisation 121,800 121,800
Auditors' remuneration 17,075 15,420

5. INTEREST PAYABLE AND SIMILAR EXPENSES
30.11.23 30.11.22
£    £   
Bank interest 20,563 12,216
Bank loan interest 8,600 4,687
Hire purchase 1,384 2,442
30,547 19,345

Connect Management Services Limited (Registered number: SC519438)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 November 2023

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
30.11.23 30.11.22
£    £   
Current tax:
UK corporation tax 215,677 173,851

Deferred tax (6,500 ) 57,100
Tax on profit 209,177 230,951

UK corporation tax has been charged at 23.01 % (2022 - 19 %).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

30.11.23 30.11.22
£    £   
Profit before tax 788,169 1,200,586
Profit multiplied by the standard rate of corporation tax in the UK of
23.011 % (2022 - 19 %)

181,366

228,111

Effects of:
Expenses not deductible for tax purposes 9,626 30,929
Income not taxable for tax purposes (11,849 ) (50,124 )
Capital allowances in excess of depreciation - (17,669 )
Depreciation in excess of capital allowances 44,227 -
Utilisation of tax losses (20 ) -
Deferred tax (6,500 ) 57,100
Previous year adjustment - 31
Allowable repairs capitalised (7,673 ) (17,427 )
Total tax charge 209,177 230,951

7. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


8. DIVIDENDS
30.11.23 30.11.22
£    £   
Ordinary shares of 1 each
Final 2,000 -

Connect Management Services Limited (Registered number: SC519438)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 November 2023

9. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 December 2022
and 30 November 2023 1,217,998
AMORTISATION
At 1 December 2022 243,600
Amortisation for year 121,800
At 30 November 2023 365,400
NET BOOK VALUE
At 30 November 2023 852,598
At 30 November 2022 974,398

10. TANGIBLE FIXED ASSETS

Group
Fixtures
Freehold and Motor Computer
property fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 December 2022 579,474 11,657 361,264 43,991 996,386
Additions - 2,583 4,271 4,919 11,773
At 30 November 2023 579,474 14,240 365,535 48,910 1,008,159
DEPRECIATION
At 1 December 2022 7,444 4,786 31,512 18,768 62,510
Charge for year 9,382 3,231 115,996 11,301 139,910
At 30 November 2023 16,826 8,017 147,508 30,069 202,420
NET BOOK VALUE
At 30 November 2023 562,648 6,223 218,027 18,841 805,739
At 30 November 2022 572,030 6,871 329,752 25,223 933,876

Connect Management Services Limited (Registered number: SC519438)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 November 2023

10. TANGIBLE FIXED ASSETS - continued

Group

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 December 2022
and 30 November 2023 18,535
DEPRECIATION
At 1 December 2022 11,440
Charge for year 6,900
At 30 November 2023 18,340
NET BOOK VALUE
At 30 November 2023 195
At 30 November 2022 7,095

Company
Fixtures
and
fittings
£   
COST
Additions 2,583
At 30 November 2023 2,583
NET BOOK VALUE
At 30 November 2023 2,583

11. FIXED ASSET INVESTMENTS

Group Company
30.11.23 30.11.22 30.11.23 30.11.22
£    £    £    £   
Shares in group undertakings - - 1,929,628 1,929,628
Other investments not loans 4,734 4,734 4,285 4,285
4,734 4,734 1,933,913 1,933,913

Connect Management Services Limited (Registered number: SC519438)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 November 2023

11. FIXED ASSET INVESTMENTS - continued

Additional information is as follows:

Group
Unlisted
investments
£   
COST
At 1 December 2022
and 30 November 2023 449
NET BOOK VALUE
At 30 November 2023 449
At 30 November 2022 449

Investments (neither listed nor unlisted) were as follows:
30.11.23 30.11.22
£    £   
Other 4,285 4,285
Company
Shares in
group
undertakings
£   
COST
At 1 December 2022
and 30 November 2023 1,929,628
NET BOOK VALUE
At 30 November 2023 1,929,628
At 30 November 2022 1,929,628

Investments (neither listed nor unlisted) were as follows:
30.11.23 30.11.22
£    £   
Other 4,285 4,285

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiary

Connect Appointments Limited
Registered office: 200 Bath Street, Glasgow, G2 4HG
Nature of business: Temporary employment agency
%
Class of shares: holding
Ordinary 60.00

Connect Management Services Limited (Registered number: SC519438)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 November 2023

11. FIXED ASSET INVESTMENTS - continued

Associated companies

Connect Driver Solutions Limited
Registered office: 200 Bath Street, Glasgow, G2 4HG
Nature of business: Temporary employment agency
%
Class of shares: holding
Ordinary 60.00

Connect Appointments Tayfife Limited
Registered office: 200 Bath Street, Glasgow, G2 4HG
Nature of business: Dormant
%
Class of shares: holding
Ordinary 60.00

Connect Appointments North East Limited
Registered office: 200 Bath Street, Glasgow, G2 4HG
Nature of business: Temporary employment agency
%
Class of shares: holding
Ordinary 42.00

Connect Driver Solutions North East Limited
Registered office: 200 Bath Street, Glasgow, G2 4HG
Nature of business: Temporary employment agency
%
Class of shares: holding
Ordinary 56.40

Connect Driver Solutions North West Limited
Registered office: 200 Bath Street, Glasgow, G2 4HG
Nature of business: Dormant
%
Class of shares: holding
Ordinary 60.00

Connect Site Services Limited
Registered office: 200 Bath Street, Glasgow, G2 4HG
Nature of business: Dormant
%
Class of shares: holding
Ordinary 60.00


Connect Management Services Limited (Registered number: SC519438)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 November 2023

12. INVESTMENT PROPERTY

Group
Total
£   
FAIR VALUE
At 1 December 2022 1,135,712
Additions 246,264
At 30 November 2023 1,381,976
NET BOOK VALUE
At 30 November 2023 1,381,976
At 30 November 2022 1,135,712

The investment property was purchased in January 2021 and is currently being extensively renovated. At the completion of the project the property will be revalued.

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
30.11.23 30.11.22 30.11.23 30.11.22
£    £    £    £   
Trade debtors 4,462,079 4,384,526 - 167,076
Amounts owed by group undertakings 1 - 50,000 72,000
Amounts owed by associates 7,730 1,558 - -
Other debtors 8,708 24,506 - -
Directors' current accounts 20,000 12,254 - -
Prepayments and accrued income 25,759 15,965 16,548 -
4,524,277 4,438,809 66,548 239,076

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
30.11.23 30.11.22 30.11.23 30.11.22
£    £    £    £   
Bank loans and overdrafts (see note 16) 42,000 47,000 - -
Hire purchase contracts (see note 17) 2,503 18,510 - -
Trade creditors 206,347 380,941 - -
Amounts owed to associates 150,247 99,167 - -
Tax 215,693 173,820 30,470 34,937
Social security and other taxes 327,548 279,770 - -
VAT 645,706 720,720 - 30,072
Other creditors 91,016 77,734 - -
Advance from factor 2,801,018 2,321,189 - -
Directors' current accounts 606,134 1,155,911 606,134 1,155,911
Accrued expenses 499,776 518,160 - -
5,587,988 5,792,922 636,604 1,220,920

Connect Management Services Limited (Registered number: SC519438)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 November 2023

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group
30.11.23 30.11.22
£    £   
Bank loans (see note 16) 345,466 381,891
Hire purchase contracts (see note 17) - 2,502
345,466 384,393

16. LOANS

An analysis of the maturity of loans is given below:

Group
30.11.23 30.11.22
£    £   
Amounts falling due within one year or on demand:
Bank loans 42,000 47,000
Amounts falling due between two and five years:
Bank loans - 2-5 years 345,466 381,891

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
30.11.23 30.11.22
£    £   
Net obligations repayable:
Within one year 2,503 18,510
Between one and five years - 2,502
2,503 21,012

Connect Management Services Limited (Registered number: SC519438)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 November 2023

18. SECURED DEBTS

The following secured debts are included within creditors:

Group
30.11.23 30.11.22
£    £   
Bank loans 387,466 428,891
Hire purchase contracts 2,503 21,012
Advance from factor - 2,321,189
389,969 2,771,092

The advance from factor is secured by a floating charge over all the company's assets.

Bank loans are secured by a bond and first ranking security over the subjects at 1 Houstoun Interchange, Livingston, Ground Floor Left, 200 Bath Street, Glasgow and 14 Greyfriars Gardens, St Andrews.

Hire purchase creditors are secured over the assets to which they relate.

19. PROVISIONS FOR LIABILITIES

Group
30.11.23 30.11.22
£    £   
Deferred tax 50,600 57,100

Group
Deferred
tax
£   
Balance at 1 December 2022 57,100
Provided during year (6,500 )
Balance at 30 November 2023 50,600

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.11.23 30.11.22
value: £    £   
100 Ordinary 1 100 100

Connect Management Services Limited (Registered number: SC519438)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 November 2023

21. RESERVES

Group
Retained
earnings
£   

At 1 December 2022 800,874
Profit for the year 340,487
Dividends (2,000 )
At 30 November 2023 1,139,361

Company
Retained
earnings
£   

At 1 December 2022 954,876
Profit for the year 413,726
Dividends (2,000 )
At 30 November 2023 1,366,602


22. NON-CONTROLLING INTERESTS

JAW Management Services Ltd owns 40% of the issued share capital of Connect Appointments Limited (previously known as DC Recruitment Limited).

23. ULTIMATE CONTROLLING PARTY

The directors are considered to be the ultimate controlling party by virtue of them holding 100% of the company's issued share capital