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Registration number: 06417126

Act*1 Services Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Act*1 Services Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Profit and Loss Account

10

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Statement of Cash Flows

14

Notes to the Financial Statements

15 to 23

 

Act*1 Services Limited

Company Information

Directors

B W Howroyd

J B Howroyd

B H Clark

Registered office

80-83 Long Lane
London
EC1A 9ET

Auditors

Carbon Accountancy Limited
Chartered Accountants and Registered Auditors
80-83 Long Lane
London
EC1A 9ET

 

Act*1 Services Limited

Strategic Report for the Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

Principal activity

The principal activity of the company is vendor management and payroll servicing.

Fair review of the business

The company’s net turnover decreased by £2.03 million from 2022. Gross profit margin changed to 6.51% (2022: 6.26%) due to a change in the sales mix, with lower-margin vendor management services accounting for an increased proportion of sales.The company experienced an overall decline in performance in 2023 compared to 2022, primarily due to increased interest rates during 2023, which have contributed an additional £1.04 million to the loss before tax. Consequently, the company's net assets continue to reflect a deficit of £3.3 million in 2023 (2022: £2.2 million).

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Gross profit as % of turnover

%

6.51

6.26

Administrative expenses as % of turnover

%

8.40

7.65

Principal risks and uncertainties


The greatest risk facing the company is the lack of customer diversification. Too much of the business is with a select few customers. A strategy to acquire more key customers is being developed. Part of this strategy is to focus on the development of the Recruitment Process Outsourcing (RPO) aspect of the business. In addition, overall pricing for the services being offered are being examined with the goal to improve profit margins.

The financial risk management objectives are to have the business regain profitability, as indicated herein. The goal is to have the organization distinguish itself from its competitors by providing quality services thereby justifying better pricing to its customers. It is not the policy of the Company to offer extended payment terms. By rebuilding its customer base, the Company can expect a steady cash flow for services rendered. Until such time as there is profitability, the cash flow needs will be met by cash infusion by its parent Company in the USA, the Act 1 Group, Inc.

Approved and authorised by the Board on 30 August 2024 and signed on its behalf by:
 

.........................................
B H Clark
Director

 

Act*1 Services Limited

Directors' Report for the Year Ended 31 December 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors of the company

The directors who held office during the year were as follows:

B W Howroyd

J B Howroyd

B H Clark

Objectives and policies

The Company’s activities expose it to a number of financial risks including credit risk, liquidity risk and cash flow risk. The Company’s principal financial assets are bank balances and trade debtors. The credit risk on trade debtors and on liquid funds are limited because the counterparties are high credit-ratings companies and banks are high credit ratings assigned by international credit-rating agencies.

Employee consultation and disabled employee requirement - Diversity in the workplace

Company is committed to providing a working environment in which its employees are able to realise their potential and to contribute to business success irrespective of gender, marital status, ethnic origin, nationality, religion, disability, sexual orientation or age.
We demonstrated our commitment to diversity in the workplace including:
• implementing a gender-neutral recruitment process;
• committing to the Disability Confident employment scheme;

Employee wellbeing
Company is committed to ensuring that our employees have a strong sense of support and wellbeing at work. We recognise that many individuals have various responsibilities at home, or complicated commutes, so we offer remote working as standard for most of our employees. Most of our business types and supporting services offered to customers are suitable for this model to achieve better work/life balance.
 

Price risk, credit risk, liquidity risk and cash flow risk

Liquidity risk and cash flow risk are also considered low, as Act 1 Group Inc. has confirmed it will not request settlement of any intercompany balances for at least the next twelve months, and has guaranteed to cover any external liabilities that the Company is unable to meet for the same period. In addition, intercompany payables have no fixed repayment date.

 

Act*1 Services Limited

Directors' Report for the Year Ended 31 December 2023

Future developments

Although the company experienced setbacks from business developments, we aim to increase efforts with our global teams and affiliates to work with global clients who have presence in the United Kingdom to expand their programs to the UK, including Recruitment Process Outsourcing (RPO).

Going concern

On the basis of the director’s assessment of future performance and continued support from the group the directors have prepared the accounts on a going basis.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Carbon Accountancy Limited as auditors of the company is to be proposed at the forthcoming Annual General Meeting.

Approved and authorised by the Board on 30 August 2024 and signed on its behalf by:
 

.........................................
B H Clark
Director

 

Act*1 Services Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006 and in accordance with FRS 102 The Financial Reporting Standard. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
 

 

Act*1 Services Limited

Independent Auditor's Report to the Members of Act*1 Services Limited

Opinion

We have audited the financial statements of Act*1 Services Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 company's affairs as at 31 December 2023 and of its loss for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

 

Act*1 Services Limited

Independent Auditor's Report to the Members of Act*1 Services Limited

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor 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.

Extent to which our procedures are capable of detecting irregularities, including fraud:

 

Act*1 Services Limited

Independent Auditor's Report to the Members of Act*1 Services Limited

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud was as follows:

- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the company operates;
- We focused on specific laws and regulations which we considered may have a direct impact material effect on the financial statements, or the operations of the company which included the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;
- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- Identified laws and regulations were communicated within the audit team and the team remained alert to instances of non-compliance throughout the audit.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to involve the completeness and timing of income recognition and the override of controls by management.

To address the risk of fraud in relation to revenue recognition, we:
- Performed detailed substantive testing to address completeness and accuracy of sales;
- Assessed the appropriateness and application of the accounting policy concerning income recognition; and
- Performed detailed cut-off testing either side of the balance sheet date.

To address the risk of fraud through management bias and override of controls, we:
- Performed analytical procedures to identify any unusual or unexpected relationships;
- Tested journal entries to identify unusual transactions;
- Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;
- Investigated the rationale behind significant or unusual transactions.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

 

Act*1 Services Limited

Independent Auditor's Report to the Members of Act*1 Services Limited

Use of this 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.

......................................
John Leyden FCA (Senior Statutory Auditor)
For and on behalf of Carbon Accountancy Limited, Statutory Auditor

80-83 Long Lane
London
EC1A 9ET

30 August 2024

 

Act*1 Services Limited

Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

33,039,164

35,070,548

Cost of sales

 

(30,888,890)

(32,875,353)

Gross profit

 

2,150,274

2,195,195

Administrative expenses

 

(2,777,018)

(2,683,220)

Operating loss

4

(626,744)

(488,025)

Interest payable and similar expenses

5

(415,231)

(145,261)

Loss before tax

 

(1,041,975)

(633,286)

Tax on loss

9

(12,449)

(18,853)

Loss for the financial year

 

(1,054,424)

(652,139)

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Act*1 Services Limited

Statement of Comprehensive Income for the Year Ended 31 December 2023

2023
£

2022
£

Loss for the year

(1,054,424)

(652,139)

Total comprehensive income for the year

(1,054,424)

(652,139)

 

Act*1 Services Limited

(Registration number: 06417126)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

10

11,732

14,524

Current assets

 

Debtors

11

5,209,615

6,268,961

Cash at bank and in hand

 

4,119,448

4,424,199

 

9,329,063

10,693,160

Creditors: Amounts falling due within one year

13

(4,187,695)

(4,500,333)

Net current assets

 

5,141,368

6,192,827

Total assets less current liabilities

 

5,153,100

6,207,351

Creditors: Amounts falling due after more than one year

13

(8,435,523)

(8,435,523)

Provisions for liabilities

14

(2,933)

(2,760)

Net liabilities

 

(3,285,356)

(2,230,932)

Capital and reserves

 

Called up share capital

100

100

Share premium reserve

124,838

124,838

Retained earnings

(3,410,294)

(2,355,870)

Shareholders' deficit

 

(3,285,356)

(2,230,932)

Approved and authorised by the Board on 30 August 2024 and signed on its behalf by:
 

.........................................
B H Clark
Director

 

Act*1 Services Limited

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Share premium
£

Retained earnings
£

Total
£

At 1 January 2023

100

124,838

(2,355,870)

(2,230,932)

Loss for the year

-

-

(1,054,424)

(1,054,424)

At 31 December 2023

100

124,838

(3,410,294)

(3,285,356)

Share capital
£

Share premium
£

Retained earnings
£

Total
£

At 1 January 2022

100

124,838

(1,703,731)

(1,578,793)

Loss for the year

-

-

(652,139)

(652,139)

At 31 December 2022

100

124,838

(2,355,870)

(2,230,932)

 

Act*1 Services Limited

Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

Loss for the year

 

(1,054,424)

(652,139)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

3,807

4,308

Finance costs

5

401,530

112,311

Income tax expense

9

12,449

18,853

 

(636,638)

(516,667)

Working capital adjustments

 

Decrease/(increase) in trade debtors

11

1,059,345

(173,173)

(Decrease)/increase in trade creditors

13

(312,638)

126,767

Cash generated from operations

 

110,069

(563,073)

Income taxes paid

9

(12,275)

(17,904)

Net cash flow from operating activities

 

97,794

(580,977)

Cash flows from investing activities

 

Acquisitions of tangible assets

(1,015)

(9,304)

Cash flows from financing activities

 

Interest paid

5

(401,530)

(112,311)

Proceeds from other borrowing draw downs

 

-

200,001

Repayment of other borrowing

 

-

(900,000)

Net cash flows from financing activities

 

(401,530)

(812,310)

Net decrease in cash and cash equivalents

 

(304,751)

(1,402,591)

Cash and cash equivalents at 1 January

 

4,424,199

5,826,790

Cash and cash equivalents at 31 December

 

4,119,448

4,424,199

 

Act*1 Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England .

The address of its registered office is:
80-83 Long Lane
London
EC1A 9ET
United Kingdom

These financial statements were authorised for issue by the Board on 30 August 2024.

2

Accounting policies

Statement of compliance

These financial statements were prepared in accordance with the Companies Act 2006 and Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

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 £.

Going concern

The company had net liabilities of £3.3 million as at the balance sheet date, mainly due to an amount of £8.4 million owed to its parent company. The parent company has confirmed that it will not seek repayment until the subsidiary is financially capable of doing so. The directors believe that the company has adequate resources to continue its operations for the foreseeable future. The directors are confident that there are no significant uncertainties or material events that could raise substantial doubts about the company’s ability to continue as a going concern. Therefore, the going concern basis continues to be applied in the preparation of the financial statements.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of good and provision of services in the ordinary courses of the companies’ activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

Rendering of services

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

Revenue from Vendor Management services is recognised based on the number of hours worked at the contracted billing rate as the work is performed.
Revenue from temporary placements is recognised over the period that temporary staff are provided
 

 

Act*1 Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Government grants

Money received in the form of a government grant is treated as a revenue grant. Therefore, grant income is recorded within other income in the income statement on a systematic basis in the same periods as the related expenses occurred.

Foreign currency transactions and balances

Monetary assets and liabilities expressed in foreign currencies are translated into Sterling at rates of exchange ruling at the date of the balance sheet. Transactions in foreign currency are converted to Sterling at the rate ruling at the date of the transaction. All differences on exchange are taken to the profit and loss account.

Tax

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

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Office equipment

20% straight line basis

Fixtures and fittings

20% straight line basis

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Act*1 Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Critical accounting estimates and judgements
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of the assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates is revised where the revision affects only that period or in the period of the revision and the future periods where the revision affects both current and future periods. Where estimates and judgements have been made, the key factors taken into consideration are disclosed in the appropriate note in the financial statements.

 

Act*1 Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

3

Revenue

The analysis of the company's turnover for the year by class of business is as follows:

2023
 £

2022
 £

Vendor management services

22,490,556

25,670,542

VMS management fees

930,001

1,212,895

Temporary staff services

8,928,297

7,536,166

International servises

690,310

650,945

33,039,164

35,070,548

4

Operating loss

Arrived at after charging/(crediting)

2023
 £

2022
 £

Depreciation expense

3,807

4,308

5

Interest payable and similar expenses

2023
 £

2022
 £

Interest expense on other finance liabilities

401,530

112,311

Foreign exchange gains/losses

13,701

32,950

415,231

145,261

 

Act*1 Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
 £

2022
 £

Wages and salaries

8,760,740

7,699,526

Social security costs

1,022,031

908,114

Pension costs, defined contribution scheme

110,388

120,371

Other employee expense

37,637

86,051

9,930,796

8,814,062

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and support

15

15

Other departments

160

153

175

168

7

Director's remuneration

The Directors were remunerated by the parent company, The Act 1 Group Inc. and there is no recharge to the Company. The Directors also act as directors for a number of fellow subsidiaries, and so it is not possible to make an accurate apportionment of their remuneration in respect of each of the subsidiaries.

8

Auditors' remuneration

2023
 £

2022
 £

Audit of the financial statements

9,500

9,500

Other fees to auditors

All other non-audit services

4,250

4,250


 

 

Act*1 Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

9

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax adjustment to prior periods

-

17,904

Foreign tax

12,275

-

Total current income tax

12,275

17,904

Deferred taxation

Arising from origination and reversal of timing differences

174

949

Tax expense in the income statement

12,449

18,853

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 25% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Loss before tax

(1,041,975)

(633,286)

Corporation tax at standard rate

(260,501)

(120,324)

Tax increase/(decrease) from effect of capital allowances and depreciation

697

(949)

Tax increase from other short-term timing differences

174

-

Effect of expense not deductible in determining taxable profit (tax loss)

21,147

4,020

Increase from tax losses for which no deferred tax asset was recognised

238,657

136,106

Double taxation relief

12,275

-

Total tax charge

12,449

18,853

 

Act*1 Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

10

Tangible assets

Fixtures and fittings
£

Total
£

Cost or valuation

At 1 January 2023

83,823

83,823

Additions

1,015

1,015

At 31 December 2023

84,838

84,838

Depreciation

At 1 January 2023

69,300

69,300

Charge for the year

3,806

3,806

At 31 December 2023

73,106

73,106

Carrying amount

At 31 December 2023

11,732

11,732

At 31 December 2022

14,524

14,524

11

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

4,896,436

5,839,385

Owed by group undertakings

17

291,134

327,715

Other debtors

 

9,670

14,791

Prepayments

 

12,375

87,070

   

5,209,615

6,268,961

12

Cash and cash equivalents

2023
 £

2022
 £

Cash at bank

4,119,448

4,424,199

 

Act*1 Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

13

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Trade creditors

 

2,562,795

3,276,537

Owed to group undertakings

17

342,648

299,966

Social security and other taxes

 

724,566

566,458

Outstanding defined contribution pension costs

 

164,522

79,936

Other payables

 

23,794

21,549

Accrued expenses

 

369,370

255,887

 

4,187,695

4,500,333

Due after one year

 

Other non-current financial liabilities

 

8,435,523

8,435,523

14

Provisions for liabilities

Deferred tax
£

Total
£

At 1 January 2023

2,760

2,760

Additional provisions

173

173

At 31 December 2023

2,933

2,933

15

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £110,388 (2022 - £120,371).

Contributions totalling £164,522 (2022 - £79,936) were payable to the scheme at the end of the year and are included in creditors.

 

Act*1 Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

16

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

       

17

Related party transactions

During the year the company made the following related party transactions:

The Act 1 Group Inc.
(The Act 1 Group Inc. owns 100% ordinary share capital of the Company)

Note 13, non-current financial liabilities includes interest bearing loan of £8,435,523 (2022: £8,435,523) from The Act 1 Group Inc. During the year The company charged interest at the rate of 4.76% (2022: 1.26 %) per annum. The Act 1 Group's policy is to use the Applicable Federal Rates (AFR) rulings from United States Internal Revenue Services (IRS).

During the year The Act 1 Group Inc. paid some suppliers on behalf of the company. Note 13, creditors due within one year includes other amount due to The Act 1 Group Inc. £342,648 (2022: £299,966).

Transactions with companies under common control:

At the balance sheet date following amounts were due from:
Act 1 Group - Agile 1 Netherland £59,225 (2022: £59,838).
Act 1 Group - Agile 1 Belgium £1,661 (2022: £1,054).
Act 1 Group - Agile 1 Sweden £67,419(2022:28,920).
Act 1 Group - Agile 1 Poland £0.00 (2022: £32,407).
Act 1 Group - Agile 1 Germany £15,118 (2022: £40,108).
Act 1 Group - Agile 1 Switzerland £1,055 (2022: £18,761).
Act 1 Group - Agile 1 Ireland £47,028 (2022: £37,117).
Act 1 Group - Agile 1 France £5,570 (2022: £8,494).
Act 1 Group - Agile 1 Austria £1,176 (2022: £40,812).
Act 1 Group - Agile One Australia £1,818 (2022: £1,054).
Act1 Agile 1 India Private Limited £66,704 (2022: £45,932).
Act 1 Group - Agile 1 Mexico £8,129 (2022: £9,200).
Act 1 Brasil Con £7,825 (2022: £3,064).
Act 1 Group Taiwan £6,197 (2022: £955).
Act 1 Group - Agile 1 Denmark £1,210 (2022: £Nil).
Act 1 Group - Agile 1 Norway £1,000 (2022: £Nil).

18

Parent and ultimate parent undertaking

The company's immediate parent is The Act 1 Group Inc., incorporated in USA. Consolidated financials statements are available from its registered office: 1999 West 190th Street, Torrance, CA 90504 U.S.A.