Barclay Simpson Associates Limited 02440037 false 2023-01-01 2023-12-31 2023-12-31 2023-12-31 The principal activity of the company is that of recruitment consulting. Digita Accounts Production Advanced 6.30.9574.0 true true true false false true false false false false 02440037 2023-01-01 2023-12-31 02440037 2023-12-31 02440037 bus:OrdinaryShareClass1 bus:Non-cumulativeShares bus:Consolidated 2023-12-31 02440037 bus:OrdinaryShareClass2 bus:Non-cumulativeShares bus:Consolidated 2023-12-31 02440037 bus:Consolidated 2023-12-31 02440037 bus:Consolidated 2 2023-12-31 02440037 2 2023-12-31 02440037 core:CapitalRedemptionReserve 2023-12-31 02440037 core:CapitalRedemptionReserve bus:Consolidated 2023-12-31 02440037 core:FurtherSpecificReserve1ComponentTotalEquity 2023-12-31 02440037 core:FurtherSpecificReserve1ComponentTotalEquity bus:Consolidated 2023-12-31 02440037 core:Non-controllingInterests bus:Consolidated 2023-12-31 02440037 core:RetainedEarningsAccumulatedLosses 2023-12-31 02440037 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2023-12-31 02440037 core:ShareCapital 2023-12-31 02440037 core:ShareCapital bus:Consolidated 2023-12-31 02440037 core:SharePremium 2023-12-31 02440037 core:SharePremium bus:Consolidated 2023-12-31 02440037 core:CurrentFinancialInstruments 2023-12-31 02440037 core:CurrentFinancialInstruments bus:Consolidated 2023-12-31 02440037 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 02440037 core:CurrentFinancialInstruments core:WithinOneYear bus:Consolidated 2023-12-31 02440037 core:Non-currentFinancialInstruments 2023-12-31 02440037 core:Non-currentFinancialInstruments bus:Consolidated 2023-12-31 02440037 core:Non-currentFinancialInstruments core:AfterOneYear 2023-12-31 02440037 core:Non-currentFinancialInstruments core:AfterOneYear bus:Consolidated 2023-12-31 02440037 core:WithinOneYear bus:Consolidated 2023-12-31 02440037 core:FurnitureFittings 2023-12-31 02440037 core:FurnitureFittings bus:Consolidated 2023-12-31 02440037 core:OfficeEquipment 2023-12-31 02440037 core:OfficeEquipment bus:Consolidated 2023-12-31 02440037 core:PlantMachinery 2023-12-31 02440037 core:PlantMachinery bus:Consolidated 2023-12-31 02440037 bus:FRS102 bus:Consolidated 2023-01-01 2023-12-31 02440037 bus:Audited bus:Consolidated 2023-01-01 2023-12-31 02440037 bus:FullAccounts bus:Consolidated 2023-01-01 2023-12-31 02440037 bus:RegisteredOffice bus:Consolidated 2023-01-01 2023-12-31 02440037 bus:Chairman bus:Consolidated 2023-01-01 2023-12-31 02440037 bus:ChiefExecutive 2023-01-01 2023-12-31 02440037 bus:ChiefExecutive bus:Consolidated 2023-01-01 2023-12-31 02440037 bus:CompanySecretary1 2023-01-01 2023-12-31 02440037 bus:Director1 bus:Consolidated 2023-01-01 2023-12-31 02440037 bus:Director4 bus:Consolidated 2023-01-01 2023-12-31 02440037 bus:Director6 bus:Consolidated 2023-01-01 2023-12-31 02440037 bus:HighestPaidDirector bus:Consolidated 2023-01-01 2023-12-31 02440037 bus:OrdinaryShareClass1 bus:Non-cumulativeShares bus:Consolidated 2023-01-01 2023-12-31 02440037 bus:OrdinaryShareClass2 bus:Non-cumulativeShares bus:Consolidated 2023-01-01 2023-12-31 02440037 bus:Consolidated 2023-01-01 2023-12-31 02440037 bus:Consolidated 1 2023-01-01 2023-12-31 02440037 bus:Consolidated 1 2023-01-01 2023-12-31 02440037 bus:PrivateLimitedCompanyLtd bus:Consolidated 2023-01-01 2023-12-31 02440037 bus:ConsolidatedGroupCompanyAccounts 2023-01-01 2023-12-31 02440037 core:CapitalRedemptionReserve 2023-01-01 2023-12-31 02440037 core:CapitalRedemptionReserve bus:Consolidated 2023-01-01 2023-12-31 02440037 core:FurtherSpecificReserve1ComponentTotalEquity 2023-01-01 2023-12-31 02440037 core:FurtherSpecificReserve1ComponentTotalEquity bus:Consolidated 2023-01-01 2023-12-31 02440037 core:Non-controllingInterests bus:Consolidated 2023-01-01 2023-12-31 02440037 core:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 02440037 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2023-01-01 2023-12-31 02440037 core:ShareCapital 2023-01-01 2023-12-31 02440037 core:ShareCapital bus:Consolidated 2023-01-01 2023-12-31 02440037 core:SharePremium 2023-01-01 2023-12-31 02440037 core:SharePremium bus:Consolidated 2023-01-01 2023-12-31 02440037 countries:Europe bus:Consolidated 2023-01-01 2023-12-31 02440037 countries:RestWorldOutsideEurope bus:Consolidated 2023-01-01 2023-12-31 02440037 countries:UnitedKingdom bus:Consolidated 2023-01-01 2023-12-31 02440037 core:LandBuildingsUnderOperatingLeases bus:Consolidated 2023-01-01 2023-12-31 02440037 core:ComputerEquipment bus:Consolidated 2023-01-01 2023-12-31 02440037 core:FurnitureFittings 2023-01-01 2023-12-31 02440037 core:FurnitureFittings bus:Consolidated 2023-01-01 2023-12-31 02440037 core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment bus:Consolidated 2023-01-01 2023-12-31 02440037 core:OfficeEquipment 2023-01-01 2023-12-31 02440037 core:OfficeEquipment bus:Consolidated 2023-01-01 2023-12-31 02440037 core:PlantMachinery 2023-01-01 2023-12-31 02440037 core:PlantMachinery bus:Consolidated 2023-01-01 2023-12-31 02440037 core:AllSubsidiaries bus:Consolidated 2023-01-01 2023-12-31 02440037 core:Subsidiary1 2023-01-01 2023-12-31 02440037 core:Subsidiary1 1 2023-01-01 2023-12-31 02440037 core:Subsidiary1 countries:AllCountries 2023-01-01 2023-12-31 02440037 core:Subsidiary2 2023-01-01 2023-12-31 02440037 core:Subsidiary2 1 2023-01-01 2023-12-31 02440037 core:Subsidiary2 countries:AllCountries 2023-01-01 2023-12-31 02440037 core:Subsidiary3 2023-01-01 2023-12-31 02440037 core:Subsidiary3 1 2023-01-01 2023-12-31 02440037 core:Subsidiary3 countries:Germany 2023-01-01 2023-12-31 02440037 core:Subsidiary4 2023-01-01 2023-12-31 02440037 core:Subsidiary4 1 2023-01-01 2023-12-31 02440037 core:Subsidiary4 countries:AllCountries 2023-01-01 2023-12-31 02440037 core:UKTax bus:Consolidated 2023-01-01 2023-12-31 02440037 countries:AllCountries bus:Consolidated 2023-01-01 2023-12-31 02440037 2022-12-31 02440037 bus:Consolidated 2022-12-31 02440037 core:CapitalRedemptionReserve 2022-12-31 02440037 core:CapitalRedemptionReserve bus:Consolidated 2022-12-31 02440037 core:FurtherSpecificReserve1ComponentTotalEquity 2022-12-31 02440037 core:FurtherSpecificReserve1ComponentTotalEquity bus:Consolidated 2022-12-31 02440037 core:Non-controllingInterests bus:Consolidated 2022-12-31 02440037 core:RetainedEarningsAccumulatedLosses 2022-12-31 02440037 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2022-12-31 02440037 core:ShareCapital 2022-12-31 02440037 core:ShareCapital bus:Consolidated 2022-12-31 02440037 core:SharePremium 2022-12-31 02440037 core:SharePremium bus:Consolidated 2022-12-31 02440037 core:FurnitureFittings 2022-12-31 02440037 core:FurnitureFittings bus:Consolidated 2022-12-31 02440037 core:OfficeEquipment 2022-12-31 02440037 core:OfficeEquipment bus:Consolidated 2022-12-31 02440037 core:PlantMachinery 2022-12-31 02440037 core:PlantMachinery bus:Consolidated 2022-12-31 02440037 2022-01-01 2022-12-31 02440037 2022-12-31 02440037 bus:OrdinaryShareClass1 bus:Non-cumulativeShares bus:Consolidated 2022-12-31 02440037 bus:OrdinaryShareClass2 bus:Non-cumulativeShares bus:Consolidated 2022-12-31 02440037 bus:Consolidated 2022-12-31 02440037 bus:Consolidated 2 2022-12-31 02440037 2 2022-12-31 02440037 core:CurrentFinancialInstruments 2022-12-31 02440037 core:CurrentFinancialInstruments bus:Consolidated 2022-12-31 02440037 core:CurrentFinancialInstruments core:WithinOneYear 2022-12-31 02440037 core:CurrentFinancialInstruments core:WithinOneYear bus:Consolidated 2022-12-31 02440037 core:Non-currentFinancialInstruments 2022-12-31 02440037 core:Non-currentFinancialInstruments bus:Consolidated 2022-12-31 02440037 core:Non-currentFinancialInstruments core:AfterOneYear 2022-12-31 02440037 core:Non-currentFinancialInstruments core:AfterOneYear bus:Consolidated 2022-12-31 02440037 core:WithinOneYear bus:Consolidated 2022-12-31 02440037 core:FurnitureFittings 2022-12-31 02440037 core:FurnitureFittings bus:Consolidated 2022-12-31 02440037 core:OfficeEquipment 2022-12-31 02440037 core:OfficeEquipment bus:Consolidated 2022-12-31 02440037 core:PlantMachinery 2022-12-31 02440037 core:PlantMachinery bus:Consolidated 2022-12-31 02440037 bus:HighestPaidDirector bus:Consolidated 2022-01-01 2022-12-31 02440037 bus:Consolidated 2022-01-01 2022-12-31 02440037 core:CapitalRedemptionReserve 2022-01-01 2022-12-31 02440037 core:FurtherSpecificReserve1ComponentTotalEquity 2022-01-01 2022-12-31 02440037 core:FurtherSpecificReserve1ComponentTotalEquity bus:Consolidated 2022-01-01 2022-12-31 02440037 core:Non-controllingInterests bus:Consolidated 2022-01-01 2022-12-31 02440037 core:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 02440037 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2022-01-01 2022-12-31 02440037 core:ShareCapital 2022-01-01 2022-12-31 02440037 core:ShareCapital bus:Consolidated 2022-01-01 2022-12-31 02440037 core:SharePremium 2022-01-01 2022-12-31 02440037 core:SharePremium bus:Consolidated 2022-01-01 2022-12-31 02440037 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2022-01-01 2022-12-31 02440037 countries:Europe bus:Consolidated 2022-01-01 2022-12-31 02440037 countries:RestWorldOutsideEurope bus:Consolidated 2022-01-01 2022-12-31 02440037 countries:UnitedKingdom bus:Consolidated 2022-01-01 2022-12-31 02440037 core:LandBuildingsUnderOperatingLeases bus:Consolidated 2022-01-01 2022-12-31 02440037 core:Subsidiary1 1 2022-01-01 2022-12-31 02440037 core:Subsidiary2 1 2022-01-01 2022-12-31 02440037 core:Subsidiary3 1 2022-01-01 2022-12-31 02440037 core:Subsidiary4 1 2022-01-01 2022-12-31 02440037 core:UKTax bus:Consolidated 2022-01-01 2022-12-31 02440037 2021-12-31 02440037 bus:Consolidated 2021-12-31 02440037 core:CapitalRedemptionReserve 2021-12-31 02440037 core:FurtherSpecificReserve1ComponentTotalEquity 2021-12-31 02440037 core:FurtherSpecificReserve1ComponentTotalEquity bus:Consolidated 2021-12-31 02440037 core:Non-controllingInterests bus:Consolidated 2021-12-31 02440037 core:RetainedEarningsAccumulatedLosses 2021-12-31 02440037 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2021-12-31 02440037 core:ShareCapital 2021-12-31 02440037 core:ShareCapital bus:Consolidated 2021-12-31 02440037 core:SharePremium 2021-12-31 02440037 core:SharePremium bus:Consolidated 2021-12-31 02440037 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2021-12-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 02440037

Barclay Simpson Associates Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 December 2023

 

Barclay Simpson Associates Limited

Contents

Company Information

1

Strategic Report

2 to 6

Directors' Report

7

Statement of Directors' Responsibilities

8

Independent Auditor's Report

9 to 12

Consolidated Profit and Loss Account

13

Consolidated Statement of Comprehensive Income

14

Consolidated Balance Sheet

15

Balance Sheet

16

Consolidated Statement of Changes in Equity

17 to 18

Statement of Changes in Equity

19

Consolidated Statement of Cash Flows

20

Notes to the Financial Statements

21 to 35

 

Barclay Simpson Associates Limited

Company Information

Chairman

I J Coyle

Chief executive

D Spencer

Directors

P Savill

S M Lawton

M W R Hunt

Company secretary

A-M Clarke

Registered office

3rd Floor
20 Farringdon Street
London
EC4A 4AB

Auditors

EVMS Partners LLP
Chartered Accountants
1st Floor, 5 St Bride Street
London
EC4A 4AS

 

Barclay Simpson Associates Limited

Strategic Report for the Year Ended 31 December 2023


Chairman's statement

Welcome to Barclay Simpson’s 2023 Annual Report & Accounts

At the beginning of 2023, the outlook was clouded with uncertainty with significant concerns over economic growth, inflation and interest rates. It is very pleasing therefore that the Company traded well throughout the year and as Dean Spencer, our CEO will report, outperformed our peers with a robust performance.

To have delivered such a result in such difficult circumstances indicates that the Board and Executive have a clear strategy and are exercising sound financial control and rigorous operational management. These factors ensure that the business is resilient in the face of its market challenges and continues to deliver the profits that it needs to make further progress.

This profitability, its conversion into cash and absence of debt allowed the Board to make further returns to shareholders and to continue to support the Executive’s investment in the business.

This investment continues to focus on those areas that will enhance our long-term competitiveness: employee well-being and benefits, technology to improve operational efficiency and our activities to strengthen our roots in our communities. This has included the development of our Equity, Diversity & Inclusion strategy that encompasses our people, the communities we work with and the value we deliver to our clients. Feedback from our stakeholders has indicated these initiatives, while good for the Company’s well being are also commercially sound.

Our business solutions and services business, BSS, continues to make great strides in its profitability and its growth into a significant provider of professional projects and services with a recognised and trusted brand. Growing demand from existing and new clients has enabled the development of our services and the recruitment of a strong core of high calibre staff. Our ability to help clients mitigate their cyber security, resilience, compliance and governance risks while achieving their commercial objectives is a compelling offering that bodes well for the future success of the Company.

Board focus and outlook
The outlook for the coming year is, again, uncertain. In recruitment and professional services, confidence defines trading conditions. In the face of this challenging environment the Board will work to ensure the delivery of our strategy and our focus on the activities and investment that will lead to long term success for all our stakeholders.

The resilience of the business is testament to the quality of our leadership, management and delivery teams and the quality of our relationships in our communities. We have benefitted from our alignment with our professional communities, and we will continue to be active in pursuing initiatives across our people, environmental and societal responsibilities. Our commitment to these areas is vital to our ability to recruit and retain the quality of staff we need and to be recognised as a valuable member of our business communities.

None of this can happen without the unwavering passion and commitment of our people who deliver what our clients want in line with our identity, purpose and values. My thanks and appreciation to one and all for their consistently excellent commitment and contribution.

Ian Coyle
Chairman
9 May 2024

 

Barclay Simpson Associates Limited

Strategic Report for the Year Ended 31 December 2023 (continued)

CEO Statement

Business Review

I wrote in my statement last year that following a period of extraordinary market conditions in 2022, trading conditions would be significantly more challenging in 2023. Twelve months on, that prediction proved to be correct.

Turnover: Decreased by 19% to £14.91m (2022: £18.39m)
Gross Profit: Decreased by 18% to £6.80m (2022: £8.27m)
Operating Profit: Decreased by 25% to £1.03m (2022: £1.38m)
 

Whilst frustrating to have taken a step back following two years of exceptional growth for the business, these financial results represent a robust performance, surpassing that of most of our competitors and the recruitment market more broadly.

It was pleasing to see this reflected in the Recruiter Magazine’s 2023 Hot 100 list of the most efficient and profitable recruitment businesses in the UK, with BSA achieving 20th place, up 37 places from our last entry. The audited financial and operational data used in the selection process gives this award real meaning and provides tangible evidence of our position in the market as well as the progress we have made as a business in the last 3 years.

A key element of this success has been the performance of our fledgling SoW business, BSS, which continued to thrive in 2023, expanding its reach with current clients and winning multiple new blue-chip clients across industry sectors. With a strong leadership team in place, and additional investment planned, I anticipate BSS will continue to make a healthy contribution to Group profits and be a source of significant shareholder value over the coming year and beyond.

People strategy

Our workforce is the cornerstone of our growth strategy. We focus on recruiting experienced recruiters with a proven track record of success, nurturing their potential to cultivate long-lasting careers within our company. Over the past three years, we have made substantial efforts to boost staff engagement and solidify our reputation as the preferred employer for recruiters in our specialist markets.

The results of these endeavours are evident in the average tenure of our staff, which at 4.7 years is significantly above market norms. Additionally, our most recent staff engagement survey, conducted by Thomas International, yielded an overall engagement score of 74%, significantly above the UK benchmark.

These achievements reflect the commitment and dedication of our management team to cultivate a supportive and engaging work environment, despite external challenges. They also underscore the effectiveness of our talent management strategies, employee development programs, and cultural initiatives.

 

Barclay Simpson Associates Limited

Strategic Report for the Year Ended 31 December 2023 (continued)

2024 Outlook

Looking ahead to 2024, with the cost of borrowing expected to remain high, and elections planned in the UK and US later in the year, the likelihood is that trading conditions will remain challenging for most the year.

With that said, the quality, expertise, and longevity of our staff combined with a brand and reputation that has been built over three decades, puts us in fantastic position to generate another set of strong financial results in 2024, outperforming the market once again.

Continuing to prioritise the well being and engagement of our staff will be key to navigating the challenging trading conditions that may lie ahead.

Dean Spencer
CEO
9 May 2024

 

Barclay Simpson Associates Limited

Strategic Report for the Year Ended 31 December 2023 (continued)

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

Principal activity

Barclay Simpson is a global Recruitment and Business solutions and services provider operating exclusively within Cyber Security, Technology and Corporate Governance related markets. Our core capabilities include contingent and retained search, interim resourcing and deploying project teams under Statements of Work (SoW). We work with our customers on a global basis from our offices in London and Frankfurt.

Key Performance Indicators

Our Board use a range of performance measures to monitor and manage the growth of the business in the medium to long term and present their key performance indicators for the financial year.

Financial

Revenue/Turnover: £14.91m (2022: £18.40m)
Gross profit/NFI: £6.8m (2022: £8.3m)
NFI Contract to Perm Ratio: 36%/64%, (2022: 28%/72%)
Underlying Profit: Profit of £1.03m (2022: Profit of £1.37m)
Debtor Days: 41 days (2022: 50 days)
Invoice Financing Debt as % of year End debtors: Nil debt (2022: Nil)

Operational

Jobs Added to Placement Ratio 3.8 to 1 (2022: 3.5 to 1)

Notes:

Revenue is total fees earned by the Group before any costs deducted.
Gross Profit is revenue less cost of sales.
Debtor days shows the average number of days credit taken by our customers to settle our invoices

Risk Management and Principal risks and uncertainties


The Board, in association with the Audit Committee, is committed to protecting and developing our reputation and business interests. It has overall responsibility for risk management within the business and reviews the Group’s risk appetite and risk profile at least annually.

The Board considers that the following comprises the Group’s principal risks and uncertainties:

People

The gravest threat to the achievement of the Group’s goals is its ability to recruit, retain and develop high calibre staff across all our business functions., The Group closely monitors key performance indicators concerning the effectiveness of our people processes and focuses on the needs of this stakeholder group through its “People First” strategy.

 

Barclay Simpson Associates Limited

Strategic Report for the Year Ended 31 December 2023 (continued)

Technology

The Group is dependent on its technology systems to deliver its services. Our cloud-based systems architecture is designed to minimise hardware and software vulnerabilities and to be as flexible in deployment and resilient as possible. We continue to invest in our cyber security capabilities.

Information

Personal data is the Group’s principal tradeable asset which exposes the business to potential legal, financial, and reputational risk. The business maintains high levels of appropriate regulatory compliance, principally with the UK DPA 2018 and the GDPR. Investment in the Company’s Information Security Management System (ISMS) and gaining the ISO27001 accreditation have been significant enhancements.

Liquidity

The Group’s treasury function centrally co-ordinates relationships with banks, manages borrowing requirements, foreign exchange requirements and cash management. The Group possesses adequate financial resources to meet its day-to-day financial obligations and invest in the development of the business.

External risks

The pandemic highlighted how events outside of the Company’s control can pose a threat to the Company. As part of its ISMS, the Company has a comprehensive business continuity and disaster recovery plan which is regularly tested, and we have in place a robust schedule of insurance policies to support our operational policies and procedures which is reviewed annually by the Board.

Approved and authorised by the Board on 9 May 2024 and signed on its behalf by:
 

.........................................
D Spencer
Chief executive

 

Barclay Simpson Associates Limited

Directors' Report for the Year Ended 31 December 2023

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

Directors of the group

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

P Savill

I J Coyle - Chairman

D Spencer - Chief executive

S M Lawton

M W R Hunt

Disclosure of information to the auditor

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 auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditors

The auditors EVMS Partners LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved and authorised by the Board on 9 May 2024 and signed on its behalf by:
 

.........................................
D Spencer
Chief executive

 

Barclay Simpson Associates 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 group and the company 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK 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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Barclay Simpson Associates Limited

Independent Auditor's Report to the Members of Barclay Simpson Associates Limited

Opinion

We have audited the financial statements of Barclay Simpson Associates Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated 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:

give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group and the 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 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 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 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.

 

Barclay Simpson Associates Limited

Independent Auditor's Report to the Members of Barclay Simpson Associates Limited (continued)

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

the information given in the Strategic Report and 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 group and parent company and their 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 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 8, 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.

 

Barclay Simpson Associates Limited

Independent Auditor's Report to the Members of Barclay Simpson Associates Limited (continued)

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.

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: enquiring of management concerning the group’s and parent company’s policies with regards to identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; enquiring of management concerning the group’s and parent company’s policies for detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; enquiring of management concerning the group’s and parent company’s policies in relation to the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; discussing among the engagement team where fraud might occur in the financial statements and any potential indicators of fraud; and obtaining an understanding of the legal and regulatory framework that the group and parent company operate in and focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the group and parent company. The key laws and regulations we considered in this context included the UK Companies Act 2006 and UK tax and employment law, including that pertaining to the use of contractors and interim workers.

One particular focus area was the risk of fraud through management override of controls. Our procedures to respond to risks identified included the following: performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; reviewing the bank statements of the parent company and its subsidiaries for evidence of any unusual activity which may be indicative of fraud; enquiring of management in relation to any potential litigation and claims; and testing the appropriateness of journal entries and other adjustments. As regards the use of contractors and interim workers we have made enquiries of management as to how the group and parent company ensures compliance with relevant employment and tax law, and sample checked documentation that the group and parent company obtain as part of their internal procedures.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

 

Barclay Simpson Associates Limited

Independent Auditor's Report to the Members of Barclay Simpson Associates Limited (continued)

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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.

......................................
Alex Macpherson (Senior Statutory Auditor)
For and on behalf of EVMS Partners LLP, Statutory Auditor

1st Floor, 5 St Bride Street
London
EC4A 4AS

9 May 2024

 

Barclay Simpson Associates Limited

Consolidated Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

14,914,875

18,396,570

Cost of sales

 

(8,116,968)

(10,122,113)

Gross profit

 

6,797,907

8,274,457

Administrative expenses

 

(5,772,464)

(6,891,061)

Operating profit

4

1,025,443

1,383,396

Other interest receivable and similar income

14,310

285

Interest payable and similar expenses

-

(9,757)

   

14,310

(9,472)

Profit before tax

 

1,039,753

1,373,924

Tax on profit

8

(227,465)

(258,055)

Profit for the financial year

 

812,288

1,115,869

Profit attributable to:

 

Owners of the company

 

774,803

1,067,509

Non-controlling interests

 

37,485

48,360

 

812,288

1,115,869

 

Barclay Simpson Associates Limited

Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2023

2023
£

2022
£

Profit for the year

812,288

1,115,869

Foreign currency translation (losses)/gains

(48)

818

Total comprehensive income for the year

812,240

1,116,687

Total comprehensive income attributable to:

Owners of the company

774,755

1,068,327

Non-controlling interests

37,485

48,360

812,240

1,116,687

 

Barclay Simpson Associates Limited

(Registration number: 02440037)
Consolidated Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

9

134,837

45,056

Current assets

 

Debtors

11

2,579,684

3,092,709

Cash at bank and in hand

 

849,347

1,150,863

 

3,429,031

4,243,572

Creditors: Amounts falling due within one year

13

(2,154,268)

(2,738,866)

Net current assets

 

1,274,763

1,504,706

Total assets less current liabilities

 

1,409,600

1,549,762

Creditors: Amounts falling due after more than one year

13

-

(62,500)

Net assets

 

1,409,600

1,487,262

Capital and reserves

 

Called up share capital

15

170

186

Share premium reserve

54,447

42,715

Capital redemption reserve

18

-

Other reserves

(706,633)

(472,170)

Retained earnings

2,004,531

1,829,784

Equity attributable to owners of the company

 

1,352,533

1,400,515

Non-controlling interests

 

57,067

86,747

Shareholders' funds

 

1,409,600

1,487,262

Approved and authorised by the Board on 9 May 2024 and signed on its behalf by:
 

.........................................
D Spencer
Chief executive

 

Barclay Simpson Associates Limited

(Registration number: 02440037)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

9

92,483

31,284

Investments

10

8,600

13,013

 

101,083

44,297

Current assets

 

Debtors

11

1,188,650

1,665,282

Cash at bank and in hand

 

180,870

314,070

 

1,369,520

1,979,352

Creditors: Amounts falling due within one year

13

(852,248)

(1,440,123)

Net current assets

 

517,272

539,229

Total assets less current liabilities

 

618,355

583,526

Creditors: Amounts falling due after more than one year

13

-

(62,500)

Net assets

 

618,355

521,026

Capital and reserves

 

Called up share capital

15

170

186

Share premium reserve

54,447

42,715

Capital redemption reserve

18

-

Other reserves

(706,633)

(472,170)

Retained earnings

1,270,353

950,295

Shareholders' funds

 

618,355

521,026

The company made a profit after tax for the financial year of £920,066 (2022 - profit of £830,034).

Approved and authorised by the Board on 9 May 2024 and signed on its behalf by:
 

.........................................
D Spencer
Chief executive

 

Barclay Simpson Associates Limited

Consolidated Statement of Changes in Equity for the Year Ended 31 December 2023
Equity attributable to the parent company

Share capital
£

Share premium
£

Capital redemption reserve
£

Other reserves
£

Retained earnings
£

Non-controlling interests - Equity
£

Total equity
£

At 1 January 2023

186

42,715

-

(472,170)

1,829,784

86,747

1,487,262

Profit for the year

-

-

-

-

774,803

37,485

812,288

Other comprehensive income

-

-

-

-

(48)

-

(48)

Total comprehensive income

-

-

-

-

774,755

37,485

812,240

Dividends

-

-

-

-

(600,008)

(67,165)

(667,173)

New share capital subscribed

2

11,732

-

-

-

-

11,734

Purchase of own share capital

-

-

-

(234,463)

-

-

(234,463)

Cancellation of share capital

(18)

-

18

-

-

-

-

At 31 December 2023

170

54,447

18

(706,633)

2,004,531

57,067

1,409,600

 

Barclay Simpson Associates Limited

Consolidated Statement of Changes in Equity for the Year Ended 31 December 2023 (continued)
Equity attributable to the parent company

Share capital
£

Share premium
£

Other reserves
£

Retained earnings
£

Total
£

Non-controlling interests - Equity
£

Total equity
£

At 1 January 2022

186

42,715

(472,170)

1,691,394

1,262,125

36,881

1,299,006

Profit for the year

-

-

-

1,067,509

1,067,509

48,360

1,115,869

Other comprehensive income

-

-

-

818

818

-

818

Total comprehensive income

-

-

-

1,068,327

1,068,327

48,360

1,116,687

Dividends

-

-

-

(929,937)

(929,937)

-

(929,937)

Acquisition of non-controlling interest, increase in equity

-

-

-

-

-

1,506

1,506

At 31 December 2022

186

42,715

(472,170)

1,829,784

1,400,515

86,747

1,487,262

 

Barclay Simpson Associates Limited

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

Share capital
£

Share premium
£

Capital redemption reserve
£

Other reserves
£

Retained earnings
£

Total
£

At 1 January 2023

186

42,715

-

(472,170)

950,295

521,026

Profit for the year

-

-

-

-

920,068

920,068

Dividends

-

-

-

-

(600,008)

(600,008)

New share capital subscribed

2

11,732

-

-

-

11,734

Purchase of own share capital

-

-

-

(234,463)

-

(234,463)

Cancellation of share capital

(18)

-

18

-

-

-

At 31 December 2023

170

54,447

18

(706,633)

1,270,355

618,357

Share capital
£

Share premium
£

Capital redemption reserve
£

Other reserves
£

Retained earnings
£

Total
£

At 1 January 2022

186

42,715

-

(472,170)

1,050,198

620,929

Profit for the year

-

-

-

-

830,034

830,034

Dividends

-

-

-

-

(929,937)

(929,937)

At 31 December 2022

186

42,715

-

(472,170)

950,295

521,026

 

Barclay Simpson Associates Limited

Consolidated Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

812,288

1,115,869

Adjustments to cash flows from non-cash items

 

Depreciation

4

22,843

8,378

Finance income

(14,310)

(285)

Finance costs

3,663

9,757

Corporation tax expense

8

227,465

258,055

 

1,051,949

1,391,774

Working capital adjustments

 

Decrease in trade debtors

11

469,664

60,276

Decrease in trade creditors

13

(433,319)

(214,704)

Cash generated from operations

 

1,088,294

1,237,346

Income taxes paid

8

(252,051)

(190,876)

Net cash flow from operating activities

 

836,243

1,046,470

Cash flows from investing activities

 

Interest received

14,310

285

Acquisitions of tangible assets

(112,623)

(36,225)

Net cash flows from investing activities

 

(98,313)

(35,940)

Cash flows from financing activities

 

Interest paid

(3,663)

(9,757)

Proceeds from issue of ordinary shares, net of issue costs

 

11,734

1,506

Payments for purchase of own shares

 

(234,463)

-

Repayment of bank borrowing

 

(145,833)

(83,334)

Dividends paid

(667,173)

(929,937)

Net cash flows from financing activities

 

(1,039,398)

(1,021,522)

Net decrease in cash and cash equivalents

 

(301,468)

(10,992)

Cash and cash equivalents at 1 January

 

1,150,863

1,161,037

Effect of exchange rate fluctuations on cash held

 

(48)

818

Cash and cash equivalents at 31 December

 

849,347

1,150,863

 

Barclay Simpson Associates 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 & Wales.

The address of its registered office is: 3rd Floor, 20 Farringdon Street, London, EC4A 4AB. Details of the company's and group's principal activities are provided in the strategic report.

These financial statements were authorised for issue by the Board on 9 May 2024.

2

Accounting policies

Statement of compliance

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

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Summary of disclosure exemptions

FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions, which have been complied with, including notification of, and no objection to, the use of exemptions by the company's shareholders.

The company has taken advantage of the exemptions from preparing a statement of cash flows, on the basis that it is a qualifying entity and the consolidated statement of cash flows, included in these financial statements, includes the company's cash flows.

Under FRS 102 the company is also exempt from related party disclosure requirements on transactions with any 100% owned subsidiary companies.

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of comprehensive income in these financial statements. The profit of the parent company for the year was £920,066 (2022: £830,034).

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2023.

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

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

 

Barclay Simpson Associates Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

2

Accounting policies (continued)

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

At the time of approving the financial statements, the Directors have a reasonable expectation that the company and the group have adequate resources to continue in operational existence for the foreseeable future, a period of not less that twelve months from the date of approval of these financial statements. Thus, the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Judgements

Management are required to exercise judgement in applying the company's accounting policies. Due to the straightforward nature of the business, management consider that no critical judgements have been made in applying the company's accounting policies.

Key sources of estimation uncertainty

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. Management do not consider there are any key accounting estimates or assumptions made that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.

Revenue recognition

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

Turnover from the placement of permanent staff is recognised when a candidate starts their new employment. Turnover from the placement of temporary staff is recognised when the temporary staff provide their services.

Foreign currency transactions and balances

Company

The functional and presentational currency of the company is pounds sterling. Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

 

Barclay Simpson Associates Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

2

Accounting policies (continued)

Group

The results for the year of overseas subsidiary undertakings are translated into sterling at average rates for the year. Exchange differences arising on translation into sterling at year end rates of operating net assets and results of overseas subsidiary undertakings are reported in the statement of total comprehensive income and taken to reserves. All other exchange differences are taken to the profit and loss account.

Tax

The tax expense for the period comprises current 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 group operates and generates taxable income.

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, less their estimated residual value, over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures and fittings

4 years

Computer equipment

4 years

Website development

4 years

Investments

Investments in subsidiaries are valued at cost less provision for permanent diminution in value.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Barclay Simpson Associates Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

2

Accounting policies (continued)

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Defined contribution pension obligation

The group operates a defined contribution pension plan for its employees. A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group 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.

Financial instruments

The group does not trade in financial instruments and all such instruments arise directly from operations.

All trade and other debtors are initially recognised at transaction value, as none contain in substance a financing transaction. Thereafter trade and other debtors are reviewed for impairment where there is objective evidence based on observable data that the balance may be impaired. The group does not hold collateral against its trade and other receivables to its exposure to credit risk is the net balance of trade and other debtors after allowance for impairment.

 The group's cash holdings comprise on demand balances. All cash is held with banks with strong credit ratings.

Trade and other creditors and accruals are initially recognised at transaction value as none represent a financing transaction. They are only derecognised when they are extinguished.

The group has an invoice financing facility whereby some of its trade debtors have been transferred to another party. The terms of this facility do not meet the criteria for derecognition as the risks and rewards of ownership of these debtors are retained by the group. Consequently the assets and liabilities relating to this facility are separately disclosed.

 
 

 

Barclay Simpson Associates Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

3

Turnover

The analysis of the group's turnover for the year by market is as follows:

2023
£

2022
£

UK

14,177,254

17,598,131

Europe

425,058

471,961

Rest of world

312,563

326,478

14,914,875

18,396,570

4

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

22,842

8,378

Foreign exchange losses

797

881

Operating lease expense - property

232,199

216,054

5

Staff costs

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

2023
£

2022
£

Wages and salaries

5,996,513

4,990,100

Social security costs

689,413

615,510

Pension costs, defined contribution scheme

63,918

53,548

Redundancy costs

6,752

-

6,756,596

5,659,158

 

Barclay Simpson Associates Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

5

Staff costs (continued)

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

2023
No.

2022
No.

Administration and support

8

8

Other departments

45

43

53

51

6

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

459,769

448,167

Contributions paid to money purchase schemes

3,963

3,963

463,732

452,130

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

3

3

In respect of the highest paid director:

2023
£

2022
£

Remuneration

176,692

198,522

Company contributions to money purchase pension schemes

1,321

1,321

 

Barclay Simpson Associates Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

7

Auditors' remuneration

2023
£

2022
£

Audit of these financial statements

9,350

9,000

Audit of the financial statements of subsidiaries of the company pursuant to legislation

16,300

15,750

25,650

24,750

Other fees to auditors

Audit-related assurance services

5,975

5,750

Taxation compliance services

4,675

4,500

10,650

10,250


 

8

Taxation

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

2023
£

2022
£

Current taxation

UK corporation tax

227,465

258,055

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

The differences are reconciled below:

2023
£

2022
£

Profit before tax

1,039,753

1,373,924

Corporation tax at standard rate

259,938

261,046

Decrease from effect of different UK tax rates on some earnings

(14,844)

-

Effect of revenues exempt from taxation

-

(8,585)

Effect of expense not deductible in determining taxable profit

10,515

3,445

Effect of foreign tax rates

3,456

1,906

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

-

9,431

Tax decrease from other short-term timing differences

(31,600)

(9,188)

Total tax charge

227,465

258,055

 

Barclay Simpson Associates Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

9

Tangible assets

Group

Fixtures and fittings
£

Computer equipment
£

Website development
£

Total
£

Cost

At 1 January 2023

6,245

3,006

86,171

95,422

Additions

6,766

95,257

10,600

112,623

Disposals

-

(2,350)

(39,950)

(42,300)

At 31 December 2023

13,011

95,913

56,821

165,745

Depreciation

At 1 January 2023

4,163

2,787

43,416

50,366

Charge for the year

2,833

6,429

13,580

22,842

Eliminated on disposal

-

(2,350)

(39,950)

(42,300)

At 31 December 2023

6,996

6,866

17,046

30,908

Carrying amount

At 31 December 2023

6,015

89,047

39,775

134,837

At 31 December 2022

2,082

219

42,755

45,056

 

Barclay Simpson Associates Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

9

Tangible assets (continued)

Company

Fixtures and fittings
£

Computer equipment
£

Website development
£

Total
£

Cost

At 1 January 2023

6,245

3,006

69,221

78,472

Additions

6,766

61,632

10,600

78,998

Disposals

-

(2,350)

(39,950)

(42,300)

At 31 December 2023

13,011

62,288

39,871

115,170

Depreciation

At 1 January 2023

4,163

2,787

40,238

47,188

Charge for the year

2,833

5,624

9,342

17,799

Eliminated on disposal

-

(2,350)

(39,950)

(42,300)

At 31 December 2023

6,996

6,061

9,630

22,687

Carrying amount

At 31 December 2023

6,015

56,227

30,241

92,483

At 31 December 2022

2,082

219

28,983

31,284

10

Investments

Company

2023
£

2022
£

Investments in subsidiaries

8,600

13,013

 

Barclay Simpson Associates Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

10

Investments (continued)

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Barclay Simpson Interim Services Limited

UK

Ordinary shares

100%

100%

Barclay Simpson Europe Limited

UK

Ordinary shares

85%

85%

Barclay Simpson Gmbh

Germany

Ordinary shares

100%

100%

Barclay Simpson Solutions Limited

UK

Ordinary shares

82%

82%

Subsidiary undertakings

Barclay Simpson Interim Services Limited

The principal activity of Barclay Simpson Interim Services Limited is the provision of contract and interim recruitment services and solutions across the cyber security, internal audit, risk management, compliance and interrelated corporate governance professional staffing sectors.

Barclay Simpson Europe Limited

The principal activity of Barclay Simpson Europe Limited is the provision of recruitment services and workforce solutions across the risk management, compliance, internal audit, cyber security and interrelated corporate governance professional staffing sectors in the European and Nordic regions.

Barclay Simpson Gmbh

The principal activity of Barclay Simpson Gmbh is that of recruitment consultancy. Barclay Simpson Gmbh is indirectly owned.

Barclay Simpson Solutions Limited

The principal activity of Barclay Simpson Solutions Limited is to act as a solutions and services provider with a primary focus on cyber security and a secondary focus on change, technology, data, audit, risk and compliance. Our core capabilities include the effective delivery of solutions and services through the deployment of bespoke teams of subject matter experts and the application of strong service delivery principles. Barclay Simpson Solutions Limited is indirectly owned.

 

Barclay Simpson Associates Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

11

Debtors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Trade debtors

 

1,656,051

2,307,333

394,227

748,714

Amounts owed by related parties

20

-

-

144,300

287,654

Other debtors

 

374,033

427,774

374,033

423,036

Prepayments

 

193,069

108,751

166,862

101,524

Accrued income

 

329,685

248,851

82,382

104,354

Corporation tax asset

8

26,846

-

26,846

-

 

2,579,684

3,092,709

1,188,650

1,665,282

Group

As at the year end, trade debtors of £1,656,051 (2022: £2,307,333) for the group and £394,227 (2022: £748,714) for the company have been transferred to the financing party. There is a fixed charge over these debtors and a floating charge over the company's other assets in favour of the financing party. The amount drawn down against these at the balance sheet was £nil (2022: £nil).

Included in other debtors is £228,891 (2022: £253,087) due from employee shareholders. These amounts are repayable on demand, so are not subject to discounting, and secured on the shares which were acquired with the initial loans. To date the balances have been repaid through dividends on those shares. Recoupment through dividends, and the exercise of the security, would lead to a deduction in shareholders funds, which impacts on the Company's assessment of its distributable reserves.

 

Barclay Simpson Associates Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

12

Cash and cash equivalents

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Cash at bank

832,870

1,128,402

180,870

313,780

Short-term deposits

16,477

22,461

-

290

849,347

1,150,863

180,870

314,070

13

Creditors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Due within one year

 

Loans and borrowings

16

-

83,333

-

83,333

Trade creditors

 

143,115

80,272

51,487

52,552

Amounts due to related parties

20

-

-

96,972

-

Social security and other taxes

 

725,528

837,994

229,037

277,879

Outstanding defined contribution pension costs

 

24,660

25,734

24,660

24,556

Other payables

 

300,935

153,971

79,778

48,197

Accruals

 

750,713

1,383,045

370,314

909,221

Corporation tax

8

133,417

174,517

-

44,385

Deferred income

 

75,900

-

-

-

 

2,154,268

2,738,866

852,248

1,440,123

Due after one year

 

Loans and borrowings

16

-

62,500

-

62,500

14

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £63,918 (2022 - £53,548).

Contributions totalling £24,660 (2022 - £25,734) were payable to the scheme at the end of the year and are included in creditors.

 

Barclay Simpson Associates Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

15

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary A of £0.10 each

1,078

108

1,250

125

Ordinary B of £0.10 each

625

63

605

61

 

1,703

170

1,855

186

On 1 February 2023, 20 Ordinary B shares were issued for aggregate consideration of £11,734. Pursuant to a special resolution dated 1 June 2023 the company cancelled 110 Ordinary A shares. On 10 August 2023 the company repurchased and cancelled 62 Ordinary A shares. The aggregate purchase consideration was £234,463, which was paid through the settlement of loans to shareholders which had already been fully provided against. Accordingly, there was no reduction to the Company's distributable reserves as a result of the repurchase. A capital redemption reserve of £18, being the nominal value of the shares cancelled arose on these latter two transactions.

Rights, preferences and restrictions

The A shareholders receive preference on a return of capital. Otherwise the B shares rank pari passu with the A shares in all respects. At the balance sheet date 110 (2021: 110) Ordinary A shares were held in treasury. No dividends are payable on shares held in treasury.

16

Loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

-

62,500

-

62,500

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Current loans and borrowings

Bank borrowings

-

83,333

-

83,333

 

Barclay Simpson Associates Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

16

Loans and borrowings (continued)

Group

Bank loans

All bank loans represented the outstanding liability in relation to a Coronavirus Business Interruption Loan ("CBIL"). The principal of £250,000 was received on 1 September 2020. The interest rate is 3.99% plus the Bank of England Base rate per annum. Monthly repayments have been made from September 2021, and the final instalment is due on 31 August 2024. The loan was repaid early during the year ended 31 December 2023.

This loan is secured via a fixed and floating charge over the assets of the group.

17

Obligations under leases and hire purchase contracts

Group

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

165,760

143,360

The amount of non-cancellable operating lease payments recognised as an expense during the year was £232,199 (2022 - £216,054).

18

Dividends

   

2023

 

2022

   

£

 

£

Final dividend in respect of the prior year of £Nil (2022 - £256) per ordinary share

 

-

 

319,998

Interim dividends (see below)

 

600,008

 

609,939

   

600,008

 

929,937

         

The company paid the following interim dividends during the year: 6 October 2023 £278.30 per Ordinary A share totalling £300,007; 20 December 2023 £176.16 per Ordinary A and Ordinary B share totalling £300,000 (2022: £112.40 per Ordinary A share in March 2022 totalling £99,978; £413.90 per Ordinary A share and £63 per Ordinary B share in December 2022 totalling £509,961).

 

Barclay Simpson Associates Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

19

Analysis of changes in net debt

Group

At 1 January 2023
£

Financing cash flows
£

Foreign exchange movements
£

At 31 December 2023
£

Cash and cash equivalents

Cash

1,150,863

(301,468)

(48)

849,347

Borrowings

Long term borrowings

(62,500)

62,500

-

-

Short term borrowings

(83,333)

83,333

-

-

(145,833)

145,833

-

-

 

1,005,030

(155,635)

(48)

849,347

20

Related party transactions

Summary of transactions with subsidiaries

The group has taken advantage of the exemption available in FRS 102 from disclosing transactions with 100% owned subsidiaries.

 During the year the Company recharged expenses of £153,649 (2022: £205,234) to subsidiary undertakings.

 At the balance sheet date, £144,200 (2022: £168,762) was due from and £15,050 (2022: £nil) was due to entities that are subsidiary undertakings.
 

21

Controlling party

There is no ultimate controlling party