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First Advantage Europe Ltd

Registered number: 03422709
Annual report
For the year ended 31 December 2023

 
FIRST ADVANTAGE EUROPE LTD
 
 
COMPANY INFORMATION


Director
Bret T Jardine 




Registered number
03422709



Registered office
1 Wilford Business Park
Ruddington Lane

West Bridgford

Nottingham

NG11 7EP




Independent auditor
Forvis Mazars
Chartered Accountants and Statutory Auditor

Mayoralty House

Flood Street

Galway

Ireland

H91 P8PR





 
FIRST ADVANTAGE EUROPE LTD
 

CONTENTS



Page
Strategic report
 
1 - 5
Director's report
 
6 - 9
Independent auditor's report
 
10 - 13
Statement of comprehensive income
 
14
Statement of financial position
 
15
Statement of changes in equity
 
16
Statement of cash flows
 
17
Analysis of net debt
 
18
Notes to the financial statements
 
19 - 33


 
FIRST ADVANTAGE EUROPE LTD
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The director presents the Strategic Report of First Advantage Europe Limited (the “Company”) for the year end 31st December 2023.

Business review and future developments
 
First Advantage Europe Limited (“our”, “we” or the “Company”) is a wholly owned subsidiary of First Advantage BV in Netherlands. The Company is ultimately owned by First Advantage Corporation, headquartered in the United States of America. It is a provider of pre-employment screening and post-employment background screening services for both domestic and global companies. Service offerings include criminal background checks, prior employment, education and professional licensing verifications and motor vehicle checks, amongst other related services.
Despite the impact of macroeconomic factors affecting the hiring industry and seasonality, the Company’s revenues in 2023 did not see a material decline and remained at previous levels. The decline in profit in 2023 is due to rising costs. With macroeconomic uncertainty prevailing during the year, the Company had proactively initiated cost savings measures that helped in mitigating the profit decline further.
Our 2024 priorities include growing revenues profitably and increasing cash flow further through process improvements, automation and cost reduction measures.

Principal risks and uncertainties
 
The Company’s activities expose it to several financial and operational risks as part of the normal course of business to which it has developed and implemented policies and procedures to manage and mitigate.
Exchange rate risk
The Company’s activities expose it primarily to the financial risk of changes in foreign currency exchange rates.
Credit Risk
The Company’s principal financial assets are cash and bank balances, trade and other receivables. The Company’s credit risk is primarily attributable to its trade receivables. The amounts presented in the financial statements are net of allowances for doubtful receivables. An allowance is made by assessing factors including the current credit rating of the debtor, the aging profile of the debtors and historical losses. The Company’s exposure is spread over a large number of counterparties and customers.
Liquidity Risk
The Company is part of a global group and engages with other group entities on an ongoing basis to fulfil client needs. These transactions are engaged on an arm’s length basis. The Company has a healthy bank balance which allows the Company to ensure that sufficient funds are available for ongoing operations and future development. The Company has also invested surplus cash in short term deposits.
 

Page 1

 
FIRST ADVANTAGE EUROPE LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties (continued)
 
Market Risk
The majority of  the Company's revenues are derived from pre-employment screening services and are therefore dependent upon general economic and hiring conditions in the industries the Company serves. To the extent that the economy in general or labour market conditions in particular deteriorate, our existing and potential clients may slow or defer hiring and may be reluctant to increase spending on employee screening. The Company, in order to mitigate this risk, has developed a diverse and global client base, in a wide range of industries.
After making enquiries, the director has reasonable expectation that the Company and the group have adequate resources to continue in operational existence for the foreseeable future (as is set out in more detail in the Director's report). Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Financial key performance indicators
 
The Company's results are set out in the Statement of Comprehensive Income and Statement of Financial Position on pages 14 to 15. The Company’s Key Performance Indicators are:
Turnover of £ 38.5 million in 2023 (£ 38.5 million in 2022)
Gross Margin of 41.8% in 2023 (41.8% in 2022)
Profit before tax of £ 5.7 million in 2023 (£ 6.6 million in 2022)
Cash at bank of £ 13.7 million as on 31st December 2023 (£ 9.2 million as on 31st December 2022)
The director considers the Company has performed satisfactorily against these indicators.

Page 2

 
FIRST ADVANTAGE EUROPE LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Director's statement of compliance with duty to promote the success of the Company
 
In accordance with section 172 of the Companies Act 2006 each of the directors acts in the way that he or she considers, in good faith, would most likely promote the success of the Company for the benefit of its members as a whole.
All board meeting papers are required to address each of the matters noted below, if relevant, and adequate time is provided in board meetings for the directors to discuss these matters and request clarification or further information from management.
 
The probable consequences of any decisions in the long-term 
The interests of the workforce 
The need to foster the Company's business relationships with suppliers, customers and other key  stakeholders 
The potential impact of the Company's operations on communities and the environment 
The need to protect the Company's reputation for high standards of business conduct 

Stakeholder engagement
The Company takes stakeholder engagement seriously because it appreciates the fundamental need to build a holistic view of its business to promote a strategy which takes account of the broader operating environment. Directors benefit from improved insight into the needs of our stakeholders, provoking discussion of the potential risks and opportunities for our business in satisfying those needs and understanding the potential impact of decisions on affected stakeholders. Better insight and diversity of perspectives leads to more productive and balanced board of directors' discussions on complex issues and, as a result, decisions are well­ considered.
All board meeting papers relating to a principal decision are required to state whether, and to what extent, any key stakeholder group has an interest in the matter. Adequate time is provided in board meetings for the directors to consider and discuss the interests of stakeholders and request clarification or further information from management.
The Company's board of directors is committed to engaging with stakeholders directly wherever possible. Provided below is an overview of the Company's board engagement with our key stakeholder groups during the year.
People:
A number of engagement and feedback mechanisms for our employees are well established at the Company. 
We continue to conduct our annual Global Employee Engagement Survey, in addition to diversity, equity, and inclusion ("DE&I") specific pulse surveys, to maintain an active dialogue with our employees about our progress on DE&I considerations. These touchpoints, along with industry best practices, are helping to formulate our long-term goals around diversity, equity, and inclusion.
We believe we benefit from diverse perspectives, which enhances the value proposition of our Company. We continue to advance diversity initiatives with intentionality as well as inclusive workplace practices to support and retain top talent. Operating with empathy and compassion, the Company fosters a global inclusive workforce devoted to the diverse voices that make up our talent and products. Our team members empower each other to be their authentic selves and treat all with respect, integrity, and fairness.
 
Page 3

 
FIRST ADVANTAGE EUROPE LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Suppliers:
The Company is part of the wider First Advantage Group (collectively, First Advantage Corporation and its subsidiaries). 
The Company is committed to maintaining the highest standards among our suppliers. It requires all its suppliers to comply with a Code of Business Conduct, which addresses ethical employment practices. In furtherance of this commitment, we subject new suppliers to a comprehensive screening process prior to onboarding. The suppliers must agree to comply with our Code of Business Conduct, requiring: 
Prohibition of child or forced labor 
Specific compliance with the U.K. Modern Slavery Act of 2015 and the Australian Modern Slavery Act of 2018 
Freedom of association and collective bargaining 
Prohibition of discrimination, harassment, or abuse 
Implementation of a health and safety management system 
Wage and working time requirements 
Responsible environmental operatorship and regulatory compliance 
Ethical behavior, including anti-corruption standards 
Refraining from unfair business practices / committing to fair dealing 
Appropriate handling and security of information and data  

Community & Environment:
With a multinational presence, our team is inherently diverse. Our goal is to promote an environment that celebrates each individual, provides equality of opportunity, and secures a safe and healthy working environment. We make express commitments to participate in our communities, respect human rights, prohibit child labor, and work with our vendors to promote this same focus. Through FA Cares program, we believe in continuing to foster our sense of internal community by giving back to the communities in which we live and do business. We encourage and support corporate volunteerism through our FA Cares program. FA Cares allows employees to get involved and participate by using their skills and talents to help causes, projects, and not-for-profit organizations to benefit society.
As a global company, we are keenly aware of the impact that corporate operations can have on the surrounding environment. Our distributed workforce model minimizes our facilities footprint, while optimizing our global reach, and we are systematically seeking ways to manage, reduce, and positively influence our environmental impact. We do not have a vehicle fleet or significant direct fuel consumption, which also mitigates our impact on the environment.
Helping our customers:
Enabled by our proprietary technology, our products help companies protect their brands and provide safer environments for their customers and their most important resources: employees, contractors, contingent workers, tenants, and drivers. We have robust systems in place to mitigate data breaches to protect our customers.
Governments and regulators
The Company recognizes its responsibility as a global corporate citizen to do what’s right, and that requires not only compliance with laws and regulations, but also a commitment to ethical behavior. We memorialize these ethics through a variety of policies with the support and oversight of our Board of Directors and executive leadership. Further, as a processor of information, we employ robust cybersecurity strategies and believe many of our approaches are industry-leading.

Page 4

 
FIRST ADVANTAGE EUROPE LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


This report was approved by the Board of Directors and signed on its behalf by:



Bret T Jardine
Director

Date: 13 September 2024

Page 5

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The director presents his report and the audited financial statements for the year ended 31 December 2023.

Principal activity

The principal activity of First Advantage Europe Ltd (the "Company") during the year continued to be the provision of pre-employment screening services.

Results and dividends

The profit for the year, after taxation, amounted to £4,292,737 (2022: £5,559,919).

The director does not recommend the payment of a dividend for the year (2022: £nil).

Director

The director who served during the year and to the date of this report was:

Bret T Jardine 

Director's responsibilities statement

The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:


select suitable accounting policies for the Company's financial statements and then 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 director is 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 to enable him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Political contributions

There were no political contributions made during the year.

Page 6

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Future developments

There are no planned future developments that require disclosing.

Going concern

The director has assessed the Company's ability to continue as a going concern and has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. In doing this, the director has considered the results for the period, expectations of future trading and the availability of continued funding. On the basis of this information the director is satisfied that the Company will continue as a going concern and so the financial statements have been prepared on this basis.

Economic impact of global events

UK businesses are facing many uncertainties and challenges caused by political, economic, social, technological, legal and environmental factors. These uncertainties have contributed to an environment where there exists a range of issues and risks, including inflation, rising interest rates, labour shortages, disrupted supply chains and new ways of working.
The director has carried out an assessment of the potential impact of these uncertainties on the business, including the impact of mitigation measures, and concluded that the greatest impact on the business is expected to be from the economic ripple effect on the global economy. The director has taken account of these potential impacts in their going concern assessment.
The Company continues to work with its partners to minimise any impacts of these events and maximise the realisation of any opportunities they may provide to the business.

Qualifying third party indemnity provisions

The Company has made qualifying third party indemnity provisions for the benefit of its director which were made during the year and remain in force at the date of this report. No claim or notice of claim in respect of these indemnities has been received in the year.

Matters covered in the Strategic report

As permitted in paragraph 1A of Schedule 7 to Large and Medium-sized Companies (accounts and reports) Regulations 2008 certain matters which are required to be disclosed in the Director's report have been omitted as they are included in the Strategic report on pages 1 to 5. These matters relate to the review of the Company's business, principal risks and uncertainties facing the Company and future developments.

Page 7

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Streamlined Energy and Carbon Reporting ("SECR") Statement

1.   Overview

This report outlines the energy usage and associated greenhouse gas (“GHG”) emissions for the Company in compliance with the UK SECR Regulations. The information presented covers the reporting period from 01 January 2023 to 31 December 2023 (the “Reporting Period”). 
The Company serves its large and growing customer base with tailored background screening solutions through the broad talents and vertical specialization of our global team. Our teams help our customers and their talent navigate the applicant journey with solutions to hire smarter and onboard faster. The Company operates three office locations across the UK with a majority of the Company’s workforce working remotely from home. 
 
Energy Consumption and GHG Emissions

The energy consumption and GHG emissions for the Company have been calculated based on the available data on electricity and gas usage. Selection and data collection were based on primary information sources such as statements and invoices from our utility providers. 
 
Scope 1 (Direct Emissions): For the Reporting Period, Scope 1 direct GHG emissions are emissions from sources that are owned or controlled by the Company. The Scope 1 emissions are primarily associated with the consumption of natural gas for heating purposes across the Company’s office locations. 
 
Natural Gas Usage: 54,941 kWh
Natural Gas Emissions: 10,048.71 kg CO2e (calculated using the UK Government's Guidance - Greenhouse Gas Conversion Factor of 0.1829 kg CO2 per kWh for 2023.)  

Scope 2 (Indirect Emissions from Purchased Energy): For the Reporting Period, Scope 2 indirect GHG emissions encompass emissions from the consumption of purchased electricity. This covers electricity usage across the Company’s office locations.
 
Electricity Usage: 67,299 kWh
Electricity Emissions: 13,935.60 kg CO2e (calculated using the UK Government's Guidance - Greenhouse Gas Conversion Factor of 0.20707 kg CO2e per kWh for electricity consumed from the national grid.)  

2.   Methodology

The emissions have been calculated using the UK Government's published greenhouse gas conversion factors. The Company adheres to best practices in calculating and reporting these figures, ensuring compliance with the guidelines set out by SECR Regulations. The Company tracks energy and emissions profiles and we have implemented a software platform to measure our carbon emissions.

3.   Intensity Ratio

The Company has chosen kWh per employee as its intensity metric due to the dispersed nature of its workforce.

Total Energy Consumption: 122,240 kWh kWh (54,941 kWh (gas) + 67,299 kWh (electricity))
Total Number of Employees: 144 (Average Employee headcount in UK in 2023) 
Intensity Ratio: 788.65 kWh per employee
Page 8

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

4.   Energy Efficiency 

During the Reporting Period, the Company has implemented several measures to improve its energy efficiency, including the following:

i.We are implementing remote working policies - encouraging employees to work remotely has significantly reduced energy consumption at office locations.
ii.We encourage staff and client meetings through web / online mode to reduce travel-related emissions.
iii.We use energy-efficient equipment and airflow management and optimised cooling systems. We seek renewable energy use in our third party operated data centres, and the  global headquarters of the Company is in a LEED Silver and Energy Star certified building.

5.   Commitment

The Company is committed to monitoring and reducing its environmental impact through ongoing energy efficiency and sustainability initiatives. 
This SECR statement reflects the Company's dedication to transparent reporting and its efforts to measure and minimize its carbon emissions. The Company is working to expand strategies around sustainability by developing systems for monitoring emissions data and fostering a company culture to understand climate risks, including developing specific policies aimed at mitigating the impact of those potential risks.

Disclosure of information to auditor

The director at the time when this Director's report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company's auditor is unaware; and

he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

On April 26 2024, the director approved a resolution for the declaration and immediate payment of a dividend of £7,995,765.

Auditor

During the year, Forvis Mazars was appointed as the auditor for the Company.

The auditor, Forvis Mazarswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf by:
 





Bret T Jardine
Director

Date: 13 September 2024

Page 9

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FIRST ADVANTAGE EUROPE LTD
 

Opinion

We have audited the financial statements of First Advantage Europe Ltd (the "Company") for the year ended 31 December 2023 which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity 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 FRS 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 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’s responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Page 10

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FIRST ADVANTAGE EUROPE LTD
 

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:
 
the information given in the Strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Director's report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Director's report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Page 11

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FIRST ADVANTAGE EUROPE LTD
 

Responsibilities of the director

As explained more fully in the Director's responsibilities statement set out on page 6, the director is 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 director determines 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 director is 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 director intends either to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Based on our understanding of the Company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation and anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
Inquiring of management and, where appropriate, those charged with governance, as to whether the Company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud.  

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation and the Companies Act 2006. 
Page 12

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FIRST ADVANTAGE EUROPE LTD
 

In addition, we evaluated the director's and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls, and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition (which we pinpointed to the cut-off assertion), and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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

Use of the audit 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.




Austin Sammon (Senior statutory auditor)
for and on behalf of Forvis Mazars
Chartered Accountants and Statutory Auditor 
Mayoralty House
Flood Street
Galway
Ireland
H91 P8PR

13 September 2024
Page 13

 
FIRST ADVANTAGE EUROPE LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
38,531,736
38,524,885

Cost of sales
  
(22,428,753)
(22,411,885)

Gross profit
  
16,102,983
16,113,000

Administrative expenses
  
(10,369,991)
(9,483,884)

Operating profit
 5 
5,732,992
6,629,116

Interest income
 9 
30,916
83

Profit on ordinary activities before taxation
  
5,763,908
6,629,199

Tax on profit on ordinary activities
 10 
(1,471,171)
(1,069,280)

Profit for the financial year
  
4,292,737
5,559,919

The Statement of comprehensive income has been prepared on the basis that all operations are ongoing operations.

The notes on pages 19 to 33 form part of these financial statements.

Page 14

 
FIRST ADVANTAGE EUROPE LTD
REGISTERED NUMBER: 03422709

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible fixed assets
 11 
2,447,026
3,365,057

Tangible fixed assets
 12 
87,984
211,775

  
2,535,010
3,576,832

Current assets
  

Debtors: amounts falling due within one year
 13 
6,836,532
7,425,116

Cash at bank and in hand
 14 
13,709,502
9,179,910

  
20,546,034
16,605,026

Creditors: amounts falling due within one year
 15 
(3,905,697)
(5,299,248)

Net current assets
  
 
 
16,640,337
 
 
11,305,778

  

Net assets
  
19,175,347
14,882,610


Capital and reserves
  

Called up share capital 
 17 
4,502,752
4,502,752

Share premium
 18 
7,249,999
7,249,999

Profit and loss account
 18 
7,422,596
3,129,859

Total equity
  
19,175,347
14,882,610


The financial statements were approved and authorised for issue by the board and were signed on its behalf by:




Bret T Jardine
Director

Date: 13 September 2024

The notes on pages 19 to 33 form part of these financial statements.

Page 15

 
FIRST ADVANTAGE EUROPE LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
4,502,752
7,249,999
(2,430,060)
9,322,691


Comprehensive income for the year

Profit for the year
-
-
5,559,919
5,559,919
Total comprehensive income for the year
-
-
5,559,919
5,559,919



At 1 January 2023
4,502,752
7,249,999
3,129,859
14,882,610


Comprehensive income for the year

Profit for the year
-
-
4,292,737
4,292,737
Total comprehensive income for the year
-
-
4,292,737
4,292,737


At 31 December 2023
4,502,752
7,249,999
7,422,596
19,175,347


The notes on pages 19 to 33 form part of these financial statements.

Page 16

 
FIRST ADVANTAGE EUROPE LTD
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
4,292,737
5,559,919

Adjustments for:

Amortisation of intangible assets
918,031
1,028,611

Depreciation of tangible assets
122,449
151,928

Loss on disposal of tangible assets
1,342
-

Interest received
(30,916)
(83)

Taxation charge
1,471,171
1,069,280

Decrease/(increase) in debtors
471,444
(840,708)

(Decrease)/increase in creditors
(1,417,583)
298,048

Corporation tax (paid)
(1,329,999)
(1,160,476)

Net cash generated from operating activities

4,498,676
6,106,519


Cash flows from (used in) investing activities

Purchase of intangible fixed assets
-
(16,068)

Purchase of tangible fixed assets
-
(64,290)

Interest received
30,916
83

Net cash from (used in) investing activities
30,916
(80,275)

Net increase in cash and cash equivalents
4,529,592
6,026,244

Cash and cash equivalents at beginning of year
9,179,910
3,153,666

Cash and cash equivalents at the end of year
13,709,502
9,179,910


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
13,709,502
9,179,910

13,709,502
9,179,910


The notes on pages 19 to 33 form part of these financial statements.

Page 17

 
FIRST ADVANTAGE EUROPE LTD
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

9,179,910

4,529,592

13,709,502

Debt due within 1 year

(1,432,374)

580,834

(851,540)


7,747,536
5,110,426
12,857,962

The notes on pages 19 to 33 form part of these financial statements.

Page 18

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

First Advantage Europe Ltd ("the Company") is a private company limited by shares incorporated in England and Wales. The Company's registered address is 1 Wilford Business Park, Ruddington Lane, West Bridgford, Nottingham, NG11 7EP.
The principal activity of the Company during the year was the provision of pre-employment screening services.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The financial statements have been presented in Pound Sterling as this is the currency of the primary economic environment in which the Company operates and is rounded to the nearest pound.

The following principal accounting policies have been applied:

 
2.2

Going concern

The director has assessed the Company's ability to continue as a going concern and has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. In doing this, the director has considered the results for the period, expectations of future trading and the availability of continued funding. On the basis of this information the director is satisfied that the Company will continue as a going concern and so the financial statements have been prepared on this basis.

 
2.3

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services. Turnover from the rendering of services is recognised by reference to the point at which the Company's performance obligations are completed and its work becomes billable.

Page 19

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Goodwill and computer software have been recognised as intangible assets and are being amortised over their estimated useful economic life of between 3 and 5 years. The customer list has also been recognised as an intangible asset and is being amortised over its estimated useful life of 13 years.
All amortisation is charged to the Statement of comprehensive income within 'administrative expenses'.

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
All depreciation is charged to the Statement of comprehensive income within 'administrative expenses'.

Depreciation is provided on the following basis:

Leasehold property
-
fully depreciated
Fixtures and fittings
-
over seven years
Office equipment
-
over four years
Computer equipment
-
over three years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 20

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Debtors

Short-term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are measured initially at transaction price including any transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment for bad and doubtful debts.

 
2.7

Cash at bank and in hand

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.8

Creditors

Short-term creditors are measured at the transaction price (which is usually the invoice price). Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.9

Current and deferred taxation

A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. 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, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

Page 21

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Foreign currency translation

Functional and presentation currency

The Company's functional and presentation currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of comprehensive income except when deferred in other comprehensive income as qualifying cash flow hedges.

All other foreign exchange gains and losses are presented in the Statement of comprehensive income within 'administrative expenses'.

 
2.11

Leased assets

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. Operating lease payments are recognised as an expense on a straight line basis over the lease term.

 
2.12

Interest income

Interest income is recognised in the Statement of comprehensive income using the effective interest method.

 
2.13

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Statement of comprehensive income when they are incurred. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

Page 22

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.14

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Statement of financial position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the Statement of comprehensive income. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
 
Page 23

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.14
Financial instruments (continued)

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the Statement of comprehensive income. They are subsequently measured at fair value with changes in the Statement of comprehensive income.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the Statement of comprehensive income. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
 
Page 24

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.14
Financial instruments (continued)

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The director does not consider there to have been any critical judgements made in the application of the Company's accounting policies during the year ended 31 December 2023.


4.


Analysis of Turnover

An analysis of turnover is as follows:


2023
2022
£
£

Services rendered
38,531,736
38,524,885


By geographical market:

2023
2022
£
£

United Kingdom
30,605,566
36,213,394

Rest of the world
7,926,170
2,311,491

38,531,736
38,524,885


Page 25

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
122,449
151,928

Amortisation of intangible assets
918,031
1,028,611

Exchange differences
123,893
-

Operating lease rentals - land and buildings
125,617
286,714

Auditor's remuneration for audit services
21,000
7,032


6.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor and its associates:


2023
2022
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
17,500
7,032

All other services
3,500
-


7.


Employees

Staff costs, including the director's remuneration, were as follows:


2023
2022
£
£

Wages and salaries
6,813,000
5,076,704

Social security costs
679,311
762,385

Other employment taxes and levies
4,364
5,444

Cost of defined contribution scheme
300,432
312,842

7,797,107
6,157,375


The average monthly number of employees, including the director, during the year was as follows:


        2023
        2022
       Number
          Number







Administration
144
168

Page 26

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Director's remuneration



The highest paid director received remuneration of £nil (2022: £nil).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £nil (2022: £nil).

The total accrued pension provision of the highest paid director at 31 December 2023 amounted to £nil (2022: £nil).

The only key management personnel is the director of the Company.


9.


Interest receivable

2023
2022
£
£


Interest receivable
30,916
83


10.


Taxation


2023
2022
£
£

Analysis of charge in year


Current tax:
UK corporation tax on profits for the year
1,560,218
1,346,109

Adjustments in respect of previous periods
19,071
-


1,579,289
1,346,109


Deferred tax:
Origination and reversal of timing differences
(108,118)
(276,829)


Tax on profit on ordinary activities
1,471,171
1,069,280
Page 27

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022: lower than) the standard rate of corporation tax in the UK of 23.52% (2022: 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
5,763,908
6,629,199


Expected income tax expense on profit on ordinary activities
1,457,497
1,259,548

Effects of:


Provision for prior year tax
19,071
-

Expenses not deductible for tax purposes
110,700
338

Capital allowances for year in excess of depreciation
-
790

Tax treatment of intangible fixed assets
-
85,433

Tax effect on interest income
(7,724)
-

Operating expenses
256
-

Other
(511)
-

Deferred tax:
Origination and reversal of timing diferences
(108,118)
(276,829)

Total tax charge for the year
1,471,171
1,069,280


Factors that may affect future tax charges

From 1 April 2023, the rate of corporation tax in the United Kingdom increased from 19% to 25%. Companies with profits of £50,000 or less shall continue to be taxed at 19%, which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate shall apply but with a marginal relief applying as profits increase.

Page 28

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Intangible assets




Customer list
Computer software
Goodwill
Total

£
£
£
£



Cost


At 1 January 2023
2,100,000
1,014,496
2,222,221
5,336,717



At 31 December 2023

2,100,000
1,014,496
2,222,221
5,336,717



Amortisation


At 1 January 2023
534,035
660,398
777,227
1,971,660


Charge for the year
283,671
190,230
444,130
918,031



At 31 December 2023

817,706
850,628
1,221,357
2,889,691



Net book value



At 31 December 2023
1,282,294
163,868
1,000,864
2,447,026



At 31 December 2022
1,565,965
354,098
1,444,994
3,365,057


Page 29

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Tangible fixed assets





Leasehold property
Fixtures and fittings
Office equipment
Computer equipment
Total

£
£
£
£
£



Cost


At 1 January 2023
4,979
101,820
28,404
515,516
650,719


Disposals
-
(6,895)
(902)
-
(7,797)



At 31 December 2023

4,979
94,925
27,502
515,516
642,922



Depreciation


At 1 January 2023
4,979
70,764
28,049
335,152
438,944


Charge for the year
-
13,249
184
109,016
122,449


Disposals
-
(5,723)
(732)
-
(6,455)



At 31 December 2023

4,979
78,290
27,501
444,168
554,938



Net book value



At 31 December 2023
-
16,635
1
71,348
87,984



At 31 December 2022
-
31,056
355
180,364
211,775


13.


Debtors: Amounts falling due within one year

2023
2022
£
£


Trade debtors
5,885,037
6,411,823

Amounts owed by group undertakings and undertakings in which the Company has a participating interest
523,251
478,858

Taxation recoverable
-
225,258

Other debtors
133,205
122,256

Deferred taxation
295,039
186,921

6,836,532
7,425,116


Amounts owed by group undertakings and undertakings in which the Company has a participating interest are unsecured, interest free and payable on demand.
Other debtors include prepayments and rent deposits of £81,655 and £51,550 respectively (2022: £71,301 and £50,955).

Page 30

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Cash at bank and in hand

2023
2022
£
£

Cash at bank and in hand
13,709,502
9,179,910



15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
1,551,083
1,422,942

Amounts owed to group undertakings and undertakings in which the Company has a participating interest
851,540
1,432,374

Corporation tax
24,032
-

Other taxes and social security cost
511,150
1,033,693

Other creditors
458,210
641,321

Accruals and deferred income
509,682
768,918

3,905,697
5,299,248


Amounts owed to group undertakings and undertakings in which the Company has a participating interest are interest free, unsecured and repayable on demand.


16.


Deferred taxation




2023


£






At beginning of year
186,921


Credited to profit or loss
108,118



At end of year
295,039

The deferred tax asset is made up as follows:

2023
2022
£
£


Accelerated capital allowances
295,039
186,921

Page 31

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



4,502,752 (2022: 4,502,752) Ordinary shares of £1 each
4,502,752
4,502,752

These Ordinary shares have, attached to them, full voting, dividend and capital distribution rights.


18.


Reserves

Share premium account

Includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

Profit and loss account

This reserve reflects the accumulated results for the Company.


19.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents net contributions payable by the Company to the fund and amounted to £300,432 (2022: £312,842). Contributions totalling £19,850 (2022: £20,689) were payable to the fund at the reporting date and are included in other creditors.


20.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
98,125
4,193

Later than 1 year and not later than 5 years
6,875
123,750

105,000
127,943

Page 32

 
FIRST ADVANTAGE EUROPE LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
20,169,340
16,121,546


Financial liabilities


Financial liabilities measured at fair value through profit or loss
3,193,387
4,085,990


Financial assets measured at fair value through profit or loss comprise of trade debtors, amounts owed by group undertakings and undertakings in which the Company has a participating interest, rent deposits and cash at bank and in hand.


Financial liabilities measured at fair value through profit or loss comprise of trade creditors, amounts owed to group undertakings and undertakings in which the Company has a participating interest, other creditors and accruals.




22.


Related party transactions

The Company has taken advantage of the exemption under section 33 of FRS 102 "The Financial Reporting Standard Applicable in the UK and Republic of Ireland" from the requirement to disclose transactions with other wholly owned members of the group.


23.


Post balance sheet events

On April 26 2024, the director approved a resolution for the declaration and immediate payment of a dividend of £7,995,765.


24.


Controlling party

The Company is wholly owned by FADV B.V., a corporation registered in The Netherlands.
The ultimate controlling party is First Advantage Corporation, a United States corporation.

Page 33