REGISTERED NUMBER: |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE PERIOD |
1 APRIL 2022 TO 30 SEPTEMBER 2023 |
REGISTERED NUMBER: |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE PERIOD |
1 APRIL 2022 TO 30 SEPTEMBER 2023 |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED (REGISTERED NUMBER: 04297475) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE PERIOD 1 APRIL 2022 TO 30 SEPTEMBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 14 |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED |
COMPANY INFORMATION |
FOR THE PERIOD 1 APRIL 2022 TO 30 SEPTEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and |
Statutory Auditors |
2 Lakeview Stables |
Lower St. Clere |
Kemsing |
Sevenoaks |
Kent |
TN15 6NL |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED (REGISTERED NUMBER: 04297475) |
STRATEGIC REPORT |
FOR THE PERIOD 1 APRIL 2022 TO 30 SEPTEMBER 2023 |
The directors present their strategic report for the period 1 April 2022 to 30 September 2023. |
The directors have changed the period end date to enable them complete period end financial statements after their busiest trading period. This has created an 18 month period and therefore the comparatives are not entirely comparable. |
The principal activity of the company in the period under review was that of the recruitment of transport personnel as well as the supply of a complete logistics service. |
REVIEW OF BUSINESS |
The directors recognise that the results from the previous period reflect the challenges seen across the wider economy and in particular the logistics recruitment sector. A number of consecutive interest rate rises, along with many other cost pressures, has led to a fall in consumer confidence and ultimately demand. |
The directors have managed overheads closely throughout the period to ensure that the company remains agile and with the ability to adapt to changes in the economy and to the sector. Such review has also led to a restructure of the Senior Management team, further aligning costs to the current situation, whilst also ensuring that we remain in a positive position to maximise growth opportunities. |
More recently, the company has seen a return to growth and subsequently profit, which in turn has led to an improving cash flow position. The Directors are confident that this improved performance will continue. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The board of directors continually review the risks and uncertainties relating to the company. In previous periods, they concluded that the risks associated with leaving Europe could affect the supply of drivers and as such a shortage of qualified drivers could inhibit growth and reduce the gross profit achieved. |
The directors are pleased that margins have been maintained despite the economic challenges that they have faced. |
The company recognises that the cost of hiring and retaining staff has increased during the period, largely due to the high inflation in the UK, along with the shortage of suitably qualified individuals. Despite this, the company has maintained a reasonable level of cost and is pleased with its current levels of retention. |
FINANCIAL KEY PERFORMANCE INDICATORS |
The following Key Performance Indicators are part of the tools used by management to monitor the company's performance: |
The directors monitor the gross profit margin, turnover and cashflow on a daily and weekly basis. |
Overheads are closely monitored by management, resulting in a decrease in administrative expenses subsequent to the period end and is a key factor in mitigating the costs of the economic downturn. |
FUTURE DEVELOPMENTS |
The company will continue to develop its logistics division, increasing the number of operating centres across the UK. Upon continued review, the company will look at developing its branch structure whilst also maximising gross profit achieved in each of the existing branches within the network. |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED (REGISTERED NUMBER: 04297475) |
STRATEGIC REPORT |
FOR THE PERIOD 1 APRIL 2022 TO 30 SEPTEMBER 2023 |
FINANCIAL INSTRUMENTS |
The company has a normal level of exposure to price, credit, liquidity and cashflow risks arising from trading activities which are all conducted in sterling. |
ON BEHALF OF THE BOARD: |
19 September 2024 |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED (REGISTERED NUMBER: 04297475) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 1 APRIL 2022 TO 30 SEPTEMBER 2023 |
The directors present their report with the financial statements of the company for the period 1 April 2022 to 30 September 2023. |
DIVIDENDS |
Interim dividends of £1,276.60 per ordinary share were paid during the period. |
The total distribution of dividends for the period ended 30 september 2023 is £1,238,305. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen in accordance with Companies Act 2006, s.414C(11) to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments, financial instruments and the principal activity. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED (REGISTERED NUMBER: 04297475) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 1 APRIL 2022 TO 30 SEPTEMBER 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Lakeview Southern Audit Limited, will be deemed to continue in office under the Companies Act 2006, s.487 (2). |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED |
Opinion |
We have audited the financial statements of Drivers Direct Recruitment Agency Limited (the 'company') for the period ended 30 September 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 September 2023 and of its profit for the period then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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. |
Material uncertainty relating to going concern |
We draw attention to note 9 in the financial statements, which provides details of matters which indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter. |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Key audit matters |
Except for the matter described in the Material uncertainty related to going concern section, we have determined that there are no other key audit mattters to be communicated in our report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
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 Report of the Directors for the financial period for which the financial statements are prepared is consistent with the financial statements; and |
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED |
Matters on which we are required to report by exception |
In the 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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the 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. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We considered the central laws and regulations to the entity and identified those being of significance. We undertook an enquiry of management and those charged with governance to evaluate those of significance and any instances of non-compliance. |
Through discussion and, where appropriate, written representation we obtained an understanding of the entity's policies and procedures in relation to fraud risks, including knowledge of any actual, suspected or alleged fraud. |
The Senior Statutory Auditor has assessed that the engagement team collectively have the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations within the areas that they are responsible for testing. |
Where necessary, documentation scrutiny was used to determine the significance of any instances with non-compliance of central laws and regulations and reviewed disclosures made in the financial statements to ensure these were appropriately made. We also reviewed the journals processed by the finance team and reviewed all transactions outside the normal course of the entity's business. |
We communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
Irregularities that result from fraud are inherently more difficult to detect from irregularities that result from error. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants and |
Statutory Auditors |
2 Lakeview Stables |
Lower St. Clere |
Kemsing |
Sevenoaks |
Kent |
TN15 6NL |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED (REGISTERED NUMBER: 04297475) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE PERIOD 1 APRIL 2022 TO 30 SEPTEMBER 2023 |
Period |
1.4.22 |
to | Year Ended |
30.9.23 | 31.3.22 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,113,898 | 1,226,067 |
Other operating income | 3 |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL PERIOD |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED (REGISTERED NUMBER: 04297475) |
BALANCE SHEET |
30 SEPTEMBER 2023 |
30.9.23 | 31.3.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
CURRENT ASSETS |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Share premium | 18 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED (REGISTERED NUMBER: 04297475) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE PERIOD 1 APRIL 2022 TO 30 SEPTEMBER 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 March 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 September 2023 |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED (REGISTERED NUMBER: 04297475) |
CASH FLOW STATEMENT |
FOR THE PERIOD 1 APRIL 2022 TO 30 SEPTEMBER 2023 |
Period |
1.4.22 |
to | Year Ended |
30.9.23 | 31.3.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Tax paid | ( |
) | ( |
) |
Government grants |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Movement on invoice financing debt | 235,935 | (107,599 | ) |
Movement in intercompany balance | (274,581 | ) | (273,856 | ) |
Amount introduced by directors | 120,510 | 51,506 |
Amount withdrawn by directors | - | (36,289 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of period |
2 |
2,693,308 |
Cash and cash equivalents at end of period |
2 |
772,396 |
1,721,091 |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED (REGISTERED NUMBER: 04297475) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE PERIOD 1 APRIL 2022 TO 30 SEPTEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1.4.22 |
to | Year Ended |
30.9.23 | 31.3.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Government grants | ( |
) |
Finance income | (6,123 | ) | (44 | ) |
1,213,773 | 1,306,921 |
Decrease in trade and other debtors |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Period ended 30 September 2023 |
30.9.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 772,396 | 1,721,091 |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 1,721,091 | 2,693,308 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.4.22 | Cash flow | At 30.9.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,721,091 | (948,695 | ) | 772,396 |
1,721,091 | ( |
) | 772,396 |
Debt |
Debts falling due within 1 year | (3,976,350 | ) | 904,040 | (3,072,310 | ) |
(3,976,350 | ) | 904,040 | (3,072,310 | ) |
Total | (2,255,259 | ) | (44,655 | ) | (2,299,914 | ) |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED (REGISTERED NUMBER: 04297475) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE PERIOD 1 APRIL 2022 TO 30 SEPTEMBER 2023 |
1. | STATUTORY INFORMATION |
Drivers Direct Recruitment Agency Limited is a |
The functional currency of the business is pound sterling. |
The place of business is 13 Whitworth Court, Runcorn, Cheshire, WA7 1WA. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover represents net amounts receivable for services provided in recruiting haulage personnel, haulage services and franchise fees. All amounts are shown within the financial statements excluding value added tax. |
Turnover is recognised during the period in which the service is carried out. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Motor vehicles | - |
Tangible fixed assets are stated at cost less accumulated depreciation. The depreciation policy noted above for freehold property is not applied to land. |
Financial instruments |
Basic Financial Assets and Liabilities, which include trade debtors and other debtors, loans to and from group companies, trade creditors and cash and bank balances, are initially measured at transaction price including transaction costs. |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED (REGISTERED NUMBER: 04297475) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2022 TO 30 SEPTEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Cash and cash equivalents |
The company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The company does not have any such investments. |
Impairment of financial assets |
Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial assets, the estimated future cash flows of the investment have been affected. |
Any impairment identified is recognised in the profit and loss. |
3. | OTHER OPERATING INCOME |
Period |
1.4.22 |
to | Year Ended |
30.9.23 | 31.3.22 |
£ | £ |
Other income |
Government grants |
77,461 | 80,778 |
During the previous year the company received £16,447 from the Coronavirus Job Retention Scheme, no grants were received in the period. |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED (REGISTERED NUMBER: 04297475) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2022 TO 30 SEPTEMBER 2023 |
4. | EMPLOYEES AND DIRECTORS |
Period |
1.4.22 |
to | Year Ended |
30.9.23 | 31.3.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the period was as follows: |
Period |
1.4.22 |
to | Year Ended |
30.9.23 | 31.3.22 |
Direct staff | 6 | 6 |
Administrative staff | 60 | 57 |
Period |
1.4.22 |
to | Year Ended |
30.9.23 | 31.3.22 |
£ | £ |
Directors' remuneration |
Remuneration paid to the highest paid Director in the period totalled £26,580 (2022: £22,306). |
Directors pension costs totalled £339 (2022: £nil). |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
Period |
1.4.22 |
to | Year Ended |
30.9.23 | 31.3.22 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED (REGISTERED NUMBER: 04297475) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2022 TO 30 SEPTEMBER 2023 |
6. | AUDITORS' REMUNERATION |
Period |
1.4.22 |
to | Year Ended |
30.9.23 | 31.3.22 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
18,641 |
11,400 |
Total audit fees | 18,641 | 11,400 |
Taxation compliance services |
Other non- audit services |
Total non-audit fees | 28,870 | 9,765 |
Total fees payable | 47,511 | 21,165 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
Period |
1.4.22 |
to | Year Ended |
30.9.23 | 31.3.22 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED (REGISTERED NUMBER: 04297475) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2022 TO 30 SEPTEMBER 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1.4.22 |
to | Year Ended |
30.9.23 | 31.3.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation and net of deferred tax | 4,949 | 1,309 |
Tax on group loss relief | (123,421 | ) | (29,645 | ) |
Effect of marginal rate of tax | (30,203 | ) | - |
Total tax charge | 160,810 | 227,129 |
8. | DIVIDENDS |
Period |
1.4.22 |
to | Year Ended |
30.9.23 | 31.3.22 |
£ | £ |
Ordinary shares of £1 each |
Interim |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED (REGISTERED NUMBER: 04297475) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2022 TO 30 SEPTEMBER 2023 |
9. | GOING CONCERN |
The directors consider the company to be a going concern. However, the following matters indicate there is a material uncertainty that may cast a significant doubt on the company's ability to continue as a going concern: |
There is an open enquiry from HMRC into the company. Whilst the vast majority of the enquiry has been satisfactorily resolved, there remains one line of enquiry that HMRC have not yet concluded upon. The directors have taken external expert advice in relation to this one area of the business and have continued to do so throughout the enquiry. As a result, they are confident that the enquiry will be closed without having a significant impact on the company. |
However, HMRC are currently not in agreement. If HMRC decide to take the matter further and are ultimately successful in their line of enquiry, an unquantifiable assessment may be made on the company which could be significant. If this was to be the outcome, it could have a material impact on the company's ability to continue as a going concern and, therefore, that it might be unable to realise its assets and discharge its liabilities in the normal course of business. |
Subsequent to the period end, cash flow continues to be an issue for the company with the historically built up cash reserves further depleted. The directors are confident that the company will trade through the current cash flow issues and will return to positive cash flow, provided the continued support from the bank, in relation to the invoice discounting facility and loan, and HMRC is not withdrawn. Should this support be withdrawn, the directors would endeavour to arrange alternative funding. There is uncertainty as to whether this would be achievable. Should alternative funding not be available this would have a material impact on the company's ability to continue as a going concern and, therefore, that it might be unable to realise its assets and discharge its liabilities in the normal course of business. |
As disclosed in note 11, the company is owed an amount of £531,827 by the parent company at the period end. If any of the above events were to occur, there is a doubt that this amount would be recoverable, either in part or in full. |
10. | TANGIBLE FIXED ASSETS |
Freehold | Plant and | Motor |
property | machinery | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2022 |
Additions |
At 30 September 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for period |
At 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 31 March 2022 |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED (REGISTERED NUMBER: 04297475) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2022 TO 30 SEPTEMBER 2023 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.9.23 | 31.3.22 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Directors' current accounts | 4,215 | 36,289 |
Prepayments |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.9.23 | 31.3.22 |
£ | £ |
Other loans (see note 13) |
Trade creditors |
Tax |
Social security and other taxes |
Other creditors |
Directors' current accounts | 88,436 | - |
Accrued expenses |
13. | LOANS |
An analysis of the maturity of loans is given below: |
30.9.23 | 31.3.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Invoice Discounting |
14. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
30.9.23 | 31.3.22 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
Rentals paid under operating leases are charged to the statement of comprehensive income on a straight line basis over the period of the lease. |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED (REGISTERED NUMBER: 04297475) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2022 TO 30 SEPTEMBER 2023 |
15. | SECURED DEBTS |
The following secured debts are included within creditors: |
30.9.23 | 31.3.22 |
£ | £ |
Invoice discounting | 3,072,310 | 3,976,350 |
The company has an invoice discounting advance which is secured by a fixed charge over the trade debtors and also a floating charge over all other assets. |
16. | PROVISIONS FOR LIABILITIES |
30.9.23 | 31.3.22 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred tax | 1,162 | (642 | ) |
6,939 | 5,777 |
Deferred |
tax |
£ |
Balance at 1 April 2022 |
Provided during period |
Balance at 30 September 2023 |
17. | CALLED UP SHARE CAPITAL |
Allotted and issued: |
Number: | Class: | Nominal | 30.9.23 | 31.3.22 |
value: | £ | £ |
Ordinary | £1 | 970 | 970 |
The ordinary shares have full voting rights, rights to dividends and rights on winding up. |
DRIVERS DIRECT RECRUITMENT AGENCY |
LIMITED (REGISTERED NUMBER: 04297475) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2022 TO 30 SEPTEMBER 2023 |
18. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 April 2022 | 456,467 |
Profit for the period |
Dividends | ( |
) | ( |
) |
At 30 September 2023 | 254,834 |
The retained earnings are the cumulative profit and loss net of distributions to the parent company. |
The share premium account represents amounts paid for share capital in excess of the par value. |
19. | PENSION COMMITMENTS |
The company makes contributions to a defined contribution pension scheme. During the period contributions of £39,251 (2022: £20,006) were paid. The contributions due are those specified under the legal requirements of Auto-enrolment. The cost of these contributions are charged to the statement of comprehensive income on an accruals basis as they become payable under the scheme. |
20. | ULTIMATE PARENT COMPANY |
Drivers Direct Recruitment Group Limited is regarded by the directors as being the company's ultimate parent company. |
The registered office where the financial statements may be obtained is 2 Lakeview Stables, Lower St. Clere, Kemsing, Sevenoaks, Kent, TN15 6NL. |
Drivers Direct Recruitment Group Limited holds 100% of the voting shares in Drivers Direct Recruitment Agency Limited. |
The principal place of business of the parent is 13 Whitworth Court, Runcorn, Cheshire, WA7 1WA. |
21. | RELATED PARTY DISCLOSURES |
At the balance sheet date, some directors were owed a combined £88,436 and one director owed the company £4,215 (2022: directors owed the company £36,289). No interest has been charged on this balance. |
During the period, dividends were paid to the directors via the parent company. |
Directors remuneration is disclosed in note 4 to the financial statements. |
22. | ULTIMATE CONTROLLING PARTY |
The controlling party is Drivers Direct Recruitment Group Limited. |
The ultimate controlling party is |
Drivers Direct Recruitment Group Ltd prepares group financial statements. The registered office of Drivers Direct Recruitment Group Ltd is 2 Lakeview Stables, Lower St. Clere, Kemsing, Sevenoaks, Kent TN15 6NL. |