Company registration number 05601393 (England and Wales)
CONTACT ASSOCIATES LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CONTACT ASSOCIATES LIMITED
COMPANY INFORMATION
Directors
Capita Corporate Director Limited
C J Gregory
(Appointed 14 August 2024)
Secretary
Capita Group Secretary Limited
Company number
05601393
Registered office
65 Gresham Street
London
England
EC2V 7NQ
Banker
Barclays Bank PLC
1 Churchill Place
London
United Kingdom
E14 5HP
CONTACT ASSOCIATES LIMITED
CONTENTS
Page
Directors' report
1 - 2
Income statement
3
Balance sheet
4 - 5
Statement of changes in equity
6
Notes to the financial statements
7 - 18
CONTACT ASSOCIATES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The Directors present their Directors' report and financial statements for the year ended 31 December 2023.
Principal activities
Contact Associates Limited ('the Company') is a wholly owned subsidiary (indirectly held) of Capita plc. Capita plc along with its subsidiaries are hereafter referred to as 'the Group'. The Company operates within the Group's Public Services division.
The principal activity of the Company continued to be that of a registered access centre. The core business is providing technical needs assessments for students with disabilities going on to higher education courses. This includes the provision of specialist dyslexia reports and study skills support for students, as well as consultancy on disability related issues.
As shown in Company's income statement on page 3, revenue has decreased from £5,169,417 in 2022 to £4,004,178 in 2023 mainly on account of reduction in market share. Accordingly, the Company's operating profit has reduced from £2,903,568 in 2022 to £1,871,799 in 2023.
The balance sheet on pages 4 to 5 of the financial statements shows the financial position at the year end. Net assets have increased from £13,501,353 in 2022 to £15,499,789 in 2023 primarily on account of profits earned by the company during the year.
Details of the amounts owed by/to its parent company and fellow subsidiary companies are shown in notes 8 and 10 to the financial statements.
Results and dividends
The results for the year are set out on page 3.
The Company has not paid or declared any dividends during the year (2022: £nil).
Directors
The Directors, who held office during the year and up to the date of signature of the financial statements were as follows:
Capita Corporate Director Limited
E H Brownell
(Resigned 31 March 2023)
S Brewer
(Resigned 31 January 2023)
G Bate-Williams
(Appointed 28 March 2023 and resigned 19 August 2024)
C J Gregory
(Appointed 14 August 2024)
Qualifying third party indemnity provisions
The Company has granted an indemnity to the Directors of the Company against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. This qualifying third party indemnity provision remains in force as at the date of approving the Directors' report.
Political donations
The Company made no political donations and incurred no political expenditure during the year (2022: £nil).
Post balance sheet date events
There are no significant events which have occurred after the reporting period.
CONTACT ASSOCIATES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Statement of Directors' responsibilities
The Directors are responsible for preparing the Directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 101 Reduced Disclosure Framework.
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 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;
assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations or have no realistic alternative but to do so.
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 responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
C J Gregory
Director
17 September 2024
CONTACT ASSOCIATES LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
2023
2022
Notes
£
£
Revenue
3
4,004,178
5,169,417
Cost of sales
(1,911,549)
(2,179,254)
Gross profit
2,092,629
2,990,163
Administrative expenses
(220,830)
(86,595)
Operating profit
4
1,871,799
2,903,568
Impairments
5
(2,769)
Net finance income
6
745,725
198,866
Profit before tax
2,614,755
3,102,434
Income tax charge
7
(616,319)
(588,416)
Profit and total comprehensive income for the year
1,998,436
2,514,018
The income statement has been prepared on the basis that all operations are continuing operations.
The notes and information on pages 7 to 18 form an integral part of these financial statements.
CONTACT ASSOCIATES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 4 -
2023
2022
Notes
£
£
Non-current assets
Deferred tax assets
7
25,059
24,219
25,059
24,219
Current assets
Trade and other receivables
8
16,779,800
13,651,654
Cash and cash equivalents
9
106,670
1,441,665
16,886,470
15,093,319
Total assets
16,911,529
15,117,538
Current liabilities
Trade and other payables
10
205,119
229,543
Provisions
11
6,024
Income tax payable
1,206,621
1,380,618
Total liabilities
1,411,740
1,616,185
Net assets
15,499,789
13,501,353
CONTACT ASSOCIATES LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
2023
2022
Notes
£
£
- 5 -
Capital and reserves
Issued share capital
12
2
2
Retained earnings
15,499,787
13,501,351
Total equity
15,499,789
13,501,353
The notes and information on pages 7 to 18 form an integral part of these financial statements.
For the financial year ended 31 December 2023, the Company was entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies.
The Directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the Company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
These financial statements were approved by the board of directors and authorised for issue on
17 September 2024
2024-09-17
and are signed on its behalf by:
C J Gregory
Director
Company registration number 05601393 (England and Wales)
CONTACT ASSOCIATES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
Share capital
Retained earnings
Total equity
£
£
£
At 1 January 2022
2
10,987,333
10,987,335
Profit for the year
-
2,514,018
2,514,018
At 31 December 2022
2
13,501,351
13,501,353
Profit for the year
-
1,998,436
1,998,436
At 31 December 2023
2
15,499,787
15,499,789
Share capital
The balance classified as share capital is the nominal proceeds on issue of the Company’s equity share capital, comprising two ordinary shares of £1 each.
Retained earnings
Represents accumulated profits of the Company.
The notes and information on pages 7 to 18 form an integral part of these financial statements.
CONTACT ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
1
Accounting policies
1.1
Basis of preparation
Contact Associates Limited is a private company limited by shares incorporated in England and Wales. The registered office is 65 Gresham Street, London, England, EC2V 7NQ.
The financial statements have been prepared under the historical cost basis except where stated otherwise and in accordance with applicable accounting standards.
In determining the appropriate basis of preparation for the annual report and financial statements for the year ended 31 December 2023, the Company’s Directors (‘the Directors’) are required to consider whether the Company can continue in operational existence for the foreseeable future, being a period of at least twelve months following the approval of these financial statements. The Directors have concluded that it is appropriate to adopt the going concern basis, having undertaken a rigorous assessment of the financial forecasts, key uncertainties, sensitivities, and mitigations as set out below.
Accounting standards require that ‘the foreseeable future’ for going concern assessment covers a period of at least twelve months from the date of approval of these financial statements, although those standards do not specify how far beyond twelve months the Directors should consider. In its going concern assessment, the Directors have considered the period from the date of approval of these financial statements to 31 December 2025 (‘the going concern period’) and which aligns to the period considered by the Directors of the ultimate parent company, Capita plc.
Board assessment
The financial forecasts used for the going concern assessment are derived from financial projections for 2024-2025 for the Company which have been subject to review and challenge by management and the Directors. The Directors have approved the projections.
Inter-dependency with Capita plc ('the Group')
The Director’s assessment of going concern has considered the extent to which the Company’s ability to remain a going concern is inter-dependent with that of the Group. The Company has dependency with the Group in respect of the following:
provision of certain services, such as and should the Group be unable to deliver these services, the Company would have difficulty in continuing to trade;
participation in the Group’s notional cash pooling arrangements, of which £ was advanced at 31 August 2024. In the event of the cash being required elsewhere in the Group, the Company may not be able to access its cash balance within the pooling arrangement;
recovery of receivables of £ from fellow Group undertakings as of 31 August 2024. If these receivables are not able to be recovered when forecast by the Company, then the Company may have difficulty in continuing to trade; and
additional funding that may be required if the Company suffers potential future losses
Given the inter-dependency the Company has with the Group, the Directors have considered the financial position of the ultimate parent undertaking as disclosed in its most recent condensed consolidated financial statements, being for the six month period ended 30 June 2024.
CONTACT ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 8 -
Basis of preparation (continued)
Ultimate parent undertaking – Capita plc
The Capita plc Board (‘the Board’) concluded that it was appropriate to adopt the going concern basis, having undertaken a rigorous assessment of the financial forecasts, key uncertainties, sensitivities, and mitigations when preparing the Group’s condensed consolidated financial statements for the period ended 30 June 2024. These condensed consolidated financial statements were approved by the Board on 1 August 2024 and are available on the Group’s website (www.capita.com/investors). Below is a summary of the position at 1 August 2024:
Accounting standards require that ‘the foreseeable future’ for going concern assessment covers a period of at least twelve months from the date of approval of these condensed consolidated financial statements, although those standards do not specify how far beyond twelve months a Board should consider. In its going concern assessment, the Board has considered the period from the date of approval of these condensed consolidated financial statements to 31 December 2025, which aligns with a period end and covenant test date for the Group.
The base case financial forecasts used in the going concern assessment are derived from financial projections for 2024-2025 as approved by the Board in June 2024.
The going concern assessment considers the Group’s sources and uses of liquidity and covenant compliance throughout the period under review.
Board Assessment
Under the base case scenario, the Group’s transformation programme and completion of the Portfolio non-core business disposal programme in January 2024 has simplified and strengthened the business and facilitates further efficiency savings enabling sustainable growth in revenue, profit and cash flow over the medium term. When combined with available committed facilities, this allows the Group to manage scheduled debt repayments. The most material sensitivities to the base case are the risk of not delivering the planned revenue growth and efficiency savings from the Group's previously announced restructuring programme.
The base case projections used for going concern assessment purposes reflect business disposals completed up to the date of approval of these condensed financial statements and the agreed sale of the Capita One business because the completion of the disposal has been assessed to be highly probable. The liquidity headroom assessment in the base case projections reflects the Group’s existing committed financing facilities and debt redemptions and does not reflect any potential future refinancing. The base case financial forecasts demonstrate liquidity headroom and compliance with all debt covenant measures throughout the going concern period to 31 December 2025.
In considering severe but plausible downside scenarios, the Board has taken account of the potential adverse financial impacts resulting from the following risks:
revenue growth falling materially short of plan;
operating profit margin expansion not being achieved;
targeted cost savings delayed and/or not delivered;
unforeseen operational issues leading to contract losses and cash outflows;
sustained interest rates at current levels;
non-availability of the Group’s non-recourse receivables financing facility; and
unexpected financial costs linked to incidents such as data breaches and/or cyber-attacks.
CONTACT ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 9 -
Basis of preparationtrue (continued)
The likelihood of simultaneous crystallisation of the above risks is considered by the directors to be low. Nevertheless, in the event that simultaneous crystallisation were to occur, the Group would need to take action to mitigate the risk of insufficient liquidity and covenant headroom. In its assessment of going concern, the Board has considered the mitigations, under the direct control of the Group, that could be implemented including reductions or delays in capital investment, substantially reducing (or removing in full) bonus and incentive payments. The Board considered the impact of the above risks and mitigations on the Group both in the scenario where the Capita One disposal does occur, and if it were not to occur. In the event of the simultaneous crystallisation of risks and the Capita One disposal does not complete, the Board also considered the ability of the Group to refinance a portion of the 2025 maturing debt. Taking these mitigations into account, the Group’s financial forecasts, in a severe but plausible downside scenario, demonstrate sufficient liquidity headroom and compliance with all debt covenant measures throughout the going concern period to 31 December 2025.
Adoption of going concern basis by the Group:
Reflecting the levels of liquidity and covenant headroom in the base case and severe but plausible downside scenario, the Group continues to adopt the going concern basis in preparing these condensed consolidated financial statements. The Board has concluded that the Group will be able to continue in operation and meet its liabilities as they fall due over the period to 31 December 2025.
Conclusion
Although the Company has a reliance on the Group as detailed above, even in a severe but plausible downside for both the Company and the Group, the Directors are confident the Company will continue to have adequate financial resources to continue in operation and discharge its liabilities as they fall due over the period to 31 December 2025 (the ‘going concern period’). Consequently, the annual report and financial statements have been prepared on the going concern basis.
1.2
Compliance with accounting standards
The Company has applied FRS101 – Reduced Disclosure Framework in the preparation of its financial statements. The Company has prepared and presented these financial statements by applying the recognition, measurement and disclosure requirements of international accounting standards in conformity with the requirements of the Companies Act 2006 .
The Company's ultimate parent company, Capita plc, includes the Company in its consolidated financial statements. The consolidated financial statements are prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and with UK-adopted International Financial Reporting Standards ('IFRSs') and the Disclosure and the Transparency Rules of the UK's Financial Conduct Authority. They are available to the public and may be obtained from Capita plc’s website on https://www.capita.com/investors .
In these financial statements, the Company has applied the disclosure exemptions available under FRS 101 in respect of the following disclosures:
A cash flow statement and related notes;
Disclosures in respect of transactions with wholly owned subsidiaries;
Disclosures in respect of capital management;
The effects of new but not yet effective IFRSs;
Certain disclosures as required by IFRS 15 ; and
Disclosures in respect of the compensation of key management personnel
Since the consolidated financial statements of Capita plc include equivalent disclosures, the Company has also taken the disclosure exemptions under FRS 101 available in respect of the following disclosure:
CONTACT ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 10 -
1.3
Change in accounting policies
The Company has adopted the new amendments to standards detailed below but they do not have a material effect on the Company's financial statements.
New amendments or interpretations | |
IFRS 17 Insurance Contracts and amendments to IFRS 17 Insurance Contracts | |
Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) | |
Definition of Accounting Estimates (Amendments to IAS 8) | |
Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) | |
International Tax Reform - Pillar Two Model Rules (Amendments to IAS 12) | |
1.4
Revenue
Revenue is recognised either when the performance obligation in the contract has been performed (so ‘point-in-time’ recognition) or ‘over-time’ as control of the performance obligation is transferred to the customer.
Transactional (point-in-time) contracts
The Company delivers services that are transactional services for which revenue is recognised at the point in time when control of the services has transferred to the customer. This may be at the point when the customer obtains control of a service in a contract with customer-specified acceptance criteria.
Accrued income
Invoices for transactional services may be at delivery date or in arrears. Where invoices raised are less than the revenue recognised at the period end date, the Company recognises an accrued income contract asset for this difference.
CONTACT ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.5
Financial instruments
Trade and other receivables
Trade receivables are initially recognised at cost (being the same as fair value) and subsequently at amortised cost less any provision for impairment, to ensure the amounts recognised represent their recoverable amount.
For trade receivables, the Company applies the simplified approach permitted by IFRS 9 Financial instruments, resulting in trade receivables recognised and carried at original invoice amount less an allowance for any uncollectible amounts based on expected credit losses. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
Trade and other payables
Trade and other payables are recognised initially at cost (being same as fair value). Subsequent to initial recognition they are measured at amortised cost using the effective interest method.
Cash and cash equivalents
Cash and short-term deposits in the balance sheet comprise cash at bank and in hand and short-term deposits with original maturities of three months or less that are readily convertible in to known amounts of cash and which are subject to an insignificant risk of change in value. Bank overdrafts are shown within current financial liabilities.
Interest-bearing loans and borrowings
All loans and borrowings are initially recognised at their fair value less any directly attributable transaction costs. After initial recognition, loans and borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the income statement over the period of the borrowings using the effective interest method.
CONTACT ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.6
Taxation
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity or other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided, using the liability method, on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax assets and unused tax losses can be utilised, except where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.
1.7
Provisions
Provisions are recognised when the Company has a present legal or constructive obligation arising from past events, it is probable that cash will be paid to settle it, and the amount can be estimated reliably.
If the effect of the time value of money is material, provisions are discounted using the yield on government bonds which have a similar timing and currency of cash flows to the provision being discounted. Where required adjustments are made to the yields to reflect the risks specific to the cash flows being discounted. The unwinding of the discount is recognised as a financing cost in the income statement.
The value of the provision is determined based on assumptions and estimates in relation to the amount, timing and likelihood of actual cash flows, which are dependent on future events. Where no reliable basis of estimation can be made, no provision is recorded. However, contingent liabilities disclosures are given when there is a greater than remote probability of outflow of economic benefits.
On an ongoing basis, management monitor provisions and their accurate estimation when compared to final outcomes.
1.8
Pensions
The Company participates in defined contribution pension schemes and contributions are charged to the income statement in the year in which they are due. These schemes are funded and the payment of contributions is made to separately administered trust funds. The assets of these schemes are held separately from the Company. The Company remits monthly pension contributions to Capita Business Services Limited, a fellow subsidiary undertaking, which pays the Group liability centrally. Any unpaid contributions at the year-end are accrued in the accounts of that Company.
CONTACT ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.9
Leases
The Company leases various assets, comprising land and buildings, equipment and motor vehicles.
The determination whether an arrangement is, or contains, a lease is based on whether the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. At the inception of the lease, the Company recognises a right-of-use asset at cost, which comprises the present value of minimum lease payments determined at the inception of the lease. Right-of-use assets are depreciated using the straight-line method over the shorter of estimated life or the lease term.
Depreciation is included within administrative expenses in the income statement. Amendment to lease terms resulting in a change in payments or the length of the lease results in an adjustment to the right-of-use asset and liability. Right-of-use assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be fully recoverable. Right-of-use assets exclude leases with low values and terms of twelve months or less.
The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of twelve months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
2
Significant accounting judgements, estimates and assumptions
The preparation of financial statements in conformity with generally accepted accounting principles requires the Directors to make judgements and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies at the date of the financial statements and the reported income and expense during the reported periods. Although these judgements and assumptions are based on the Directors' best knowledge of the amount, events or actions, actual results may differ from these estimates.
3
Revenue
The total revenue of the Company for the year has been derived from its principal activity largely undertaken in the United Kingdom.
4
Operating Profit
Notes
2023
2022
Operating Profit for the year is stated after charging/(crediting):
£
£
Depreciation of right-of-use assets
-
8,741
Short term lease rentals
325,852
332,017
5
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2023
2022
£
£
Impairment of loan balances
2,769
2,769
-
CONTACT ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
6
Net finance income
2023
2022
£
£
Interest income
Interest income on bank balance
46,940
7,619
Interest receivable from Group companies
698,785
191,260
745,725
198,879
Interest expense
Interest expense on lease liabilities
-
(13)
(13)
Total net finance income
745,725
198,866
7
Income tax
The major components of income tax charge are:
2023
2022
£
£
Current tax
UK corporation tax
617,159
589,462
Adjustments in respect of prior periods
3,313
617,159
592,775
Deferred tax
Origination and reversal of temporary differences
(840)
(4,359)
Total tax charge
616,319
588,416
CONTACT ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Income tax
(Continued)
- 15 -
The charge for the year can be reconciled to the profit per the income statement as follows:
2023
2022
£
£
Profit before taxation
2,614,755
3,102,434
Expected tax charge based on the weighted average Corporation Tax rate of 23.52% (2022: 19.00%)
615,005
589,462
Expenses not deductible for tax purpose
1,364
Adjustment in respect of current income tax of prior periods
3,313
Adjustment in respect of deferred tax of prior periods
(4,359)
Impact of changes in statutory tax rates
(50)
-
Total adjustments
1,314
(1,046)
Total tax charge reported in the income statement
616,319
588,416
Balance sheet
Income statement
2023
2022
2023
2022
£
£
£
£
Deferred tax assets
Decelerated capital allowances
25,059
24,219
(840)
(4,359)
Deferred tax assets
25,059
24,219
Deferred tax credit to income statement
(840)
(4,359)
A change to the main UK corporation tax rate was substantively enacted on 24 May 2021. The rate applicable from 1 April 2023 increased from 19% to 25%. The deferred tax asset at 31 December 2023 has been calculated based on this rate.
CONTACT ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
8
Trade and other receivables
Current
2023
2022
£
£
Trade receivables
191,577
92,436
Amounts due from Group companies
16,518,518
13,469,278
Accrued income
69,705
89,940
16,779,800
13,651,654
Amounts due from group companies are repayable on demand. These are not chargeable to interest except for the amounts due from Capita Plc, on which interest is charged as per the prevailing Bank of England rates.
9
Cash and cash equivalents
2023
2022
£
£
Cash at bank and in hand
106,670
1,441,665
106,670
1,441,665
10
Trade and other payables
Current
2023
2022
£
£
Trade payables
14,320
8,455
Amount due to Group companies
15,665
38,878
Accruals
1,927
Other taxes and social security
173,207
182,144
Other payables
66
205,119
229,543
Amounts due to group companies are repayable on demand and are not chargeable to interest.
11
Provisions
2023
2022
£
£
Current
-
6,024
6,024
CONTACT ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Provisions
(Continued)
- 17 -
Property
£
At 1 January 2023
6,024
Utilised during the year
(6,024)
At 31 December 2023
The Company is required to perform repairs on leased properties prior to the properties being vacated at the end of their lease term. Dilapidations for such costs are made where legal obligation is identified and the liability can be reasonably quantified.
12
Share capital
2023
2022
2023
2022
Number
Number
£
£
Allotted, called up and fully paid
Ordinary shares of £1 each
At 1 January and 31 December
2
2
2
2
13
Employees
The average monthly number of employees (including non-executive directors) were:
2023
2022
Number
Number
Operations
36
40
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
1,112,935
1,145,325
Social security costs
114,846
119,673
Pension costs
33,323
31,326
1,261,104
1,296,324
14
Employee benefits
The Company offers defined contribution pension schemes. The pension charge for the defined contribution pension schemes for the year is £33,323 (2022: £31,326). The pension charge excludes pension contributions paid by the Company on behalf of employees via a salary sacrifice arrangement.
CONTACT ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
15
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
77,498
77,498
No Director has been paid by the Company (2022 : One) except being reimbursed for the expenses incurred by them whilst performing business responsibilities.
The Company has not paid any fees or other remuneration to the Group based Directors related to the directorship role they provided to the Company as a part of their Group-wide executive management role. The Company has estimated that allocation of the qualifying services that these Group based Directors provided to the Company is inconsequential.
16
Controlling party
The Company's immediate parent company is Capita Health Holdings Limited, a company incorporated in England and Wales. The Company's ultimate parent company is Capita plc, a company incorporated in England and Wales. The consolidated financial statements of Capita plc are available from its registered office at 65 Gresham Street, London, England, EC2V 7NQ .
17
Post balance sheet date events
There are no significant events which have occurred after the reporting period.
2023-12-312023-01-01Capita Corporate Director LimitedE H BrownellS BrewerG Bate-WilliamsC J GregoryCapita Group Secretary LimitedfalseCCH SoftwareiXBRL Review & Tag 2022.20For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.The members have not required the Company to obtain an audit of its financial statements for the year in question in accordance with section 476.056013932023-01-012023-12-3105601393bus:Director12023-01-012023-12-3105601393bus:Director52023-01-012023-12-3105601393bus:CompanySecretary12023-01-012023-12-3105601393bus:Director22023-01-012023-12-3105601393bus:Director32023-01-012023-12-3105601393bus:Director42023-01-012023-12-3105601393bus:RegisteredOffice2023-01-012023-12-3105601393bus:Agent12023-01-012023-12-31056013932023-12-31056013932022-01-012022-12-310560139312023-01-012023-12-310560139312022-01-012022-12-3105601393core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3105601393core:Non-currentFinancialInstruments2023-12-3105601393core:Non-currentFinancialInstruments2022-12-3105601393core:CurrentFinancialInstruments2023-12-3105601393core:CurrentFinancialInstruments2022-12-31056013932022-12-3105601393core:ShareCapital2023-12-3105601393core:ShareCapital2022-12-3105601393core:RetainedEarningsAccumulatedLosses2023-12-3105601393core:RetainedEarningsAccumulatedLosses2022-12-3105601393core:ShareCapital2021-12-3105601393core:RetainedEarningsAccumulatedLosses2021-12-31056013932021-12-3105601393core:LeasedAssets2023-01-012023-12-3105601393core:LeasedAssets2022-01-012022-12-3105601393core:AcceleratedTaxDepreciationDeferredTax2023-12-3105601393core:AcceleratedTaxDepreciationDeferredTax2022-12-3105601393core:AcceleratedTaxDepreciationDeferredTax2023-01-012023-12-3105601393core:AcceleratedTaxDepreciationDeferredTax2022-01-012022-12-3105601393core:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities2022-12-3105601393core:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities2023-12-3105601393core:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities2023-01-012023-12-310560139312023-01-012023-12-3105601393bus:PrivateLimitedCompanyLtd2023-01-012023-12-3105601393bus:FRS1012023-01-012023-12-3105601393bus:AuditExempt-NoAccountantsReport2023-01-012023-12-3105601393bus:FullAccounts2023-01-012023-12-3105601393bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP