REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements |
for the Year Ended 31 December 2023 |
for |
Proactive Personnel (West Midlands) |
Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements |
for the Year Ended 31 December 2023 |
for |
Proactive Personnel (West Midlands) |
Limited |
Proactive Personnel (West Midlands) |
Limited (Registered number: 04056480) |
Contents of the Financial Statements |
for the year ended 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Statement of Cash Flows | 13 |
Notes to the Statement of Cash Flows | 14 |
Notes to the Financial Statements | 16 |
Proactive Personnel (West Midlands) |
Limited |
Company Information |
for the year ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditor |
Belmont House |
Shrewsbury Business Park |
Shrewsbury |
Shropshire |
SY2 6LG |
BANKERS: |
PO Box |
130 New Street |
Birmingham |
B2 4JU |
Proactive Personnel (West Midlands) |
Limited (Registered number: 04056480) |
Strategic Report |
for the year ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The principal activity of the company during the year was that of a recruitment and employment agency. |
The company has maintained its recovery post pandemic despite the supply chain difficulties, the economic slowdown and the cost of borrowing. The financial reports reflect sales of £6.6m compared with £9.5m in 2022. Whilst profits were reduced in 2023 due to the factors outlined, the company is in a strong position to move forward. |
PRINCIPAL RISKS AND UNCERTAINTIES |
There are risks and uncertainties which could impact on the company's performance in the longer term. The board of directors have carried out a risk assessment to identify, manage and mitigate business risk. |
ENGAGEMENT WITH EMPLOYEES |
The company's policy is to consult and discuss with employees, via one to one and group meetings, matters likely to affect employee interests. Information of matters of concern to employees is given through, newsletters, bulletins and reports which seek to achieve a common awareness of all employees of the financial and economic factors affecting the company's performance |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
The company considers it good practice to have close communication with major customers and suppliers at all times to forge better working relationships, as a company the directors have always prided themselves on customer service levels above and beyond that of the competitors. |
The company agrees terms and conditions for its business transactions with suppliers before orders are placed. Payments are then made in accordance with these obligations. |
As a company we believe it is important to pay our suppliers promptly and on time for the service they provide. |
STATEMENT OF CORPORATE GOVERNANCE ARRANGEMENTS |
The company is not required to make any disclosure. |
FUTURE DEVELOPMENTS |
The company is well positioned to enjoy further profitable growth. |
The directors expect the company to continue to grow as market conditions improve. The company continues to review overheads to ensure costs are monitored and well controlled. |
In the medium term, the company continues to look to expand the network of branches through organic growth. The company continues to develop the range of services it provides to its clients. |
Proactive Personnel (West Midlands) |
Limited (Registered number: 04056480) |
Strategic Report |
for the year ended 31 December 2023 |
FUTURE BUSINESS PROSPECTS |
This report has been prepared in July 2024. |
The company has enjoyed a profitable first 6 months of the year. The balance sheet remains strong and the company continues to have a good working relationship with its bankers. |
The profit and turnover levels in the first 6 months of 2024 have been encouraging and indications are that these will continue to be built on during the remainder of the year. |
ON BEHALF OF THE BOARD: |
Proactive Personnel (West Midlands) |
Limited (Registered number: 04056480) |
Report of the Directors |
for the year ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
FUTURE DEVELOPMENTS |
The company is well positioned to enjoy further profitable growth. |
The directors expect the company to continue to grow as market conditions improve. The company continues to review overheads to ensure costs are monitored and well controlled. |
In the medium term the company continues to look to expand the network of branches through organic growth. The company continues to develop the range of services it provides to its clients. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
EMPLOYMENT OF DISABLED PERSONS |
The company is committed to providing equal opportunities to all employees, irrespective of disability. |
EMPLOYEE INVOLVEMENT |
The company consults with employees on matters that are of concern to them on a regular basis. The company has continued the policy regarding the employment of disabled persons. Full and fair consideration is given to applications for employment made by disabled persons having regard to their particular aptitudes and abilities. Appropriate training is arranged for disabled persons, including retraining for alternative work of employees who become disabled, to promote their career development within the organisation. |
DISCLOSURE IN THE STRATEGIC REPORT |
The strategic report of the company is set out on page 2 of the financial statements. |
Proactive Personnel (West Midlands) |
Limited (Registered number: 04056480) |
Report of the Directors |
for the year ended 31 December 2023 |
DIRECTORS' RESPONSIBILITIES STATEMENT |
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). 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. |
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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Proactive Personnel (West Midlands) |
Limited |
Opinion |
We have audited the financial statements of Proactive Personnel (West Midlands) Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its 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 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. |
Conclusions relating to going concern |
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. |
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 directors with respect to going concern are described in the relevant sections of this report. |
Report of the Independent Auditors to the Members of |
Proactive Personnel (West Midlands) |
Limited |
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 year 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. |
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 Directors' Responsibilities Statement set out on page five, 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. |
Report of the Independent Auditors to the Members of |
Proactive Personnel (West Midlands) |
Limited |
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: |
Our approach to identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
a) the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities, and skills to identify or recognise non-compliance with applicable laws and regulations; |
b) we identified the laws and regulations applicable to the company through discussion with directors and other senior management, and from our commercial knowledge and experience of the recruitment sector; |
c) we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection and employment; |
d) we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; |
e) identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
a) making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected, and alleged fraud; |
b) considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
a) performed analytical procedures to identify any unusual or unexpected relationships; |
b) tested journal entries to identify unusual transactions; |
c) assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; |
d) investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
a) agreeing financial statement disclosures to underlying supporting documentation; |
b) enquiring of management as to actual and potential litigation and claims; |
c) reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. |
Report of the Independent Auditors to the Members of |
Proactive Personnel (West Midlands) |
Limited |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
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. |
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 Auditor |
Belmont House |
Shrewsbury Business Park |
Shrewsbury |
Shropshire |
SY2 6LG |
Proactive Personnel (West Midlands) |
Limited (Registered number: 04056480) |
Statement of Comprehensive |
Income |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
REVENUE | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
12,253 | 385,504 |
Other operating income | 4 |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
106,912 | 522,079 |
Interest payable and similar expenses | 8 |
PROFIT BEFORE TAXATION |
Tax on profit | 9 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Proactive Personnel (West Midlands) |
Limited (Registered number: 04056480) |
Statement of Financial Position |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 11 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
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 |
Proactive Personnel (West Midlands) |
Limited (Registered number: 04056480) |
Statement of Changes in Equity |
for the year ended 31 December 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 December 2023 |
Proactive Personnel (West Midlands) |
Limited (Registered number: 04056480) |
Statement of Cash Flows |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
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 |
Loan from group undertakings | (1,050,701 | ) | (245,941 | ) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
(41,280 |
) |
(116,312 |
) |
Cash and cash equivalents at end of year |
2 |
( |
) |
( |
) |
Proactive Personnel (West Midlands) |
Limited (Registered number: 04056480) |
Notes to the Statement of Cash Flows |
for the year ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Finance costs | 37,486 | 18,480 |
Finance income | (8,321 | ) | - |
109,371 | 532,928 |
Decrease/(increase) 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 Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 20,272 | 33,382 |
Bank overdrafts | ( |
) | ( |
) |
(765,686 | ) | (41,280 | ) |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 33,382 | 37,979 |
Bank overdrafts | ( |
) | ( |
) |
(41,280 | ) | (116,312 | ) |
Proactive Personnel (West Midlands) |
Limited (Registered number: 04056480) |
Notes to the Statement of Cash Flows |
for the year ended 31 December 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 33,382 | (13,110 | ) | 20,272 |
Bank overdrafts | (74,662 | ) | (711,296 | ) | (785,958 | ) |
(41,280 | ) | ( |
) | (765,686 | ) |
Total | (41,280 | ) | (724,406 | ) | (765,686 | ) |
Proactive Personnel (West Midlands) |
Limited (Registered number: 04056480) |
Notes to the Financial Statements |
for the year ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Proactive Personnel (West Midlands) Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Short leasehold property | - |
Fixtures and fittings | - |
Computer equipment | - |
Financial instruments |
The company has financial assets and financial liabilities of a kind that qualify as basic financial instruments. |
Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price and subsequently carried at amortised cost with an assessment for objective evidence of impairment. Any impairment is recognised in profit and loss. |
Financial assets are derecognised when (a) a contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards or control of the ownership of the asset are transferred to another party. |
Basic financial liabilities including trade and other creditors are initially recognised at transaction price and subsequently carried at amortised cost. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
Taxation |
Taxation for the year 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 statement of financial position date. |
Proactive Personnel (West Midlands) |
Limited (Registered number: 04056480) |
Notes to the Financial Statements - continued |
for the year ended 31 December 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 statement of financial position 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 year 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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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. |
3. | REVENUE |
The revenue and profit before taxation are attributable to the one principal activity of the company. |
An analysis of revenue by class of business is given below: |
2023 | 2022 |
£ | £ |
An analysis of revenue by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom |
Proactive Personnel (West Midlands) |
Limited (Registered number: 04056480) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
3. | REVENUE - continued |
The whole of the turnover is attributable to the principle activity of the company wholly undertaken in the United Kingdom. |
4. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Management charges receivable |
Government grants |
86,338 | 136,575 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Operational staff | 217 | 314 |
Administrative staff | 18 | 19 |
Operational employees are retained under a contract for services and are used in the daily operation of the company as a recruitment and employment agency. |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Proactive Personnel (West Midlands) |
Limited (Registered number: 04056480) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
7. | AUDITORS' REMUNERATION |
2023 | 2022 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
6,926 |
6,000 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest |
Interest paid on overdue |
taxation |
Interest payable |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
Proactive Personnel (West Midlands) |
Limited (Registered number: 04056480) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
9. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Effects of change in tax rates | (97 | ) | 2,500 |
Total tax charge | 17,532 | 100,599 |
10. | EMPLOYEE BENEFITS |
Defined contribution plans |
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £51,010 (2022 - £61,154). |
Proactive Personnel (West Midlands) |
Limited (Registered number: 04056480) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
11. | PROPERTY, PLANT AND EQUIPMENT |
Short | Fixtures |
leasehold | and | Computer |
property | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Prepayments |
The company has an invoice discounting agreement. The trade debtors shown above are covered by this agreement. |
The financed debt included in trade debtors as at 31 December 2023 was £943,335 (2022 - £1,507,938). |
Proactive Personnel (West Midlands) |
Limited (Registered number: 04056480) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 14) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
VAT | 165,068 | 239,672 |
Other creditors |
Accruals and deferred income |
The company has an invoice discounting agreement. The amount outstanding in respect of this agreement at 31 December 2023 was £785,958 (2022 - £74,662). This is included in the bank overdraft figure above. The invoice discounting company holds a fixed charge over book debts as security against borrowings. |
14. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
15. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
16. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 8,808 | 10,421 |
Proactive Personnel (West Midlands) |
Limited (Registered number: 04056480) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
16. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Accelerated capital allowances | (1,613 | ) |
Effect of change in rate |
Balance at 31 December 2023 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | 1 | 100 | 100 |
18. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2023 | 551,583 |
Profit for the year |
At 31 December 2023 | 603,477 |
Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. |
Profit and loss account - This reserve records retained earnings and accumulated profits. |
19. | RELATED PARTY DISCLOSURES |
During the year the company purchased goods and services from Proactive Personnel Limited, its parent company, to the value of £737,801 (2022 - £787,100). At the balance sheet date there was a ledger balance of £179,362 (2022 - £163,553) due to Proactive Personnel Limited. |
At the year end there was also a loan balance of £951,233 (2022 - due to £115,276) due from Proactive Personnel Limited. |
Interest on the above balances was charged at a commercial rate. |
At the year end there was also a loan balance of £9,411 (2022 - £9,411) due from Proactive Personnel Holdings Limited the ultimate controlling party. No interest was charged on this loan. |
Proactive Personnel (West Midlands) |
Limited (Registered number: 04056480) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
20. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is |
Proactive Personnel Limited has ownership of 73% of the issued share capital of the company. On 8 March 2019 Proactive Personnel Holdings Ltd became the ultimate controlling party of Proactive Personnel Limited by virtue of having ownership of more than 75% of the issued share capital. Therefore Proactive Personnel Holdings Ltd, is considered to be the controlling party of the company. |
The group accounts of Proactive Personnel Holdings Ltd are publicly available from Companies House. |
21. | GOVERNMENT GRANTS |
The amounts recognised in the financial statements for government grants are as follows: |
2023 | 2022 |
£ | £ |
Apprenticeship Levy | 2,292 | 3,275 |
2,292 | 3,275 |
Government grants include apprenticeship levy funding received in the year. |