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REGISTERED NUMBER: 04056480 (England and Wales)

















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: J M Glews
Mrs L M Glews
P A Knight



SECRETARY: Mrs R Rumble



REGISTERED OFFICE: Proactive House
Hadley Park East
Hadley
Telford
Shropshire
TF1 6QJ



REGISTERED NUMBER: 04056480 (England and Wales)



AUDITORS: WR Partners
Chartered Accountants and Statutory Auditor
Belmont House
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG



BANKERS: HSBC Bank Plc
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:





J M Glews - Director


19 September 2024

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.

J M Glews
Mrs L M Glews
P A Knight

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:





J M Glews - Director


19 September 2024

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.




Helen Pierce (Senior Statutory Auditor)
for and on behalf of WR Partners
Chartered Accountants and Statutory Auditor
Belmont House
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

19 September 2024

Proactive Personnel (West Midlands)
Limited (Registered number: 04056480)

Statement of Comprehensive
Income
for the year ended 31 December 2023

2023 2022
Notes £    £   

REVENUE 3 6,639,558 9,489,418

Cost of sales 5,027,729 7,329,925
GROSS PROFIT 1,611,829 2,159,493

Administrative expenses 1,599,576 1,773,989
12,253 385,504

Other operating income 4 86,338 136,575
OPERATING PROFIT 6 98,591 522,079

Interest receivable and similar income 8,321 -
106,912 522,079

Interest payable and similar expenses 8 37,486 18,480
PROFIT BEFORE TAXATION 69,426 503,599

Tax on profit 9 17,532 100,599
PROFIT FOR THE FINANCIAL YEAR 51,894 403,000

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

51,894

403,000

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 41,563 48,208

CURRENT ASSETS
Debtors 12 1,802,740 1,585,802
Cash at bank and in hand 20,272 33,382
1,823,012 1,619,184
CREDITORS
Amounts falling due within one year 13 1,252,190 1,105,288
NET CURRENT ASSETS 570,822 513,896
TOTAL ASSETS LESS CURRENT
LIABILITIES

612,385

562,104

PROVISIONS FOR LIABILITIES 16 8,808 10,421
NET ASSETS 603,577 551,683

CAPITAL AND RESERVES
Called up share capital 17 100 100
Share premium 18 21,978 21,978
Retained earnings 18 581,499 529,605
SHAREHOLDERS' FUNDS 603,577 551,683

The financial statements were approved by the Board of Directors and authorised for issue on 19 September 2024 and were signed on its behalf by:





J M Glews - Director


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 100 126,605 21,978 148,683

Changes in equity
Total comprehensive income - 403,000 - 403,000
Balance at 31 December 2022 100 529,605 21,978 551,683

Changes in equity
Total comprehensive income - 51,894 - 51,894
Balance at 31 December 2023 100 581,499 21,978 603,577

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 1 456,711 422,619
Interest paid (37,486 ) (18,480 )
Tax paid (97,116 ) (68,446 )
Net cash from operating activities 322,109 335,693

Cash flows from investing activities
Purchase of tangible fixed assets (4,135 ) (14,720 )
Interest received 8,321 -
Net cash from investing activities 4,186 (14,720 )

Cash flows from financing activities
Loan from group undertakings (1,050,701 ) (245,941 )
Net cash from financing activities (1,050,701 ) (245,941 )

(Decrease)/increase in cash and cash equivalents (724,406 ) 75,032
Cash and cash equivalents at beginning
of year

2

(41,280

)

(116,312

)

Cash and cash equivalents at end of
year

2

(765,686

)

(41,280

)

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 69,426 503,599
Depreciation charges 10,780 10,849
Finance costs 37,486 18,480
Finance income (8,321 ) -
109,371 532,928
Decrease/(increase) in trade and other debtors 554,934 (101,194 )
Decrease in trade and other creditors (207,594 ) (9,115 )
Cash generated from operations 456,711 422,619

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 (785,958 ) (74,662 )
(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 (74,662 ) (154,291 )
(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 ) (724,406 ) (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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Short leasehold property - 10% on cost
Fixtures and fittings - 10% on cost
Computer equipment - 10% on cost

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
£    £   
Rendering of services 6,639,558 9,489,418
6,639,558 9,489,418

An analysis of revenue by geographical market is given below:

2023 2022
£    £   
United Kingdom 6,639,558 9,489,418
6,639,558 9,489,418

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 84,046 133,300
Government grants 2,292 3,275
86,338 136,575

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 4,819,080 6,968,907
Social security costs 380,293 549,522
Other pension costs 51,010 61,154
5,250,383 7,579,583

The average number of employees during the year was as follows:
2023 2022

Operational staff 217 314
Administrative staff 18 19
235 333

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 53,798 49,953
Depreciation - owned assets 10,780 10,849

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 37,399 5,689
Interest paid on overdue
taxation 87 -
Interest payable - 12,791
37,486 18,480

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 19,145 97,202

Deferred tax (1,613 ) 3,397
Tax on profit 17,532 100,599

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 69,426 503,599
Profit multiplied by the standard rate of corporation tax in the UK
of 23.498% (2022 - 19%)

16,314

95,684

Effects of:
Expenses not deductible for tax purposes 1,321 3,254
Capital allowances in excess of depreciation (6 ) (839 )

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 34,681 47,059 60,208 141,948
Additions 570 1,420 2,145 4,135
At 31 December 2023 35,251 48,479 62,353 146,083
DEPRECIATION
At 1 January 2023 28,380 33,814 31,546 93,740
Charge for year 2,305 3,169 5,306 10,780
At 31 December 2023 30,685 36,983 36,852 104,520
NET BOOK VALUE
At 31 December 2023 4,566 11,496 25,501 41,563
At 31 December 2022 6,301 13,245 28,662 48,208

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 943,447 1,487,857
Amounts owed by group undertakings 781,283 9,411
Other debtors 61,233 71,722
Prepayments 16,777 16,812
1,802,740 1,585,802

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) 785,958 74,662
Trade creditors 4,086 2,682
Amounts owed to group undertakings - 278,829
Tax 19,145 97,116
Social security and other taxes 73,420 108,720
VAT 165,068 239,672
Other creditors 6,545 10,261
Accruals and deferred income 197,968 293,346
1,252,190 1,105,288

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 785,958 74,662

15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 88,862 86,256
Between one and five years 62,829 23,849
151,691 110,105

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 10,421
Accelerated capital allowances (1,613 )
Effect of change in rate
Balance at 31 December 2023 8,808

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
100 Ordinary 1 100 100

18. RESERVES
Retained Share
earnings premium Totals
£    £    £   

At 1 January 2023 529,605 21,978 551,583
Profit for the year 51,894 51,894
At 31 December 2023 581,499 21,978 603,477

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 Holdings Ltd..

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.