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REGISTERED NUMBER: 11683410 (England and Wales)

















Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2023

for

Proactive Personnel Holdings Limited

Proactive Personnel Holdings Limited (Registered number: 11683410)






Contents of the Consolidated Financial Statements
for the year ended 31 December 2023




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Consolidated Statement of Comprehensive Income 10

Consolidated Statement of Financial Position 11

Company Statement of Financial Position 13

Consolidated Statement of Changes in Equity 14

Company Statement of Changes in Equity 15

Consolidated Statement of Cash Flows 16

Notes to the Consolidated Statement of Cash Flows 17

Notes to the Consolidated Financial Statements 19


Proactive Personnel Holdings Limited

Company Information
for the year ended 31 December 2023







DIRECTORS: P A Knight
J M Glews
Mrs L Glews



SECRETARY: Mrs R Rumble



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



REGISTERED NUMBER: 11683410 (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 Holdings Limited (Registered number: 11683410)

Group Strategic Report
for the year ended 31 December 2023

The directors present their strategic report of the company and the group for the year ended 31 December 2023.

REVIEW OF BUSINESS
The principal activity of the group during the year was that of a recruitment and employment agency.

The group 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 £34.6m compared with £40.8m 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 group'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 group'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 group's performance.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS
The group considers it good practice to have close communication with major customers and suppliers at all times to forge better working relationships, as a group the directors have always prided themselves on customer service levels above and beyond that of the competitors.

The group 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 group we believe it is important to pay our suppliers promptly and on time for the service they provide.

STATEMENT OF CORPORATE GOVERNANCE ARRANGEMENTS
The group is not required to make any disclosure.

FUTURE DEVELOPMENTS
The group is well positioned to enjoy further profitable growth.

The directors expect the group to continue to grow as market conditions improve. The group continues to review overheads to ensure costs are monitored and well controlled.

In the medium term, the group continues to look to expand the network of branches through organic growth. The group continues to develop the range of services it provides to its clients.


Proactive Personnel Holdings Limited (Registered number: 11683410)

Group Strategic Report
for the year ended 31 December 2023

FUTURE BUSINESS PROSPECTS
This report has been prepared in July 2024.

The group has enjoyed a profitable first 6 months of the year. The balance sheet remains strong and the group continues to have a good close 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 Holdings Limited (Registered number: 11683410)

Report of the Directors
for the year ended 31 December 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023.

DIVIDENDS
An interim dividend of £600 per share was paid on 20 July 2023. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2023 will be £ 600,000 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

P A Knight
J M Glews
Mrs L Glews

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 group is set out on page 2 of the financial statements.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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.


Proactive Personnel Holdings Limited (Registered number: 11683410)

Report of the Directors
for the year ended 31 December 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group'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 Holdings Limited

Opinion
We have audited the financial statements of Proactive Personnel Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2023 and of the group's 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 group 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 group's and the parent 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 Holdings Limited


Other information
The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on pages four and 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 group's and the parent 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 group or the parent 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 Holdings 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 Holdings 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 Holdings Limited (Registered number: 11683410)

Consolidated
Statement of Comprehensive
Income
for the year ended 31 December 2023

2023 2022
Notes £    £   

REVENUE 3 34,566,154 40,834,387

Cost of sales 27,272,097 32,068,520
GROSS PROFIT 7,294,057 8,765,867

Administrative expenses 6,846,858 7,216,203
447,199 1,549,664

Other operating income 4 141,577 11,641
OPERATING PROFIT 6 588,776 1,561,305

Interest receivable and similar income 46 242
Interest payable and similar expenses 8 (278,848 ) (135,581 )
PROFIT BEFORE TAXATION 309,974 1,425,966

Tax on profit 9 120,512 347,714
PROFIT FOR THE FINANCIAL YEAR 189,462 1,078,252

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

189,462

1,078,252

Profit attributable to:
Owners of the parent 175,451 969,442
Non-controlling interests 14,011 108,810
189,462 1,078,252

Total comprehensive income attributable to:
Owners of the parent 175,451 969,442
Non-controlling interests 14,011 108,810
189,462 1,078,252

Proactive Personnel Holdings Limited (Registered number: 11683410)

Consolidated Statement of Financial Position
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 12 2,219,017 2,516,915
Property, plant and equipment 13 1,329,118 1,210,296
Investments 14 - -
3,548,135 3,727,211

CURRENT ASSETS
Debtors 15 5,291,817 6,887,507
Cash at bank and in hand 65,185 130,565
5,357,002 7,018,072
CREDITORS
Amounts falling due within one year 16 7,162,109 8,838,254
NET CURRENT LIABILITIES (1,805,107 ) (1,820,182 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,743,028

1,907,029

CREDITORS
Amounts falling due after more than
one year

17

(533,161

)

(291,667

)

PROVISIONS FOR LIABILITIES 21 (86,536 ) (81,493 )
NET ASSETS 1,123,331 1,533,869

CAPITAL AND RESERVES
Called up share capital 22 1,000 1,000
Retained earnings 23 852,937 1,277,486
SHAREHOLDERS' FUNDS 853,937 1,278,486

NON-CONTROLLING INTERESTS 24 269,394 255,383
TOTAL EQUITY 1,123,331 1,533,869

Proactive Personnel Holdings Limited (Registered number: 11683410)

Consolidated Statement of Financial Position - continued
31 December 2023


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 Holdings Limited (Registered number: 11683410)

Company Statement of Financial Position
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 12 - -
Property, plant and equipment 13 - -
Investments 14 3,468,300 3,468,300
3,468,300 3,468,300

CURRENT ASSETS
Cash at bank 2,451 3,120

CREDITORS
Amounts falling due within one year 16 3,466,859 3,474,901
NET CURRENT LIABILITIES (3,464,408 ) (3,471,781 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,892

(3,481

)

CAPITAL AND RESERVES
Called up share capital 22 1,000 1,000
Retained earnings 23 2,892 (4,481 )
SHAREHOLDERS' FUNDS 3,892 (3,481 )

Company's profit for the financial year 607,373 1,096,781

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 Holdings Limited (Registered number: 11683410)

Consolidated Statement of Changes in Equity
for the year ended 31 December 2023

Called up
share Retained Non-controlling Total
capital earnings Total interests equity
£    £    £    £    £   
Balance at 1 January 2022 1,000 1,408,044 1,409,044 146,573 1,555,617

Changes in equity
Dividends - (1,100,000 ) (1,100,000 ) - (1,100,000 )
Total comprehensive income - 969,442 969,442 108,810 1,078,252
Balance at 31 December 2022 1,000 1,277,486 1,278,486 255,383 1,533,869

Changes in equity
Dividends - (600,000 ) (600,000 ) - (600,000 )
Total comprehensive income - 175,451 175,451 14,011 189,462
Balance at 31 December 2023 1,000 852,937 853,937 269,394 1,123,331

Proactive Personnel Holdings Limited (Registered number: 11683410)

Company Statement of Changes in Equity
for the year ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 1,000 (1,262 ) (262 )

Changes in equity
Dividends - (1,100,000 ) (1,100,000 )
Total comprehensive income - 1,096,781 1,096,781
Balance at 31 December 2022 1,000 (4,481 ) (3,481 )

Changes in equity
Dividends - (600,000 ) (600,000 )
Total comprehensive income - 607,373 607,373
Balance at 31 December 2023 1,000 2,892 3,892

Proactive Personnel Holdings Limited (Registered number: 11683410)

Consolidated Statement of Cash Flows
for the year ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,193,055 2,121,676
Interest paid (278,848 ) (135,581 )
Tax paid (210,784 ) (403,035 )
Net cash from operating activities 1,703,423 1,583,060

Cash flows from investing activities
Purchase of intangible fixed assets (1,065 ) (32,429 )
Purchase of tangible fixed assets (220,689 ) (1,003,191 )
Sale of fixed asset investments 14,930 -
Recalculation of intangible fixed assets - (16,200 )
Interest received 46 242
Net cash from investing activities (206,778 ) (1,051,578 )

Cash flows from financing activities
Loan to group undertaking in the year - (821,813 )
Loan repayments in year (269,308 ) (100,000 )
Amount introduced by directors 7,756 735,450
Amount withdrawn by directors (265,588 ) -
Equity dividends paid (600,000 ) (1,100,000 )
Net cash from financing activities (1,127,140 ) (1,286,363 )

Increase/(decrease) in cash and cash equivalents 369,505 (754,881 )
Cash and cash equivalents at beginning
of year

2

(4,306,310

)

(3,551,429

)

Cash and cash equivalents at end of
year

2

(3,936,805

)

(4,306,310

)

Proactive Personnel Holdings Limited (Registered number: 11683410)

Notes to the Consolidated 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 309,974 1,425,966
Depreciation charges 392,893 366,552
Profit on disposal of fixed assets (6,993 ) -
Finance costs 278,848 135,581
Finance income (46 ) (242 )
974,676 1,927,857
Decrease in trade and other debtors 1,621,609 410,559
Decrease in trade and other creditors (403,230 ) (216,740 )
Cash generated from operations 2,193,055 2,121,676

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 65,185 130,565
Bank overdrafts (4,001,990 ) (4,436,875 )
(3,936,805 ) (4,306,310 )
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 130,565 109,385
Bank overdrafts (4,436,875 ) (3,660,814 )
(4,306,310 ) (3,551,429 )


Proactive Personnel Holdings Limited (Registered number: 11683410)

Notes to the Consolidated 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 130,565 (65,380 ) 65,185
Bank overdrafts (4,436,875 ) 434,885 (4,001,990 )
(4,306,310 ) 369,505 (3,936,805 )
Debt
Debts falling due within 1 year (854,302 ) 510,802 (343,500 )
Debts falling due after 1 year (291,667 ) (241,494 ) (533,161 )
(1,145,969 ) 269,308 (876,661 )
Total (5,452,279 ) 638,813 (4,813,466 )

Proactive Personnel Holdings Limited (Registered number: 11683410)

Notes to the Consolidated Financial Statements
for the year ended 31 December 2023

1. STATUTORY INFORMATION

Proactive Personnel Holdings 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 General 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.

Financial Reporting Standard 102 - reduced disclosure exemptions
The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:

(a) No cash flow statement has been presented for the company.
(b) Disclosures in respect of financial instruments have not been presented.
(c) No disclosure has been given for the aggregate remuneration of key management personnel.

Basis of consolidation
The financial statements consolidate the financial statements of the Proactive Personnel Holdings Ltd and all of its subsidiary undertakings.

The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.

The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual statement of comprehensive income.

Turnover and other income
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services rendered, stated net of discounts and Value Added Tax.

Rendering of services :
Revenue from the rendering of services is measured by reference to the stage of completion of the service at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.

Interest receivable :
Interest income is recognised using the effective interest method.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2019, is being amortised evenly over its estimated useful life of ten years.

Proactive Personnel Holdings Limited (Registered number: 11683410)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of ten years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - 10% on cost and Straight line over the life of the lease
Fixtures and fittings - 10% on cost
Computer equipment - 10% on cost

Financial instruments
The group 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 Consolidated 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 Holdings Limited (Registered number: 11683410)

Notes to the Consolidated 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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

3. REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the group.

An analysis of revenue by class of business is given below:

2023 2022
£    £   
Rendering of services 34,566,154 40,834,387
34,566,154 40,834,387

Proactive Personnel Holdings Limited (Registered number: 11683410)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023

3. REVENUE - continued

An analysis of revenue by geographical market is given below:

2023 2022
£    £   
United Kingdom 34,566,154 40,834,387
34,566,154 40,834,387

4. OTHER OPERATING INCOME
2023 2022
£    £   
Sundry receipts 127,500 -
Government grants 14,077 11,641
141,577 11,641

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 26,672,002 30,872,470
Social security costs 2,188,891 2,548,312
Other pension costs 328,210 287,593
29,189,103 33,708,375

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

Administrative staff 105 107
Operational staff 1,024 1,352
1,129 1,459

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 563,312 660,830
Directors' pension contributions to money purchase schemes 41,038 13,611

Proactive Personnel Holdings Limited (Registered number: 11683410)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023

5. EMPLOYEES AND DIRECTORS - continued

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 4 4

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 185,114 195,260

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Other operating leases 224,205 191,059
Depreciation - owned assets 75,407 55,178
Profit on disposal of fixed assets (6,993 ) -
Goodwill amortisation 296,678 296,678
Computer software amortisation 20,808 14,696

7. AUDITORS' REMUNERATION
2023 2022
£    £   
Fees payable to the company's auditors for the audit of the
company's financial statements

22,988

18,083

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 262,468 135,581
Mortgage interest 15,796 -
Interest on overdue taxation 584 -
278,848 135,581

Proactive Personnel Holdings Limited (Registered number: 11683410)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023

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 115,469 311,787

Deferred tax 5,043 35,927
Tax on profit 120,512 347,714

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 309,974 1,425,966
Profit multiplied by the standard rate of corporation tax in the UK
of 23.517 % (2022 - 19 %)

72,897

270,934

Effects of:
Expenses not deductible for tax purposes 10,628 12,811
Income not taxable for tax purposes (34,427 ) -
Depreciation in excess of capital allowances 71,414 63,072
Adjustments to tax charge in respect of previous periods - 916


Group transactions excluded - (19 )
Total tax charge 120,512 347,714

10. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


11. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 600,000 1,100,000

Proactive Personnel Holdings Limited (Registered number: 11683410)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023

12. INTANGIBLE FIXED ASSETS

Group
Computer
Goodwill software Totals
£    £    £   
COST
At 1 January 2023 2,966,785 159,100 3,125,885
Additions - 1,065 1,065
Recalculation - 98,100 98,100
At 31 December 2023 2,966,785 258,265 3,225,050
AMORTISATION
At 1 January 2023 542,560 66,410 608,970
Amortisation for year 296,678 20,808 317,486
Reclassification/transfer - 79,577 79,577
At 31 December 2023 839,238 166,795 1,006,033
NET BOOK VALUE
At 31 December 2023 2,127,547 91,470 2,219,017
At 31 December 2022 2,424,225 92,690 2,516,915

Proactive Personnel Holdings Limited (Registered number: 11683410)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023

13. PROPERTY, PLANT AND EQUIPMENT

Group
Fixtures
Freehold Short and Computer
property leasehold fittings equipment Totals
£    £    £    £    £   
COST
At 1 January 2023 887,789 254,699 242,237 533,830 1,918,555
Additions 65,565 84,878 38,919 31,327 220,689
Disposals - (196,143 ) (61,980 ) (2,034 ) (260,157 )
Reclassification/transfer - - - (98,100 ) (98,100 )
At 31 December 2023 953,354 143,434 219,176 465,023 1,780,987
DEPRECIATION
At 1 January 2023 - 224,698 176,184 307,377 708,259
Charge for year - 22,272 15,785 37,350 75,407
Eliminated on disposal - (193,148 ) (57,421 ) (1,651 ) (252,220 )
Reclassification/transfer - - - (79,577 ) (79,577 )
At 31 December 2023 - 53,822 134,548 263,499 451,869
NET BOOK VALUE
At 31 December 2023 953,354 89,612 84,628 201,524 1,329,118
At 31 December 2022 887,789 30,001 66,053 226,453 1,210,296

14. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 3,468,300
NET BOOK VALUE
At 31 December 2023 3,468,300
At 31 December 2022 3,468,300

Proactive Personnel Holdings Limited (Registered number: 11683410)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023

14. FIXED ASSET INVESTMENTS - continued

The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Subsidiaries

Proactive Personnel Limited
Registered office: Hadley Park East, Hadley, Telford, Shropshire, TF1 6QJ
Nature of business: Recruitment and employment agency
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 1,856,689 2,044,745
Profit for the year 421,944 985,049

Proactive Personnel (West Midlands) Limited
Registered office: Hadley Park East, Hadley, Telford, Shropshire, TF1 6QJ
Nature of business: Recruitment and employment agency
%
Class of shares: holding
Ordinary 73.00
2023 2022
£    £   
Aggregate capital and reserves 603,577 551,683
Profit for the year 51,894 403,000


15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2023 2022
£    £   
Trade debtors 4,731,620 6,369,709
Other debtors 360,392 364,773
Directors' current accounts 25,919 -
Prepayments 173,886 153,025
5,291,817 6,887,507

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 £4,731,508 (2022 - £6,389,790).

Proactive Personnel Holdings Limited (Registered number: 11683410)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 18) 4,114,490 4,598,177 - 61,302
Other loans (see note 18) 231,000 693,000 231,000 693,000
Trade creditors 139,384 166,256 - -
Amounts owed to group undertakings - - 3,233,858 2,718,599
Tax 95,469 190,784 - -
Social security and other taxes 474,045 512,744 - -
VAT 990,631 892,460 - -
Other creditors 61,706 52,589 - -
Directors' current accounts 232,083 463,996 - -
Accruals and deferred income 805,743 1,268,248 2,001 2,000
Deferred government grants 17,558 - - -
7,162,109 8,838,254 3,466,859 3,474,901

The company has an invoice discounting agreement. The amount outstanding in respect of this agreement at 31 December 2023 was £4,001,990 (2022 - £4,436,875). This is represented by the bank overdraft figure above. The invoice discounting company holds a fixed charge over book debts as security against borrowings.

Bank loans includes a Coronavirus Business Interruption Loan (CBIL) and a mortgage loan.

The CBIL is supported by the Coronavirus Business Interruption Loan Scheme (CBILS), managed by the British Business bank, on behalf of, and with the financial backing of, the Secretary of State for Business, Energy and Industrial Strategy.

The mortgage loan is secured on the assets of the company.

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group
2023 2022
£    £   
Bank loans (see note 18) 533,161 291,667

Bank loans includes a Coronavirus Business Interruption Loan (CBIL) and a mortgage loan.

The CBIL is supported by the Coronavirus Business Interruption Loan Scheme (CBILS), managed by the British Business bank, on behalf of, and with the financial backing of, the Secretary of State for Business, Energy and Industrial Strategy.

The mortgage loan is secured on the assets of the company.

Proactive Personnel Holdings Limited (Registered number: 11683410)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023

18. LOANS

An analysis of the maturity of loans is given below:

Group Company
2023 2022 2023 2022
£    £    £    £   
Amounts falling due within one year or on demand:
Bank overdrafts 4,001,990 4,436,875 - -
Bank loans 112,500 161,302 - 61,302
Other loans 231,000 693,000 231,000 693,000
4,345,490 5,291,177 231,000 754,302
Amounts falling due between one and two years:
Bank loans - 1-2 years 113,000 100,000 - -
Amounts falling due between two and five years:
Bank loans - 2-5 years 420,161 191,667 - -

19. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 377,409 291,363
Between one and five years 440,532 242,069
817,941 533,432

Proactive Personnel Holdings Limited (Registered number: 11683410)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023

20. SECURED DEBTS

The following secured debts are included within creditors:

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank overdrafts 4,001,990 4,436,875 - -
Bank loans - - - 61,302
Other loans 231,000 693,000 231,000 693,000
4,232,990 5,129,875 231,000 754,302

The bank overdraft, bank and other loans are secured by fixed and floating charges over the assets of the company and over the assets of Proactive Personnel Ltd, it's subsidiary company.

21. PROVISIONS FOR LIABILITIES

Group
2023 2022
£    £   
Deferred tax 86,536 81,493

Group
Deferred
tax
£   
Balance at 1 January 2023 81,493
Provided during year 5,043
Balance at 31 December 2023 86,536

22. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1,000 Ordinary £1 1,000 1,000

Proactive Personnel Holdings Limited (Registered number: 11683410)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023

23. RESERVES

Group
Retained
earnings
£   

At 1 January 2023 1,277,486
Profit for the year 175,451
Dividends (600,000 )
At 31 December 2023 852,937

Company
Retained
earnings
£   

At 1 January 2023 (4,481 )
Profit for the year 607,373
Dividends (600,000 )
At 31 December 2023 2,892

Retained earnings - This reserve records retained earning and accumulated losses.

24. NON-CONTROLLING INTERESTS

Minority interests in the net assets of consolidated subsidiaries are identified separately from the Group’s equity. Minority interests consist of the amount of those interests at the date of the original business combination and the minority’s share of changes in equity since the date of the combination.

25. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following directors had interest free loans during the period. The movements on these loans are as follows :



2023

2022
Maximum in
period
£ £ £
J Glews 25,316 - 273,956
L Glews - - 868
D Gordon 603 4,481 4,895




Proactive Personnel Holdings Limited (Registered number: 11683410)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023

26. RELATED PARTY DISCLOSURES

During the year, total dividends of £600,000 (2022 - £1,100,000) were paid to the directors .

Group

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Company

During the year the company operated a loan account with Proactive Personnel Ltd, its subsidiary company. At the balance sheet date there was a balance due to Proactive Personnel Ltd of £3,224,447 (2022 - £2,709,188). No interest was charged on this loan.

In 2019 Proactive Personnel Holdings Ltd raised finance of £3,450,000 in order to fund the purchase of it's investments. This funding is secured by charges over the assets of Proactive Personnel Ltd. At the balance sheet date the value of the finance outstanding was £231,000 (2022 - £754,302). This amount is shown in the accounts of Proactive Personnel Holdings Ltd in creditors due within one year.

During the year the company operated a loan account with Proactive Personnel (West Midlands) Ltd, its subsidiary company. At the balance sheet date there was a balance due to Proactive Personnel (West Midlands) Ltd of £9,411 (2022 - £9,411). No interest was charged on this loan.

During the year the company received a dividend of £610,000 (2022 - £1,110,000) from Proactive Personnel Ltd.

Proactive Personnel Holdings Limited (Registered number: 11683410)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023

27. GOVERNMENT GRANTS

The amounts recognised in other operating income for government grants are as follows:


Group Company
2023 2022 2023 2022
£ £ £ £
Apprenticeship levy 10,135 11,641 - -
Capital grant 3,942 - - -
14,077 11,641 - -

Capital Grant 2023 2022 2023 2022
£ £ £ £
At 1 January 2022 - - - -
Grant received or receivable in the
year

21,500

-

-

-
Released to the profit and loss account (3,942) - - -
At 31 December 2023 17,558 - - -

The amounts recognised in the audited financial statements for
capital grants are as follows :

2023 2022 2023 2022
£ £ £ £
Recognised in accruals and deferred income :
Deferred capital grants 17,558 - - -

Recognised in other operating income :
Capital grant released to the profit and
loss account

3,942

-

-

-

Deferred capital grant income relates to a grant received for the refit of leasehold property.